CeFEO counts more than 50 scholars and 30 affiliated researchers. Several studies and reports have consistently identified CeFEO as a leading research environment worldwide in the area of ownership and family business studies. This research project, has been co-authored by the following CeFEO Members.
Spotlight highlights research-based findings only. If you’re interested in exploring this project further or delving into the theoretical and methodological details, we encourage you to contact the authors or read the full article for a comprehensive understanding.
Melander, A., Brunninge, O., Andersson, D., Elgh, F., & Löfving, M. (2024). Management innovation in SMEs – taking psychological ownership of Hoshin Kanri. Production Planning & Control, 35(14), 1687-1705.
https://doi.org/10.1080/09537287.2023.2214517
Spotlight is an innovative online family business magazine designed to bridge the gap between cutting-edge research and the real-world needs of practitioners, owners, and policymakers. Drawing on the latest findings from the Centre for Family Entrepreneurship and Ownership (CeFEO) at Jönköping International Business School, Spotlight delivers insightful, accessible summaries of key research topics. Our mission is to keep the family business community informed and empowered by offering actionable insights, expert analyses, and forward-thinking strategies that enhance business leadership and ownership practices for long-term success.
This article explores the role of psychological ownership in implementing management innovations within small and medium-sized enterprises (SMEs). Using Hoshin Kanri—a strategic management system—as a case study, researchers examined how SMEs develop a sense of ownership in new management practices. The study identifies critical factors that influence successful adoption, including managerial commitment, collective involvement, and the frequency of positive engagement. With insights from eight companies, this research underscores the importance of ownership in driving and sustaining innovation in resource-constrained contexts.
This article explores the role of psychological ownership in implementing management innovations within small and medium-sized enterprises (SMEs). Using Hoshin Kanri—a strategic management system—as a case study, researchers examined how SMEs develop a sense of ownership in new management practices. The study identifies critical factors that influence successful adoption, including managerial commitment, collective involvement, and the frequency of positive engagement. With insights from eight companies, this research underscores the importance of ownership in driving and sustaining innovation in resource-constrained contexts.
Management innovation is crucial for SMEs aiming to stay competitive, but successful implementation is challenging, especially in resource-limited settings. This article delves into the process of adopting management practices, focusing on the psychological ownership (PO) factor and how it impacts the acceptance and integration of Hoshin Kanri (HK) within SMEs. As an approach to align organizational goals and enhance strategic dialogue, HK demands a level of commitment and adaptation that psychological ownership can uniquely foster.
The research focused on eight Swedish SMEs from various manufacturing sectors engaged in adopting HK. The researchers used psychological ownership and critical incident theory (CIT) as frameworks to analyze the implementation process, looking specifically at incidents reflecting an increase or decrease in ownership. Researchers documented a series of workshops and gathered over 400 hours of qualitative data to capture micro-level changes in ownership. This multi-case study aims to understand how ownership at both individual and collective levels influences the innovation's success.
Psychological ownership among CEOs and managers emerged as a crucial driver for the adoption of HK. Instances where CEOs demonstrated strong engagement—such as dedicating time, acknowledging progress, and integrating HK principles into daily operations—correlated with higher success rates in implementation.
The study found that involving middle managers and employees in the HK process helped transition psychological ownership from individual leaders to the broader team. This collective ownership was essential, as SMEs with higher rates of collaborative engagement in HK workshops showed greater adaptability and long-term commitment.
Frequent, positive PO incidents—like sustained engagement and visible integration of HK practices—were vital for momentum. Companies with consistent, high-engagement activities saw more significant progress, while those with mixed or negative signals faced stalled implementation. Both technical and rhetorical forms of engagement (e.g., statements supporting HK or the use of specific HK tools) contributed to ownership.
For management innovations like HK, SMEs benefit from leaders who encourage participation and share ownership. By engaging middle managers and employees early, leaders can build an ownership culture that facilitates sustainable change.
The study highlights that a steady stream of positive engagement signals keeps momentum strong. SMEs should actively promote milestones, encourage feedback, and address setbacks promptly to maintain ownership and motivation.
Since management innovations like HK are not one-size-fits-all, SMEs must adjust their approach based on company culture and workforce needs. Adapting HK to fit specific organizational structures and values makes it more likely that employees will embrace the change.
The findings underscore the potential for psychological ownership to serve as both a catalyst and a gauge for management innovation success in SMEs. Given the distinct challenges SMEs face, psychological ownership offers a practical framework for leaders to cultivate an internal sense of responsibility and shared purpose. Future research could expand on the dynamics of collective ownership in larger organizations or explore how different management practices impact ownership development.
SMEs interested in management innovation should:
CeFEO counts more than 50 scholars and 30 affiliated researchers. Several studies and reports have consistently identified CeFEO as a leading research environment worldwide in the area of ownership and family business studies. This research project, has been co-authored by the following CeFEO Members.
Spotlight highlights research-based findings only. If you’re interested in exploring this project further or delving into the theoretical and methodological details, we encourage you to contact the authors or read the full article for a comprehensive understanding.
Melander, A., Brunninge, O., Andersson, D., Elgh, F., & Löfving, M. (2024). Management innovation in SMEs – taking psychological ownership of Hoshin Kanri. Production Planning & Control, 35(14), 1687-1705.
https://doi.org/10.1080/09537287.2023.2214517
Spotlight is an innovative, AI-powered, online family business magazine designed to bridge the gap between cutting-edge research and the real-world needs of practitioners, owners, and policymakers. Drawing on the latest findings from the Centre for Family Entrepreneurship and Ownership (CeFEO) at Jönköping International Business School, Spotlight delivers insightful, accessible summaries of key research topics. Our mission is to keep the family business community informed and empowered by offering actionable insights, expert analyses, and forward-thinking strategies that enhance business leadership and ownership practices for long-term success.