Managing Innovation: AValues Based Approach

Abstract

A knowledge-based economy requires well-defined property rights and the rule of law. While these fundamentals are necessary, they are not sufficient for successful economic modernization. Management of the knowledge worker is also an important ingredient. Peter Drucker, considered by many as the founder of modern management theory, wrote extensively on the management of the knowledge worker. The systematic exposition of his theoretical models exhibits a comprehension of the function of contemporary organizations and the role of the entrepreneur and innovation. This paper investigates the principles and values of human actions of entrepreneurs in the theories of Peter Drucker that describe how to create and manage innovation. The paper explores his dynamic model of capitalism and the foundations of his ethical points of view so as to build the axiology mark of human actions as entrepreneur. Finally, the paper develops an analysis of internalization and the effects of the entrepreneur’s human actions to conclude which values lead to an improvement in this specialized behavior.