LUT Scientific and Expertise Publications
Faculty of Business and Law
School of Business / Centre for Innovative Practice
Organizational learning can facilitate innovation and it is affected by internal and external contexts. Leaders can provide internal contextual support for learning to occur in the organization in order to respond to changes in external contexts. However, there are limited studies about how leaders affect innovation in financial services firms. This paper applies Crossan et al.’s (1999) 4I framework to examine the impact of internal and external factors on an organization’s learning process and the extent of its innovation. An on-going case study of a large Australian financial services firm is used to gain insights about contextual support for innovation. Competition in the industry has increased through the introduction of IT-enabled innovation but innovation is limited by bureaucracy, risk-aversion and regulatory-driven reliability. The study shows that leaders in such organisations can support IT-enabled innovation through vision, organizational culture, an agile methodology, activity-based working environments, and technology that supports innovation.