Action Research Innovation Cycle: Lean Thinking as a Transformational System

Innovation could be recognized as a key success factor in an increasingly competitive, global economy. Action research (AR) is used as a means of implementing organizational change especially in a rapid changing environment. Whereas change is the end result of innovation, this study builds an AR Innovation Cycle (ARIC) model based on Tangkar and Arditi (2000) labyrinth of innovation. ARIC is defined as a flexible loop which allows action (exploration and exploitation Innovation) and research (organizational learning and feedback system) to be achieved at the same time. Transitional process of ARIC is based on organizational learning; efficiently close organization current innovation status to desired innovation status. Organization current and desired innovation status are assessed and defined in terms of two features, structural (Innovation classification type) and content (Innovative Capacity/Capability). Moreover, while organizational learning falls into theoretical discussion and lacks practical guideline, an applied thinking technique is needed to play the role of organizational learning in ARIC. This paper present reasons why developed Lean thinking at the strategic level can be assumed as transitional technique and operationalize organizational learning.