Extract

Peter F. Drucker (1909–2005), who was considered the top management thinker of his time, once said: ‘Every decision is a risk-taking judgment’. In today’s economy (great recession, rapid technological changes, and dynamic environment) innovation is more than ever the lifeblood of business (Amabile, 1993). According to Drucker, managing risk is managing uncertainty of the outcome from current actions, yet every day companies let innovation slip away and countless ideas and opportunities are lost. Innovation concerns those processes where individuals, groups, or organizations seek to achieve desired changes, or avoid the penalties of inaction (West, 2002). Therefore, no organization can survive and prosper without a constant focus on innovation (Anderson and King, 1991). The aim of this chapter is to gain a deeper insight into the often-overlooked process of idea generation and idea implementation at the team level. Innovation concerns those processes where individuals and groups seek to achieve desired changes. We begin with describing both types of decision-making processes – intuitive and analytical – and then explain how they may influence team-level innovation outcomes. This chapter integrates topics of decision-making and innovation management.