Routines, Generative Systems Analyzed as a Function Based on Time and Innovation

Costa Júnior, Júlio César da; Primo, Marcos André Mendes; Jerônimo, Taciana de Barros

doi:10.15728/bbr.2021.18.5.2

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Article • BBR, Braz. Bus. Rev. 18 (5) • Sep-Oct 2021 • https://doi.org/10.15728/bbr.2021.18.5.2 copy

Routines, Generative Systems Analyzed as a Function Based on Time and Innovation

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

This study aims to propose a model to study organizational routines as a generative system based on time and innovation. Routines are intrinsically related to resources orchestration processes, learning, know-how accumulation and organizational expertise. Over time, combined with innovations, in-process, or via technological artifacts, routines may contribute to diversifying the portfolio of outputs able to add value to a company result. The study follows a qualitative approach, with an applied nature, and was made through multiple case studies. Data collection was through semi-structured interviews and was beaconed by protocol subject to peers validation. The main contribution is the model which is proposed to understand routines as a generative system able to diversify the outputs or organizational actions enhancing the results arisen from innovations. Results have confirmed the relation between routines and resources orchestrations process, incorporation and development of innovations, and organizational learning.

KEYWORDS
Routines; Resources orchestration; Innovation

Case	Function / position	General description
B1	Manager	Male, 33 years old, graduation in administration, Master Business of Economics, about 2 years in the bakery business
	Production employees (2 respondents)	Males, high school, more than 5 years of experience in the bakery sector
B2	Manager	Male, 53 years old, graduation in administration, Finance MBA, more than 6 years in the sector
	Production employees (2 respondents)	Males, high school, more than 10 years of experience in the bakery sector
B3	Manager	Male, 32 years old, graduation in administration, MBA in Business Management, about 10 years in the sector
	Production employees (3 respondents)	Males, high school, more than 20 years of experience in the bakery sector
B4	Manager	Male, 51 years old, graduation in computing and in accounting sciences, MBA in Business Management, more than 20 years in the sector
	Production employees (3 respondents)	Males, high school, about 20 years of experience in the bakery sector
B5	Manager	Male, 40 years old, graduation in administration, about 20 years in the sector
	Production employees (2 respondents)	Males, high school, more than 10 years of experience in the bakery sector
B6	Manager	Male, 39 years old, graduation in administration, about 10 years in the sector
	Production employees (1 respondent)	Male, high school, about 5 years of experience in the bakery sector

Category	Subcategory	Main references
Dynamic routines	Routine components	Pentland & Feldman, 2005Pentland, B. T., & Feldman, M. S. (2005). Organizational routines as a unit of analysis. Industrial and Corporate Change, 14(5), 793-815.; Feldman & Pentland, 2003Feldman, M. S, & Pentland, B. T. (2003). Reconceptualizing organizational routines as a source of flexibility and change. Administrative Science Quarterly, 48, 94-118.; Bredillet et al., 2018Bredillet, C., Tywoniak, S., & Tootoonchy, M. (2018). Exploring the dynamics of Project management office and portfolio management co-evolution: a routine lens. International Journal of Project Management, 36(1), 27-42..
	Know-how, expertise, learning	Kiwan & Lazaric, 2019Kiwan, L., & Lazaric, N. (2019). Learning a new ecology of space and looking for new routines: experimenting robotics in a surgical team. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 8, pp. 173-189). Emerald Publishing Limited.; Feldman et al., 2016Feldman, M. S, Pentland, B. T, D’Adderio, L., & Lazaric, N. (2016). Beyond routines as things: introduction to the special issue on routine dynamics. Organization Science, 27(3), 505-513.; Wang & Wang, 2017Wang, Y., & Wang, K. Y. (2017). How do firms tackle strategic change? A theoretical model of the choice between dynamic capability-based and ad hoc problem-solving approaches. Journal of Organizational Change Management, 30(5), 725-743.; Boe-Lillegraven, 2019Boe-Lillegraven, S. (2019). Transfering routines across multiple boundaries: a flexible approach. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 2, pp. 31-51). Emerald Publishing Limited..
	Innovation and novelty through routines	Bredillet et al., 2018Bredillet, C., Tywoniak, S., & Tootoonchy, M. (2018). Exploring the dynamics of Project management office and portfolio management co-evolution: a routine lens. International Journal of Project Management, 36(1), 27-42.; Pentland et al., 2012Pentland, B. T., Feldman, M. S., Becker, M. C., & Liu, P. (2012). Dynamics of organizational routines: a generative model. Journal of Management Studies, 49(8), 1484-1508.; Van Mierlo et al., 2019Van Mierlo, J., Loohuis, R., & Bondarouk, T. (2019). Remounting a ballet in a different context: a complementary understanding of routines transfer theories. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 7, pp. 153-172). Emerald Publishing Limited..
	Technology and sociomateriality	Feldman et al., 2019 Feldman, M. S., D’Adderio, L., Dittrich, K, & Jarzabkowski, P. (2019). Introduction: routines dynamics in action. In:___. Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (introduction, pp. 1-10). Emerald Publishing Limited.; Kiwan & Lazaric, 2019Kiwan, L., & Lazaric, N. (2019). Learning a new ecology of space and looking for new routines: experimenting robotics in a surgical team. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 8, pp. 173-189). Emerald Publishing Limited.; D’Adderio, 2011D’Adderio, L. (2011). Artifacts at the centre of routines: performing the material turn in routines theory. Journal of Institutional Economics, 7(2), 197-230.; Dittrich & Seidl, 2018Dittrich, K., & Seidl, D. (2018). Emerging intentionality in routine dynamics: a pragmatist view. Academy of Management Journal, 61(1), 111-138..
Small enterprises	Limitations and restrictions	Wrona & Ladwig, 2015Wrona, T., & Ladwig, T. (2015). Studying strategy formation in small companies - a cognitive perspective. Journal of Strategy and Management, 8(1), 2-22. ; Kellinher & Reinl, 2009Kellinher, F., & Reinl, L. (2009). A resource-based view of micro-firm management practice. Journal of Small Business and Enterprise Development, 16(3), 521-532.; Parida et al., 2012Parida, V., Westerberg, M., & Frishammar, J. (2012). Inbound open innovation activities in high-tech SMEs: the impacto on innovation performance. Journal of Small Business Management, 50(2), 283-309..
	Bakery business	ITPC, 2018Instituto Tecnológico de Panificação e Confeitaria. (2018). Projeção de desempenho das panificadoras e confeitarias brasileiras em 2017. Recuperado em 07 dezembro, 2019, de: Recuperado em 07 dezembro, 2019, de: http://institutoitpc.org.br/indicadores-do-setor/ http://institutoitpc.org.br/indicadores-... ; ABIP, 2018Associação Brasileira da Indústria de Panificação e Confeitaria. (2018). Balanço e tendências do mercado de panificação e confeitaria. Recuperado em 07 dezembro, 2019, de: Recuperado em 07 dezembro, 2019, de: http://www.abip.org.br/site/wp-content/uploads/2018/03/INDICADORES-E-TENDENCIAS-DE-MERCADO.pdf http://www.abip.org.br/site/wp-content/u... ; SEBRAE, 2016Serviço Brasileiro de Apoio às Micro e Pequenas Empresas. (2016). Minha Empresa Sustentável: Padaria. Cuiabá, MT: Autor.; 2017Serviço Brasileiro de Apoio às Micro e Pequenas Empresas. (2017). Estudo de Mercado Indústria: Panificação. Salvador, BA: Autor..
Strategic entrepreneurship	Resource orchestration	Hitt et al., 2011Hitt, M. A., Ireland, D., Sirmon, D. G., & Trahms, C. A. (2011). Strategic entrepreneurship: creating value for individuals, organizations, and society. Academy of Management Perspectives, 25(2), 57-75.; Omotosho & Anyigba, 2019Omotosho, S. I., & Anyigba, H. (2019). Conceptualising corporate entrepreneurial strategy: a contingency and agency collaborative approach. Journal of Strategy and Management, 12(2), 256-274.; Kantur, 2016Kantur, D. (2016). Strategic entrepreneurship: mediating the entrepreneurial orientation-performance link. Management Decision, 54(1), 24-43.; Sirmon et al., 2011Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource orchestration to create competitive advantage: breadth, depth and life cycle effects. Journal of Management, 37(5), 1390-1412..

Case	Business model	General information	Highlights in operational
B1	Boutique bakery	3 years in the bakery sector; 26 employees; family business; robust administrative infrastructure (management software and office staff).	Modern equipment and strong use of process technology (fermentation chamber, deep freezer, high precision furnaces); natural fermentation; make-to-stock manufacturing system; strategic focus on product and process innovation.
B2	Foodservice	20 years in the bakery sector; 40 employees; robust administrative infrastructure (management software, office staff, financial consultant).	Greater automation of the process (tight coupling of production equipment); high specialization of production employees; strategic focus on customer service and experience.
B3	Foodservice	34 years in the bakery sector (2 under control of the 2^nd generation); 23 employees; family business; deficient administrative infrastructure (implementation phase of more complete management control software).	More intuitive production process; old equipment (being updated); lower standardization of operational processes; strategic focus on price competition.
B4	Foodservice	46 years in the bakery sector (24 under management by the current owner); 65 employees; robust administrative infrastructure (management software, office staff).	Greater automation of the process (tight coupling of production equipment); high specialization of production employees; strategic focus on customer service and experience; ample space for creating new products and changing operational routines
B5	Foodservice	48 years in the bakery sector (8 under control of the 2^nd generation); 40 employees; family business; deficient administrative infrastructure (implementation phase of more complete management control software).	More intuitive production process; old equipment (being updated), but tight coupling of production equipment for some automation; lower standardization of operational processes; strategic focus on competition and customer service; ample space for creating new products and changing operational routines.
B6	Foodservice	8 years in the bakery sector; 83 employees; robust administrative infrastructure (management software provides real-time information, office staff); 2 stores and a production center.	Modern equipment and strong use of process technology for automation (fermentation chamber, deep freezer, high precision furnaces); greater standardization of operational processes; strong managerial control; strategic focus on competition by product and process innovation.

Research topic	Possible ways of analysis	Correlated references
Strategic orientation	Operational routines and their relation to strategic action in SME context	Cadogan (2012Cadogan, J. W. (2012). International marketing, strategic orientations and business success: reflections on the path ahead. International Marketing Review, 29(4), p. 340-348.); Laukkanen et al. (2013Laukkanen, T., Nagy, G., Hirvonen, S., Reijonem, H., & Pasanen, M. (2013). The interaction between environment and strategic orientation in born globals’ choice of entry mode. International Marketing Review, 30(6), p. 538-558.); Costa (2019Costa, J. C., Jr. (2019). Estudo de rotinas de operações com Business Process Modeling (BPM) para identificar a orientação estratégica em micro e pequenas empresas. Dissertação de mestrado, Universidade Federal de Pernambuco, Recife, PE, Brasil.).
Innovation through routines	Practice theory, emphasis on the relationship between action and structure	Blanche & Cohendent (2019Blanche, C., & Cohendet, P. (2019). Remounting a ballet in a different context: a complementary understanding of routines transfer theories. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 1, pp. 11-30). Emerald Publishing Limited.); Van Mierlo et al. (2019Van Mierlo, J., Loohuis, R., & Bondarouk, T. (2019). Remounting a ballet in a different context: a complementary understanding of routines transfer theories. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 7, pp. 153-172). Emerald Publishing Limited.); Sonenshein (2016Sonenshein, S. (2016). Routines and creativity: from dualism to duality. Organization Science, 27, 759-781.).
Interdependence of routines in the border of organization	Routines and their relation to other routines in the border of organization and transfer routines	Kremser et al. (2019Kremser, W., Pentland, B. T., & Brunswicker, S. (2019). Interdependence within and between routines: a performative perspective. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 4, pp. 79-98). Emerald Publishing Limited.); Sele and Grand (2016Sele, K., & Grand, S. (2016). Unpacking the dynamics of ecologies of routines: mediators and their generative effects in routine interactions. Organization Science, 27, 722-738.).
Artifacts and sociomateriality	The effect of technological artifacts on the understanding of human actants about the logical aspect of routines (ostensive) and its performativity	Kiwan & Lazaric (2019Kiwan, L., & Lazaric, N. (2019). Learning a new ecology of space and looking for new routines: experimenting robotics in a surgical team. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 8, pp. 173-189). Emerald Publishing Limited.); Kho et al. (2019Kho, J., Spee, A. P., & Gillespie, N. (2019). Enacting relational expertise to change professional routines in technology-mediated service settings. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 9, pp. 191-213). Emerald Publishing Limited.); D’Adderio (2011D’Adderio, L. (2011). Artifacts at the centre of routines: performing the material turn in routines theory. Journal of Institutional Economics, 7(2), 197-230., 2017D’Adderio, L. (2017). Performativity and the innovation-replication dilemma. In: H. Bathelt, P. Cohendet, S. Henn, & L. Simon (Eds.). The Elgar companion to innovation and knowledge creation (chap. 34, pp. 556-569). Cheltenham: Edward Elgar.); Orlikowski (2015Orlikowski, W. J. (2015). Practice in research: phenomenon, perspective and philosophy. In: G. Golsorkhi, L. Rouleau, D. Seidl, & E. Vaara (Eds.). The Cambridge Handbook on Strategy as Practice (chap. 1, pp. 23-33). Cambridge, UK: Cambridge University Press.); Dittrich & Sield, (2018Dittrich, K., & Seidl, D. (2018). Emerging intentionality in routine dynamics: a pragmatist view. Academy of Management Journal, 61(1), 111-138.).
Complementarity of routines	The effect of interdependence of routines to add value to the organizational action in a business relationship and generation of wealth.	Omotosho & Anyigba (2019Omotosho, S. I., & Anyigba, H. (2019). Conceptualising corporate entrepreneurial strategy: a contingency and agency collaborative approach. Journal of Strategy and Management, 12(2), 256-274.); Hitt et al. (2011Hitt, M. A., Ireland, D., Sirmon, D. G., & Trahms, C. A. (2011). Strategic entrepreneurship: creating value for individuals, organizations, and society. Academy of Management Perspectives, 25(2), 57-75.); Dias et al. (2019Dias, C. N., Hoffmann, V. E., & Martínez-Fernández, M. T. (2019). Resource complementarities in R&D network for innovation performance: evidence from the agricultural sector in Brazil and Spain. International Food and Agribusiness Management Review, 22(2), 193-213.).
Routines and resource management	Operational routines control and their effects resource orchestration	Hitt et al. (2011Hitt, M. A., Ireland, D., Sirmon, D. G., & Trahms, C. A. (2011). Strategic entrepreneurship: creating value for individuals, organizations, and society. Academy of Management Perspectives, 25(2), 57-75.); Omotosho & Anyigba (2019Omotosho, S. I., & Anyigba, H. (2019). Conceptualising corporate entrepreneurial strategy: a contingency and agency collaborative approach. Journal of Strategy and Management, 12(2), 256-274.); Bredillet et al. (2018Bredillet, C., Tywoniak, S., & Tootoonchy, M. (2018). Exploring the dynamics of Project management office and portfolio management co-evolution: a routine lens. International Journal of Project Management, 36(1), 27-42.); Deslee & Ammar (2016Deslée, C., & Ammar, O. (2016). Transforming SNCF’s business model through the evolution of participative innovation routine. European Business Review, 28(4), 467-485.).
Transfer of routines	Process of replication and transfer of routines in the case of competitors organizations in the same sector	Blanche & Cohendet (2019Blanche, C., & Cohendet, P. (2019). Remounting a ballet in a different context: a complementary understanding of routines transfer theories. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 1, pp. 11-30). Emerald Publishing Limited.); Boe-Lillegraven (2019Boe-Lillegraven, S. (2019). Transfering routines across multiple boundaries: a flexible approach. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 2, pp. 31-51). Emerald Publishing Limited.); Schmidt et al. (2019Schmidt, T., Braun, T., & Sydow, J. (2019). Copying routines for new venture creation: how replication can support entrepreneurial innovation. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 3, pp. 55-78). Emerald Publishing Limited.).
Routines and capabilities	Routines, meta routines and the transition of bundles of routines to the capabilities in a macro level of analysis	Kremser et al. (2019Kremser, W., Pentland, B. T., & Brunswicker, S. (2019). Interdependence within and between routines: a performative perspective. In: M. S. Feldman, L. D’Adderio, K. Dittrich, & P. Jarzabkowski (Eds). Routine dynamics in action: replication and transformation (Research in the sociology of organizations, vol. 61) (chap. 4, pp. 79-98). Emerald Publishing Limited.); Sonenshein (2016Sonenshein, S. (2016). Routines and creativity: from dualism to duality. Organization Science, 27, 759-781.).
Absorptive capacity and routines	The role of routines for the acquisition and assimilation of external knowledge (potential absorptive capacity) and transformation and exploitation of resources (realized absorptive capacity)	Cohen & Levinthal (1990Cohen, W. L., & Levinthal, D. A. (1990). Absorptive Capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128-152.); Jansen et al., (2005Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W. (2005). Managing potential and realized absorptive capacity: how do organizational antecedents matter? Academy of Management Journal, 48(6), 999-1015.); Zahra & George (2002Zahra, S. A., & George, G. (2002). Absorptive capacity: a review, reconceptualization, and extension. Academy of Management Review, 27(2), 185-203.).

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