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Daily Leadership Dialogue

Theory-Driven Innovation in Organizations: From Combinatorial Possibilities to Practical Breakthroughs, by Jonathan H. Westover PhD

21 Oct 2025

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Abstract: Organizations face astronomical numbers of potential innovation pathways, yet most successfully navigate toward useful combinations of ideas, technologies, and processes. This article examines how theory-driven experimentation generates combinatorial salience within organizational contexts, enabling practitioners to identify promising innovations among indefinite possibilities. Drawing on recent advances in combinatorial innovation theory and cognitive science, we argue that organizational innovation depends on the capacity of organizational actors to theorize, reason causally, and experiment systematically. Through examination of contemporary organizational cases spanning healthcare, manufacturing, and technology sectors, we identify evidence-based interventions for building theory-driven innovation capacity. The article contributes to practice by offering actionable strategies for cultivating organizational environments where theory-laden experimentation accelerates learning cycles and enables discovery of novel yet feasible innovations. Learn more about your ad choices. Visit megaphone.fm/adchoices

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