Employee-driven innovation

Esa Hiltunen

Chapter 9 in Elgar Encyclopedia of Innovation Management, 2025, pp 31-33 from Edward Elgar Publishing

Abstract: Employee-driven innovation (EDI) shifts the focus from traditional top-down approaches to innovation by actively involving employees at all levels in the generation and implementation of new ideas. Unlike conventional models that centralize innovation within upper management, EDI leverages the unique insights and expertise of employees, who are closest to daily operations. This approach fosters a culture of continuous innovation, enhancing problem-solving capabilities, employee motivation, and organizational agility. EDI's success depends on factors such as employee empowerment, knowledge sharing, and a supportive organizational culture. The practical application of EDI in a small retail store revealed challenges, including limited time for creative thinking due to a fast-paced work environment, insufficient opportunities for innovation, and communication barriers. Effective implementation of EDI requires balancing control and autonomy, ensuring strong management support, and fostering an environment of trust and open communication. Further research is needed to explore EDI, for example in diverse cultural and organizational contexts.

Keywords: Continuous innovation; Success factors; Challenges; Implementation (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035306442
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