An organisational innovation is the implementation of a new organisational method in the firm's business practices, workplace organisation or external relations.
Organisational innovations can be intended to increase a firm's performance by reducing administrative costs or transaction costs, improving workplace satisfaction (and thus labour productivity), gaining access to nontradable assets (such as non-codified external knowledge) or reducing costs of supplies.
The distinguishing features of an organisational innovation compared to other organisational changes in a firm is the implementation of an organisational method (in business practices, workplace organisation or external relations) that has not been used before in the firm and is the result of strategic decisions taken by management.
Related concepts
Statistical data
Source
- OECD/Eurostat, "The measurement of scientific and technological activities: guidelines for collecting and interpreting innovation data: Oslo manual", Third Edition, Paris, 2005 - pdf