Measuring learning cultures and the impact of Horizon 2 innovations : two assessment frameworks for innovation-driven organizations

In today’s complex and fast-paced environment, organizations are challenged to find the right balance between improving daily operations to ensure profitability and developing innovations to ensure sustainable growth. Particularly Horizon 2 innovations, are crucial for organizations to stay relevant and successful. But measuring the impact of innovation and especially H2 innovations proves to be challenging, because of their interconnectedness and how long it takes for results to materialize. Additionally, organizations need to change their business models, include new technologies into their processes, while simultaneously deal with an overall workforce transformation. These changes not only reinforce the necessity for innovation but also affect the capabilities and culture of organizations. Many scholars and practitioners have acknowledged the importance of a strong and adaptive organizational culture, where individuals have opportunities and resources to learn and develop successful novel ideas. While diagnostic tools to measure a learning culture exist, such as the Dimensions of the Learning Organization Questionnaire (DLOQ), not a lot of managers purposefully build and measure learning cultures. This study answers the key question of understanding the current and potential approaches that organizations use to evaluate their learning culture and the impact of innovation, particularly Horizon 2 innovations. The result of the study are two newly developed assessment frameworks to help managers effectively measure their organizational culture and innovation impact. The methodological approach is based on a qualitative research design, where interviews with thirteen innovation experts and managers identified success factors for innovation-driven organizations, their learning culture and metrics to measure Horizon 2 innovations. Findings confirm the existing literature concerning the complexity and lack of tools to measure the impact of innovations, especially H2 innovations. In most cases innovation is subjective to various understandings, anchored in different business units and is missing an overall strategic direction and accountability from executives. Although the influence of learning on innovation is recognized by practitioners, only a few organizations approach the learning culture in a strategic way and dedicate resources to it. In conclusion, this study offers some suggestions for possible metrics for managers to measure H2 innovations, while offering actionable insights and recommendations to build a culture that supports sustainable innovation.