Managing Paradoxes in Coordinating Innovation A qualitative study on how coordination reinforces innovation in a Swedish Automotive Company

Abstract: Innovation has become a widespread practice in the automotive industry for companies to stay relevant in the future. This paper aims to discuss how a large enterprise works with innovation in practice from the lenses of coordination and organizational routine theories. The study suggests that coordination and organizational routines can be used in organizations to orchestrate innovation since it is a complex phenomenon of interlinked ongoing dynamic activities involving many stakeholders. A qualitative empirical analysis based on document studies, observations, and interviews of 19 respondents has been done. The selected interviewees are from all levels, both non-managers and managers, in three sub-organizations of Volvo Group. Innovation is portrayed as a web of interconnected actions to bring an idea into commercialization. The study identified four main pillars; people, collaboration, freedom, and failure that affect innovation capabilities. The pillars work interdependently and involve many enablers and barriers in the innovation process highlighted in the findings. Moreover, the two identified paradoxes are seen as blockers of innovation. The study indicates a relationship between flexibility and steering in the organization. Thus, we suggest that organizations must understand the relationship between the pillars and paradoxes to address them when they aim for innovation.