Exploring the use of innovation measurement in retail organisations: a multiple case study

Abstract

Innovation and its management in retail organisations is an emerging field, yet the measurement of innovation in this context remains challenging and under-researched. The study investigates innovation in large Swedish retail companies, focusing on monitoring and measurement of innovation performance. Through a qualitative, multiple case study, our findings reveal that retailers are aiming to become more active innovators. They are exerting a greater control over the innovation process, implementing a range of financial and non-financial indicators that encompass inputs, outputs, and the process itself. Innovation projects serve as vehicles for experimentation and learning about how to improve the structure of innovation efforts. However, challenges still arise when strategic objectives are not aligned with performance measurements across the organisation. Nonetheless, existing performance measurement practices can support innovation capability development in retail, especially in relation to culture and competence development and utilising external knowledge for open innovation. The paper advances theory by offering insights into how retailers gain more control of innovation through measurement, contributing to the growing landscape of strategic innovation management in retail. We propose a model, informed by theoretically built framework and empirical data, to guide retail organisations in defining new measurements that promote a holistic perspective to building innovation capability.