Delft University of Technology Controlling disruptive and radical innovations in large-scale services firms Das, Patrick DOI 10.4233/uuid:e889f189-dbd1-4d5c-8184-8456418d1886 Publication date 2019 Document Version Final published version Citation (APA) Das, P. (2019). Controlling disruptive and radical innovations in large-scale services firms. https://doi.org/10.4233/uuid:e889f189-dbd1-4d5c-8184-8456418d1886 Important note To cite this publication, please use the final published version (if applicable). Please check the document version above. Copyright Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons. Takedown policy Please contact us and provide details if you believe this document breaches copyrights. We will remove access to the work immediately and investigate your claim. This work is downloaded from Delft University of Technology. For technical reasons the number of authors shown on this cover page is limited to a maximum of 10. Controlling disruptive and radical innovations in large-scale services firms Patrick Das Controlling disruptive and radical innovations in large-scale services firms PROEFSCHRIFT ter verkrijging van de graad van doctor aan de Technische Universiteit Delft, op gezag van de Rector Magnificus prof. dr. ir. T.H.J.J. van der Hagen, voorzitter van het College voor Promoties, in het openbaar te verdedigen op maandag 9 december 2019 om15:00 uur door Patrick Albertus Cornelis DAS Ingenieur in Systems Engineering Policy Analysis and Management, Technische Universiteit Delft, Nederland geboren te Delft, Nederland Dit proefschrift is goedgekeurd door de promotoren. Samenstelling promotiecommissie bestaat uit: Rector Magnificus, voorzitter Prof. dr. ir. A. Verbraeck, Technische Universiteit Delft, eerste promotor Dr. R.M. Verburg, Technische Universiteit Delft, tweede promotor Onafhankelijke leden: Prof. dr. H.J. Hultink, Technische Universiteit Delft Prof. dr. C.P van Beers, Technische Universiteit Delft Prof. dr. J. de Jong, Universiteit Utrecht Prof. dr. ir. J.C.M van den Ende, Erasmus University Rotterdam Prof. dr. P. Ritala, Lappeenranta University of Technology, Finland Copyright © 2019 by P.A.C. Das ISBN: 978-94-6366-231-4 An electronic version of this document is available at http://repository.tudelft.nl ACKNOWLEDGEMENT This dissertation is the result of learning journey and along the way many people supported me. I would like to thank everybody providing support along this way. Finishing it closes an amazing chapter of my life, thanks to you all. I would like to thank my promotors Alexander Verbraeck and Robert Verburg for being a part of my team. Thanks for continuously finding time anywhere and anytime to provide feedback and exchange thoughts to improve my skills and work. I would like to thank Lodewijk Bonebakker for providing me the room to conduct this research and finding a balance between work and research. I am forever grateful for the opportunity that ING gave me to do this research and to all people that answered my questions and provided me with insights and access to their network. Most importantly I would like to thank my parents for their endless support that brought me where I am today. Last, Nadia, I spent a lot of our time working on this research: it is done. Thanks for all your support pushing me to finish it; let us start the next chapter in life. TABLE OF CONTENTS Summary .............................................................................. i I Establishing the research CHAPTER 1: Introduction to the research ............................ 1 1.1 Motivation .................................................................................. 1 1.2 Research Purpose ..................................................................... 4 1.2.1 Research Questions .......................................................... 5 1.3 Research Approach ................................................................... 6 1.3.1 Philosophical Stance ......................................................... 7 1.3.2 Research Strategy ............................................................ 9 1.3.3 Research Instruments ..................................................... 11 1.4 Research Outline ..................................................................... 12 CHAPTER 2: Towards an understanding of disruptive and radical innovation in large­scale services firms ................... 15 2.1 Unravelling the innovation concept........................................... 16 2.2 Focusing on disruptive and radical innovations ........................ 18 2.3 Structural ambidexterity as a foundation for exploration in firms 21 2.4 Open innovation to capture value beyond oneself .................... 24 2.5 Differences between product and service innovations .............. 26 II Designing an innovation system CHAPTER 3: The application of management control systems to explore innovations .......................................... 33 3.1 Introduction.............................................................................. 35 3.2 Theoretical Framework ............................................................ 36 3.2.1 Management Controls Systems Scheme ......................... 38 3.2.2 Synthesis ........................................................................ 41 3.3 Research Design ..................................................................... 42 3.4 Results .................................................................................... 47 3.5 Discussion and Limitations....................................................... 56 3.6 Conclusions ............................................................................. 59 CHAPTER 4: Barriers to disruptive and radical innovations in large­scale services firms .................................................. 61 4.1 Introduction & Study Object ..................................................... 63 4.2 Literature Review ..................................................................... 68 4.2.1 Innovation barriers .......................................................... 68 4.2.2 Preliminary framework of barriers to innovation ............... 70 4.2.3 Organising for change within the financial industry .......... 71 4.2.4 Synthesis: Exploring internal barriers to innovation ......... 73 4.3 Research Design ..................................................................... 73 4.3.1 Approach ........................................................................ 74 4.3.2 Operationalisation of interviews....................................... 81 4.3.3 Internal and external validity of the study ........................ 82 4.4 Findings about barriers to innovation ....................................... 83 4.5 Discussion ............................................................................... 87 4.6 Implications and Limitations ..................................................... 89 4.7 Conclusions ............................................................................. 90 II Designing an innovation system CHAPTER 5: Effectiveness of innovation controls .............. 93 5.1 Introduction & Study Object ..................................................... 94 5.2 Research Design ..................................................................... 97 CHAPTER 3: The application of management control 5.2.1 Approach ........................................................................ 97 systems to explore innovations .......................................... 33 5.2.2 Operationalisation of workshops and protocol ............... 101 3.1 Introduction.............................................................................. 35 5.2.3 Validity of intervention study ......................................... 103 3.2 Theoretical Framework ............................................................ 36 5.3 Results .................................................................................. 104 3.2.1 Management Controls Systems Scheme ......................... 38 5.3.1 Findings on Controlled Innovation System 1.0............... 106 3.2.2 Synthesis ........................................................................ 41 5.3.2 Findings on Controlled Innovation System 2.0............... 112 3.3 Research Design ..................................................................... 42 5.3.3 Findings on Controlled Innovation System 3.0............... 119 3.4 Results .................................................................................... 47 5.4 Discussion............................................................................. 122 3.5 Discussion and Limitations....................................................... 56 5.5 Implications and Limitations ................................................... 126 3.6 Conclusions ............................................................................. 59 5.6 Conclusions........................................................................... 128 CHAPTER 4: Barriers to disruptive and radical innovations in III Epilogue large­scale services firms .................................................. 61 4.1 Introduction & Study Object ..................................................... 63 CHAPTER 6: Discussion and Conclusions ........................133 4.2 Literature Review ....................................................................