Innovation Measurement as a Tool for Innovation Capability : A Qualitative Case Study on the Role ofInnovation Measurement within the SwedishTelecom Sector

Abstract: Innovation measurement is one of the most essential aspects in building innovation capability as it allows organisations to capture their current innovation capabilities and understand where they need to direct their efforts to improve. Further, measuring the innovation capability enables a data driven and insightful steering management. To succeed, incumbent organisations need to understand the KSF for innovation capability and internalise them.The purpose of this study is to investigate how incumbent telecom firms can use innovation measurement to improve their innovation capability. This was done through identifying KSF for innovation capability, reviewing existing innovation measurement frameworks and then, compare and analyse the findings to empirical data - from a case study at a major telecom operator.This paper is of an interdisciplinary nature and combines the theories of innovation capability, service innovation and innovation measurement. The methods used are qualitative, including a literature review, a focus group and 19 semi-structured interviews. The thesis resulted in six KSF for innovation capability in incumbent telecom firms, which was applied in an innovation measurement framework. The main challenges associated with these KSF are also identified and concrete proposals, for improving the innovation capability through using innovation measurement, are presented. Major contributions are of both theoretical and empirical character.The thesis contributes to the research field of how innovation capability can be measured and improved, through using multidimensional metrics, in incumbent firms working with high-tech service innovation. It also provides valuable empirical data around how innovation measurement can be interpreted and used, to improve innovation capability in an industrial context.