Employee‐driven innovation: extending the license to foster innovation

The purpose of this paper is to outline the “grand structure” of the phenomenon in order to identify both the underlying processes and core drivers of employee‐driven innovation (EDI).

This is a conceptual paper. It particularly applies the insights of contemporary research on routine and organizational decision making to the specific case of EDI.

The main result of the paper is that, from a theoretical point of view, it makes perfect sense to involve ordinary employees in innovation decisions. However, it is also outlined that naïve or ungoverned participation is counterproductive, and that it is quite difficult to realize the hidden potential in a supportive way.

The main implication is that basic mechanisms for employee participation also apply to innovation decisions, although often in a different way. However, the paper only identifies the grand structure of the phenomenon. The different identified drivers have to be further elaborated and empirically tested.

EDI is a helpful tool to gain competitive advantage by utilizing the knowledge and creative potential of employees.

This is the first paper that gives a systematic overview of the grand structure of EDI and derives the most important moderating factors from that.