How to measure management innovation for a human centric organization

Measurement of the process of management innovation (MI) is critical for both practitioners and academics, yet the literature is scarce and characterized by a diversity of approaches and practices that can be confusing and contradictory. The consequence is the absence of a clear and holistic framework covering the range of activities needed to identify a tool allowing to measure the level of managerial innovation in companies. We attempt to address this gap by reviewing the literature pertaining to the dimensions of MI as well as to propose a measurement instrument through the identification of a new MI index (MIINDEX). The paper offers a review of key publications on the proposed dimensions of MI and the scales used for their measurement that have been published in research journal within the last two decades. We first develop a critical analysis – primarily focused on the proposed dimensions of MI and the scales used for their measurement – which has enabled the development of an original tool for measuring MI. Secondly, by using survey data of 415 managers of the service sector from different companies in Italy, the validation of the MIINDEX was conducted. Internal consistency analysis (Cronbach’s alpha), used to test the statistical reliability of the tool, yielded satisfactory results. Our research results lead to a number of conclusions that enrich the current academic debate about MI and contribute to managerial and business practices. The proposed index (MIINDEX) can be used as a diagnostic tool to measure the level of managerial innovation, to assess its effectiveness, identify areas for improvement and compare it with other organizations, being either a given industry or companies of the same size. MIINDEX also enables the identification of the key dimensions in which significant MI takes place, fostering a deeper understanding of the correlations between MIINDEX and organizational performance.