From continuous improvement to continuous innovation: a (retro)(per)spective

The new name of the industrial game is continuous innovation. But what is continuous innovation? And how can we manage and organise for it? This article addresses these questions by, first of all, defining continuous innovation as the ability to combine operational effectiveness and strategic flexibility - exploitation and exploration - capabilities that have traditionally been regarded as antithetical. Next, an old debate between organisation theorists on the question of whether it is at all possible to combine the two capabilities in one system is summarised to conclude that the majority of scholars argue that it is difficult, perhaps even impossible, to achieve continuous innovation. However, some authors have challenged this stance and have provided some useful thoughts, though little empirical evidence, as to how operational effectiveness and strategic flexibility can be combined to produce continuous innovation.