1

LEARNING ROUTINES IN ORGANIZATIONAL CHANGE AND
INNOVATION
AN EXPLANTORY CASE STUDY ON GLOBAL WIND POWER
By
Alvin Hernandez
Supervised by Björn Johnson
2

Abstract
This thesis investigates the role of learning routines on the development of process and product/service
innovations at Global Wind Power, a Danish Wind Farm Development company. It does so by
considering three complementary perspectives that guide the analysis. The first is through the use of a
multi-definitional framework on routines that is intended to operationalize the routine concept while
reducing conceptual ambiguity through the identification of which routine definition is being evoked in
the analysis. The second perspective, views the innovation process as consisting of the routines in the
organization that guide the search, selection, implementation, and capture of innovative opportunities
and threats. The third and final perspective distinguishes between two modes of innovation based on
Science or Science-like understanding (STI mode) and an experienced based mode of learning based on
‘learning by doing’, ‘using’ and ‘interacting’(DUI mode). Through an Explanatory Case Study that
aims at analytical generalization in connection to theory verification and theory generation,
propositions derived from the literature pertaining to why the combinations of DUI & STI modes of
learning are tested and propositions for future research are developed. The thesis also presents
suggestions for Global Wind Power to improve their innovative capabilities through the consideration
of various learning routines identified.
3

Acknowledgements
I would like to express my sincerest gratitude to my supervisor Björn Johnson. I have greatly benefited
from your relentless guidance, sage advice, and encouragement along the way. Big thanks goes to
Bram Timmerman who has provided comments on previous drafts. I would also like to thank the staff
at Global Wind Power for taking part in the study and giving me insight into your work life. In
particular, I would like to thank Pernille Aakjær Andersen who has shown great commitment to the
project; always ensuring that I had all the available resources of the organization at my disposal.
Lastly, I would like to thank the participants in the interviews whom have provided me with a window
into the organizational processes, challenges, and achievements (displayed alphabetically):
Hanne Andersen
Pernille Aakjær Andersen
and Michael Nymann.
.
4

TABLE OF CONTENTS
1. INTRODUCTION................................................................................................................................7
1.1 PROBLEM FORMULATION ................................................................................................................................................. 8
1.1 THESIS STRUCTURE........................................................................................................................................................ 10
2. THEORETICAL BACKGROUND .................................................................................................11
LITERATURE REVIEW PART I ............................................................................................................................................... 12
2.0 INTRODUCTION .............................................................................................................................................................. 12
2.1 COMMON USES AND DEFINITIONS FOR THE TERM ‘ORGANIZATIONAL ROUTINE’............................................................. 12
2.1.1 Routines as Organizational Rules ......................................................................................................................... 13
2.1.2 Routines as Behaviour ........................................................................................................................................... 13
2.1.3 Routines as ‘Generative Systems’ ......................................................................................................................... 14
2.1.4 Routines as Organizational Dispositions or Capacities ........................................................................................ 15
2.2 WHEN DO AUTHORS USE THE DIFFERENT DEFINITIONS OF ROUTINES? ............................................................................ 16
2.3 CHARACTERISTICS OF ROUTINES ................................................................................................................................... 17
2.3.1 Routines as a source of organizational Memory: The ambidextrous aspects of knowledge in routines ............... 17
2.3.2 Routines are Triggered, Context Specific, and Automatic .................................................................................... 20
2.3.3. Routines are Persistent......................................................................................................................................... 21
2.3.4 Routines are Path Dependent ................................................................................................................................ 22
2.4 STABILITY AND CHANGE IN ROUTINES ........................................................................................................................... 23
2.4.1 Hierarchical nature of Routines ............................................................................................................................ 23
2.4.2 Change of Routines through Dynamic Capabilities and ‘Ad Hoc Problem-Solving’............................................ 24
2.5 SUMMARY ...................................................................................................................................................................... 26
LITERATURE REVIEW PART II .............................................................................................................................................. 27
2.6 INTRO............................................................................................................................................................................. 27
2.7 LEARNING ECONOMY .................................................................................................................................................... 27
2.8 ROUTINES IN THE INNOVATION PROCESS ....................................................................................................................... 27
2.9 MODES OF LEARNING AND INNOVATION: DUI AND STI ................................................................................................. 30
2.9.1 Taxonomy of Knowledge: ...................................................................................................................................... 32
2.9.2 Innovating Routines............................................................................................................................................... 34
2.10 PROPOSITIONS .............................................................................................................................................................. 36
3. METHODS .........................................................................................................................................38
3.1 RESEARCH TYPE ............................................................................................................................................................ 39
3.2 UNIT OF ANALYSIS ........................................................................................................................................................ 39
3.3 CASE STUDY TYPE & DESIGN ........................................................................................................................................ 40
3.3.1 Case Study Type .................................................................................................................................................... 41
3.3.2 Single vs. Multiple-Case Design ........................................................................................................................... 41
3.3.3 Unit of Analysis: holistic vs. embedded ................................................................................................................. 43
3.4 DATA SOURCES.............................................................................................................................................................. 44
3.4.1 Surveys .................................................................................................................................................................. 44
3.4.2 Semi-Structured Interviews ................................................................................................................................... 45
4. CASE STUDY EVIDENCE ..............................................................................................................47
4.1 INTRODUCTION .............................................................................................................................................................. 48
4.2 GWP VALUE CHAIN ...................................................................................................................................................... 48
4.2.1 Greenfield Development ........................................................................................................................................ 49
4.2.2 Turnkey Phase of Development ............................................................................................................................. 52
4.2.3 Technical & Comercial Management ................................................................................................................... 53
4.3 GWP PRE-HISTORY........................................................................................................................................................ 54
4.3.1 DUI modes of learning as access to know-what and know-how ........................................................................... 54
5

4.3.2 Competency building through ‘Learning By Doing’ ............................................................................................. 56
4.3.3 From learning habits to learning routines: the origin of ‘ProPartner’ ................................................................ 57
4.4 THE BEGINNING OF GLOBAL WIND POWER ................................................................................................................... 61
4.5 LEARNING BY INTERACTING WITH INVESTORS LEADS TO THE EMERGENCE OF TCM ..................................................... 61
4.5.1 The introduction of TCM accelerates demand, forcing GWP to expand capabilities into Turnkey to meet demand
pressures ........................................................................................................................................................................ 63
4.6 KNOW-WHO IS COMBINED WITH KNOW-WHY IN MARKET SELECTION.......................................................................... 65
4.7 EXPANSION OF THE BUSINESS MODEL: NEW CUSTOMERS AND ACQUISITION BRING ABOUT NEW COMPETENCIES ......... 67
4.8 SUMMARY ...................................................................................................................................................................... 68
5. CASE SUVEY EVIDENCE ..............................................................................................................71
5.1 INTRODUCTION .............................................................................................................................................................. 72
5.1.2 Testing Discretionary Learning ............................................................................................................................ 73
5.1.3 Testing employee interactions at the cross functional and cross departmental levels .......................................... 74
5.1.4 Discretionary Learning and Cross-functional learning across country units ....................................................... 75
5.1.5 Systems for collecting proposals ........................................................................................................................... 77
5.1.6 Employee’s Input During Significant Organizational Changes ............................................................................ 78
5.1.7 Integration of Functions and Softened Demarcations. .......................................................................................... 80
5.1.8 Interacting with External Sources ......................................................................................................................... 80
5.2 ROLE OF DUI AND STI ROUTINES IN SEARCH ................................................................................................................ 84
5.2.1 Internal Search ...................................................................................................................................................... 84
5.2.2 External Search ..................................................................................................................................................... 84
5.3 ROLE OF DUI AND STI ROUTINES IN SELECTION AND IMPLEMENTATION ...................................................................... 85
5.4 ROLE OF DUI AND STI ROUTINES IN CAPTURE .............................................................................................................. 86
6. CONCLUSION ..................................................................................................................................87
6.1 KEY THEORETICAL FINDINGS ........................................................................................................................................ 87
6.1.1 Theory Verification ............................................................................................................................................... 88
6.1.2 Generation of Propositions ................................................................................................................................... 89
6.2 MANAGERIAL IMPLICATIONS AND FINDINGS ................................................................................................................. 90
6.3 LIMITATIONS AND FUTURE RESEARCH .......................................................................................................................... 91
REFERENCES .......................................................................................................................................92
APPENDIX A: EMP SURVEY ............................................................................................................97
APPENDIX B: MGMT SURVEY ......................................................................................................107
6

FIGURES, TABLES, AND BOXES
Figure 1: Ostensive, Performative, and Artifact (OPA) Framework ...................................................... 15
Figure 2: Simple Model of the Innovation Process ................................................................................ 28
Figure 3: Dimensions of the Case Study Research Design .................................................................... 43
Figure 4: Global Wind Power Value Chain............................................................................................ 48
Figure 5: Greenfield Development Phase 1 (GFD-1) ............................................................................. 50
Figure 6: Project Design and Processing by the Authorities (GFD-2): .................................................. 52
Figure 7: Global Wind Power Timeline ................................................................................................. 54
Figure 8: ProPartner Concept ................................................................................................................. 58
Table 1: DUI & STI Routines ................................................................................................................. 34
Table 2: DUI & STI Routines ................................................................................................................. 72
Table 3: Questions for Testing Discretionary Learning.......................................................................... 73
Table 4: Questions Testing Cross-Funtional/Departmental Learning .................................................... 74
Table 5: Questions Testing ‘Systems for Collecting Proposals’............................................................. 77
Table 6: Employee Initiative for Generating Proposals .......................................................................... 78
Table 7: Organizational Changes ............................................................................................................ 78
Table 8: Employee Involvement in Significant Organizational Changes ............................................... 79
Table 9: Effect of Organizational Changes on Employee Tasks ............................................................ 80
Table 10: Cooperation with External Sources of Knowledge................................................................. 81
Box 1: ProPartner – Learning Routine as ‘Rules of Thumb’ .................................................................. 59
Box 2: Emergence and Development of TCM ........................................................................................ 62
Box 3: Adapting through Formal Rules in Turnkey Development ......................................................... 64
7

1. INTRODUCTION
What distinguishes between organizations that seem to consistently innovate from those that innovate
rarely or not at all? One of the great promises of the organizational routines concept, as put forth by
Nelson & Winter (1982), was its proposed ability to understand how organizations differ (nelson,
1991), how they change, and how differences in the organizations repertoire of routines have
implications in the capabilities to respond to unpredictable environments and innovate. Understanding
how routines change and which routines allow organizations to be more innovative is thus an important
endeavour.
The literature on organizational routines; however, has been plagued with definitional
ambiguities. One implication is that much of the work surrounding organizational routines has been
around clarifying the concept rather than applying routines as unit of analysis in empirical work
(Becker, 2004). Advancing empirical work has thus been an area where a call has been made. A
second implication is that the little empirical work that has been performed utilizes differing
conceptions of what a routine is, making it difficult to compare across research programs.
While, no common definition of routine exists, the different conceptions of routines tend to
center around four different definitions.
The first definition views routines from a motivational
perspective as rules, structures, recipes, and techniques that channel behaviour. The second sees
routines as repetitive behaviour itself or as ‘interaction’ patterns. The third view focuses on the role of
routines as coordinating mechanisms. According to this view, routines are defined as organizational
dispositions or capacities to produce repetitive behaviour through the sequential triggering of
habits/skills. The fourth and final definition perceives routines as a ‘generative system’ consisting of
both a cognitive and behavioural dimension.
What is notable about the first three is that they seem to be referring to different aspects.
According to Becker (2008), “the three concepts cannot clearly be reduced to one another. Rules are
not behaviour, behaviour is not the same as rules, and potential behaviour is not the same as actual
behaviour, and so on (p. 4).” In addition, an observation can be made when authors use the different
definitions of routines. It is often the case, when referring to the reproduction of routines that any of the
8

1. INTRODUCTION
first three definitions suffices as a unit of reselection. However, when authors are describing the
change of routines multiple concepts are evoked under the same heading, making the concept appear
amorphous.
According to Becker (2008) a possible way forward is for authors to be more precise about the
manner in which they use the term routine. Aligning their usage of the term, according to the
definitions described above, could aid in reducing ambiguities. Another advantage is that the separate
definitions point naturally to the question on how rules, disposition, and behaviours are related.
Unlocking such interrelations could enhance the agenda on understanding how organizational routines
are reproduced and changed.
Based on the aforementioned points, this thesis will investigate the role of learning and
innovating routines in innovation through a case study on Global Wind Power (GWP).
Global Wind Power, a wind farm development company, entered the market initially as a sales and
promotion company, aiding third party developers in the sales of global wind projects to Danish private
investors. Today, GWP has greatly expanded their product/service offerings across the full wind farm
development value chain. This includes product/services in:
i.
Greenfield Development
ii.
Turnkey
iii.
And in Technical & Commercial Management
In addition, to these product/services innovations that have developed over time, there have also been
internal process innovations. The most notable of which is the emergence of the ProPartner concept
and the Business Development Department, whose role in the organization is both to support the
selection of product markets and the continuous improvement of internal and external processes.
1.1 Problem Formulation
In this context the main questions posed here are:
Main Questions:
9

1. INTRODUCTION
How did learning and innovating routines influence the development of product, service, and
process innovations at GWP?
Which routines could be adopted at GWP that would allow the organization to increase their
innovative capabilities?
In order to answer these broad questions identifying which routines are involved in innovative activities
is necessary. According to Pavitt (2002) the ‘innovating routines’ in an organization are those that aid
the organization in searching for new ideas internally and externally to the firm, selecting from a set of
possible ideas those that further the firm’s business objectives, implementing such ideas into reality,
and capturing the benefit of the innovation by supporting the adoption, diffusion, and continuous
learning.
While the simple innovation process perspective above points to routines in a functional
manner, it does little to explain heterogeneous differences in firm-level innovativeness.
A second perspective on the role of routines in innovation has the potential to gap this
understanding. Jensen et. al. (2004; 2007) distinguishes between two modes of learning. The first
mode, known as the DUI mode of learning, sees innovation as an outcome of experience. The second
mode, known as the STI mode of learning, perceives innovation as an outcome of Science,
Technology, and Innovation policies in the firm. The two modes of learning were tested in the 2001
DISKO survey. Based on the results, firms that innovated through either the DUI or STI mode were
two times more likely to develop product/service innovations than non-learning firms which displayed
neither DUI nor STI learning characteristics. Moreover, the most salient result derived from the survey
was that firms that combined both DUI and STI modes of learning were the most innovative, displaying
five times the greater likeliness to produce product/service innovations than non-learners.
While the results of the DISKO survey were able to identify that the combination of both modes
of learning allow for greater innovativeness, a question that remains is
Sub-question 1: Why does the combination of DUI and STI modes of learning enhance
innovativeness?
More in particular
10

1. INTRODUCTION
Sub-question 2: How does the combination of DUI and STI modes of learning influence the innovation
process involving search, selection, implementation, and capture?
1.1 Thesis Structure
In order to investigate the proposed research questions an explanatory case study on Global Wind
Power will be performed. The thesis will be presented as followed. Section 2 will present the
background literature for the thesis. The literature review is broken down into two parts. Part I outlines
the theory pertaining to organizational routines. In particular, it will identify the different definitions of
routines, the role of such definitions in describing organizational change, the characteristics of routines,
and the role of organizational routines in supporting stability and change in firms. This will lead to Part
II of the literature review. Part II focuses on explicating what is meant by learning/innovating routines
and the role of such routines in the learning economy. This will be directly followed by a development
of the literature based propositions that can further direct the analysis of the case. Section 3 will present
the methods used. In particular it will describe the connection between the research questions with the
type of research strategy, the methods pursued, the manner in which data is collected and evaluated,
and the criteria for interpreting the findings.
Section 4 presents the empirical case evidence and
analysis. It begins with a description of Global Wind Power’s current capabilities, which are identified
as innovative milestones for the organization. What follows is a longitudinal look at the development
and continuation of such innovations in the history of GWP as a function of the learning/innovating
routines identified. Section 5 shifts its focus on presenting the empirical evidence cross-sectionally, by
identifying which learning routines are distributed across the organization as well as identifying areas
in which GWP can improve its innovative capabilities. Section 6 concludes by presenting the major
findings, managerial implications, limitations of the research, , and suggestions for further research.

11
2. THEORETICAL BACKGROUND
2. THEORETICAL BACKGROUND
The following section will draw connections between organizational routines, organizational learning,
and innovation. This will be presented in two parts. The first part will present what is meant by
organizational routines in the literature and describe their characteristics. The second will describe
the role of routine in the learning economy and its role in innovation. Lastly, I will elaborate further
what the connection between routines and innovation are by presenting the routines involved in
innovation and what is meant by learning and innovating routines.
12
2. THEORETICAL BACKGROUND

Literature Review Part I
2.0 Introduction
The concept of organizational routines has received great attention since Nelson & Winter’s (1982)
Evolutionary Theory of Economic Change. Organizational Routines were viewed as all the ‘know-how
to do’s’ developed in the organization, such as the know-how involved in designing an automobile,
providing best in class logistics, or manufacturing computers, to name a few examples. Although,
similar concepts relating to routines had existed previously in the literature; such as in the concept of
‘habits’ in the old institution economics tradition or standard operating procedures in Behavioural
Economics, the concept of routines a la Nelson & Winter, gave greater attention to its role as the unit of
analysis in an evolutionary explanation on how organizations behave, change, and innovate. Nelson
&Winter write:
“And that, of course, is the heart of our theoretical proposal: the behavior of firms can be
explained by the routines that they employ. Knowledge of the routines is the heart of
understanding behavior. Modeling the firm means modeling the routines and how they change
over time” (Nelson and Winter, 1982: p 128).
Since then, the take up of the organizational routines concept by scholars has been immense, yet
despite or because of the popularity of the concept; progress towards conceptual clarity has been slow
(Cohen & Bacdayan, 1994; Cohen et.al., 1996). As such, no unified definition of the routine concept
exists (Becker, 2001; 2004). Nevertheless, in order to pave the way for a discussion on ‘innovating
routines’ featured in the second part of the literature review it is first necessary to ground the
understanding of what organizational routines are generally in the literature.
2.1 Common uses and definitions for the term ‘organizational routine’
13
2. THEORETICAL BACKGROUND

The differing views of the concept of routines beckon the following question: When authors
refer to the term ‘organizational routine’ what are they referring to? There are at least four distinct
definitions of routines. These include routines seen as1:
i.
organizational rules
ii.
behavioural patterns
iii.
dispositions or tendencies
iv.
or as generative structures
2.1.1 Routines as Organizational Rules
Some of the early conceptions of routines can be found in the Carnegie School’s treatment of
organizational behaviour that viewed firms as following a set of rule-based performance programs and
standard operating procedures. March & Simon (1958) views performance programs as largely
involving “highly complex and organized sets of responses” to environmental cues (p.141).
Performance programs are routinized
“to the degree that choice has been simplified by the development of a fixed response to
defined stimuli. If search has been eliminated, but a choice remains in the form of a clearly
defined and systematic computing routine, we will say that the activities are routinized (March
and Simon, 1958 p. 142).”
The quote above, points to two characteristics of routinized performance programs: i. they define
programs as rule following i.e. as fixed responses to defined stimuli and ii. they imply that routines
persist because search has been eliminated.
2.1.2 Routines as Behaviour
11
The list definitions of routines provided below provides an expanded list from it’s original in Becker (2004)
14
2. THEORETICAL BACKGROUND

Building on these early insights on organizational behaviour, Nelson and Winter (1982) provide a
basis for an evolutionary theory of economic change that explained long-run firm level behaviour
within a dynamic environment. As a unit of analysis, Nelson and Winter transposed Cyert and March’s
concept of standard operating procedures (Cyert & Marsh, 1963) within an evolutionary context
terming it as an organizational routine (Pierce, Boerner, & Teece, 2002); while giving the term a more
technical meaning as a holder of organizational memory, of the tacit knowledge sort, and as a
replicating unit of selection and recombination; likened to ‘genes’ in evolutionary biology. However,
in contrast to defining routines as the ‘rules’ of the organization as largely described under the
Carnegie School, Nelson and Winter defined routines as “all regular and predictable behaviour patterns
of a firm, (my italics)” thus shifting the conception of routines from being rule-like to behavioural. The
transition was meant to place greater emphasis on the idea that tacit knowledge, which is integral in
operating a routine, was more suitably defined as behaviour rather than as organizational rules.
However, aligning routines with the definition of behaviour has proven quite confusing for
some authors (see Cohen et. al., 1996; Hodgson & Knudsen, 2003a; Hodgson & Knudsen, 2003b;
Hodgson, 2008, Feldman & Pentland, 2003), largely because some of the concepts Nelson & Winter
illustrate seem to refer more to a general rule-like dimension or even a representational dimension of
behaviour rather than to behaviour itself (i.e. actual performances). For example, Nelson & Winter
refer to the routine as a ‘target’ and, in a particular case, as a source of imitation by a competing firm.
It is noted that in this scenario that the imitator does not have access to the tacit knowledge. The
question can then be asked then what is being imitated or transferred? Some would argue that what is
transferred would be the routine as a representational or rule rather than behaviour per se. This has led
to somewhat of a conceptual divide in the literature under the headings Cognitive Dimension, referring
to the underlying rule-like structure in organizations, and the Behavioral Dimension referring to
behaviour and to great extent the tacit knowledge involved in organizational capabilities.
2.1.3 Routines as ‘Generative Systems’
The multiplicity of definitions has led some authors to consider combining the two dimensions, thus
viewing routines as a ‘generative system,’ rather than defining the routine on either level. One
framework in such a direction was proposed by Feldman & Pentland (2003). As seen in figure 1, the
ostensive refers to the cognitive dimension and performative refers to the behavioural dimension.
15
2. THEORETICAL BACKGROUND

Figure 1: Ostensive, Performative, and Artifact (OPA) Framework
1
Organizational Routines
Ostensive
Performative
Artifacts
Source: Feldman & Pentland (2003)
The ostensive aspect is viewed as the routine in abstract, the cognitive regularities and expectations that
enable “participant to guide, account for and refer to specific performances of a routine.” In addition,
the ostensive aspect consists of the subjective interpretation of individuals. According to the authors,
this makes it difficult to pinpoint exactly what the ostensive aspects are as a whole since it is a
collection of partial and overlapping subjective perspectives. The performative aspect consists of
“actual performances by specific people, at specific times, in specific places (Feldman & Pentland,
2003 p. 94).” The two aspects are considered mutually constitutive and form the organizational
routine.
These two aspects of the organizational routine may also be enabled or constrained by various
artefacts. Artefacts are the physical manifestations of the routine. According to the authors, the
artefacts serve as empirical representation or indicators of either the ostensive or performative aspects.
Artefacts for the ostensive aspect maybe in the form of written rules and standard operating procedures
(codified form) while artefacts for the performative aspect may consist of transaction histories or
databases that track workflow.
2.1.4 Routines as Organizational Dispositions or Capacities
Lastly, a recent perspective put forth by Geoffrey Hodgson and Thorbjørn Knudsen defines
organizational routines as an acquired disposition or capacity to express a particular behaviour or
16
2. THEORETICAL BACKGROUND

thought (Hodgson & Knudsen, 2003a; Hodgson & Knudsen, 2003b; Hodgson & Knudsen, 2004;
Hodgson, 2008; Knudsen, 2008). This view stems from the conception of ‘habits’ in the old
institutional economics tradition of Thorstein Veblen and the Pragmatist Philosophy of Charles Sanders
Pierce and John Dewey (Hodgson, 2008). According to the authors, dispositions are considered to be a
subset of rules and therefore follow an ‘if-then’ structure. However, a distinguishing feature of the
disposition’s perspective in relation to rules seen from the Carnegie School is that the rules are
internalized or embodied more specifically in the procedural knowledge of the individual and
embedded within an organizational routine. For example it is not enough for a person to know the
speed limits when on the Danish main roads in order to follow them, in order to be a disposition
keeping the speed limits must be an automatic practice. It is only when rules are adopted and become
a part of procedural knowledge are they considered to be a disposition. In addition, the concept of
dispositions put forth by Hodgson and Knudsen is distinguished from behaviour. So unlike the view
that procedural or tacit knowledge resides at the behavioural level (i.e. Nelson & Winter def of routines
as behaviour) Hodgson and Knudsen consider the routines (as dispositions) distinct from the behaviour
it produces. According to Hodgson (2008)
“Routines (like genes) cannot be both generative structures and outcomes of such structures.
This point is not about the appropriateness or otherwise of biological analogies but about the
clear meanings of words and their ontological references…it cannot usefully denote both
potentiality and actuality. It has to denote one or the other, but not both (p 19).”
Accordingly, Hodgson (2008) defines routines at the level of potentiality as an “organizational
disposition to energize conditional patterns of behaviour within an organized group of individuals
involving sequential responses to cues (p 33.)”
2.2 When do authors use the different definitions of routines?
The various authors seem to be using the definitions differently depending on whether they are
focusing on the stability, reproduction, or change of routines. Even amongst the same authors, for
example Nelson and Winter (1982), they tend to incorporate multiple definitions into their discussion
17
2. THEORETICAL BACKGROUND

of routines depending on what their focus of analysis. When speaking of the stability of routines it is
often the case that using any of the three definitions i.e. stable rules, behaviour, or dispositions seem to
suffice; however when authors are trying to explain how routines change, mutate, or are transferred
there is a tendency to utilize multiple concepts under the same heading when describing the
transformation.
Since the purpose of this thesis is to investigate the role of innovating routines on innovation
and also considering that innovation involves in itself some form of change, a multiple view utilizing
all concepts will be adopted here in order to operationalize the routine concept to capture the
transformation; while reducing conceptual ambiguity by identifying which definition of the routine
concept comes into play during the analysis of the case.
2.3 Characteristics of Routines
While little agreement can be found on how a routine should be defined there is however substantial
agreement on the characteristics attributed to organizational routines. These include:
i.
the routines as a Source of Organizational Memory,
ii.
Context Dependency and Automaticity.
iii.
Persistence
iv.
Path Dependence
v.
Hierarchical Nature
2.3.1 Routines as a source of organizational Memory: The ambidextrous aspects of knowledge in
routines
One of the most notable characteristic of organizational routines is its ability to store organizational
knowledge. The outcomes of organizational learning result in the formation of routines that provide
standard ways of conducting organizational activities under learned circumstances (Levitt & March,
1988.) When such circumstances arise in the future, routines are activated. As such routines provide
18
2. THEORETICAL BACKGROUND

the organization with a source of organizational memory (Levitt & March,1988). According to Nelson
& Winter(1982) routines are the “locus of operational knowledge in an organization (p. 104).”
Routines consist of two interconnected aspects that allow them to be considered as such. On the one
hand routines are standardized organizational techniques described as ‘recipes,’ ‘technologies (Nelson
& Sampat)’ or ‘standard operating procedures (Cyert & Marsh, 1963),’ that, in conjunction with the
broader social or institutional context, provide a structure that sharply channel behaviour. According
to Nelson (2008) the terms ‘technologies,’ ‘standard operating procedures,’ and recipes are the “steps
involved in a productive technique without specifying how techniques are to be assigned to individuals
and how coordination is accomplished by these individuals (p. 11)2.”
On the other hand, routines are ‘organizational capabilities’ composed of individual habits or
skills involved in an interlocking and reciprocally triggered sequence of events that provide the level of
interpretation, coordination, and codes for action involved in a productive organizational performance
(Nelson & Winter, 1982; Cohen & Bacdayan, 1994; Hodgson, 2008)3.
Routines thus “occupy the crucial nexus between structure and action (Pentland & Reuter, 1994
p. 484),” between the factors shaping organizational behavior; and the capabilities or know-how
required simply to perform them (Nelson, 2008; Nelson & Sampat, 2001,). The knowledge held in the
former is largely articulable, explicit, and in many cases may be codified into descriptive and
formalized procedures, while in the later the knowledge held in the organization is largely tacit,
inarticulate, and automatically executed (Nelson, 2008).
2.3.1.1 Routines as Capabilities
Since ‘routines as capabilities’ are tacit, and cannot be made fully explicit, formalized, or
encoded into other forms of organizational memory such as databases and procedural documents, the
capabilities dimension of routines “constitute the most important form of storage of the organization’s
specific operational knowledge (Nelson & Winter,1982 p. 99).” What underlies the ‘organizational
capabilities’ dimension4
of an organizational routine is the tacit form of knowledge, known as
This aspect of the routine aligns with the routine as ‘rules.’
This aspect of the routine aligns with the routine as ‘organizational dispositions’ and ‘capacities’.
4
This view of routines is aligned with the routines defined as ‘dispositions’ or ‘capabilities’ to produce repetitive behavior
2
3
19
2. THEORETICAL BACKGROUND

procedural knowledge5, held by individuals performing in a routine. In order to reduce conceptual
ambiguity in the literature, consensus has more recently emerged that the terms habits or skills should
refer to the individual- level while the term routines should be reserved for the group or organizational
level6 (Cohen et al., 1996; Dosi et al., 2000)
One of the most notable uses of the individual-level in An Evolutionary Theory of Economic
Change is in the explanation of how routines are coordinated by organizational members. As stated by
Nelson and Winter (1982):
“What is central to a productive organizational performance is coordination; what is
central to coordination is that individual members, knowing their jobs, correctly interpret and
respond to the messages they receive. The interpretations that members give to messages are
the mechanisms that pick out, from a vast array of possibilities, consistent with the roster of
member repertoires, a collection of individual member performances that actually
constitute a productive performance for the organization as a whole (p.104)”
According to Nelson & Winter(1982) the knowledge required to consistently interpret and respond to
organizational messages is by way of procedural knowledge embodied in habituated behaviour. Habits
have several characteristics due to procedural knowledge that aid in interpreting and responding to
organizational messages:
i. habits are learned and subsequently triggered in a social and physical context,
ii. when a habit is enacted it is done so automatically and without the need for deliberation and
iii. habits provide codes for action.
Habits are learned in a social and physical organizational context either deliberately or semiautomatically (Zollo & Winter, 2002). In certain problem solving tasks intentionality and deliberation
precede habituation, as formulated under the assumption of bounded rationality. Once an individual
satisfices on a particular solution to a problem that frequently arise, the individual will tend to repeat
5
Also known as procedural memory
This distinction seems to be more important in describing the routine from the capabilities perspective rather than the
routines as recipes perspective. This is primarily due to the dispersed tacit knowledge held by individuals in a collective
and coordinated action.
6
20
2. THEORETICAL BACKGROUND

the same behaviour (Simon,1955) According to studies in Cognitive Psychology, after a series of
repetition of behaviour in a relatively stable context a habit emerges whereby, the control of behaviour
shifts from cognitive mechanisms, those governing deliberate thinking and problem solving, to an
automatic mode stored in procedural memory (Cohen & Bacdayan, 1994; Egidi,1996; Hodgson &
Knudsen, 2004; Wood and Neal, 2007) Habits can also arise through un-deliberate means such as
through tacit or non-conscious learning, ‘learning by doing’(Arrow) and/or imitation(Hodgson).
Further studies in Cognitive Psychology also provide support for the non-deliberate enactment and
attainment of procedural knowledge (Cohen & Bacdayan, 1994). Some of the most notable research
investigates amnesia patients whom have suffered from brain damage on declarative memory areas, the
areas in the brain associated with the storing of explicit knowledge/memory (Cohen, 1984). In these
studies patients retained the ability to acquire and improve in skill-based activities despite being
unaware of what or that they have learned (Cohen & Bacdayan, 1994) suggesting that tacit learning has
taken place.
2.3.2 Routines are Triggered, Context Specific, and Automatic
Once an organizational member has established a repertoire of habits involved in ‘knowing their
job,’ the habit called into action will be contingent upon the particular situation, thus giving habits and
routines the characteristic of being context specific. While a novice employee may have to inquire on
how to carry on in an unfamiliar task or select a course of action, an individual with the appropriate
habits in place are simply able to enact them. This is primarily due to what Nelson & Winter term
‘remembering by doing,’ whereby the particular context provides a trigger for the appropriate habit or
skill called into play. It is by way of the context specificity and the automatic triggering and enactment
of a habit that allows for organizational members to interpret and respond effectively to organizational
messages.
To that end, the same mechanism involved in the automatic interpretation and execution of an
individual skill is also responsible for the automatic execution of multi-person routines, whereby the
habit (or skill) enacted by one member, primes and triggers the skill of another (Nelson & Winter,
1982, Cohen & Bacdayan, 1994; Egidi, 1996).
Empirical evidence also supports the interactive
triggering as a mechanism for routinization. Drawing on a series of lab experiments, Cohen &
Bacdayan (1994) demonstrate that after a series of iterations in a mutually incentivized card game, the
21
2. THEORETICAL BACKGROUND

two players involved, shifted from intentional modes of behaviour to automatic modes; whereby the
initial action of one player triggered the response of the other, to the extent that coordinated patterns of
action sequences emerged.
The question then could be posed as to whether the knowledge held in a routine is solely
reducible to the tacit knowledge held by individual habits? According to Hodgson (2008), routines are
not solely reducible to individual actions; rather routines exist due to “structurated interactions of
individuals that give rise to emergent properties that (by definition) are not properties of individuals
taken severely.” Hodgson continues by stating “we cannot explain the properties of wholes by focusing
exclusively on the properties of parts, without considering structured causal interactions between those
parts.” Furthermore, as noted by Nelson & Winter (1982) the habits formed and enacted by individuals
in the performance of routine are only meaningful and effective in an organizational context which aid
in structuring the enactment of habits.
2.3.3. Routines are Persistent
Another widely recognized characteristic of routines is that once a routine is established within an
organization they tend to persist.
As Levitt & March (1988) note, “routines are independent of the
individual actors who execute them and are capable of surviving considerable turnover in individual
actors (p.320).” Routines are so persistent that they can at times provide solutions to problems that no
longer exist. One notable example cited in the literature derives from Morison (1966) who describes the
persistence of an obsolete routine that was uncovered by a time and motion expert called in to improve
the firing efficiency of the British artillery in WWII. The time and motion expert was particularly
perplexed when observing that during the firing routine a particular delay was being taken by the
soldiers prior to firing their guns. The expert consulted an old Colonel for an explanation for the cause
of the delay. After giving it some thought, the old Colonel explained to the expert that the soldiers
were pausing to ‘hold the horses,’ despite that horses were no longer a part of the artillery.
There exist several explanations in the literature pertaining to the persistence and stability of
organizational routines. The first derives from the Carnegie School noted by March & Simon (1958)
and Cyert & Marsh (1963). According to the authors, as long as no gaps exist between organizational
aspirations and organizational outcomes, standard operating procedures i.e. routines persist.
22
2. THEORETICAL BACKGROUND

Organizations only “abandon them under duress (Cyert & Marsh, 1963 p. 102).”
The second
explanation is viewed from a transaction cost perspective. Whenever changes are made to the ways of
doing things, this often involves some form of cost be it cognitive, physical, monetary, or searching
cost, etc.. Thus routines in this explanation persist in order to reduce cost. The third and final
explanation as put forth by Nelson & Winter (1982) involves a motivational explanation on the
persistence of routines.
Routines consist of interlocked individual habits, whereby breaking or deviating from the
structurated interaction of individuals would in affect break an organizational ‘truce.’ Similar to the
views represented in the Behavioural Theory of the Firm, organizational members are not assumed to
be committed towards the smooth functioning of the organization, but rather that coordination
problems exist and occur with a level of regularity that is subsumed within routine operations.
Similarly, systems of both control and reward are enacted with a similar level of regularity in order to
keep the routine on track (Nelson & Winter, 1982). While both control and reward systems can in most
cases avoid complete disruption of a routine, they are still limited in motivating organizational
members that have a high degree of behavioural discretion. ‘Routines as truce’ are important in such
situations because they represent legacy solutions to previous intra-organizational conflict, whereby
efforts to cause a change within a routine will disrupt the delicate political balance. As such, changes to
a routine may be met with defensiveness by organizational members affected. According to Nelson
and Winter (1982), “the fear of breaking the truce, is in general, a powerful force tending to hold
organizations on the path of relatively inflexible routine.”
2.3.4 Routines are Path Dependent
The characteristic of routines as being both stabile and persistent also effect the development and
trajectory of new routines in a path dependent manner. According to Levitt & March (1988) the
decisions made in the past affect the decisions made in the future.
Organizations learn in an
incremental manner through the use of their existing routines. However, for certain organizations such
as those with long histories and multiple series of turnover in employees, the why’s behind the
existence of a routine are often unknown making it difficult to ascertain its purpose and effectiveness.
As Levitt & March (1988) note:
23
2. THEORETICAL BACKGROUND

“The experiential lessons of history are captured by routines in a way that makes the lessons,
but not the history, available to organizational members who have not themselves experienced
the history” (1988, p 320).
A possible negative implication of this, is the development of competency traps, whereby
companies build experience with inferior routines to the extent that such routines become entrenched in
the organization; causing the organization to forego on learning more superior routines in its place. In
order for companies to overcome such competency traps, companies need to be able to develop
routines that allow them to both learn and forget (Lundvall, 1996). The learning routines proposed in
section 2.9 has the potential to address such issue.
2.4 Stability and Change in routines
The characteristics of organizational routines as persistent, stable, and path dependent as
mentioned above, may seem to signal that organizations are incapable of changing due to the stability
and persistence of their routines. However this is not the case. Organizations are able to change based
on their routines. The stability of routines which allow organizations to stay on track also aids
organizations in changing their routines. Stabile routines provide a baseline in which organizations can
compare and learn (Postrel & Rumelt, 1992; Knudsen, 2002). If routines were not routinized to some
degree it would be difficult to ascertain their effectiveness or ineffectiveness in particular situations,
making the selection and change of routines difficult. In addition, stabile routines allow organizations
to better predict the actions taken in the organization, thus allowing for better linkage and coordination
with new or reconfigured routines (Cyert & March, 1963; Nelson & Winter, 1982).
2.4.1 Hierarchical nature of Routines
Another characteristic of routines that aids in understanding how organizational routines change
is the view that routines are in fact comprised of a nested hierarchy of even smaller routines; whereby
learning takes place at several nested levels. According to March & Simon (1958) change in routines
24
2. THEORETICAL BACKGROUND

can occur due to problem occurrences at lower level programs (routines) that initiate a response in
higher level programs “whose goal is to revise other programs, either by constructing new ones,
reconstructing existing ones, or simply modifying individual premises in existing programs (March &
Simon, 1958. p. 149).” Building on these insights, Cyert & March (1963) elaborate further on the
adaptation of nested routines. According to the authors, “standard operating procedures change over
time at varying rates. Some rules seem to change frequently; others appear to have been substantially
unchanged for as long as the organization has existed (p. 101).” They define Standard Operating
Procedures as consisting of both General Choice Procedures and Specific Standard Operating
Procedures. While both are considered to be prone to learning and adaptation, the rate of change
differs between the two in that “general procedures would adapt less readily and less rapidly than the
more specific rules p102)” The implications for analysis in studying organizational behaviour is that
longer-run adaptation can be viewed in terms of changes involving slow changing general standard
operating procedures whereby “the result of adaptation rather than the adaptation itself can be studied
(p. 101).”
When approaching the issue regarding the content of organization routine change, both the
Behavioural School and the Evolutionary School are in agreement that routines change through the
combination and recombination of existing routines internal or external to the organization. As March
& Simon (1958) note “An important objective of standardization is to widen as far as possible the
range of situations that can be handled by combination and recombination of a relatively small number
of elementary programs (p. 150).” Also stressing the importance of the combination and recombination
of existing routines, Nelson & Winter (1982) sees the recombination of routines as the novelty in and
of itself, bringing new variation within an economic system. Likewise, this thesis will investigate the
combination between two types of learning routines (DUI & STI) and their role in product/service and
process innovation at Global Wind Power.
2.4.2 Change of Routines through Dynamic Capabilities and ‘Ad Hoc Problem-Solving’
A more recent perspective on routine change derives from the literature on dynamic capabilities (see
Teece & Pisano, 1997; Eisenhardt & Martin, 2000 ;Winter 2003). In general, dynamic capabilities are
25
2. THEORETICAL BACKGROUND

viewed as high order routines that support the change of lower level routines (Winter, 2003). In this
light, dynamic capabilities support strategic decision making.
Building on what is understood about the hierarchy of routines, Winter (2003) distinguishes
between ‘zero-order capabilities’7 which he sees as routines involved in “how we earn a living now (p.
992)” from first-order capabilities8 which are routines that influence the change of product, process,
scale, or markets. Examples of dynamic capabilities in the literature as pointed out by Eisenhardt &
Martin, (2000) include product development routines (e.g., Clark and Fujimoto, 1991; Dougherty,
1992; Helfat and Raubitschek, 2000), knowledge transfer and recombination routines (e.g., Hansen,
1999; Szulanski, 1996), resource allocation routines, alliance routines that bring new resources into the
firm through external sources (eg., Zollo and Singh, 1998) as well as ‘exit routines’ which eliminate
the use of superfluous routines.
In addition, to the change of routines by dynamic capabilities, Winter (2003) also addresses that
routines may also change through ‘ad hoc problem solving.’ He defines ‘ad hoc’ problem solving as
largely “non repetitive and at least ‘intendedly rationale’.” …appearing “as a response to novel
challenges from the environment or other relatively unpredictable events (pp. 992-993).” Winter
(2003) views ‘ad hoc’ problem solving as both a substitute to dynamic capabilities as well as a
complement. The context in which ‘ad hoc’ problem solving is evoked as a complement is in situations
where the dynamic capability in question is unable to cope with novel problems unaddressed by the
dynamic capability. Alternatively, in other situations, ‘ad hoc’ problem solving may be the only
manner in which routines are being changed and thus are viewed as a substitute for the more routinized
dynamic capabilities. Such situations occur in organizations where the occasions needed for first order
(dynamic capabilities) are seldom. The argument is that the cost burden in maintaining a dynamic
capability that is rarely used may be too great to justify the occasional benefit.9
When considering what types of patterns of dynamic capabilities are applied in relation to the
different degrees of dynamism in markets, Eisenhardt & Martin (2000) argue that based on the
empirical research, firms in moderate dynamic markets where change occurs frequently but along
predictable paths can develop dynamic capabilities that are more complex and relatively stable with
Also known as ’operating routines’ in evolutionary theory
also known as ’search routines’ in organizational and evolutionary theory
9
Winter, when constructing his argument, has in mind the example of firms that invest in innovative R&D which are then
competed away by firms that conduct only imitative R&D.
7
8
26
2. THEORETICAL BACKGROUND

linear steps, beginning with analysis and ending with implementation (Helfat, 1997). In contrast,
dynamic capabilities developed in ‘high-velocity’ markets, characterized as “ones in which market
boundaries are blurred, successful business models are unclear, and market players (i.e., buyers,
suppliers, competitors, complementers are ambiguous and shifting,” rely more heavily on simpler
dynamic capabilities and simple routines that “keep managers focused on broadly important issues
without locking them into specific behaviours or the use of past experience that may be inappropriate
given the actions required in a particular situation.
2.5 Summary
Thus far, the literature review has presented the variegated definitions of organizational routines. It has
been shown that routines have been viewed according to four common definitions: organizational rules,
organizational behaviour, generative systems, and organizational dispositions/capacities. The different
definitions employed by various authors highlight complementary yet differing aspects related to
producing organizational stability and change. Since the purpose of this thesis is to identify how
organizational routines influence innovation and considering that innovation in itself represents a
change in the organization, adopting a multi-definitional perspective allows for the operationalization
of the routine concept to capture the transformation while reducing conceptual ambiguity by
identifying which definition of the routine concept comes into play.
In addition, this section presents the common characteristic of routines in the literature.
Routines are characterized as sources of organizational memory, context dependent, persistent, stable,
and path dependent. The characterization of routines as persistent, stable, and path dependent however
should not suggest that routines are in capable of changing. The stability of routines allows for the
ability for organizations to change by providing a baseline in which learning can take place. In
addition, routines are further comprised of a nested hierarchy of even smaller routines; whereby
learning takes place at several nested levels. A concept that builds on the role of higher order routines
in bringing about change in lower level routines is found in the literature on dynamic capabilities. One
of the salient findings in this area of research is the identification of two sources of change in
organizations-organizational change by dynamic capabilities and change by ‘ad hoc’ problem-solving.
27
2. THEORETICAL BACKGROUND

Literature Review Part II
2.6 Intro
The first half of the literature review presented the role of routines generally in producing stability and
change. This section will focus on presenting, more specifically, on identifying which routines are
involved in innovative activities.
2.7 Learning Economy
Prior to presenting what is meant here by learning and innovating routines it is important to first
explicate the context in which learning or innovating routines are important for firm survival and
success. According to Lundvall and Johnson (1994), globalization, deregulation, and the rapid diffusion
of Information, Communication, Technology (ICT) has instigated a new economic era of rapid
technical and organizational change known as the ‘Learning Economy.’ The notion of the learning
economy signals a new form of competition that emphasizes the importance of learning and knowledge
across all levels of the economy. In addition, the learning economy is distinguished from the so called
Knowledge Economy. The move from the knowledge economy to the learning economy signals a new
form of competition that is based not only on the greater use of knowledge, but rather that knowledge
in this new era becomes obsolete at greater rates. In order for firms to remain profitable accelerating
the capabilities of the firm to learn becomes paramount. .
2.8 Routines in the Innovation Process
Although routines in general provide organizations with the stability that aids in identifying novelty
and coordinating routine change, organizations are not equally endowed with the ability to induce
change and innovate. There are heterogeneous differences amongst firms, as explained by the specific
routines employed by each. As such, some firms innovate frequently while others innovate only on
occasion or not at all. To understand these differences simply understanding the general characteristics
28
2. THEORETICAL BACKGROUND

of routines and how routines change alone will not suffice. A greater understanding of what specific
function routines must perform in order to foster learning and innovation is necessary. As such this
section explores the specific attributes of what could be called ‘innovating routines.’
As noted by Pavitt (2002), “one challenge in evolutionary economics is to give greater
operational content to the notion of ‘innovating routines’ inside the firm (p. 117).” According to Tidd
& Bessant, the innovative routines in the organization are those that involve the innovative processes of
search, selection, implementation, and capture (see Figure 2 below).
Figure 2: Simple Model of the Innovation Process
Source: Tidd & Bessant (2009)
The Search phase refers to the activities involved in identifying potential innovations both internally
and externally to the firm. This entails scanning the environment for market, technological, regulatory,
and other signals within the firm that may shape or provide a source for new innovation. Such signals
are then collected, filtered, and processed in to information so as to be relevant for decision making.
This phase in the innovation process is comparable to the question, ‘how can we find opportunities for
innovation?’
The Selection Phase, which involves the question ‘What are we going to do? And Why?’,
pertains to the routines involved in selecting, from a set of potential innovations, the most attractive
29
2. THEORETICAL BACKGROUND

ones to pursue. The selection criterion often involves ascertaining whether the potential innovations
are a ‘good fit’ for the organization in terms of its alignment with strategic objectives and whether the
firm’s current capabilities are sufficiently relevant to act on such potential innovations. A major
challenge in innovation management, is to develop strategies that ensure that the boundaries of the
selection area are not to narrow as to lead the firm into a competency trap and not to wide as to extend
way beyond the competencies of the firm and it’s complementary assets.
The Implementation phase consists of the routines used in translating the ideas into new
products, services, processes, or business models and launching it into an external or internal market. In
essence, this entails the combining of different pieces of knowledge held internally and externally to
the company and weaving them into a new innovation for the firm. The implementation phase can be
further broken down into three stages which include:
i.
resourcing knowledge for the idea,
ii.
executing the project; while mindful of incremental innovations involved in the diffusion, and
iii.
launching and sustaining the innovation.
Resourcing the knowledge for the innovative idea may involve combining new and existing
knowledge located internally or externally to the organization. Such knowledge may be obtained via
internal R&D activities, licenses, buy-ins, external research activities, new or existing technologies,
knowledge transfer as well as employee specific input that allows for further incremental innovation.
An important outcome of this process is that the innovation has transcended beyond a set of ideas to a
more refined and workable concept.
The execution of the project remains as the bulk of the innovation process. Inputs into this stage
of development are a clear strategic concept and some preliminary ideas on how these ideas can be
realized. An output of the process is a developed innovation with prepared internal or external markets
for launch. It is during this stage that the firm undertakes a series of problem solving loops related to
difficulties in both expected and unexpected areas in preparing the innovation for internal or external
markets. A key attribute in the success at this stage is the quality of the project management which
30
2. THEORETICAL BACKGROUND

often involves interactions made internally at the multifunctional and multi-departmental levels as well
as interactions with external key knowledge sources.
Successfully launching and sustaining the innovation requires routines designed to develop and
prepare the internal or external markets to accept the innovation. Despite whether the innovation is an
internal process, a new service, or new product offered to the market, the requirement that the
innovation be accepted by the target market or internal users remains integral in completing the
innovation process. For product development a particular focus may be paid on the insights from
external customer markets. Doing so, for example, may better ensure that technologies are created with
the customer’s voice in mind and that technologies do not take precedence over the customer wants and
needs. For process innovation the internal customer markets i.e. the employees are of particular
importance. This is so, since employees have a stake in the proposed changes and need to ‘buy-in’ to
the reasons and prescriptions for change as well as to provide key insights on how particular changes
could be developed and specific problems solved. By stressing the importance of communication,
early involvement, and intervention with employees (via training) can not only aid in the overall
effectiveness of the proposed innovation but also minimizes resistance to change.
The last phase in the simple innovation process refers to the routines for capturing the value
from the innovation. This is considered in two ways, the first is by sustaining the adoption and
diffusion of the innovation and also the ability of the firm to learn from the innovation process and
improve the ways in which the process is managed.
2.9 Modes of learning and innovation: DUI and STI
While the simple innovation model presented above describes what innovating routines must
accomplish in an innovation process, it says very little in distinguishing between the innovative
routines employed by organizations that are able to innovate more frequently versus those that innovate
only on occasion or not at all. A fairly recent contribution in the literature; however, that does explain
heterogeneous differences in innovative performance has been put forth by Jensen et.al. (2004,2007).
According to the authors, innovative performance is related to two general modes of learning and
31
2. THEORETICAL BACKGROUND

innovating applied by firms. The first mode stresses the use and distribution of codified, scientific, and
technical knowledge within the organization known as the Science, Technology, and Innovation (STI)
mode. The second is an experienced based mode of learning that emphasizes the access and use of
tacit knowledge through learning by ‘Doing’, ‘Using’, and ‘Interacting’ (DUI).
The two modes of learning emphasize the use of different aspects of knowledge. As such, it is
important to define what is meant by knowledge and to identify how each mode of learning utilizes
such knowledge in innovative activities. Polanyi (1958; 1966) distinguishes between two dimensions of
knowledge; an explicit and a tacit dimension, whereby the latter is considered more fundamental than
the former. As Polanyi (1966) notes, “all knowledge is either tacit or rooted in tacit knowledge. A
wholly explicit knowledge is unthinkable (p.144).” Tacit knowledge refers to the knowledge that “we
cannot tell.” It is non-conscious, automatic, personal, synergistic, and far more complex and powerfulexceeding beyond the domain of explicit inference. In contrast, explicit knowledge refers to the
knowledge that is articulable and can be written down or as a ‘capped’ or abstracted version of tacit
knowledge. As such, explicit knowledge can be codified into formal procedures, rules, or stored as
information on databases.
Given that explicit knowledge can be written it can be widely distributed and thus has the
potential for global reach. However, this reach is curtailed by the tacit knowledge held by the recipient.
A certain degree of absorptive capacity is required in order to interpret codes and to discern its
meaning. As noted by Jensen et. al. (2007),
“A prepared mind helps a lot when it comes to absorbing codified knowledge…scientific text
give meaning only to other scientist and manuals may prove useful only to highly skilled
workers (681).”
This implies that to garner the full potential of explicit knowledge for global distribution, the
complementary tacit knowledge base must also be learned in order to complement the transfer of
explicit knowledge. Such learning may be acquired through learning by doing, using and interacting.
While learning by doing and using provide a means for a localized development of a tacit knowledge
base in an organization, learning by interacting provides a learning mode that has the potential to lift
localized tacit knowledge to the economy at large.
32
2. THEORETICAL BACKGROUND

2.9.1 Taxonomy of Knowledge:
According to Lundvall and Johnson (1994), it is important to create further distinctions between
Polanyi´s knowledge dichotomy in order to identify the different channels in which tacit and explicit
knowledge are learned. The authors identify four types of knowledge: know-what, know-why, knowhow, and know-who.
 Know-What refers to the knowledge about facts and is closely associated with the
term ‘information’. As such, this form of knowledge is amenable to codification;
where facts can be organized, managed, and distributed across information systems
and databases.
 Know-Why refers to the “scientific knowledge of principles and laws of motion in
nature…but also to the interpretive frameworks based upon experience and intuition
(Jensen et al. 2004)”
 Know-How refers to skills or the capability to do something. Know-How can also be
embedded within organizational routines.
 And, lastly Know-Who refers not only to the knowledge of who knows what but also
the knowledge of how to interact and communicate in various social relationships and
communities of practice.
In the above, both know-what and know-why are largely attainable through various explicit knowledge
sources such as through reading books, accessing databases, or attending lectures. In contrast, knowhow and know-who are largely gained through experience such as through ‘learning by doing’, ‘using’,
and ‘interacting’. Although the four knowledge types are complementary and build on each other
within a firm, a distinction can be made to the degree in which firms rely more heavily on either more
explicit forms of knowledge (i.e. know-what and know-why) or on more tacit forms of knowledge (i.e.
know-who & know how) when learning and innovating (Jensen et al, 2004). The emphasis in how
organizations employ the four types of knowledge creates differences in the characteristics of the firm’s
learning routines.
33
2. THEORETICAL BACKGROUND

In the STI mode of learning the utilization of codified (know-what) and techno-scientific
knowledge (know-why) takes precedence throughout the entire innovation process of search, selection,
implementation, and capture. For instance, organizational problem solving, although triggered from a
local context, will make use of global knowledge in order to arrive at a solution. Search may begin by
restating local problems into the scientific vernacular as to be accessible to other practitioners in a
community of practice. Scanning through various journals, internal documents, R&D activities, or
through external contacts from scientific institutions is conducted in order to select and identify pieces
of knowledge needed for implementation. During the entire process the practice of documenting partial
results and requirements are essential in assuring that the necessary inputs are available for other
organizational members investigating different aspects of a problem. Capturing the learning attained
from such a process may be documented in a post innovation/project review so as to be available when
the process is to be performed again.
In contrast, the DUI mode of learning emphasizes the use, accumulation, and
combination/recombination of tacit knowledge gained through problem solving activities related to the
production of goods or services.
The solution sets arising from such experiences enhances the
capabilities of the firm by expanding their repertoire of routines. Unlike the STI mode of innovation
that stresses the importance of scientific or science-like understanding as a source of problem solving
leading to innovation, the outcomes of the DUI mode of innovation is only partially understood. As
noted by Jensen et. al. (2007) when quoting Nelson (2004),
“It is still the case that, ‘much of practice in most fields remains only partially understood,
and much of engineering design practice involves solutions to problems that professional
engineers have learned ‘work’ without any particularly sophisticated understanding of why’
(Nelson, 2004). Acc. (Jensen et. al., 2007, p 683).”
Since tacit knowledge is acquired by first-hand experience (learning by doing and using), transferred
through master/apprentice type relationships (learning by interacting) and combined/recombined
through the interaction of knowledge holders (also learning by interacting), the importance of knowwho in terms of social relationships and as access to know-how for the firm is vitally important.
Within the innovation process, Search may, for example, may begin by seeking know-how
internally or externally to the organization. In regards to external links with the firm, access to
34
2. THEORETICAL BACKGROUND

strategic alliances with suppliers can aid in identifying sources for new innovation as can accessing
tacit knowledge held by potential customers of the innovation. This is so since both can contribute
important insight to the contents of the innovation. Empirical and conceptual evidence in the literature
has clearly shown that establishing close supplier and customer relations greatly benefit the innovative
capabilities of firms.
As such, interaction with both suppliers and customers can influence the
Selection of certain aspects of the innovation. One particular technique that gives precedence to
customer value sets when making decisions is the practice of emphasizing the Voice of the Customer
(VOC) across the organization as a guideline in the selection process. The implementation of the
innovation may also involve the combination of various specialized tacit knowledge distributed across
various departments and functions. Routines, such as cross functional groups, enhance the interaction
amongst various knowledge holders and increase the possibility of combining knowledge. As new
knowledge emerges in support of the new innovation the processes becomes Captured in the memory
of the organization as operating and learning routines.
2.9.2 Innovating Routines
In Jensen et. al. (2007), the authors identify 7 ‘innovating routines’ associated with the DUI mode of
Learning and Innovating and 3 ‘innovating routines’ related to the STI mode of innovating presented
below in Table 1.
Table 1: DUI & STI Routines
DUI
Indicators/routines
Autonomous Groups E-2,3,4,
Interdisciplinary Workgroups
Quality Circles
Systems for collecting proposals
Integration of Functions
Softened Demarcations
Cooperation with customers
STI
Indicator/routines
Expenditures on R&D
Cooperation with researchers
35
2. THEORETICAL BACKGROUND

The employment of scientifically trained
personal includes BA/MA/PHD in Natural Sciences
Source: Jensen et. al. (2004, 2007)
2.9.2.1 STI Routines
The STI innovating routines which include the firm’s expenditures on R&D, cooperation with
researchers, and the employment of scientifically trained personal all have the effect of being able to
aid in either the creation or use of both know-what and know-why type knowledge. Research and
development activities in the firm directly aids in the creation of techno-scientific knowledge. In
addition, R&D in conjunction with the employment of scientifically trained personal has the added
effect of increasing the absorptive capacity of the firm. According to Cohen & Levinthal (1990), the
absorptive capacity or the ability of the firm to recognize the value of new information, assimilate it,
and use it for commercial purposes is greatly enhanced through internal R&D activities. This is one of
the reasons Cohen & Levinthal (1990) emphasize the use of R&D as opposed to simply acquiring
technologies via patents etc., since conducting R&D enhances the capability to use and produce new
knowledge.
In a similar manner, the hiring of scientifically trained personal also has the effect of increasing
the absorptive capacity of the firm, since scientifically trained employees may have specialized knowwhat that allow them to better search for technical solutions than organizations without scientifically
trained personal. A recent study by Nielsen (2007) illustrates this point. In this study a comparison was
made between small firms that had not hired academic personal in relationship to those that had. It was
shown that when a small firm hired their first engineer there was a significant positive impact on the
propensity to introduce a new product on the market.
2.9.2.2 DUI Routines
The DUI mode of learning can also be enhanced by promoting specific ‘innovating routines’ that
intentionally bolster the use of learning by ‘doing’, ‘using’, and ‘interacting.’ The choice of learning
routines identified in Jensen (et.al. 2004, 2007) is based on the literature regarding the ‘learning
36
2. THEORETICAL BACKGROUND

organization,’ and ‘high performance work systems’ (e.g. Clegg et al. (1996), Dertoutzos et al. (1989),
Gittleman et al. (1998), Osterman (1994, 2000), Ramsay et al. (2000), Truss (2001) and Wood (1999);
as well as the literature dealing with the relationship between ‘organizational design and
innovation’(e.g. Burns and Stalker, 1961; Mintzberg, 1979; Lam, 2005). The first four DUI routines
listed above in Table 1 which includes interdisciplinary workgroups, quality circles, systems for
collecting proposals, and the use of autonomous groups are all in keeping with the suggested practices
developed in the ‘high performance work systems literature.
Such practices increase employee
involvement in decision making and problem solving. The literature relating organizational design to
innovation stresses the importance of flat and organic structures as important for learning and
innovating. As such, routines that allow for the integration of functions and softened demarcations are
also listed as DUI learning routines. Lastly, the importance of learning by interacting as a source of
innovation and as a source of generalizing knowledge has been widely accepted in the literature (need
citation).
Innovating routines that strengthen the relationship between customers and producers
uncover needs that become new problem set to solve and are thus a crucial source for innovation.
Based on the empirical study performed by Jensen et. al. (2007) it was shown that product or
service innovation was twice as likely to occur if a firm adopted either the DUI or STI modes of
learning in comparison to non-learning firms as a baseline. However the most salient result from the
analysis is that firms that combined learning/innovating routines of both DUI and STI modes of
innovation were the most innovative and were five times more likely to innovate than non-learners.
Understanding how and why the combination of DUI and STI routines allow for superior innovative
capabilities is still a remaining question that requires analysis and is one of the central subjects of this
thesis.
2.10 Propositions
In order to answer such questions testable propositions on why the combination of DUI and STI
routines allow for greater likeliness to innovate will be presented below. According to Jensen et.
( 2004, 2007) firms that belong to sectors that require greater ties to the STI mode of learning have
greater incentives to adopt organizational structures and routines akin to the DUI mode of learning
since such firms are influenced by greater transformation pressures due to both technological change
37
2. THEORETICAL BACKGROUND

and changing customer demands. In contrast, firms that operate largely in the DUI mode of learning
adopt greater links to the STI mode of learning in order to seek out technological opportunities.
Therefore the following propositions can be made:
Proposition 1: Firms involved in STI learning adopt DUI routines due to greater transformation
pressures from both technological change and changes in customer demand.
Proposition 2: Firms involved in STI learning adopt DUI routines in order to better link to
customer demands.
Proposition 3: Firms involved in DUI mode of learning adopt the STI mode of learning to
increase the possibilities of techno-scientific search
These propositions listed above will be tested within the case evidence seen in Section 4 and 5.
38

3. METHODS
3. METHODS
The method section will describe the connection between the research question, the type of research
strategy, the methods pursued, the manner in which data is collected and evaluated, and the criteria for
interpreting the findings.
39

3. METHODS
3.1 Research Type
The research problems formulated in section 1.1, and the propositions, posed in section 2.10,
will be approached through a case study research strategy. According to Hartley (2004) a case study
research strategy, or more simply known as a case study, refers to
a detailed investigation, often with data collected over a period of time, of a phenomena, within
their context,” with the purpose being, “to provide an analysis of the context and processes
which illuminate the theoretical issues being studied (p. 323 ).
A case study, rather than being considered narrowly as a research method, is more aptly referred to as a
research strategy (Hartley ,2004; Titscher et. al, 2000). As Stake (2000) explains, a “case study is not
a methodological choice, but a choice of what is to be studied; by whatever methods we choose to
study the case (Stake , 2000 p. 435).” Thus, a case study is not to be viewed in terms of its methods,
which may be quantitative, qualitative, or both, but towards a theoretical orientation toward a particular
unit(s) of analysis (Hartley, 2004; Stake, 2000).
The decision to pursue a case study for this thesis derives from the appropriateness of the case
study research strategy in addressing the formulated research problems and propositions. According to
Yin (2003a), “case studies are the preferred strategy when “how” or “why” questions are being asked
about a contemporary set of events of which the investigator has little or no control (p. 9).” Given that
the central and supporting questions of this thesis pertain to contemporary issues with events that are
external to my influence and that the central research problem are oriented in exploring how
routines/learning routines have been employed in an SME and why the combination of such learning
routines increase the innovative capabilities of a firm, the case study is a suitable research strategy.
3.2 Unit of Analysis
40

3. METHODS
Miles & Huberman (1994) defines the unit of analysis as a “phenomenon … occurring in a bounded
context whereby the case is in effect, your unit of analysis (p. 25).” The units of analysis in this thesis
are the DUI and STI learning routines developed and practiced by Global Wind Power in consideration
of how they function across the innovation process and how they relate to the definitional distinctions
pertaining to rules, behaviour, and dispositions. (A literature review of the routines concept and what
is meant by the learning routines is presented in Section 2.)
The units of analysis are considered in conjunction to two related but varying contexts that
delimits the boundaries of the case while ultimately linking with the formulated problems. These
include the binding of the case:
-
1 temporally- the units of analysis are seen through a longitudinal perspective within Global
Wind Power
-
2. The units of analysis are identified in how learning routines are currently used across the
organization
Furthermore, the units of analysis will be further bounded by the propositions developed in section
2.10.
3.3 Case Study Type & Design
When performing a case study, Yin (2003a, 2003b) recommends the consideration of at least three
criteria pertaining to the case study type and design to be used:
i.
The first criterion refers to the decision regarding which type of case study to pursue.
ii.
The second criterion refers to the choice between a single or multiple case study design
iii.
And, the third criterion refers to the choice between either a holistic case study, consisting of a
single unit of analysis, or an embedded case study design, consisting of multiple units of
analysis.
41

3. METHODS
Accordingly, the following sections will present the case study type and design that is deemed
appropriate in addressing the formulated problems and propositions.
3.3.1 Case Study Type
In the case study literature, two prominent typologies for case studies exist (Baxter & Jack, 2008). The
first is put forth by Stake (1995) who views case studies as either intrinsic, in which the case study is
unique and has value in and of itself to be studied, or instrumental, where the case study is performed
in order to provide insight into a particular issue or refine a theory.
In contrast, Yin (2003a)
distinguishes between three case study types: exploratory, explanatory, and descriptive.
An
exploratory case study design is performed either to determine the feasibility of a desired research
procedure or to generate research questions and hypotheses for future study, such as in a grounded
theoretical approach to case studies (e.g. Glaser & Strauss,1967). Descriptive case studies are intended
to present a complete description of a phenomenon under investigation within its context. Lastly, an
explanatory case study is performed in order to present data that explains the presumed cause-effect
relationships of a phenomenon i.e. explaining how an event or phenomenon has transpired.
The purpose of these typologies as explained by Stake (2003) is not necessarily that it is useful
to sort case studies into categories, but rather that the different type of case study pursued has
implications regarding the research design practiced. Based on the definitions provided above, the type
of case study pursued in this thesis is consistent with Stake’s instrumental case study and Yin’s
explanatory case study. This is so, since the case study is performed in support of already existing
literature regarding modes of learning whereby explanatory evidence on how and why the combination
of learning modes increases the innovative capabilities of SME are a remaining issue.
3.3.2 Single vs. Multiple-Case Design
When considering whether to pursue a single versus multiple-case study design, it is important to
“recall that a single-case study is analogous to a single experiment, and that many of the same
conditions that justify a single experiment also justify a single-case study (Yin, 2003a. , p. 39).” That
42

3. METHODS
is, both experiments and case studies are able to be generalized based on an analytical generalization,
which is a generalization to theory, and not on the basis of a statistical generalization, which is
generalization of populations. According to Punch (2000) the use of analytical generalization relates to
theory verification and theory generation. Theory verification entails interpreting or explaining a
research question based on established theory, while theory generation requires the interpretation or
explanation of a phenomenon that has not been accounted for in terms of known theory. The
propositions developed in Section 2.10 will provide the baseline in which theory verification through
pattern matching can be established while the unexpected finding are used as sources of stimulus for
both theory generation and suggestions for future studies.
According to Yin(2003) there are five reasons in which to pursue a single case study design.
These include cases that are:
i.
Critical Cases: used in testing well formulated theory
ii.
Extreme or Unique Cases: where the uniqueness of the case warrants a study in it’s own
right
iii.
Representative or typical cases- a case representing a common experience or pattern
iv.
Revelatory Cases- previously inaccessible phenomenon
v.
Or Longitudinal Cases- case requiring the identification of patterns over time
The single-case study design, as ultimately pursued here, was chosen in order to focus the
investigation on one of the central research problems of this thesis (i.e. How learning routines influence
the development and continuation of such product, service, and process innovations at GWP?) which
entails a longitudinal perspective. Secondly, the single case perspective allows for the answering of the
second main question of this thesis (i.e. Which routines could be adopted at GWP that would allow the
organization to increase their innovative capabilities? which can only be identified through a singlecase perspective –narrowly in the context of GWP. A third and final reason in which a single-case
study design was chosen over a multiple case study design is due to practical research limitations. A
multiple case study design is often desirable and can add to the overall robustness of the research by
replicating the pattern-matching derived from theory in multiple settings. This however, was unable to
be pursued here due to limitations in gaining access to more firms to partake in the study under the
same research methods.
43

3. METHODS
3.3.3 Unit of Analysis: holistic vs. embedded
A third criterion in designing a case study is whether to choose a holistic or embedded case study
design. Holistic case studies pertain to the use of one unit of analysis whereas an embedded case study
analysis considers multiple units of analysis. The units of analysis for this case study pertain to the
learning and innovating routines in both the DUI and STI modes of learning. This study will identify
the routines involved in both a general and more specific sense. When identifying more specific
learning routines, this study relies on the indicators for the learning modes as identified by Jensen et. al.
(2004, 2007).
Figure 3 below presents the possible research design considerations in relationship to the ones
ultimately chosen for this thesis. As highlighted below, this study will approach the formulated
research problems through an explanatory single case study design utilizing embedded units of analysis
(i.e. learning routines) within the context of Global Wind Power.
Figure 3: Dimensions of the Case Study Research Design
Single case design
Holistic
(single unit of
analysis)
Context
(multiple unit
of analysis)
Case
Context
Case
Case
Context
Context
Case
Case
Context
Context
Case
EUA 1
EUA 2
Case
EUA 1
EUA 2
Embedded Unit of
Analysis (EUA 1)
Context
Embedded Unit of
Analysis (EUA 2)
Source: Yin(2003)
Context
Case
Context
Embedded
Multiple case design
Case
EUA 1
EUA 2
Context
Case
EUA 1
EUA 2
44

3. METHODS
3.4 Data Sources
One of the advantages of utilizing a case study as research strategy is the use of multiple data sources
that enhance data credibility through triangulation (Baxter & Jack, 2008; Patton, 1990; Yin, 2003).
Accordingly, this study has made use of several different sources of data which include:
-
Internal company documents i.e. Business Plan, GWP presentations, & Wings of History
(Company History)
-
External company documents i.e. company website
-
Semi-structured Interviews: approximately 3 ½ hrs of recorded interviews (HR meeting 1; HR
meeting 2, BD meeting)
-
Survey directed at both Management and Non-managerial Employees (see. Appendix B)
Among those listed above the methods for developing the Survey and Semi-Structured Interview will
be discussed below.
3.4.1 Surveys
Two targeted surveys were created and administered to the staff at Global Wind Power. The first was
developed for the Management staff and the second for non-managerial employees. Both surveys
contained sections with similarly themed questions that were intended to increase the reliability of the
results through the triangulation of responses derived from similar lines of questioning.
Simultaneously, the use of a management and a non-management employee level survey allowed for a
separate series of questions that pertained more to either of the two levels, thus gaining further insight
into the management and non-management level perspectives.
Out of the 90 employees at Global Wind Power, 66 were available as potential respondents. The
remaining 23 employees were located in offices outside of Denmark where, due to significant
employee time constraints were unavailable as potential respondents. In all, a sample size of 8
management surveys and 33 non-managerial surveys were completed. The sample of managerial and
non-managerial respondents reflected a distribution across all supporting business units and line
functions located in Denmark.
45

3. METHODS
3.4.1.1 Survey Purpose
The purpose of utilizing the survey method was to identify:
i. which ‘innovating routines’ if any were present at Global Wind Power
ii. the degree to which learning routines were distributed across the organization,
iii. the organizational changes that have taken place over the past two years and
iv. The types of innovation produced by such organizational changes.
3.4.1.2 Pilot Survey
Prior to administering the surveys to all potential respondents, a pilot survey which included the
original questions found in the DISKO survey, Jensen et. al, (2004, 2007) and upcoming Meadow
Project survey was reviewed by both the HR Manager and Consultant at Global Wind Power in order
to determine the potential relevancy of such a survey for the staff at large. During our meeting it was
determined that the questions pertaining to interdisciplinary workgroups, quality circles, and
autonomous groups if presented in its original version may arrive at misleading results (see Table 1 for
list DUI and STI learning routines). This was primarily due to the argument that “formalized or
permanent work groups” were not practiced at Global Wind Power. Rather, Global Wind Power made
use of ad hoc work groups that formed organically around organizational problems or new
developments as they occurred. According to the HR consultant, employees, although accustomed to
working in collaboration with other colleagues across the organization, may respond in the negative to
such questions regarding group work since they may not view their interaction with others as defined as
“group work.” Therefore, in order to test whether Global Wind Power made use of organizational
practices that were similar to quality circles, interdisciplinary and autonomous workgroups, an
expanded set of questions were addressed that focused on identifying how employees interacted, who
they interacted with, and with what purpose. Doing so would allow for an indication as to whether
such interactions were fruitful for combining and diffusing knowledge across the organization.
3.4.2 Semi-Structured Interviews
46

3. METHODS
In addition to the survey method, this case study makes use of semi-structured interviews.
Kvale (1996) defines a semi-structured interview as an “inter-view whose purpose is to obtain
descriptions of the life world of the interviewee with respect to interpreting the meaning of the
described phenomenon.” The semi-structured interview is distinct from everyday conversation in that
it is purposeful and involves a specific approach and technique – thus it is neither an everyday
conversation nor a closed questionnaire (Kvale & Brinkman, 2008). According McNamara (1999), the
semi-structured interview is also useful in gaining the context behind the participants’ experiences, and
maybe valuable in following up on responses gained from questionnaires.
Accordingly, the semi-structured interviews performed here consisted of one group interview
with two members in HR performed prior to the administering of the survey and an interview with the
Business Development Manager performed after the survey results had been evaluated. The purpose of
the first interview was to gain knowledge of organizational practices as well as general knowledge
pertaining to the products and services in GWP’s value chain; while the second interview conducted
with the Business Development Manager was performed in order to understand how learning routines
are employed during the project management development lifecycle of a wind farm and how learning
routines are employed in deciding which market to pursue. The group interview with HR consisted of
2hrs of recorded dialogue while the interview with the Business Development Manager consisted of 1
½ hrs of dialogue.
47
4. CASE STUDY EVIDENCE

4. CASE STUDY EVIDENCE
The following case study provides the empirical evidence on the affect of learning routines, considered
in both a general and specific sense, on the introduction of innovative products/services and processes
at GWP. The case study commences with an introduction to the company; highlighting their current
products/service offerings. This is followed by an account of the historical evidence chronicling the
role of DUI and STI modes of innovating and learning on the emergence of their current
product/service capabilities along the innovation process.

48
4. CASE STUDY EVIDENCE
4.1 Introduction
Global Wind Power (GWP), a windfarm development company, has seen tremendous growth over the
past few years. The company was conceived on the vision of providing Danish Investors opportunities
to invest in windfarm projects globally. After only 10 short years this vision has manifested into
reality, with the expansion of their employee base to 90+ employees in 2010 and operations expanding
beyond Denmark to include Germany, Bulgaria, France, and Romania. During this period, GWP has
gained an impressive 380 MW of experience consisting of over 200 erected wind turbines. The
Technical and Commercial Management Department, which is responsible for the monitoring,
maintenance, and financial reporting of wind farm sites for investors, currently manages over 800,000
MWh of electrical output per year- the equivalent to the annual consumption of 180,000 households.
4.2 GWP Value Chain
There are three core product/service areas that comprise Global Wind Power’s value chain. These
services include Greenfield Development, Turnkey, and Technical & Commercial Management (TCM)
(see Figure 4 below). From the vantage point of an investor, the three service areas can be employed in
tandem as a complete package or alternatively as independent modules depending upon the client’s
needs and competencies.
Figure 4: Global Wind Power Value Chain
Source: Presentation of Global Wind Power
49
4. CASE STUDY EVIDENCE

4.2.1 Greenfield Development
Greenfield Development(GD) refers to the planning and development of a wind turbine project from
the ‘early open land stage’ to the point where all permits and agreements necessary for construction of
a wind farm are obtained. The lead times associated with Greenfield tend to be fairly long, ranging
between 3 – 5 years. As a result , GWP, for a good part of their history, had mostly relied on acquiring
projects where the Greenfield phase of development was more or less complete, making only a few
changes to the project design with the support of the pre-developer. As such, a major area of activity
for GWP concerns the routines involved in the search and selection of potential markets.
Recent efforts in the organization, however, have been made to expand their capabilities into
the Greenfield stage of development. In 2009, GWP acquired the French Greenfield Developer,
VentInvest. The acquisition of VentInvest not only allowed GWP greater know-how when performing
Greenfield development but moreover, it sparked the realization that Greenfield Development was
beneficial to the company’s overall strategy- a strategy that sought greater flexibility in servicing
emerging industrial and institutional clients while creating greater reliability in the overall wind farm
development. As such, Greenfield development is now a part of the repertoire of product/service
capabilities being offered.
4.2.1.1 Greenfield Development Phases
Greenfield is subdivided into two phases of development.
Phase I involves the evaluation and
selection of a windfarm location. Phase II concerns all the detailed planning and project design for the
windfarm that is required in order to receive the permits to build.
4.2.1.1.1 Greenfield Development Phase I
Phase I comprises all the feasibility studies and calculations concerning:
i.
the wind conditions,
50
4. CASE STUDY EVIDENCE

ii.
grid connection,
iii.
site conditions: quality of the roads, access to the roads, and soil conditions
iv.
And potential environmental impact.
Figure 5: Greenfield Development Phase 1 (GFD-1)
Action: Wind Studies – Grid Connection – Site – Environment
Target: Securing of land – Grid connection agreement
Source: Presentation of Global Wind Power
Each of these areas represents potential risks that are actively monitored and controlled. First,
wind conditions must be evaluated. Assessing wind conditions not only indicate the potential revenue
that can be expected but it also dictates the type of wind turbines that are to be used for the build i.e.
wind turbines designed for either low or high wind conditions. This in turn has implications for the
overall project design and the types of permits to be acquired.
Second, identifying if there is enough capacity on the grid and where the possible connections to
the grid can be made are vitally important. This is usually undertaken by a third party grid connection
consultant that is able to analyse public data on electrical networks and determine the best connection
strategy for the generation projects. Identifying where connections are made and selecting sights where
the transmission infrastructure is less demanding can be a way to minimize excess costs. When a site is
finally chosen, the study of the transmission infrastructure is then used as supporting documentation in
the preliminary grid connection application with the utility company.
Third, determining the feasibility of a particular construction site is performed by investigating three
attributes of the potential site which include:
i. the quality of the access roads,
ii. the accessibility of the access roads and
51
4. CASE STUDY EVIDENCE

iii. the bearing capacity of the ground where the wind turbines and crane pads are to be
placed.
Verifying the quality of the access roads are essential in assuring that all necessary equipment,
trucks, wind turbines, blades etc are able to be brought safely to the construction site. Since many of
the areas where windfarms are established are often in rural lands where the road conditions are rather
poor, it is essential to know exactly the condition of such roads. If a site is chosen with poor roads, the
roads must be built up to a certain level of quality in order to handle the extreme loads that will be
placed on them during the construction phase. If the construction of the roads, for example, are not
built up to a certain level of quality and damages are made to any of the trucks, equipment, or turbines
the losses incurred would be at GWP’s own liability (BD interview).
Aside from assuring the access and bearing capacity of the roads, it is also important to test the
specific ground areas where the foundations for each turbine and crane pad are to be placed. This is
determined by collecting soil samples in there exact locations. Doing so identifies whether it is even
possible to erect a turbine at such a location as well as dictating the construction methods used.
Fourth and finally, an environmental assessment must be performed. This includes identifying
whether the site posses any risk to any protected local or migratory wild life.
In addition, the
environmental assessment also includes an investigation on the effect of the wind farm on neighbouring
properties. In particular, it is important to make sure that the wind turbines are situated in a manner
that the blades and turbine do not cast shadows over neighbouring properties. This is done so sun light
shining behind the turning blades does not cause light to flicker on adjacent properties. Improper
positioning of the turbines in this manner could pose a nuisance when the blades are in motion and
could potentially equate to huge losses if they have to be relocated.
Once these feasibility areas are addressed and a preliminary grid connection agreement, a
landowner agreement, and an acknowledgement of the construction site’s location by the appropriate
public authorities are obtained, phase I of Greenfield is considered complete.
4.2.1.1.2 Greenfield Phase II
52
4. CASE STUDY EVIDENCE

Phase II of Greenfield involves the creation of a preliminary technical and structural project design,
civil works, and electrical works in order to gain the appropriate permits for implementation. Once all
permits and final grid connection agreements for the wind farm project are obtained and a final
environmental impact assessment is made, the project is said to be ready for the Turnkey Phase of
development.
Figure 6: Project Design and Processing by the Authorities (GFD-2):
Action: Project design - Civil Works - Electrical Works
Target: Building permit - Final Grid connection agreement -Environmental Impact Assessment
Source: GWP General Presentation
4.2.2 Turnkey Phase of Development
While the Greenfield development primarily pertains to all the necessary feasibility studies (GF-1) and
‘paper’ requirements/permits (GF-2) needed to break ground on the windfarm project, the Turnkey
phase of development entails the more detailed planning and actual construction of the access roads,
crane pads, foundations, cabling, and transformer station; as well as handling the delivery, construction,
and commissioning of the wind turbines.
Turnkey Development at GWP varies in the degree in which investors may participate in the
development of their wind turbine project. This leads to two potential scenarios. The first is a FullTurnkey Development solution where the entire implementation process is managed by GWP. This is
typically advantageous for private individuals or group investors who lack the knowledge to contribute
to the development. The second is a Semi-Turnkey solution that allows for direct investor involvement
in the implementation process. The investors that typically involve themselves within the semi-turnkey
aspect of development are often institutional or industrial investors. Involvement typically pertains to
the selection of wind markets and projects, the procurement of the wind turbines, and/or infrastructure
53
4. CASE STUDY EVIDENCE

provisions. Despite whether the project is turnkey or semi turnkey GWP provides project and site
management over the design, planning, implementation, and construction of the windfarm.
GWP; however, does not perform the actual construction and electrical works themselves but
rather contracts the work to local subcontractors. As such, one of GWP’s role as project manager is to
prepare the materials to be made available for tender regarding the civil, electrical, and construction
works for the project. Once subcontractors have been selected and construction has begun, GWP’s role
shifts from project to site management; ensuring that the construction works concerning the access
roads, crane pads, and foundations live up to the way they are described in the construction agreements.
This stresses the role of knowing what is needed in order to bring a wind project into fruition and who
possesses the know-how in order to complete the task.
4.2.3 Technical & Comercial Management
The third and final link in the value chain is the Technical and Commercial Management
(TCM). TCM pertains to all the services concerning the operation of the wind turbine investment once
the wind farm has been completed. This includes technical management, financial, and accounting
services. The Technical Management side of TCM pertains to the optimizing of the output of electricity
generated by the turbines. This requires the daily monitoring of the wind turbines via an online
administration tools that are linked in real-time to internal sensors in each turbine. The TCM
department, which is located in Herning, Denmark, is in daily contact with local operations managers
that are available for onsite visits in the event that a physical inspections or the performance of a simple
repair is in order. When damages to the turbines are significant and require the maintenance of the
manufacturer, the operation manager is also able to provide a thorough description of the problem,
assuring a swift and appropriate response by the manufacturer’s service team.
In addition, to
monitoring the operations of the turbine itself, the Technical Management is also responsible for the
maintenance of the infrastructure surrounding the wind turbine.
This includes, for example, the
inspection of all access roads to ensure that the turbines are accessible year round. In addition, the
Technical Management performs four annual inspections, of which two inspections are performed
alongside the manufacturer’s service team.
54
4. CASE STUDY EVIDENCE

4.3 GWP Pre-history
When GWP opened their doors for business in 2002, their organizational capabilities only
reflected a small portion of the current value chain above. This beckons the question in regards to
learning routines on How did learning routines contribute to the emergence and development of the
innovations present at Global Wind Power?
Instead of beginning the case study from the point where the company has been formed, there is
some value in chronicling the pre-history of the organization in order to understand how events
unfolded and how initial learning routines were established. As such, the following section chronicles
this growth with the focus on presenting the role of learning habits on the development of
organizational learning routines.
Figure 7: Global Wind Power Timeline
Source: Wings of History: Useful Information about Global Wind Power
4.3.1 DUI modes of learning as access to know-what and know-how
55
4. CASE STUDY EVIDENCE

The early development of Global Wind Power10 can be best described as progressing initially through
the experienced based modes of learning. Even prior to the establishment of the company, owner
Henrik Amby displayed DUI learning habits that ultimately carried over to organizational-level
learning routines.
Global Wind Power was established in 2002 by Henrik Amby, but his experience in Wind Farm
Development began much earlier. His entrance into the business was not by way of any formal
education (know-why) in engineering, project management or the like, but simply began with the
realization of the potential profitability of investing in wind energy.
In 1985, Henrik married into a
family that successfully owned and operated a wind turbine on their farm. When traditional farming
ran into hardship, Henrik’s father-in-law often lamented on how he should have invested more in wind
turbines rather than on pigs or fallow deer.
By 1995, Henrik’s curiosity in wind energy began to grow.
He began to notice that a
significant increase of wind turbines were being erected along his commute between Thy and
Holsterbro where he served as a Staff Sergeant with the Jutland Dragoon Regiment. One of these
turbines belonged to a neighbouring farmer who was beginning construction. It was the first time
Henrik had seen the turbine, blades, and tower up close; the sight of which seemed to make owning a
wind turbine that much more attainable. To answer some of his questions regarding owning a turbine
he contacted Vestas, a prominent wind turbine manufacturer.
Through learning by interacting with Vestas, Henrik was able to leverage Vestas’ knowledge
and gain an understanding of what was entailed in the financing, planning, and implementation of a
wind turbine project (know-what). For the initial purposes of financing, Vestas aided Henrik by
preparing a financial forecast showing that owning a wind turbine could breakeven within 7 years and
could generate a sizeable return after 20 years. Despite that financial projections looked positive,
Henrik had no financial capital of his own and was denied financing by three banks. It was only by
way of Henrik’s personal network (know-who) was he able to attain the finances needed to break
ground. As it turned out Henrik’s neighbour, the one who had begun construction on his own wind
The following narrative presents an adaptation of GWP’s own historical account found in the Wings of History document.
The adaptation presented here highlights certain aspects of GWP’s history that are considered pertinent to the analysis, adds
a new layer of insight through statements gathered via interviews, while omitting other areas in the company’s history that
were deemed inconsequential to the analysis. The interested reader may view GWP’s Wing’s of History document via the
following link http://www.globalwindpower.com/en/about-global-wind-power/history.aspx
10
56
4. CASE STUDY EVIDENCE

turbine was also a loan officer and had experience in funding wind turbine projects in the area. The
two were able to come to an arrangement and Henrik was able to gain the financing needed to break
ground.
4.3.2 Competency building through ‘Learning By Doing’
‘Learning by Doing’ also played a major role in building Henrik’s competencies. When Henrik had
finished the majority of his project planning and was at the ‘ready to build stage,’ the vendor for the
site, who was also interested in erecting a turbine of his own, had inquired if Henrik would be willing
to manage the planning and construction of his turbine. A neighbour, who was also interested in
erecting two turbines nearby had likewise requested for Henrik’s help. Suddenly Henrik, who had no
previous experience in the matter, found himself in charge of overseeing the project management and
construction site management of 4 wind turbines; in effect a small windfarm.
“I learned so much in that six month period, says Henrik Amby “About technology, grid
connection, calculation of wind speeds, maintenance, finance and capital etc… -and how
rational and irrational farmers can be (Wings of History p.13).”
During the construction phase of the four turbines, Henrik discovered a job ad posted by Vindkraft
Nord, a local windfarm developer. They were seeking out local consultants to sell shares on 5 small
wind turbines to private investors in Fjerritslev. Impressed by Henrik’s current project, the owner
immediately hired Henrik to lead a group of eight sales consultants. When the shares had been sold,
Henrik was asked to stay on as a construction site manager.
He was able to perform this role by working alongside a very skilled contractor. “I just
said”yes” to everything he said,” exclaims Henrik. “I learned a lot about construction, foundations,
cables, routes and grid connection.” The master/apprentice relationship afforded by close interaction
with the contractor did not only lend itself to the ‘know-what’ and ‘know-why’s’ of windturbine
construction, but also to the more tacit details and ‘know-how’ involved in making critical decisions.
“I also found out that a project has a critical period of 2 to 3 weeks,” says Henrik Amby.
“This is when the turbines start to arrive. You have to make quick decisions and be ready
57
4. CASE STUDY EVIDENCE

for anything. It really gets your adrenaline going. It is absolutely fascinating (Wings of
History, p. 14).”
Henrik remained with Vindkraft Nord for three years. During this time he witnessed the company grow
from being a local developer to a national player. This growth was in part attributed to Henrik’s idea of
using ‘land hunters’ to search and secure lands that were earmarked for windfarm construction. The
idea of land hunters was first applied in Southern Jutland and later extended to the country at large.
Doing so ensured the companies space in the market that was increasingly gaining competition from
new entrants in the form of collectives and fledgling developers. As Henrik exclaims,
“A lot of school teachers and police officers had sideline jobs cobbling together
cooperative projects. Sometimes we almost queued to get on the drive (Wings of History,
p. 15).”
This increase of new entrants on the market also meant that land owners could now play buyers against
each other and drive up the price of land. Henrik knew that scarce lands that were earmarked for wind
turbines in Denmark would ultimately result in the inability of the company to erect all the turbines
demanded by an ever growing investor base.
Henrik’s response to this challenge was to search for areas abroad. One of the projects that he
championed involved the development of 45 wind turbines to be erected in Minnesota. Despite that
everything was in place for the sale and construction of the project, the owner of Vindkraft Nord
decided to back out of the project at the last moment-a decision that Henrik deeply regretted. It became
clear to Henrik that he and the owner did not share the same vision for the company. Unlike the owner,
Henrik envisioned a company that could operate at the global level.
Soon after, Henrik resigned from Vindkraft Nord and began working independently with the
U.S. market. Unfortunately, after several visits to the U.S., it became clear that Danish Investor’s
would not be able to benefit from U.S. tax credits on green energy; thus making his project unviable.
4.3.3 From learning habits to learning routines: the origin of ‘ProPartner’
58
4. CASE STUDY EVIDENCE

Although Henrik’s U.S. project came to nothing, the time spent in the U.S. was not wasted. During his
trip to the U.S., Henrik had worked closely with Vestas, and in so doing, developed a close professional
and personal relationship with several of the employees situated in Vestas’ Palm Springs office. One
particular friendship was developed with Hans Jorgen Rieks. At this point in time, Hans had just been
promoted to Managing Director of Vestas Germany and was interested in generating turnover for his
new territory. Simultaneously Henrik, now with the U.S. project abandoned, was looking for ways in
which he could make an impact. During a conversation, Hans had requested for Henrik’s help on a
project that was being developed in Magdeburg, Germany. The project already had a developer and
permission to build, but what the project lacked was someone who could find Danish Investors.
Having an established network of Danish farmers that were interested in investing in wind energy,
Henrik immediately agreed to help out.
“Vestas and I had a common goal,” says Henrik Amby, “although in principle we were
counterparts (Wings of History, p. 20).”
This relationship (between Hans and Henrik) was the
beginning of what is now called ‘ProPartner,’ says Hanne Toft Andersen, Head of Human Resource
(HR Interview). ProPartner is a business concept developed by GWP that stresses the importance of
external business collaborations based on developing trust, openness, and long term relationships (see
Figure 8).
Figure 8: ProPartner Concept
Source: Presentation of Global Wind Power
59
4. CASE STUDY EVIDENCE

“When our contact at Vestas is having some problems we will solve them for him and they in turn will
do the same for us and it is not a written down agreement every time.
It is really about trust” says
Hanne (HR Interview). According to Michael Nymann, Business Development Manager, ProPartner
with Vestas has been a major strategic advantage, “it has allowed us to provide our customers with an
operational efficiency of 98% on their windturbine investment (BD Interview).” This operational
efficiency, which refers to the percentage of the time the wind turbines are guaranteed to be in
operation, is best in class even out pacing Vestas own operational guarantee of 95%. As Hanne
explains,
“when we call Vestas and say, hey we have wind turbine not running. Then they will not come
in a week but they will come the next day. So we have this really good relationship with Vestas
and that is very very important…Now we are trying to extend this concept (ProPartner) so that
it can evolve beyond our relationship with Vestas to include our very important customers (HR
Interview).”
Box 1: ProPartner – Learning Routine as ‘Rules of Thumb’
The emergence of the ProPartner concept illustrates GWP’s first major process innovation. It reflects
the emergence of innovating routines pertaining to strategic alliances with both key suppliers and more
recently key customers. What is notable when viewing the development of the concept from the
definitional framework which includes rules, behaviour, and dispositions, was that the ProPartner
concept was first held at the individual-level as a habit i.e. the tendency for Henrik to keep in contact
with key employees at Vestas when dealing with arising problems. Henrik actuated this habit as
behavior. The importance of this underlying rule-like behavior was then diffused across the
organization as a ‘rule of thumb’ i.e. employees were encouraged to contact Vestas when dealing with
organizational problems. The ‘rule of thumb’ is then internalized by multiple employees as a similar,
albeit most likely not identical, habit.
The depiction of the emergence of ProPartner as a ‘rule of thumb’ affecting habits is however
distinct from the view of routines as disposition (see Hodgson, 2008; Cohen & Bacdayan, 1994) which
60
4. CASE STUDY EVIDENCE

defines routines as the sequential triggering of habits, whereby the triggering of one habit produces a
behavior that influences the context that triggers the habit of another so on and so forth. ‘Rules of
thumb,’ as seen in the emergence of the ‘ProPartner’ concept, are applicable in a much wider context
allowing for faster and greater ‘ad hoc problem-solving’ than the more routinized view of routines as
organizational dispositions.
This may indicate that the importance of simple heuristics and rules of thumb when applied in
learning and innovating are not just found amongst established firms operating in ‘high velocity’
industries, as identified in the Dynamic Capabilities literature (see Eisenhardt & Martin, 2000), but also
in slower changing industries where individual firms are uncertain about their strategic position in the
market place. Thus, the practice of rules of thumb may not just be the effect of external industry
structure on firm conduct but also more endogenously the result of a firm’s own limited understanding
of the market and their own strategic position. This may suggest that there are at least two levels of
uncertainty to consider; external uncertainty derived from the change rate found within an industry or
sector and an internal uncertainty due to limited understanding of strategic positioning.
This ‘rule of thumb’ manner of working at GWP has been integral in problem-solving. Some of
these problem issues for example related to acquiring knowledge regarding country market selection
(BD Interview), customer selection (BD interview), shared experiences in conflicts arising from
internationalization (HR Interview 1), etc.
The proliferation of this important connection developed later on as a formalized concept
(formal ‘rule of thumb’) i.e. ProPartner. Formalizing the concept brought about greater attention to it,
in particular to expanding the concept to important customers. This more recently has triggered
searches for internal processes that support the ProPartner customer platform. Today, Key Account
Management practices (routines as procedures) have been adopted in the organization reflecting the
introduction of another process innovation and opening up doors to further product innovations such as
the sale of ‘green power’ targeted at institutional and industrial customers that are looking to offset
emissions through ‘greener’ sources of energy (BDM interview).
61
4. CASE STUDY EVIDENCE

4.4 The Beginning of Global Wind Power
Although Henrik desired to open a company that could operate on the global market, he
continued working as an independent operator. This changed, however; during a project that was setup
by Vestas in Fjeritslev. The project involved a two turbine cooperative that required the replacement of
their existing turbines. During the project, Henrik began to look more closely at Thisted Commune’s
upcoming energy proposal and realized that the upcoming wind energy plan made it advantageous for
investors and wind farm cooperatives to replace their existing wind turbines with larger ones.
Recognizing that there was now an opportunity to secure the market, Henrik contacted two of his
colleagues at Vindkraft Nord and the three, now operating under the name Global Wind Power, began
racing to make pre-emptive agreements with investors. They quickly secured the market and by year
end, they had managed to dismantle 130 scrapped turbines and erect 12.
By the summer of 2003, the company was in full swing and Henrik’s vision of operating on the
international market could now be realized. The company, continuing on where Henrik left off as a
independent operator, positioned themselves as a sales and promotion company, assisting third party
developers in sales budgeting, marketing, and end-sales of turbines to Danish investors.
Their
ProPartner relationship with Vestas remained very important as did their expanding network of
windfarm developers and key investors in Denmark. Their first project in Germany, which consisted of
the sales of 8 turbines in Buckwitz, was attained from a project developer acquainted with Henrik.
Another project, shortly thereafter, was preempted by a local investor in Thisted who was seeking
support in the acquisition of a wind turbine in Germany.
4.5 Learning by Interacting with Investors leads to the emergence of TCM
During the course of the German acquisition project, GWP took on a role that was wider in
scope than previously experienced. They were not only in charge of overseeing the sale of the project
but were also providing advice to investors and negotiating with vendors on their behalf. ‘Learning by
Interacting’ with an investor during the course of the project unveiled certain latent needs previously
62
4. CASE STUDY EVIDENCE

unconsidered. It made apparent that what an investor required was to feel more in touch with their
investment; an investment that was not only geographically but culturally and institutionally distant.
This realization instigated a massive organizational effort to further uncover what clients valued
when investing in a wind turbine project developed abroad. Numerous meetings were held with
multiple investors. “It was the biggest and longest project I have been involved in,” says Henrik Amby
(Wings of History, p. 28). What emerged from the investigation was an administrative apparatus that
addressed a wide array of after sales services. These new services, under the name of Technical and
Comercial Mangement (TCM), included daily operations management and analysis, service and
infrastructure maintenance, claims processing and financial and tax reporting.
TCM was now an area of expertise and a crucial area in which GWP could add value to a wind
turbine investment. “Our administrative apparatus is clearly the key to keeping our customers happy
and to our ability to resell,” says Henrik Amby (Wings of History, p. 28). “It means that what we have
to offer is a complete product in a class of its own (ibid, p. 28).”
Box 2: Emergence and Development of TCM
The DUI mode of innovating and in particular ‘learning by interacting’ with customers has been highly
influential in the initial search and selection of innovative opportunities targeted at GWP’s Danish
private investor customer base. Due to geographical, technical, and cultural distance a private investor
or group of investors are unable to relate to daily operations and maintenance of their wind turbine
investment made abroad nor are investors familiar with the financial and tax implications that are
governed by both Danish regulations and local legislation in each country market.
In order for GWP to address these customer needs, the DUI mode of learning needed to be
complemented by the STI mode of learning during the implementation process of the innovation.
This initially required the hiring of technical experts for example, those that were familiar with
Windfarm Information Systems,11 and engineers with specialist knowledge pertaining to the wind
11
An example of the Windfarm Information Systems include VESTAS Supervisory Control And Data Acquisition
(SCADA)
63
4. CASE STUDY EVIDENCE

turbine mechanics. In addition, GWP also needed to establish local operations management partners
and provide training for each country unit.
Capturing the innovation is maintained through the continuous development of TCM that
requires both DUI and STI modes of learning.
New developments in wind turbine technology,
information systems, new tax regulations, expanding country product markets, and new institutional
and industrial customers provide stimulus in which the TCM department continuously develops and
learns. For example the Comercial Management side of TCM, is in continuous contact with local
country units, lawyers, auditors, and banks to make sure that new tax implications and investor interest
are being taken into account. Likewise the STI mode of learning is important in the continuous
absorption of new technologies, systems, etc.
The learning processes collectively has a resulted in the ability of the organization to achieve
greater flexibility, to the extent that TCM can be modularized as an independent product all on it’s own
and can manage windfarms where the Greenfield and Turnkey aspects were developed externally by a
third party.
4.5.1 The introduction of TCM accelerates demand, forcing GWP to expand capabilities into
Turnkey to meet demand pressures
The creation of TCM coincided with GWP taking on a greater role in the acquisition of wind
projects near the beginning of the so called Turnkey phase of development; the point when wind
projects are more or less ‘ready to build’ but are still amenable to design changes. Expanding
organizational capabilities into Turnkey would ensure the continuous supply of wind projects for
investors rather than relying solely on reselling projects developed by a third party. As a result of this
strategy the company was able to grow quite rapidly, nearly doubling employee numbers annually
between 2004 and 2009.
64
4. CASE STUDY EVIDENCE

Box 3: Adapting through Formal Rules in Turnkey Development
In contrast to TCM, Turnkey emerged primarily out of the need for GWP to have greater flexibility in
providing a greater number of projects for sale rather than being the result of learning routines per se.
The continuous development of Turnkey, however was based on the combination of both DUI and
STI modes of learning.
Since GWP does not perform the actual construction, civil, and electrical works themselves but
rather hires subcontractors for the job, a major role for GWP involves the Project Management
aspects of the build. This entails the preparation of the materials made available for tender (i.e.
‘routines as procedures’ that specify how civil and electrical works are to be performed. This required
establishing greater links to the STI mode of learning in order to absorb and use scientific knowledge
pertaining to the engineering disciplines. This has resulted in the creation of the Product Management
Department which performs all the engineering and wind calculations. Simultaneously, the application
of these procedural documents during the actual construction are combined with the DUI mode of
learning through the presence of a Site Manager during the build who is able to provide feedback on
the effectiveness of such procedural rules, thus allowing for the adaptation of ‘rules as procedures’ to
take place. As Michael Nymann explains,
“We have the know-how to do the construction…it is not that it is anything difficult. It’s just
that we have done it many of times. So we know exactly what is needed…This is done through the
combined work with the pre-developer, product management, the project manager, and the
construction manager who has the experience of being on site and knowing what is possible (BD
Interview).”
In order to support the new business growth, GWP in 2004 began to transform itself into a more
structured organization, establishing departments and departmental managers in finance, design, and
sales. The change was ideal in terms of managing the acquisition, development, and sales of projects
as well as providing greater assurance to banking, insurance, and external partners that demanded
greater structure.
65
4. CASE STUDY EVIDENCE

These organizational changes were made at the right time. By 2005 projects and investor were
in abundance, resulting in a record breaking year in terms of revenue and profit. However by 2006,
financiers whom had seen the opportunities present in wind energy began pushing up the prices of wind
projects in Germany. Global Wind Power decided not to go along with the unrealistic high prices but
instead to focus their efforts on searching for new markets and projects.
4.6 Know-Who is combined with Know-Why in Market Selection
The organizational routines governing the search and selection of markets and projects, up to this point
in the company’s history, had been more influenced by know-who rather than a deep understanding of
know-why. The company’s decision into entering the German market was not by a thorough analysis
of the European market, but rather it had been a market that Henrik had become familiar with due to
projects setup through their contacts at Vestas or through key customers.
As GWP was searching for new markets, Vestas again was a major source of gaining market
knowledge. “Vestas had an eye on Bulgaria- that it could be an interesting market,” says Hanne “And
that was our motivation for going into Bulgaria (HR Interview).” In addition, the Bulgarian market
was attractive since it was a new EU member state; its electricity market was fairly liberalized, and had
a relatively well-functioning legal system. Without scanning much beyond the Bulgarian market, GWP
committed to the area and began searching for projects.
In 2007 they began their first project in Bulgaria, the Long Man project involving five V90
2MW Vestas turbines. The project was acquired at the end of the Greenfield phase of development i.e.
the project had a permission to build, the environmental and wind assessment had been performed and
a preliminary grid connection agreement was in place. However, as construction was underway, GWP
learned of a problem developing with their grid connection. It transpired that the grid, which was
operated by two separate companies one at the national and the other on the local level, were not
coordinating effectively with each other regarding the amount of grid connection agreements being
promised. In effect the two companies, due to poor communication, had unknowingly over promised
access to the grid beyond the grid’s actual capacity.
revoked.
As a result, GWP’s grid agreement had been
66
4. CASE STUDY EVIDENCE

The problem that they were facing with the grid, according to Michael Nyman, was not just an
isolated event that concerned them, but was fast becoming a common problem amongst wind
developers operating in Bulgaria. The situation was fast damaging the reputation of Bulgarian wind
market.
“It is not healthy for the industry,” says Michael Nyman, “not even the country because it
has given Bulgaria a terrible reputation on the market. They say the grid connection in
Bulgaria it’s terrible, just drop it. Everybody now knows this is the case (BD Interview).”
After significant amount of lobbying to the Ministry of Energy in Bulgaria, a solution to the problem
was finally put forth. The grid was going to be reinforced substantially at the 110 kw level in order to
support the new growth of wind energy projects in the country. In addition, GWP would be allowed
access to the grid; however, they would only be allowed to transmit at half capacity for the next two
years until the new grid infrastructure had been put into place.
The misfortunes that transpired in Bulgaria brought about a greater awareness of the processes
involved in the search and selection of new markets and projects. In order to take what they have
learned from the Bulgarian market, GWP established the Business Development Department(BDD).
The emergence of BDD saw the organization combining knowledge that was derived from know-who
with a deeper investigation of the know-why’s in selecting markets.
As Michael Nymann, Business
Development Manager explains,
“Business development is the development of new markets, meaning following up on
overall development of the wind industry and our focus is still on the European market,
but of course we can see some trends coming up- we can see that these markets are now
moving, we also hear some things from our colleagues at Vestas also from other
developers- saying that something is moving in these markets now.
Based on this
information we are trying to evaluate what could be potential markets for Global Wind
Power. So we are more or less correcting information, investigating a little deeper,
finding out what is the feed-in tarrif system, if there is any system. Is it market price or is
it with subsidiary. How is the structure from that part? How is the legal structure, and
how is it doing business in that market (BD Interview2)?”
67
4. CASE STUDY EVIDENCE

One of the first markets to be selected by combining know-who with know-why was Romania. As
Michal exclaims,
“The Romanian market was selected from not a coincidence point of view as it was with
Bulgaria and France…The reason we chose Romania was-actually it was around two and
a half years ago. … And at that time we had around 8-10 markets that we were looking
at. Basically what is the feed in tariff system, what is the legislation, and what is the wind
potential in these market. And that was made with a Balance Scorecard (BD Interview).”
4.7 Expansion of the Business Model: New Customers and acquisition bring about
new competencies
Aside from the misfortunes arising from the Bulgarian market, 2007 marked a positive milestone for
GWP. The sale of an entire project was made to Allianz, an institutional investor. The sale was
important because the relationship would instigate the idea of how to grow the company even further.
The high growth that they experienced during the first few years was now beginning to plateau. This
was due to the fact that continuing the high rates of growth was contingent upon the ability of the
company to finance an ever expanding portfolio of projects, a proposition that was impossible to
perform due to the capital constraints under the current business model which involved the purchasing
and developing of projects prior to the selling. As Michael Nymann explains,
“Right now we are more or less in the situation where we have to have the projects on
hand, but at the same time we do not have enough (capital) to have twenty projects ...so
we are trying to turn around the situation (BD Interview).”
In order for the company to continue to grow, the business model would have to change. The Allianz
project would prove integral in bringing about this change because it would be GWP’s first contact
with an investor who would have the means to purchase projects prior to implementing the Turnkey
Phase of Development rather than after; thus improving their liquidity position. As Michal exclaims,
We would just like to sell Global Wind Power as a turnkey provider of wind projects and
then afterwards go find these projects and make the implementation. But today the market
68
4. CASE STUDY EVIDENCE

is that they say, we don’t want to talk to you, Global Wind Power, before you have an
identified project, you could tell us exactly what is the wind, what is the investment in
total and so on and so on (BD Interveiw).”
Developing a close interaction with Allianz would improve GWP’s capabilities in servicing a large and
professional organization and pave the way to their new business vision. As Hanne exclaims, “ they
(Allianz) were demanding more professionalism from GWP and it was really our way of developing.
That someone really needed that we were in front (HR Interview).”
The expansion of the customer segment groups from private investors to include institutional
and industrial investors were made at the right time. In 2008 when the financial crisis occurred, it was
the first time GWP did not generate any Fall sales from private investors.
Another milestone occurred for GWP in 2009. Through Henrik’s developer network, GWP had
been approached with the opportunity to acquire the French Greenfield Developer, VentInvest. This
acquisition brought about the realization that Greenfield Development was important for their overall
business strategy of migrating institutional and industrial customers to commit to projects earlier on in
the value chain by providing both greater flexibility in markets while reducing costs in starting wind
projects. As a result, Global Wind Power for the first time was able to provide all product/services
across the entire windfarm development value chain.
4.8 Summary
The longitudinal case of Global Wind Power as described above demonstrates the co-evolution of both
DUI and STI innovating routines and the role of such routines in producing process and product/service
innovations at Global Wind Power. This co-evolution is traced early on through the competence
building habits of Henrik Amby where know-what and know-who were later proceeded by know-how
and know-why. At the level of the organization, learning habits had provided the basis for the
establishment of some of the early learning routines. In particular, the ProPartner concept, which
emphasized the importance of interacting with suppliers when solving organizational problems, was
derived from the personal relationships built between Henrik and key Vestas employees.
The
69
4. CASE STUDY EVIDENCE

importance of which was diffused across the organization as a ‘rule of thumb.’ One of the finding that
relates more generally to the literature on organizational routines and dynamic capabilities is the
proposition that not only are simple heuristics and ‘rules of thumb’ important in the fastest
changing industries/sectors but more endogenously may be utilized by firms when uncertainty
surrounds the firm’s initial strategic position. Simple rules of thumb and heuristic may operate as
simple ‘sense making’ mechanisms that are used to cope with such uncertainty rather than overly
routinizing.
The TCM department, which represented GWP’s first product/service innovation, emerged
based on the DUI mode of learning involving the interaction with lead private investors/customers.
Interaction with customers, when seen according to the innovation process, provided the basis for the
search and selection of innovative opportunities. Consequently, this entailed the greater need to
connect to the STI mode of learning during the implementation. This observation is consistent with
the proposition developed in Jensen et.al (2004, 2007) regarding DUI firms utilization of the STI
mode of learning in expanding their opportunities for potential solutions.
Today both DUI and STI
learning routines are involved in the continuous development of TCM along the entire innovation
process.
In conjunction with the development of TCM, greater flexibility in the search for windfarm
projects was needed. This entailed the organizational expansion of activities into the Turnkey phase of
development.
Early employees, which had previous work experience in the Turnkey phase of
development while working at Vindkraft Nord, were able to utilize such knowledge (know-what and
know-who) during the initial expansion into Turnkey. As Turnkey, became of greater importance,
greater emphasis was placed on deepening the STI modes of learning. In particular, GWP began the
internal hiring of civil, electrical, and concrete engineers as well as wind specialist (which now
comprises the Product Development Department today) to support project management activities. Since
GWP does not perform the actual construction and electrical works themselves, an important aspect of
the STI mode of learning has been to learn through the application of the materials made available
for tender (rules as procedures); while using site management experience (DUI learning) as a
feedback mechanism in which the organization learns and adapts. Today, Turnkey is another area of
expertise where project and site management competencies are packaged as service products in their
70
4. CASE STUDY EVIDENCE

own right and are even being purchased by Vestas to support windfarm development activities with
their customers.
The emergence of the Business Development Department, whose function is to evaluate
country markets and to induce change in internal and external business processes arose out of the
need to balance market knowledge derived from Know-Who with techniques in determining KnowWhy. Prior to establishing the Business Development department, GWP was heavily reliant on gaining
market knowledge through Vestas and through their Wind Farm Developer network.
Problem
occurrences in Bulgaria, in regards to the grid connection, brought about greater attention on the need
to systematically evaluate markets rather than relying on the market knowledge derived from Vestas
and their developer network alone.
A possible proposition for future studies from this example is
that not only does the combination of DUI to include STI relate to expanding the search for
potential solutions but that the combination allows for greater certainty in terms of selection.
Lastly, the Greenfield product/service innovation emerged largely based on Know-Who. Henrik
through networking became familiar with the French Greenfield Developer VentInvest. VentInvest,
having spent nearly 4 years in gaining the permissions to build, was nearly at the completion of their
Greenfield Development phase where permission had been granted for the erection of over 200 MW.
Instead of simply purchasing the permissions to build, GWP decided to purchase the entire company.
Purchasing the company as whole in a sense meant that they could get the Greenfield capabilities of the
staff in France for free. This decision, however, was not necessarily based purely on the need to acquire
Greenfield capabilities, since GWP had employees that could potentially perform Greenfield.
Moreover, the lesson taken from GWP from the acquisition was that, focusing on Greenfield
Development was important in their overall strategy, a strategy to improve their liquidity position by
focusing on Institutional and Industrial Customers that could potentially commit to projects earlier in
the development.
71
5. CASE SUVEY EVIDENCE

5. CASE SUVEY EVIDENCE
Learning Routines Distributed Across the Organization
The previous section chronicled the emergence of product, process, and service innovations in
relationship to the general modes of innovating and learning, DUI & STI. This section in the case
study will now shift its focus on presenting the more specific learning and innovating routines
established within GWP, as identified through interviews and surveys administered at both the manager
and employee level. The section will highlight how such specific routines aid in the current innovative
capabilities of the firm as well as identifying in which ways GWP can augment their innovative
capabilities along the innovation process involving search, selection, implementation, and capture.
72
5. CASE SUVEY EVIDENCE

5.1 Introduction
The specific routines/indicators for DUI and STI modes of innovating provided by Jensen et. al. (2004,
2007) provided a departure point for identifying the innovating routines utilized at GWP (see Table 2
below).
Table 2: DUI & STI Routines
DUI
Indicators/routines
Autonomous Groups E-2,3,4,
Interdisciplinary Workgroups
Quality Circles
Systems for collecting proposals
Integration of Functions
Softened Demarcations
Cooperation with customers
STI
Indicator/routines
Expenditures on R&D
Cooperation with researchers
The employment of scientifically trained
personal includes BA/MA/PHD in Natural Sciences
As highlighted in the methods section, autonomous groups, interdisciplinary workgroups, and quality
circles represent a repertoire of innovating routines, that overall, bolster learning by ‘doing’, ‘using’,
and ‘interacting’ by promoting the decentralization of decision making and problem solving.
Interdisciplinary workgroups and quality circles also have the added benefit of combining and
recombining knowledge distributed across a multitude of job functions and departments. Likewise,
systems for collecting proposals enhance the ability of the organization to continuously learn by
placing greater attention to problems and potential solutions.
Discussions with both the head of HR and a leading HR consultant at GWP revealed that while
GWP does not utilize formal autonomous groups, formal interdisciplinary groups, and quality circles,
the ways in which GWP conducts work reflects DUI learning at the cross functional and cross
departmental level as well as discretionary learning at both the individual and collective levels.
73
5. CASE SUVEY EVIDENCE

In order to test the extent in which GWP’s way of conducting work reflects routines that aid in
DUI learning, the following two areas were addressed in both employee and managerial level
questionnaires. These include questions relating to:
i. the level of discretionary learning
ii. and the nature and purpose of cross functional and cross departmental interactions
5.1.2 Testing Discretionary Learning
In order to identify the degree of discretionary learning which underlines the benefits attained through
autonomous groups, cross functional/departmental groups, and quality circles, the following three
questions were posed to the employees.
Table 3: Questions for Testing Discretionary Learning
2a.
I hvilken grad kan du selv vælge eller ændre:
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
2b.
I hvilken grad kan du selv vælge eller ændre:
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
2c.
I hvilken grad kan du selv vælge eller ændre:
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
Source: Own
- Indholdet af dine arbejdsopgaver?
Respondents
7
21
5
0
33
Percent
21.2%
63.6%
15.2%
0.0%
100.0%
- Den rækkefølge, du udfører arbejdsopgaver i?
Respondents
20
12
1
0
33
Percent
60.6%
36.4%
3.0%
0.0%
100.0%
- Hvordan du udfører dine arbejdsopgaver?
Respondents
17
15
1
0
33
Percent
51.5%
45.5%
3.0%
0.0%
100.0%
74
5. CASE SUVEY EVIDENCE

Questions 2a-2c, seen in Table 3, reflects the manner and the degree in which Global Wind
Power employees’ have discretion over their work. This is measured by three dimensions which
include discretion i. over the contents of their work, ii. the order in which work is accomplished, and
iii. the means(i.e. how) in which work is accomplished. It is interesting to note that nearly all
employees responded to having either some or high degrees of discretion representing 85%, 97%, and
97% of respondents across questions 2a, 2b, and 2c, respectively.
Among the three indicators the areas in which employees has had the least degree of influence
was over the contents of their work where only 21.2% of respondents reported to having a high degree
of discretion. This is fairly low in relationship to the 60.6 % and 51.5% of respondents who reported
to having a high degree of influence over the order and how work is accomplshed seen respectively in
questions 2b and 2c. Nonetheless, the results indicate that moderate to high levels of discretionary
decision making are present within an overwhelming majority of employees at GWP suggesting
‘learning by doing and using’ take place.
5.1.3 Testing employee interactions at the cross functional and cross departmental levels
To identify if the employees at GWP communicate across departments and functions and that such
interactions contributes to combining knowledge in problem solving activities the following two part
question were posed.
Table 4: Questions Testing Cross-Funtional/Departmental Learning
4a. Er det nogle gange nødvendigt at kontakte kolleger fra andre afdelinger eller med andre arbejdsfunktioner i
arbejdstiden?
Respondents
33
0
33
Ja
Nej
Total
4b.
Percent
100.0%
0.0%
100.0%
Hvad er ofte årsagen til at kontakte kolleger fra andre afdelinger eller med andre arbejdsfunktioner i
arbejdstiden?
[Sæt gerne flere krydser]
75
5. CASE SUVEY EVIDENCE

Kollektiv problemløsning på tværs af afdelinger
For at få eller give informationer
Andre årsager (uddyb venligst
Total
Respondents
25
32
4
33
Percent
75.8%
97.0%
12.1%
100.0%
Hvad er ofte årsagen til at kontakte kolleger fra andre afdelinger eller med andre arbejdsfunktioner i arbejdstiden?
[Sæt gerne flere krydser] - Andre årsager (uddyb venligst
Opgaver for andre afdelinger
"Speciallist"
Source: Own
As shown in question 4a in Table 4 above, 100% of employees surveyed at GWP communicate with
each other at both the cross functional and cross departmental levels. Moreover, question 4b identifies
the purpose of such inter-functional and inter-departmental communication.
While 97% of those
surveyed reported to communicate across organizational lines as means of receiving and providing
information, the most salient result pertaining to the ability of the organization to combine knowledge
across the organization relates to the 75.8% of respondents that state that the purpose of intraorganizational communication is due to collective problem solving. The results from question 4a and
4b therefore indicate that ‘learning by interacting’ takes place and contributes to problem-solving in
daily activities.
5.1.4 Discretionary Learning and Cross-functional learning across country units
As mentioned in the methods section, staff situated in Germany, France, Bulgaria, and Romania were
unavailable to partake in the questionnaire; however, interviews with HR as well as responses derived
from survey questions relating to organizational changes (see Management Survey question 21)
identified that great efforts have been made to decentralize decision making from the head quarters in
Denmark to the country units. As Hanne, HR Manager explains,
“people here will say that there has been a lot of changes lately at GWP… Before, we we’re
managing projects in Bulgaria from Denmark. We were … taking project managers and putting
them in the countries and erecting turbines. And it just didn’t work (HR Interview 2).”
76
5. CASE SUVEY EVIDENCE

Today project management and site management activities are conducted by local employees with only
support functions being performed in Denmark. This transition has aided the organization two-fold.
Firstly, the movement to decentralize decision making to the country units provided faster and greater
manoeuvrability in the given country’s institutional context (BD Interview). Employing local labour
allows for the better utilization of local employee contacts (know-who) as well as knowledge of local
customs and government institutional formalities (HR Interview 2). Secondly, in countries in Eastern
Europe for example, the cost of hiring Project and Site Managers are less expensive. Thus, there is a
cost advantage that can be associated with the transition (HR Interview 2).
The transition, however; has created complications regarding the ability for interactive learning
and overall communication at the international level between support functions in Denmark and the
country units (HR Interview 2). According to Hanne, cultural and language barriers as well as
ambiguity regarding mother/daughter company roles has created knowledge silos to develop. As
Hanne comments,
“It’s not only about national cultures, it’s also about being a mother company and daughters
and that could be the main challenge. That -why do we (referring to the country units) have this
mother company with a lot of costs, and we are out here earning all the money and they are just
using all the money. To have this big overview seeing, What is the mother company giving into
the daughters? Why is the mother company demanding that they want some reporting, for
instance? Why is it important that we know how much money is being used every month? Just
all these really banal issues. Sometimes it seems like that they are looking at the cost of this
mother company and questioning where are they using all this money. They don’t see the point.
And that is really our challenge, that we didn’t communicate that good about it. We didn’t
make them understand (HR Interview 2).”
One of the implications of this chasm between Head Quarters and the country units is that instead of
seeking knowledge internally in the company through the supporting departments, the country units are
seeking ‘specialist’ knowledge in their respective countries (BD interview). In addition, the Sales,
Marketing, and Finance departments which require information from the country units to perform their
77
5. CASE SUVEY EVIDENCE

activities are met with country unit staff members that are less cooperative in producing such
information.
Thus, in regards to discretionary learning and cross functional communications at the
country unit level, discretionary learning has improved through the decentralization of country units
however interactive learning between the Danish departments and the country units has suffered.
5.1.5 Systems for collecting proposals
To identify whether GWP made use of systems for collecting proposals, two sets of questions
were asked at both the manager and employee levels (See Table 5 and Table 6 respectively). At the
management level, the following question was posed:
Table 5: Questions Testing ‘Systems for Collecting Proposals’
Mgmt: Indsamler og evaluerer GWP forslag fra ansatte?
Ja, fortløbende
Ja, periodisk
Nej
Total
Respondents
1
5
2
8
Percent
12.5%
62.5%
25.0%
100.0%
Source: Own
Out of the eight managers that were surveyed 6 responded in the affirmative, stating that employee
proposals are collected and evaluated. Out of these 6, 5 managers reported that proposals were only
collected and evaluated infrequently, while only 1 manager reported that proposals were being
collected and evaluated on a regular basis the remaining 2 managers reported no system for collecting
proposals.
At the employee level a similar question was posed, asking whether or not employees during
the time that they had worked at GWP had tried to get their managers to support new ideas (see 8c
below). Out of the 33 employees surveyed 26 employees, representing 78.8%, responded in the
affirmative stating that during the course of their employment they had tried to gain support from
management in pursuing new ideas.
78
5. CASE SUVEY EVIDENCE

Table 6: Employee Initiative for Generating Proposals
8c. Har du i løbet af den tid du har arbejdet for GWP: - Prøvet at få din leder til at støtte nye ideer?
Respondents
26
7
33
Ja
Nej
Total
Percent
78.8%
21.2%
100.0%
Source: Own
The results therefore indicate that their exist a means for collecting proposals involving a fairly high
majority of employees that have previously approached managers with ideas and management staff
that evaluates such proposals.
However, the results also indicate that the evaluation of such
proposals is largely performed on an irregular basis.
5.1.6 Employee’s Input During Significant Organizational Changes
While the previous finding above point to an organization with high discretionary learning and fairly
high levels of involvement in pursuing new ideas related to daily activity, the following set of questions
pertaining to employee involvement in significant organizational changes however indicate that lower
levels of participation exist. To limit the discussion, I will only comment on the results relating to
changes involving work methods and product/services, although the other types of significant changes
listed below also bare similar tendencies.
Question 5 presented in Table 7 below displays the number of respondents that have stated that
significant changes to work methods and product/services have taken place.
Table 7: Organizational Changes
5. Har nogle af følgende organisatoriske ændringer fundet sted i virksomheden i den tid, du har arbejdet for
GWP? [Sæt gerne flere krydser]
Implementering af nye eller markant ændrede eksisterende IT systemer
Omrokering af ansatte
Implementering af nye eller markant ændring af eksisterende arbejdsmetoder
Indføring af nye eller markant ændring af eksisterende produkter eller serviceydelser
Andet[uddyb venligst]:
Ingen ændringer
Respondents
8
32
20
21
1
0
Percent
24.2%
97.0%
60.6%
63.6%
3.0%
0.0%
79
5. CASE SUVEY EVIDENCE

Total
33
100.0%
Har nogle af følgende organisatoriske ændringer fundet sted i virksomheden i den tid, du har arbejdet for GWP? [Sæt
gerne flere krydser] - Andet[uddyb venligst]:
På vej fra "tømmervirksomhed" til koncern
Source: Own
Out of the 33 employees surveyed 20 employees (60.6%) stated to having significant changes in work
methods while 21 employees (63.6%) reported to having significant changes to product/services.
However, when employees were asked if they had taken part in the discussion regarding such
significant changes as seen below in Table 8, only 8 employees claimed to have participated in the
discussions regarding changes to work methods and only 6 employees participated in discussions
regarding significant changes to product/services.
Table 8: Employee Involvement in Significant Organizational Changes
Types of Organizational Changes
5. # of Emp. reporting 6a. # of Emp 6b. # of Emp
significant change
involved
in involved in decision
discussions
making
ændrede 8
3
0
Implementering af nye eller markant
eksisterende IT systemer
Omrokering af ansatte
Implementering af nye eller markant ændring af
eksisterende arbejdsmetoder
Indføring af nye eller markant ændring af eksisterende
produkter eller serviceydelser
Andet[uddyb venligst]:
Deltog ikke
Total
32
20
6
8
1
2
21
6
2
1
0
2
16
2
22
33
32
29
Source: Own
In similarly low number, when employees were asked if they took part in the final decision regarding
such organizational changes, even lower response rates resulted. As seen above in Table 8 only 2
respondents reported to participate in the decision making of work methods and only 2 respondents
reported to taking part in the decision regarding changes to existing product and services. Participation
rates of employees in both the discussion and decision of significant changes seems rather low
80
5. CASE SUVEY EVIDENCE

especially when 78.8% of employees state that such organizational changes have an influence over
their daily work as seen in question 6c in Table 9 below.
Table 9: Effect of Organizational Changes on Employee Tasks
6c.
Havde nogle af disse ændringer en indflydelse på dine arbejdsopgaver?
Respondents
26
7
Ja
Nej
Percent
78.8%
21.2%
The results, therefore indicate that while GWP has high discretionary learning in daily
activities, employees have less discretion when it come to significant organizational changes.
5.1.7 Integration of Functions and Softened Demarcations.
Recent integration of functions has occurred in the past 6 months. The integration of functions
pertains to the combination of the sales department, the project management department, and project
acquisition managers. The integration of these three functions, which is now under the Project Support
department, has been developed in order to better advise institutional and industrial customers when
engaging in project activities earlier on in the value chain.
This integration has been critical to
providing more timely advice targeted at Institutional and Industrial customers whom may enter into an
agreement with GWP based on preferences regarding certain global markets, which requires the
expertise of an Acquisitions Manager.
They may also enter a project with certain infrastructural
provisions for the build or through the use of self procured turbines (Semi-Turnkey), which go into the
detailed planning performed by Project Managers. These customer driven criteria have bearing on the
overall sales agreements that are to be established. The overall effect of the integration is a more rapid
response to Institutional and Industrial customer needs and demands.
5.1.8 Interacting with External Sources
81
5. CASE SUVEY EVIDENCE

Thus far, most of the results presented relate to the role of organizations in capturing knowledge held
internally within the organization as well as the ability of the organization to combine such knowledge
towards innovative ends. The results presented here will identify whether GWP utilizes external
sources when learning and innovating. Table 10 below presents the results relating to the degree in
which GWP cooperates with external actors for the purposes of gaining knowledge. Jensen et.al (2004,
2007) identifies the significance of collaborating with customers in relationship to product/service
innovation. Here, I have expanded this list of innovative routines to include collaborations with
knowledge-centers, consultants, and suppliers. I have done so in keeping with additional indicators of
innovative organizations cited in the DISKO survey.
Table 10: Cooperation with External Sources of Knowledge
I hvilken grad har Global Wind Power udviklet nært samarbejde I høj I nogen I mindre Slet
grad
grad
grad
ikke
med:
Ved
ikke
8a Videnscentre (ex universiteter eller teknologiske institutioner) for tilegnelse 0.0%
eller deling af viden?
12.5%
62.5%
0.0%
25.0%
8b Konsulentvirksomheder eller juridisk rådgivning for at tilegne sig viden?
62.5%
25.0%
12.5%
0.0%
0.0%
8c Leverandører på det grundlag at tilegne sig og dele viden?
50.0%
25.0%
12.5%
12.5%
0.0%
8d Kunder på det grundlag at tilegnelse sig viden vedrørende kunders behov?
37.5%
37.5%
12.5%
12.5%
0.0%
Source: Manager Survey Questions 8a-8d
Among the four external sources of knowledge, Consultancy businesses (which include legal
consultants), Suppliers, and Customers are the most active sources of external knowledge managers
reporting to cooperate to high degree in each. Cooperating with consultancy businesses represent the
most utilized inter-organizational learning routine used by GWP, with 62.5% of managers reporting to
cooperate with consultant at a high degree and 25% of managers reporting to cooperate in some degree.
Based on the interviews with the Business Development Manager and HR, the types of
consultants utilized are both legal consultants, due to their need in overseeing contractual agreements
and assessment of new laws and regulations, as well as engineering consultants used in assessing
critical technical areas within the value chain. It is also interesting to note, that while cooperation with
Consultants is high, cooperation with Knowledge Centers (i.e. Universities and technological institutes)
is fairly low, with 0% of managers reporting to cooperate with knowledge centers to a high degree,
12.5% of managers reporting to cooperate at some degree, and 62.5 % of managers claiming to
cooperate at less degree. The high use of consultants juxtaposed to knowledge-centers, perhaps
82
5. CASE SUVEY EVIDENCE

suggest that consultants act as a substitute for knowledge-centers as a source of accessing external
know-why at GWP.
The second most commonly used source of external knowledge at GWP is suppliers. According
to question 8c in Table 10 above, 50% of managers reported to interact with suppliers to a high degree,
while 25% stated to interact with suppliers to some degree. As described in the historical perspective
of GWP, suppliers in particular Vestas, play a major role as a source of external knowledge.
According to Michael Nymann, Head of Business Development, suppliers do not just provide
knowledge regarding the technical possibilities regarding the wind turbines but they also provide
market knowledge. As Michal explains,
“That is where our very trustful relationship with Vestas actually comes into play, because they
are trying to support us because they know that Vestas in itself are not able to do Turnkey
solutions for investors, but they are in contact with a lot of these so called industrial and
institutional customers. Based on their contact with these customers they are trying as much as
possible to give us a picture and give us all the information that we need and say, these could
be potential customers for you in these areas and these areas. Based on that, we are today
trying to get in contact with them, to convince them that together with Vestas, we can provide
them with wind projects that they ask (BD Interview.”
The role of Vestas, in defining the value sets for industrial and institutional customers may
explain why the interaction with customers, seen in question 8d above, ranks lower than the interaction
with Consultants and Suppliers. Based on question 8d in Table 10 above, only 37.5% of managers
claimed to interact with Customers to a high degree while another 37.5% of managers stated to interact
with customers to some degree. Given that the major strategic challenge facing the organization relates
to the ability of the organization to move industrial and institutional customers upstream in the value
chain to either the Greenfield or pre-Turnkey phase of development, gaining a deeper understanding of
customer values gained from primary knowledge of customers’ needs seems necessary to inform the
creation of new services and products.
The results of the survey thus indicate that GWP makes use of external source which include
cooperation with consultants, suppliers, and customers. However, cooperation with customers being
83
5. CASE SUVEY EVIDENCE

the least of the three utilized external learning routines could be strengthened through greater
efforts to pursue primary knowledge concerning customers rather than relying on supplier
knowledge alone.
5.1.8.1 Ability to access, create, and use Global Know-Why
Several areas contribute to GWP’s ability to make use of global know-why. First, civil, electrical, and
concrete engineers are hired in both the TCM and Product Development departments. The Product
Development department is responsible for activities pertaining to the analysis of the construction and
electrical works, as well as aiding in the preparation of the material made available for tender. They
also aid in the absorptive capacity of the organization allowing for greater access to relevant external
specialist.
As highlighted in the previous subsection, the emergence of the TCM department brought about
a greater need in the organization to hire scientifically trained personal in the engineering disciplines.
Today the majority of engineers hired in the organization are connected with both TCM and the
Product Development department.
84
5. CASE SUVEY EVIDENCE

5.2 Role of DUI and STI routines in Search
Based on the results of the survey seen above, the following section will consider the role of the
identified DUI and STI routines on the phases involved in the innovation process. As highlighted in the
literature section the Search phase in the innovation process pertains to the ability of the organization to
identify potential opportunities for innovation. These opportunities can arrive based on problems
arising from experience (DUI) or by the application of techno-scientific knowledge (STI). Based on
the results of the survey and interviews presented in the preceding section, GWP’s ability to identify
potential innovations in relation to these two dimensions appear strong in certain areas, while weak in
others.
5.2.1 Internal Search
Moderate to High Discretionary learning amongst employees in Danish offices allows for greater
problem identification leading to the instigation of search. Internal search is supported by strong cross
functional interaction among departments located in Denmark, allowing for more robust solutions.
However, the fairly high discretionary and interactive learning identified at GWP appears to be mostly
restricted to search regarding daily activities, as suggested by low participation in the discussion and
decision regarding significant process, product, and service changes. As such, the types of innovation
arising from such learning routines may pertain to smaller incremental innovations. Furthermore,
employee proposals are collected infrequently, limiting the chances of identifying larger incremental or
radical innovations that may arrive from proposal programs that both encourage greater employee
participation as well as more frequent monitoring of proposals.
While interactive learning across department and functions in Denmark are strong, interactive
learning between country units and head quarters in Denmark are rather weak. This may have the
affect of disconnecting links between both problem areas and sources of innovation across countries.
5.2.2 External Search
85
5. CASE SUVEY EVIDENCE

Interaction with Consultants, Suppliers, and Customers contribute to GWP’s ability to seek out sources
of innovation externally. When the knowledge held externally is techno-scientific knowledge, GWP’s
employement of scientifically trained personal i.e. Civil, Electrical, and Concrete Engineers provide the
absorptive capacity needed to interpret, use, and recombine such knowledge to innovative ends.
Although, GWP has reported to cooperate with customers for knowledge purposes, the degree of
interaction for the purposes of obtaining knowledge is lower amongst institutional and industrial
customers than say suppliers and consultants. Given that GWP’s greatest strategic challenge is to
attract industrial and institutional customers to commit to wind farm projects at an earlier stage of
development, gaining greater customer insight may be needed to develop the product, process, and
service innovations that can induce early customer involvement.
5.3 Role of DUI and STI routines in Selection and Implementation
The selection phase in the innovation process involves the activities pertaining to what innovative
changes are going to take place and why. Considering the level of selection in relation to the degree of
innovativeness is important in this regard. As suggested in the literature section, routines or decision
rules change at varying rates depending upon the generality or specificity of the change (Cyert &
March, 1963?). When the innovations are small incremental innovations, little management support is
needed. Decision can be made more or less at the individual and group level. The presence of
discretionary and cross functional learning within the organization can enable effective decision in such
context. In contrast, when selection decisions pertain to significant incremental or radical innovations,
management support may often be required in the decision making, since the selection may have wide
ranging systemic effects across a multitude of functions and departments. Management therefore has a
role in ascertaining whether the proposed innovations fit with their strategic endeavours (Tidd &
Bessant, 2009) and to signal the importance of such change which can aid in the overall acceptability of
the innovation.
This however does not suggest that employee level involvement is unnecessary when dealing
with larger changes. Employees need to ultimately ‘buy-in’ to the proposed changes (Tidd & Bessant,
2009). In addition, employees contribute to the incremental innovation during the diffusion of the
innovation across the organization. One of the areas that would greatly benefit GWP in increasing their

86
5. CASE SUVEY EVIDENCE
innovative capability for significant incremental and radical innovation would be to increase employee
involvement in the discussion and decision making during significant changes, thus creating greater
linkages between strategy and daily practice.
5.4 Role of DUI and STI routines in Capture
The capture phase in the innovation process pertains to the ability of the organization to apply double
loop learning, in essence learning to learn. Double loop learning involves identifying areas in the
learning process that could fundamentally change the organization’s norms, policies, and objectives
(Argyris & Schon, 1978). It requires the ability of the organization to both learn and forget at a greater
level. The combination of DUI routines and STI routines is particularly important in this regard. The
STI routines can aid the ability of learning and forgetting by identifying the reasons for such change.
The emergence of the Business Development Department with its role in identifying both the reasons
for market selection as well as the reasons for developing greater linkages in internal and external
processes is a step forward in this direction. However, in order to distil the reasons for change requires
an evaluation of the current experiences and knowledge held by employees and external contacts thus,
giving importance to the role of DUI routines. In addition, as mentioned above employee knowledge
and experiences are important in the implementation of such proposed changes since they contribute to
incremental innovation during the diffusion.
87

6. CONCLUSION
6. CONCLUSION
The concept of organizational routines as put forth by Nelson & Winter (1982) was a monumental
advancement for economist and strategic managers alike by promising an avenue to understand how
organizations differ, how they change, and how such differences contribute to the innovative
capabilities of the firm. However, definitional ambiguity in the literature has slowed down such
progress, leading to few empirical investigations that help in understanding how organizations change
and innovate. This thesis has attempted to answer the call for more empirical work by presenting an
explanatory case study on how innovating routines have influenced the emergence and continuous
development of process, product, and service innovations at Global Wind Power. In addition, this
thesis also identifies which routines could be adopted at GWP that would allow the organization to
increase their innovative capabilities?
It has done so by considering three complementary perspectives that aid in analysis. The first
perspective was to acknowledge that adopting a multi-definitional view of routines based on
organizational rules, dispositions, and behaviour allows for the operationalization of the routine
concept to capture the transformation; while reducing conceptual ambiguity through the identification
of the definition of the routine being evoked in the analysis. The second perspective used was intended
to aid the analysis from a functional vantage point, by viewing innovation as the outcome of search,
selection, implementation, and capture routines in the firm. The third and last perspective distinguishes
between two modes of learning-DUI and STI learning, whereby firms that combined routines from
both modes of learning has been shown to be the most innovative in survey studies. As such the
distinction provides a baseline in which to discuss heterogeneity in firm-level innovativeness.
Remaining sub-questions in this line of research was to identify Why the combination of DUI and STI
enhances firm innovativeness and in particular How the combination of DUI and STI modes of learning
influenced the innovation process involving search, selection, implementation, and capture?
6.1 Key Theoretical Findings
88

6. CONCLUSION
Based on such an approach, an Explanatory Case Study on Global Wind Power was performed in order
to address the aforementioned research question with the aim at analytical generalization in connection
to theory verification and theory generation.
6.1.1 Theory Verification
The propositions developed in section 2.10, which provided explanations on why the combination of
STI and DUI routines contributes to greater innovative performance, were used as a basis for theory
verification via pattern matching against the case evidence. These propositions included:
Proposition 1: Firms involved in STI learning adopt DUI routines due to greater transformation
pressures from both technological change and changes in customer demand.
Proposition 2: Firms involved in STI learning adopt DUI routines in order to better link to
customer demands.
Proposition 3: Firms involved in DUI mode of learning adopt the STI mode of learning to
increase the possibilities of techno-scientific search
Based on the case study, Proposition 1 above could not be supported by the case evidence. The
significant changes that have taken place in GWP were primarily driven from demand driven changes
rather than technological change. The technological changes derived from suppliers and external
specialist has had at best only a marginal effect on the organizational changes that have taken place.
A similar conclusion can also be made about Proposition 2. Although there are areas in the
organization where STI learning occurs and there are also areas in the organization where DUI routines
have been established that better link to customer demand preferences, the DUI routines established
have not been developed significantly out of the push from STI learning. Rather the opposite has
occurred. The inability to support Propostion 1 and 2 could be primarily due to GWP’s overall
orientation as a DUI based firm first and foremost that has ultimately connected to the STI mode of
learning secondly.
Lastly, Proposition 3 is highly supported by the case evidence with the replication of the pattern
in multiple instances. The emergence of the TCM department, which was instigated through the search
and selection of opportunities performed through ‘learning by interacting’ with private investors
89

6. CONCLUSION
ultimately required greater connection to the STI mode of learning during the implementation. In
particular, it required the hiring of engineers specialized in Windturbine Mechanics and specialist in
dealing with Windturbine Information Systems. Similar patterns in connecting to the STI mode of
learning also occurred in relationship to both Turnkey and Greenfield Development which deepened
the role of the STI mode of learning through the hiring of civil, concrete, and electrical engineers as
well as wind specialist.
6.1.2 Generation of Propositions
In addition to testing propositions, the case evidence also allows for the abstraction of several testable
propositions for future studies. These propositions can be grouped into two categories. The first
pertains to the literature on routines and dynamic capabilities generally and the second relates to why
the combination of STI and DUI allow for greater innovative capabilities.
6.1.2.1 Proposition relating to the literature on Organiztional Routines & Dynamic Capabilities
A proposition that can aid the literature on organizational routines and dynamic capabilities can be
derived from the example of the emergence of the ProPartner concept. The ProPartner concept which
emphasized routines in connection to external strategic alliance was first diffused across the
organization as a ‘rule of thumb’ or as a simple heuristic rather than through the more routinized
‘routine as procedures’ or ‘dispositions. A proposition that can be applied in future research is that
simple heuristics and ‘rules of thumb’ are not only important in ‘high velocity’ industries/sectors to
deal with external uncertainty, as suggested by Eisenhardt &Martin(2000), but also may be present
in firms where internal uncertainty surrounds the firm’s initial strategic position. In this sense,
simple rules of thumb and heuristic may operate as simple ‘sense making’ mechanisms that for
example, may be a substitute for strategic planning and market analysis (i.e. routines as procedures for
attaining know-why).
6.1.2.2 Propositions for Combining DUI & STI
The first proposition pertaining to the benefits of combining DUI & STI is derived on the case
evidence pertaining to the continuous development of Turnkey. An important area in the ability to
90

6. CONCLUSION
perform turnkey related to the preparation of the materials made available for tender which required an
emphasis on the STI mode of learning to produce documents that specified how the build was to be
conducted. However learning from such rules as procedures was based in part on the experience of the
Site Management in the application of such rules which required the DUI mode of learning as a
feedback mechanism. Therefore, a possible proposition for further research is that firms utilizing
STI learning in the production of procedural rules may connect to the DUI mode of learning as a
source of learning feedbacks related to the use procedural rules.
A second proposition that can be derived from the case evidence pertains to the emergence of
the Business Development Department (BDD). Prior to the creation of the BDD, market and project
selection was based more on know-who rather than on know-why. After misfortunes that arose in
Bulgaria, greater emphasis was placed on systematically addressing which markets and projects to
choose and why. Therefore, a possible proposition for future studies from this example is that not
only does the combination of DUI to include STI relate to expanding the search for potential
solutions but that the combination allows for greater certainty in terms of selection.
6.2 Managerial Implications and Findings
In addition, the analysis of the case survey study identified the presence of specific learning routines
within Global Wind Power in order to understand how learning routines influence their innovative
capabilities currently as well as to identify potential areas for improvement. The results suggest that
the ability to use and combine both modes of learning is strong in certain areas along the innovation
process while rather weak in others. Among the areas in which the organization can enhance the
innovative capabilities of the firm are through creating greater interactive learning at the country unit
level, greater employee involvement in the matter of significant organizational changes to capture
incremental innovations, and greater focus on gaining primary knowledge in regards to institutional and
industrial customers’ needs as a way to inform the creation of new process, products, and services. The
use of the aforementioned DUI and STI learning routines in mitigating such problems; however, should
be interpreted as soft prescriptions not hard. The goal here has been primarily to inform management
of potential areas for improvement and not necessarily to promote the unwarranted use of innovative
practices regardless of organizational fit. The right tools for the job clearly matter and whether the
possible repertoire of tools presented here fit the job is up to the jobholder.
91

6. CONCLUSION
6.3 Limitations and Future Research
Furthermore, several limitations can be cited in this study regarding the methodological choice and
empirical context which, in conjunction with the propositions generated, may provide stimulus for
future research. Among the limitations, a greater robustness in the evidence could have been greatly
strengthened through the use of multiple case study research design, in that the replication of matched
patterns could have been identified across multiple organizational contexts. Secondly, a greater focus
on the industrial dynamics in relationship to the development of routines could have greatly enhanced
the role of industry structure on conduct and vice versa- this study only paid superficial mention to
such structures.
Thirdly, the full operationalization of the routine concept through the multi-
definitional perspective was only partially applied. This was due to the limitations in gaining access to
the organization through observation. Similarly, limitations in the historical evidence, as provided by
the organization, only provided details in relationship to the entrepreneurial habits on organizational
routines to the neglect of evidence of routine formation based on other employees.
The distinction between DUI and STI modes of innovation are still relatively new and promise
and exciting area of inquiry. Questions regarding how and why such modes of learning are applied
across the innovation process are only beginning to be addressed. Possible inquiries into how modes of
learning are combined in different industries, sectors, and company size appear as potentially
interesting questions.
92

REFERENCES
REFERENCES
Baxter, P. and Jack, S. (2008) Qualitative Case Study Methodology: Study Design and Implementation
for Novice Researchers. The Qualitative Report Volume 13 Number 4 December 2008 544-559
Becker, Markus (2001): Empirical research on routines: The state of the art and its integration into the
routine debate. submitted to the Nelson and Winter Conference, Aalborg, 12-15 June 2001
Becker, Markus (2004) Organizational routines: a review of the literature. Industrial and Corporate
Change, Volume 13, nr 4, pp 643-677
Burns, T., Stalker, G.M., (1961). The Management of Innovation. Tavistock, London.
Clark KB, Fujimoto T. (1991). Product Development Performance: Strategy, Organization, and
Management in the World Auto Industry. Harvard Business School Press: Boston, MA
Clegg, C., Axtell, C., Damodaran, L., Farby, B., Hull, R., Lloyd-Jones, R., Nicholls, J., Sell, R.,
Tomlinson, C., Ainger, A., Stewart, T., (1996). The performance of information technology and the
role of human and organisational factors. Report to the ESRC, UK.
Cohen, N. J. (1984), "Preserved Learning Capacity in Amnesia: Evidence for Multiple Memory
Systems," in Larry Squire and N. Butters (Eds.), Neuropsychology of memory. New York: Guilford
Press, 88-103.
Cohen, Michael (1991) Individual Learning and Organizational Routine: Emerging Connections
Author(s): Source: Organization Science, Vol. 2, No. 1, Special Issue: Organizational Learning:
Papers in Honor of (and by) James G. March (1991), pp. 135-139
Cohen, Michael and Paul Bacdayan (1994) 'Organizational Routines Are Stored as Procedural
Memory: Evidence from a Laboratory Study', Organization Science, 5, pp. 554-568.
Cohen, M., Burkhart, R., Dosi, G., Egidi, M., Marengo, L., Warglien, M. & Winter, S. (1996): routines
and Other Recurring Action Patterns of Organizations: Contemporary Research Issues. Industrial
and Corporate Change. Vol 5 nr 3 1996
Cyert, R. and J.G. March (1963), A Behavioral Theory of the Firm, Second edition (1992), Oxford:
Blackwell.
Dertoutzos, M.L., Lester, R.K., Solow, R.M., (1989). Made in America. The MIT-Press, Cambridge,
MA.
93

REFERENCES
Dougherty D. (1992) Interpretive barriers to successful product innovation in large firms.
OrganizationScience 3: 179-202.
Egidi, M. (1996). Routines, hierarchies of problems procedural behavior: Some evidence from
experiments. In K. Arrow, E. Colombatto, M. Perlman, & C. Schmidt (Eds.), The rational
foundations of economic behavior. London: Macmillan.
Eisenhardt, K. and J. Martin, (2000), Dynamic Capabilities: What are they?, Strategic Management
Journal, (21),pp.1105-1122
Feldman, Martha & Pentland, Brian (2003): Reconceptualizing Organizational Routines as a Source of
Flexibility and Change. Administrative Science Quarterly, Vol. 48, No. 1 (Mar., 2003), pp. 94-118
Feldman, Martha (2003): A performative perspective on stability and change in organizational routines.
Industrial and Corporate Change, Volume 12, Nr 4, pp 727-752
Gittleman, M., Horrigan, M., Joyce, M., (1998). Flexible workplace practices: evidence from a
nationally representative survey. Industrial and Labour Relations Review 52, 99–115.
Glaser, B. and Strauss, A. (1967). The Discovery of Grounded Theory. Chicago: Aldine.
Hansen MT. (1999) The search-transfer problem: the role of weak ties in sharing knowledge across
organization subunits. Administrative Science Quarterly (March) 44: 82-111.
Hartley, Jean (1994). Case studies in organizational research. In Catherine Cassell & Gillian Symon
(Eds.), Qualitative methods in organizational research, a practical guide (pp.208-229). London:
Sage.
Hartley, Jean (2004). Case study research. In Catherine Cassell & Gillian Symon (Eds.), Essential
guide to qualitative methods in organizational research (pp.323-333). London: Sage
Helfat, CE. (1997) Know-how and asset complementarity and dynamic capability accumulation.
Strategic Management Journal 18(5): 339-360.
Helfat CE, Raubitschek RS. (2000) Product sequencing: co-evolution of knowledge, capabilities and
products. Strategic Management Journal 21(10-11): 961-979.
Hodgson, G.M. and T. Knudsen (2003a), ‘The firm as an interactor: firms as vehicles for habits and
routines,’ Journal of Evolutionary Econmics, 14, pp. 281- 307
Hodgson, G.M. and T. Knudsen (2003b), ‘The replication of habits,’ mimeo, University of
Herfordshire
94

REFERENCES
Hodgson, G.M. (2008), The Concept of a Routine’, in Markus C. Becker (ed.) (2008) Handbook of
Organizational Routines (Cheltenham UK and Northampton MA: Edward Elgar), pp. 15-28
Hodgson, G.M. and T. Knudsen (2004), ‘The complex evolution of a simple traffic convention:the
functions and implications of habit,’ Journal of Economic Behaviour and Organization, 54, 19-47
Jensen M., Johnson B., Lorenz E. & Lundvall B.A. (2007), Forms of knowledge and modes of
innovation Research Policy, Vol.36, pp.680-693.
Knudsen, T. (2002), ‘The significance of tacit knowledge in the evolution of language,’ Selection, 3,
93-112
Knudsen, Thorbjørn (2008): Organizational Routines in Evolutionary Theory, in Handbook of
Organizational Routines, edited by Markus Becker pp. 125-151
Kvale, Steinar (1996). Interviews An Introduction to Qualitative Research Interviewing, Sage
Publications,
Kvale, S. & Brinkmann, S. (2008). InterViews. Second Edition: Learning the Craft of Qualitative
Research Interviewing. (2nd ed.). Thousand Oaks, CA: Sage Publications
Lam, A., (2005). Organizational innovation. In: Fagerberg, J., Mowery, D., Nelson, R. (Eds.),
Handbook of Innovation. Oxford University Press.
Levitt, B. and March, J.G. (1988) "Organizational Learning," Annual Review of Sociology (14), 1988,
pp. 319-340.
Lundvall, B. Å and , Johnson, B., (1994). The learning economy. Journal of Industry Studies 1, 23–42.
Lundvall, B. Å (1996) The Social Dimensions of the Learning Economy, DRUID WORKING PAPER NO.
96-1
March, J.G. and H. A. Simon (1958), Organizations, Second edition (1993), Oxford: Blackwell.
McNamara, C (1999). Basics of conducting focus groups. Available on internet:
Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded source book (2nd
ed.). Thousand Oaks, CA: Sage.
Mintzberg, H., (1979). The Structuring of Organisation. Princeton University Press, Engelwood Cliffs,
NJ.
95

REFERENCES
Morison, E.E. (1966), Men, Machine, and Modern Times, Cambridge, MA: The MIT Press.
Nelson, R. (2008). Routines as technologies and as organizational capabilities. In: Becker, M. &
Lazaric, N. (Eds), Organizational Routines: Advancing Empirical Research. Edwards Elgar
Publishing Limited, Massachusets pp 11-25
Nelson, R. & Sampat, B. (2001), ‘Making sense of institutions as factors shaping economic growth’
Journal of Economic Organization and Behaviour, 44, pp. 31-54
Nelson, R. & Winter, S. (1982) Theory of Economic Change. Belknap Press of Harvard University
Press: Cambridge Massachusetts
Osterman, P., (1994). How common is workplace transformation and who adopts it? Industrial and
Labor Relations Review 47, 173–188.
Osterman, P., (2000). Work reorganization in an era of restructuring: trends in diffusion and effects on
employee welfare. Industrial and Labor Relations Review 53, 179–196.
Patton, M. (1990). Qualitative evaluation and research methods (2nd ed.). Newbury Park, CA: Sage
Pierce, J. L., Boerner, C., & Teece, D. J. (2002). Dynamic capabilities, competence and the behavioral
theory of the firm. In M. Augier & J. G. March (Eds.), The economics of choice, change, and
structure: Essays in honor of Richard M. Cyert. Cheltenham: Edward Elgar.
.
Polanyi, M. (1958). Personal knowledge: Towards a post-critical philosophy. New York:
Harper Torchbooks
Polanyi, M. (1966). The tacit dimension. Garden City, N.Y.: Doubleday Anchor
Simon, Herbert (1955), 'A Behavioral Model of Rational Choice', Quarterly Journal of Economics, vol.
69:99-188
Stake, Robert E. (1995). The Art of case study research. Thousand Oaks: Sage.
Stake, Robert E. (2000). Case studies. In Norman K. Denzin & Yvonna S. Lincoln (Eds.), Handbook of
qualitative research (pp.435-453). Thousand Oaks: Sage.
Szulanski G. (1996) Exploring internal stickiness: impediments to the transfer of best practice within
the firm. Strategic Management Journal, Winter Special Issue 17: 27-43.
Teece, D., G. Pisano and A. Shuen, 1997, "Dynamic Capabilities and Strategic Management.",
Strategic Management Journal, (18:7), pp.509-533
96

REFERENCES
Titscher, Stefan, Meyer, Michael, Wodak, Ruth, & Vetter, Eva (2000). Methods of text and discourse
analysis (Bryan Jenner, Trans.). London: Sage
Truss, C., 2001. Complexities and controversies in linking HRM with organisational outcomes. Journal
of Management Studies 38, 1121–1149
Winter, SG. (2003). Understanding dynamic capabilities. Strategic Management Journal 24:
991-995.
Wood, S., 1999. Getting the measure of the transformed high performance organisation. British Journal
of Industrial Relations 37/3, 391–417.
Wood, W. and D.T. Neal (2007), ‘A new look at habits and the interface between habits and goals’,
Psychological Review, 114(4), 843-63.
Yin, Robert K. (2003a). Case study research, design and methods (3rd ed., vol. 5). Thousand Oaks:
Sage.
Yin, Robert K. (2003b). Applications of case study research (2nd ed., vol. 34). Thousand Oaks: Sage.
Zollo M, Singh H. (1998) The impact of knowledge codification, experience trajectories and
integration strategies on the performance of corporate acquisitions. Academy of Management Best
Paper Proceedings, San Diego, CA
Zollo, M. & Winter, S. (2002): Deliberate Learning and the Evolution of Dynamic Capabilities:
Organization Science, Vol. 13, No. 3, Knowledge, Knowing, and Organizations, (May - Jun.,
2002), pp. 339-351
.
97
APPENDIX A: EMP SURVEY

APPENDIX A: EMP SURVEY
Employee Survey (adapted from Meadow Project)
1. Hvor længe har du arbejdet for Global Wind Power?
Respondents
6
9
14
4
33
1- 2 år
2 – 5 år
> 5 år
Total
2a.
I hvilken grad kan du selv vælge eller ændre:
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
2b.
I hvilken grad kan du selv vælge eller ændre:
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
2c.
I hvilken grad kan du selv vælge eller ændre:
I høj grad
Percent
18.2%
27.3%
42.4%
12.1%
100.0%
- Indholdet af dine arbejdsopgaver?
Respondents
7
21
5
0
33
Percent
21.2%
63.6%
15.2%
0.0%
100.0%
- Den rækkefølge, du udfører arbejdsopgaver i?
Respondents
20
12
1
0
33
Percent
60.6%
36.4%
3.0%
0.0%
100.0%
- Hvordan du udfører dine arbejdsopgaver?
Respondents
17
Percent
51.5%
98
APPENDIX A: EMP SURVEY

I nogen grad
I mindre grad
Slet ikke
Total
3.
15
1
0
33
45.5%
3.0%
0.0%
100.0%
Respondents
26
29
15
4
8
1
33
Percent
78.8%
87.9%
45.5%
12.1%
24.2%
3.0%
100.0%
Hvem evaluerer din arbejdsindsats? [Sæt gerne flere krydser]
Dig selv
Din superviser eller leder
Dit arbejdsteam
En person/personer fra en anden arbejdsafdeling
Kunder eller klienter
Andre [Uddyb venligst]
Total
Hvem evaluerer din arbejdsindsats? [Sæt gerne flere krydser]
Vestas
- Andre [Uddyb venligst]
4a. Er det nogle gange nødvendigt at kontakte kolleger fra andre afdelinger eller med andre arbejdsfunktioner i
arbejdstiden?
Respondents
33
0
33
Ja
Nej
Total
4b.
Percent
100.0%
0.0%
100.0%
Hvad er ofte årsagen til at kontakte kolleger fra andre afdelinger eller med andre arbejdsfunktioner i
arbejdstiden?
[Sæt gerne flere krydser]
Kollektiv problemløsning på tværs af afdelinger
For at få eller give informationer
Andre årsager (uddyb venligst
Total
Respondents
25
32
4
33
Percent
75.8%
97.0%
12.1%
100.0%

99
APPENDIX A: EMP SURVEY
Hvad er ofte årsagen til at kontakte kolleger fra andre afdelinger eller med andre arbejdsfunktioner i arbejdstiden?
[Sæt gerne flere krydser] - Andre årsager (uddyb venligst
Opgaver for andre afdelinger
"Speciallist"
5. Har nogle af følgende organisatoriske ændringer fundet sted i virksomheden i den tid, du har arbejdet for
GWP? [Sæt gerne flere krydser]
Implementering af nye eller markant ændrede eksisterende IT systemer
Omrokering af ansatte
Implementering af nye eller markant ændring af eksisterende arbejdsmetoder
Indføring af nye eller markant ændring af eksisterende produkter eller serviceydelser
Andet[uddyb venligst]:
Ingen ændringer
Total
Respondents
8
32
20
21
1
0
33
Percent
24.2%
97.0%
60.6%
63.6%
3.0%
0.0%
100.0%
Har nogle af følgende organisatoriske ændringer fundet sted i virksomheden i den tid, du har arbejdet for GWP? [Sæt
gerne flere krydser] - Andet[uddyb venligst]:
På vej fra "tømmervirksomhed" til koncern
6a. Deltog du i diskussionen vedrørende nogle af de følgende ændringer forud for implementeret af disse? [Sæt
gerne flere krydser]
Implementering af nye eller markant ændrede eksisterende IT systemer
Omrokering af ansatte
Implementering af nye eller markant ændring af eksisterende arbejdsmetoder
Indføring af nye eller markant ændring af eksisterende produkter eller serviceydelser
Andet[uddyb venligst]:
Deltog ikke
Total
Respondents
3
6
8
6
2
16
32
Percent
9.4%
18.8%
25.0%
18.8%
6.2%
50.0%
100.0%
Deltog du i diskussionen vedrørende nogle af de følgende ændringer forud for implementeret af disse? [Sæt gerne flere
krydser] - Andet[uddyb venligst]:
Var med i møderne i kraft af min position i virksomheden
6b. Deltog du i at træffe den endelige beslutning vedrørende nogle af de følgende ændringer forud for
implementeret af disse? [Sæt gerne flere krydser]
100
APPENDIX A: EMP SURVEY

Implementering af nye eller markant ændrede eksisterende IT systemer
Omrokering af ansatte
Implementering af nye eller markant ændring af eksisterende arbejdsmetoder
Indføring af nye eller markant ændring af eksisterende produkter eller serviceydelser
Andet[uddyb venligst]:
Deltog ikke
Total
Respondents
0
1
2
2
2
22
29
Percent
0.0%
3.4%
6.9%
6.9%
6.9%
75.9%
100.0%
Deltog du i at træffe den endelige beslutning vedrørende nogle af de følgende ændringer forud for implementeret af
disse? [Sæt gerne flere krydser] - Andet[uddyb venligst]:
Som ovennævnt
6c.
Havde nogle af disse ændringer en indflydelse på dine arbejdsopgaver?
Ja
Nej
Total
Respondents
26
7
33
Percent
78.8%
21.2%
100.0%
6d Hvad er din generelle holdning til effektiviteten af de følgende organisatoriske ændringer? - Implementering
af nye eller markant ændrede eksisterende IT systemer
Positiv
Negativ
Hverken positiv eller negativ
Ingen ændringer
Total
Respondents
11
1
5
16
33
Percent
33.3%
3.0%
15.2%
48.5%
100.0%
6e Hvad er din generelle holdning til effektiviteten af de følgende organisatoriske ændringer? - Omrokering af
ansatte
Positiv
Negativ
Hverken positiv eller negativ
Ingen ændringer
Total
Respondents
14
4
11
4
33
Percent
42.4%
12.1%
33.3%
12.1%
100.0%

101
APPENDIX A: EMP SURVEY
6f. Hvad er din generelle holdning til effektiviteten af de følgende organisatoriske ændringer? - Implementering
af nye eller markant ændring af eksisterende arbejdsmetoder
Positiv
Negativ
Hverken positiv eller negativ
Ingen ændringer
Total
Respondents
15
2
9
7
33
Percent
45.5%
6.1%
27.3%
21.2%
100.0%
6g. Hvad er din generelle holdning til effektiviteten af de følgende organisatoriske ændringer? - Indføring af nye
eller markant ændring af eksisterende produkter eller serviceydelser
Positiv
Negativ
Hverken positiv eller negativ
Ingen ændringer
Total
Respondents
14
1
10
8
33
Percent
42.4%
3.0%
30.3%
24.2%
100.0%
6h. Hvad er din generelle holdning til effektiviteten af de følgende organisatoriske ændringer? - Andet[uddyb
venligst]:
Positiv
Negativ
Hverken positiv eller negativ
Ingen ændringer
Total
Respondents
4
1
5
23
33
Percent
12.1%
3.0%
15.2%
69.7%
100.0%
7a. Arrangerer ledelsen på din arbejdsplads møder, hvor du personligt bliver informeret om, hvad der foregår i
organisationen?

Ja
Nej
Total
102
APPENDIX A: EMP SURVEY
Respondents
32
1
33
Percent
97.0%
3.0%
100.0%
7b. Arrangerer ledelsen på din arbejdsplads møder, hvor du kan tilkendegive din personlige holdning til, hvad
der foregår i organisationen?
Ja
Nej
Total
Respondents
29
4
33
Percent
87.9%
12.1%
100.0%
8a. Har du i løbet af den tid du har arbejdet for GWP: - Udtænkt løsninger til at forbedre dine arbejdsopgaver?
Ja
Nej
Total
Respondents
30
3
33
Percent
90.9%
9.1%
100.0%
8b. Har du i løbet af den tid du har arbejdet for GWP: - Udtænkt nye eller forbedrede produkter eller
serviceydelser for GWP?
Ja
Nej
Total
Respondents
9
24
33
Percent
27.3%
72.7%
100.0%
8c. Har du i løbet af den tid du har arbejdet for GWP: - Prøvet at få din leder til at støtte nye ideer?
Ja
Nej
Total
Respondents
26
7
33
Percent
78.8%
21.2%
100.0%
103
APPENDIX A: EMP SURVEY

9a. Har du deltaget i en medarbejder udviklingssamtale(MUS) indenfor det sidste 2 år?
Ja
Nej
Total
Respondents
29
4
33
Percent
87.9%
12.1%
100.0%
9b1Havde din medarbejder udviklingssamtale en indflydelse på: - Dit lønniveau?
Ja
Nej
Total
Respondents
6
23
29
Percent
20.7%
79.3%
100.0%
9b2. Havde din medarbejder udviklingssamtale en indflydelse på: - Udsigter til forfremmelses?
Ja
Nej
Total
Respondents
5
24
29
Percent
17.2%
82.8%
100.0%
9b3. Havde din medarbejder udviklingssamtale en indflydelse på: - Dine kompetenceudviklingsmuligheder eksempelvis gennem efteruddannelse?
Ja
Nej
Total
Respondents
25
4
29
Percent
86.2%
13.8%
100.0%

104
APPENDIX A: EMP SURVEY
10. Føler du at du besidder færdigheder, der gør dig i stand til at varetage mere udfordrende opgaver end dem,
du udfører i din nuværende stilling?
Ja
Nej
Total
Respondents
20
13
33
Percent
60.6%
39.4%
100.0%
Respondents
7
15
10
1
33
Percent
21.2%
45.5%
30.3%
3.0%
100.0%
11. Hvor ofte kræver dit arbejde, at du lærer noget nyt?
Hver dag
Mindst en gang om ugen
Mindst en gang om måneden
Mindre end en gang om måneden/aldrig
Total
12. Hvor ofte indebærer dit arbejde, at du skal hjælpe kolleger med at lære noget nyt?
Hver dag
Mindst en gang om ugen
Mindst en gang om måneden
Mindre end en gang om måneden/aldrig
Total
Respondents
7
12
9
5
33
Percent
21.2%
36.4%
27.3%
15.2%
100.0%
13a. Bliver du nogensinde konfronteret med nye eller komplekse problemer, hvor det tager mindst 30 min. at
finde en god løsning? Du skal kun medregne den tid, det tager at finde en løsning, ikke den tid, det tager at løse
selve problemet.
Ja
Nej
Total
Respondents
26
7
33
Percent
78.8%
21.2%
100.0%
105
APPENDIX A: EMP SURVEY

13b. Hvor ofte bliver du konfronteret med den type komplicerede problemer i løbet af en typisk arbejdsuge?
Mindre end én gang om ugen
Én gang om ugen
2-5 gange om ugen
Mere end 5 gange om ugen
Total
Respondents
18
9
4
2
33
Percent
54.5%
27.3%
12.1%
6.1%
100.0%
14a. Har du gennemgået følgende former for oplæring eller uddannelse i forbindelse med dit arbejde? Inkluder
både oplæring og uddannelse, der blev betalt af dig selv eller arbejdsgiveren, så længe det var i forbindelse med
dit arbejde - Har modtaget vejledning eller oplæring i arbejdstiden, som afholdt dig fra at udføre dine normale
arbejdsopgaver
Ja
Nej
Total
Respondents
20
13
33
Percent
60.6%
39.4%
100.0%
14b. Har du gennemgået følgende former for oplæring eller uddannelse i forbindelse med dit arbejde? Inkluder
både oplæring og uddannelse, der blev betalt af dig selv eller arbejdsgiveren, så længe det var i forbindelse med
dit arbejde - Har modtaget vejledning samtidigt med at jeg udførte mine normale arbejdsopgaver
Ja
Nej
Total
Respondents
28
5
33
Percent
84.8%
15.2%
100.0%
14c Har du gennemgået følgende former for oplæring eller uddannelse i forbindelse med dit arbejde? Inkluder
både oplæring og uddannelse, der blev betalt af dig selv eller arbejdsgiveren, så længe det var i forbindelse med
dit arbejde - Har lært på egen hånd fra en bog, manual, video eller computer
Ja
Nej
Total
Respondents
15
18
33
Percent
45.5%
54.5%
100.0%

106
APPENDIX A: EMP SURVEY
14d. Har du gennemgået følgende former for oplæring eller uddannelse i forbindelse med dit arbejde? Inkluder
både oplæring og uddannelse, der blev betalt af dig selv eller arbejdsgiveren, så længe det var i forbindelse med
dit arbejde - Har deltaget i et kursus på nettet
Ja
Nej
Total
Respondents
0
33
33
Percent
0.0%
100.0%
100.0%
15. Har du modtaget tilstrækkelig oplæring til at udføre dine arbejdsopgaver tilfredsstillende?
Ja
Nej
Total
Respondents
25
5
30
Percent
83.3%
16.7%
100.0%
Respondents
0
0
0
33
0
33
Percent
0.0%
0.0%
0.0%
100.0%
0.0%
100.0%
Overall Status
New
Distributed
Partially Complete
Complete
Rejected
Total

107
APPENDIX A: EMP SURVEY
APPENDIX B: Mgmt Survey (adapted from DISKO and Meadow Project Survey)
1. Hvor længe har du arbejdet for GWP?
1- 2 år
2 – 5 år
> 5 år
Total
Respondents
0
2
3
3
8
Percent
0.0%
25.0%
37.5%
37.5%
100.0%
2. Hvem træffer normalt beslutninger vedrørende planlægning og udførelse af ansattes (ikke ledere) daglige
arbejdsopgaver?
De ansatte der påtager sig opgaverne
Ledere
Både ansatte og ledere
Total
Respondents
1
0
7
8
Percent
12.5%
0.0%
87.5%
100.0%
3. Hvordan foregår arbejdsrelateret kommunikation de forskellige afdelinger imellem?
Kommunikation mellem afdelinger foregår på lederniveau
Kommunikation mellem afdelinger foregår mellem ansatte(ikke ledere)
Kommunikation mellem afdelinger foregår både mellem ansatte(ikke ledere) og på
lederniveau
Total
Respondents
0
0
8
Percent
0.0%
0.0%
100.0%
8
100.0%
Respondents
0
6
2
8
Percent
0.0%
75.0%
25.0%
100.0%
4. Holder GWP tilsyn med effektiviteten af diverse arbejdsprocesser?
Ja, fortløbende
Ja, periodisk
Nej
Total

108
APPENDIX A: EMP SURVEY
5. Dokumenterer de ansatte gode arbejdsrutiner eller erfaringer, som derved kan anvendes af andre ansatte i
organisationen?
Ja
Nej
Total
Respondents
2
6
8
Percent
25.0%
75.0%
100.0%
Respondents
1
5
2
8
Percent
12.5%
62.5%
25.0%
100.0%
6. Indsamler og evaluerer GWP forslag fra ansatte?
Ja, fortløbende
Ja, periodisk
Nej
Total
7. Søger eller holder GWP sig opdateret med eksterne nye ideer eller teknologisk udvikling for nye eller
forbedrede produkter, processer eller serviceydelser?
Ja. Der er ansatte udpeget til at varetage denne opgave
Ja. Det er alle ansattes ansvar at holde sig opdateret
Nej
Ved ikke
Total
Respondents
1
3
1
3
8
Percent
12.5%
37.5%
12.5%
37.5%
100.0%
8a. I hvilken grad har Global Wind Power udviklet nært samarbejde med: - Videnscentre (ex universiteter eller
teknologiske institutioner) for tilegnelse eller deling af viden?
I høj grad
I nogen grad
I mindre grad
Slet ikke
Ved ikke
Total
Respondents
0
1
5
0
2
8
Percent
0.0%
12.5%
62.5%
0.0%
25.0%
100.0%

109
APPENDIX A: EMP SURVEY
8b. I hvilken grad har Global Wind Power udviklet nært samarbejde med: - Konsulentvirksomheder eller juridisk
rådgivning for at tilegne sig viden?
I høj grad
I nogen grad
I mindre grad
Slet ikke
Ved ikke
Total
Respondents
5
2
1
0
0
8
Percent
62.5%
25.0%
12.5%
0.0%
0.0%
100.0%
8c. I hvilken grad har Global Wind Power udviklet nært samarbejde med: - Leverandører på det grundlag at
tilegne sig og dele viden?
I høj grad
I nogen grad
I mindre grad
Slet ikke
Ved ikke
Total
Respondents
4
2
1
1
0
8
Percent
50.0%
25.0%
12.5%
12.5%
0.0%
100.0%
8d. I hvilken grad har Global Wind Power udviklet nært samarbejde med: - Kunder på det grundlag at tilegnelse
sig viden vedrørende kunders behov?
I høj grad
I nogen grad
I mindre grad
Slet ikke
Ved ikke
Total
Respondents
3
3
1
1
0
8
Percent
37.5%
37.5%
12.5%
12.5%
0.0%
100.0%
110
APPENDIX A: EMP SURVEY

9. Kontrollerer GWP kundetilfredshed eller identificerer latente kundebehov vha. spørgeskemaer eller andre
metoder?
Ja, jævnligt
Ja, men ikke hyppigt
Nej
Total
Respondents
4
3
1
8
10a. Anvender GWP en eller flere af de følgende slags informations teknologi?
Percent
50.0%
37.5%
12.5%
100.0%
- ’Client or customer
relationship’ software(CRM)
Ja
Nej
Ved ikke
Total
Respondents
0
7
1
8
10b. Anvender GWP en eller flere af de følgende slags informations teknologi?
Percent
0.0%
87.5%
12.5%
100.0%
- Software der følger op på
arbejdspræstationer
Ja
Nej
Ved ikke
Total
Respondents
0
7
1
8
10c. Anvender GWP en eller flere af de følgende slags informations teknologi?
Percent
0.0%
87.5%
12.5%
100.0%
- 'Enterprise Resource
Planning' (ERP)software
Ja
Nej
Ved ikke
Total
Respondents
1
5
2
8
Percent
12.5%
62.5%
25.0%
100.0%
111
APPENDIX A: EMP SURVEY

10d. Anvender GWP en eller flere af de følgende slags informations teknologi?
Ja
Nej
Ved ikke
Total
- Samarbejds software
Respondents
2
5
1
8
10e. Anvender GWP en eller flere af de følgende slags informations teknologi?
Percent
25.0%
62.5%
12.5%
100.0%
- Electronic Data
Interchange (EDI) med eksterne klienter eller leverandører
Ja
Nej
Ved ikke
Total
Respondents
0
8
0
8
Percent
0.0%
100.0%
0.0%
100.0%
´-
11. Hvordan vil du beskrive virksomhedens ´´79informations- og kommunikationsteknologi?
Det sidste nye
Det samme som de fleste andre virksomheder anvender
Forældet sammenlignet med det udstyr andre virksomheder anvender
Ved ikke
Total
Respondents
1
7
0
0
8
Percent
12.5%
87.5%
0.0%
0.0%
100.0%
12. Hvor stor en procentdel af de ansatte gennemgår en medarbejder udviklingssamtale (MUS) mindst én gang
årligt?
Ingen
1% til 24%
25% til 49%
50% eller flere
Total
Respondents
0
0
0
8
8
Percent
0.0%
0.0%
0.0%
100.0%
100.0%

112
APPENDIX A: EMP SURVEY
13. Er der sammenhæng mellem forfremmelse af ansatte og deres præstation til medarbejder
udviklingssamtalen(MUS)?
Ja, præstation til MUS er den afgørende faktor, der påvirker en eventuel forfremmelse
Ja, men præstation til MUS er kun én af mange faktorer, der påvirker en eventuel
forfremmelse
Nej
Total
Respondents
1
2
Percent
12.5%
25.0%
5
8
62.5%
100.0%
14. For hvor stor en procentdel af de ansatte i denne virksomhed har egen arbejdsindsats eller en større
gruppes arbejdsindsats indflydelse på dele af enkeltindividers løn?
Ingen
1% til 24%
25% til 49%
50% eller flere
Total
Respondents
0
1
1
6
8
Percent
0.0%
12.5%
12.5%
75.0%
100.0%
15a. Har nogle af de ansatte hos GWP fået løn under uddannelse, enten indenfor eller udenfor virksomheden, i
løbet af de sidste 12 måneder?
Ja
Nej
Ved Ikke
Total
Respondents
6
0
2
8
Percent
75.0%
0.0%
25.0%
100.0%
15b. Hvor stor en procentdel af de ansatte har fået løn under videreuddannelse indenfor de sidste 12 måneder?
op til 24%
25% til 49%
Respondents
5
1
Percent
83.3%
16.7%

50% til 74%
75% eller flere
Total
113
APPENDIX A: EMP SURVEY
0
0
6
0.0%
0.0%
100.0%
16a. Har nogle af de ansatte modtaget træning/uddannelse på jobbet for at forbedre deres færdigheder indenfor
de sidste 12 måneder?
Ja
Nej
Total
Respondents
8
0
8
Percent
100.0%
0.0%
100.0%
16b. Hvor stor en procentdel af de ansatte har modtaget træning/uddannelse på jobbet indenfor de sidste 12
måneder?
op til 24%
25% til 49%
50% til 74%
75% eller flere
Total
Respondents
2
5
0
1
8
Percent
25.0%
62.5%
0.0%
12.5%
100.0%
17a. Har GWP introduceret nye eller betydeligt forbedret eksisterende produkter eller serviceydelser indenfor de
sidste 2 år?
Ja
Nej
Total
Respondents
8
0
8
Percent
100.0%
0.0%
100.0%
Respondents
1
7
Percent
12.5%
87.5%
17b. Var nogle af disse produkter eller serviceydelser nye på markedet?
Ja
Nej

Total
114
APPENDIX A: EMP SURVEY
8
100.0%
17c. Var nogle af disse produkter eller serviceydelser nye for GWP, men ikke på markedet?
Ja
Nej
Total
Respondents
7
1
8
Percent
87.5%
12.5%
100.0%
18. Har GWP introduceret nye eller betydeligt forbedret eksisterende processer, enten til at producere varer eller
levere serviceydelser, indenfor de sidste 2 år?
Ja
Nej
Total
Respondents
5
3
8
Percent
62.5%
37.5%
100.0%
19. Har virksomheden introduceret nye eller betydeligt forbedrede markedsføringsmetoder indenfor de sidste to
år?
Ja
Nej
Total
Respondents
5
3
8
Percent
62.5%
37.5%
100.0%
20a. Har virksomheden fortaget nogle betydelige organisatoriske ændringer indenfor de sidste 2 år?
Ja
Nej
Total
Respondents
8
0
8
Percent
100.0%
0.0%
100.0%
115
APPENDIX A: EMP SURVEY

20b.
I hvilken grad har målet for de organisatoriske ændringer primært været at styrke følgende:
-
Effektiviteten af det daglige arbejde
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
Respondents
6
2
0
0
8
Percent
75.0%
25.0%
0.0%
0.0%
100.0%
20c. I hvilken grad har målet for de organisatoriske ændringer primært været at styrke følgende:
-
Samarbejde og koordinering på tværs af organisationen
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
20d.
Respondents
6
1
1
0
8
Percent
75.0%
12.5%
12.5%
0.0%
100.0%
I hvilken grad har målet for de organisatoriske ændringer primært været at styrke følgende:
-
Organisationens evne til at tilpasse sig sine omgivelser
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
20e.
Respondents
6
2
0
0
8
Percent
75.0%
25.0%
0.0%
0.0%
100.0%
I hvilken grad har målet for de organisatoriske ændringer primært været at styrke følgende:
Organisationens evne til kontinuerligt at tilpasse sig nye produkter/serviceydelser
I høj grad
I nogen grad
Respondents
2
2
Percent
25.0%
25.0%
-
116
APPENDIX A: EMP SURVEY

I mindre grad
Slet ikke
Total
4
0
8
50.0%
0.0%
100.0%
20f. I hvilken grad har målet for de organisatoriske ændringer primært været at styrke følgende:
-
Organisationens evne til kontinuerligt at styrke og forny viden og ”know-how”
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
Respondents
2
3
3
0
8
Percent
25.0%
37.5%
37.5%
0.0%
100.0%
20g. I hvilken grad har målet for de organisatoriske ændringer primært været at styrke følgende:
-
Organisationens evne til at outsource
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
Respondents
1
0
6
1
8
Percent
12.5%
0.0%
75.0%
12.5%
100.0%
20h. I hvilken grad har målet for de organisatoriske ændringer primært været at styrke følgende:
Kundeservice
I høj grad
I nogen grad
I mindre grad
Slet ikke
Total
21.
2 år?
Respondents
5
0
2
1
8
Percent
62.5%
0.0%
25.0%
12.5%
100.0%
Beskrive venligst den/de mest betydningsfulde organisatoriske ændringer, der har fundet sted indenfor de sidste
-

117
APPENDIX A: EMP SURVEY
Decentralisering med uddeling af kompetance til landeenhederne
Decentralisering af opgaver fra koncernen til landeenheder. Ledelsesmæssige ændringer i direktionen. Opkøb af fransk
landeenhed etablering af Rumænsk landeenhed
Ledelsesmæssig Turn Around i december 09
OMstrukturering og væsentlige ændringer i ledelsen i dec. 2009
Indførsel af en Opeerations enhed/gren, hvor koordinering mellem afdelinger er blevet væsentligt styrket, lige som
beslutningskompetence er blevet afklaret i langt højere grad end tidligere.
Samling af de daglige forretninger (Operations) under COO
Projektudvikling flytter ud i de lande hvor der skal laves projektudvikling i stedet for at foregå fra kontoret i Thisted.
Der er kommet et kontor i Tyskland, Harrislee
Overall Status
New
Distributed
Partially Complete
Complete
Rejected
Total
Respondents
0
0
0
8
0
8
Percent
0.0%
0.0%
0.0%
100.0%
0.0%
100.0%