Essay Sample: Network Centrality, Power and Innovation Involvement

Published: 2022-11-09
Essay Sample: Network Centrality, Power and Innovation Involvement
Type of paper:  Article review
Categories: Social networks
Pages: 6
Wordcount: 1615 words
14 min read

This article presents on networks centrality, power and innovation involvement. Various organizational scholars are concerned about the origins of innovations and power in organizations. The traditional perspective of economics demonstrates views, network centrality, power, and innovation from an organization perspective as being similar, or alike. In addition to that, traditional economics dictates that innovation is a direct consequence of profit-maximization by an individual firm. However, the existing literature on network centrality, power, and innovation, points out that these concepts are unique in a firm given the differences in leadership structure, organization culture, and the way they operate. This paper, therefore, seeks to analyze the importance of network centrality, power and innovation involvement in organizations.

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Network centrality and power in organizations

The concept of power is defined as the ability of an organization to achieve its desired objectives by overcoming resistance. The major sources of power are characterized by both structural and personal sources. The structural power can be into both informal and from formal structures such as network centrality, subunit membership, and formal authority. Professional activity, education, seniority, and experience are the most important attributes of an individual that form personal sources of power. While the formal structural sources of power include the discretion over a number of resources or responsibility that conforms to the formal authority. Network centrality implies the different degree of control and access over the resources of that are highly valued, moreover, it is also based on the on a higher position in a hierarchy.

Innovation involvement

Much of the existing literature on innovation focuses on how it has been incorporated into large organizations. This is mainly due to the existence of agency problems that arise from different interests between the stakeholders of such companies- shareholders and managers. The shareholders need to be assured that any initiative that the company makes will lead to an increase in the profitability of an organization, and ultimately a higher dividend. On the other hand, the management wants to be provided with enough freedom so that it can explore, and assess the market for new opportunities and threats. In such organizations, there is a clear separation between the ownership and control of a firm. Therefore, much of the research that has been conducted focuses on providing solutions to the agency problem that exists in large corporations by ensuring that the separation between the ownership and control of the company.

Innovation and production of knowledge mainly depend on the creativity of the personnel that works in a certain firm, and their willingness to take various risks. For instance, for real innovation to take place in a firm, the employees who are responsible with coming up with the idea need to have enough knowledge and skills that they will use to convince the management that their ideas will be helpful to the company from an economic perspective. Once they are successful in convincing them, they will be able to change the strategies and structures that an organization uses and facilitate the innovation process. The leadership or management of an organization will play a central role in helping the organization realize its innovation objectives.

Organizations should be able to assess the current situation in the market in order to identify existing problems. They will then assess their talent level, and capability to address the problems through the creation, or remodeling of an existing product, or service, which will lead to the creation of value for the customer, and increased sales, and revenue for the organization. This means that an organization will have to undertake the obligation to manage its innovation strategies through the use of both the financial, and technical means. In addition to that, they will have to recruit the right personnel in order to ensure that they achieve their innovation capability.

There are different existing aims of innovation, which can lead to economic development and organizational growth. For instance, there are instances when innovation leads to the production of a new product. Also, innovation can facilitate the creation of new processes of production or new sources of supply. In this case, it shows that different innovation approaches can be taken or followed, and they will still facilitate economic growth and development of an organization. However, there is a need to ensure that the innovation aspects are properly governed or managed by an individual organization in order to facilitate the economic growth of the firm.

While most companies have made valuable, or high investments in their business processes, and even tools of product to develop, and re-modify their products, or services, they have invested little in terms of innovation strategy, and execution. For most of these companies, their innovation processes mainly involve just brain-storming ideas from some of the employees, which is noted down, and then implemented whenever an organization sees an opportunity. While this may be effective in various cases, it does not bring out the innovative capability of a business. Innovation governance is an important concept for an organization as it helps the organization determine the critical decisions that it will follow, assess the costs, and also the value of these products.

Impact of network centrality, power, and Innovation involvement in an organization

Innovation has to be considered from a holistic process- short-term, and long-term goals, and objectives, which help an organization identify the existing marketing opportunities, and which products or services will help them address these needs, or opportunities in the market. Therefore, when network centrality takes a center stage innovation will assist a business to develop a roadmap or conduct strategic planning. These plans will assist a business to identify the key strategies, and objectives in relation to the available marketing opportunities both on a short-term, and long-term perspective.

Innovation also assists in terms of decision-making processes due to the management of the ideas that a company generates, and also concept development. For most companies, the main challenge is not the generation of ideas, but the management of the ideas that they formulate. Most organizations are not able to identify a specific idea that they can follow, which will help them realize a better revenue. They lack an effective system that they can use to implement most of the ideas that they generate. However, an organization that has implemented innovation, it is able to establish a successful idea development initiative. Through this initiative, an organization irrespective of its size, profitability, and industrial sector, it will be able to distinguish the ideas that are great, from average ones. Innovation will also help a business to be able to identify new opportunities. It is important for a business that is exploring new opportunities in a potential market to assess the potential competitive intellectual property. This is essential for business because as much as firms are looking for new ways to operate and become profitable they need to ensure that they follow rules and regulations in relation to the business. Therefore, companies that have implemented governance of innovation measures will be able to identify their intellectual property position in relation to its competitive rivals. It will also be able to identify the regulations, and laws that may affect their potential business opportunity, and assess whether they are free to operate in a certain sector.

Effective planning and decision-making are beneficial for an organization in terms of ensuring that the process execution of an organization is aligned to its growing value, and also market share. Also, companies that are involved in innovation will be able to select their priorities in order to ensure that they realize their goals, and objectives. Management of innovation for a company can assist in terms of ensuring that a business does not waste its resources on average ideas that will likely fail. In addition to that, the innovators will be in a better position to follow their innovation processes and improve their marketability. Furthermore, it leads to the improvement of the flow of information, which will lead to efficient production of its intended products, and services.


An organization that has effectively achieved its innovation is the one that is able to allocate the right resources that will push or enhance its innovative capabilities. Network centrality and power when incorporated with innovation then the outcome is positive for any type of organization. However, success can be achieved by ensuring that an organization establishes portfolio management for its innovative ideas, and strategies. If such measures are put in place, then there will be less conflict between the board of directors, and the management of a company because the boards will only be involved when the innovative process requires a large-scale innovation process.

The innovation capabilities of an organization are realized by a firm that is able to establish innovation structures. This means that there are specific processes, or platforms that will be explored, or used when it comes to the innovative activities of an organization. These structures will address innovation issues that may arise, define the roles that each player of an innovative project will play, and value-creation. It is also important to point out that innovation governance is highly influenced by the communication level of the involved parties. Communication enhances or improves the level of innovation of an organization as the employees will have an idea of the initiative of the company (overall vision), their role in relation to the innovation process, and the risk tolerance of the firm. Companies that implement both corporate and innovation governance are highly innovative.

Works cited

Network Centrality, Power, and Innovation Involvement: Determinants of Technical and Administrative Role, Author: Herminia Ibarra: The Academy of Management Journal, Vol. 36, No 3 (June., 1993), pp. 471-501 Published by: Academy of Management Stable URL:, Accessed: 13-09-2018 23:35 UTC

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