The Challenge of Innovation in a Norwegian Shipyard Facing the Russian Market

Describes an innovative marketing strategy of a Norwegian shipyard gaining access to the Russian market and explains its use of innovation theory as a framework. Explains why the shipyard gained a productivity growth of 34 per cent in 1989‐91 and is expecting a further 20 per cent increase in 1992‐93, which may be mainly due to the market orientation of the shipyard. Develops a model for grouping measures of innovativeness and suggests that the main reasons for change are in the total quality management programmes, organizational networking and market‐oriented project management. The coalition for change in the company includes the trade union and top management, while the coalition against change comprises middle management and local private business. The first want to keep the organization market driven, while the latter want to keep the organization “as it is”. It is a classic fight between a market‐driven management and a state‐driven management style. Sterkoder Ltd had to understand that the market gives the direction – and not the state‐supported policy.