ABSTRACT
Organizations today operate in a dynamic, highly unpredictable global competitive environment. The challenge is the same for both businesses and public organizations: how to constantly increase speed and effi ciency, to improve quality and innovation? In order to succeed in the competition at both the company and national level, systems must show a capacity for continuous development and even radical change. Increasingly, competitiveness now boils down to a capacity for selfrenewal in and by organizations, networks and nations. Continuous innovation and renewal capability in organizations has indeed attracted growing research interest in recent years (e.g. Nonaka and Takeuchi, 1995; Leonard-Barton, 1995; Weick and Sutcliffe, 2002; Brown and Eisenhardt, 1998; Ståhle et al., 2003; Pöyhönen, 2004).
