Commercial Solutions Opening
Literature Review
Innovation Theory The previous section established that CSOs present an opportunity for the DoD to make critical investments in technology and capability by leveraging the technological capabilities of the department’s industrial base. In fact, the adoption of CSOs as a permanent authority is, in itself, innovative. To understand how these innovative capabilities can shape the DoD, it is important to understand the theory supporting innovation in business. First, we considered the DoD as a type of knowledge management (KM) firm with “roles and processes to support decision- making” (Joint Chiefs of Staff, 2018, p. 1). The DoD as a KM firm is comprised of individuals with tacit, explicit, and implicit knowledge of the military’s operations, from munitions flight trajectories to the ideal length of a blade of grass along a flightline. Within this construct, the DoD is operating as a firm competing with other nations; this defines the marketplace within which innovation leads to competitive advantage and provides a framework against which innovation theory can be applied.
The DoD is operating as a firm competing with other nations; this defines the marketplace within which innovation leads to competitive advantage and provides a framework against which innovation theory can be applied.
Considering the DoD as a type of KM firm, the research team applied an assertion by Johannessen et al. (1999) that the “unending stream of knowledge keeping markets in perpetual motion, calls for companies to execute continuous improvements and continuous innovation, while simultaneously limiting imitation” (p. 122). Further, Johannessen et al. (1999) assert that “certain firms have more information than others, and turning this into knowledge gives them an advantage in ascertaining market inefficiencies, putting them in a better position to innovate” (p. 123). To truly capitalize on the benefits of CSOs, the DoD must consider itself as operating in a KM environment. KM is a key enabler in identifying problems and solutions and paving the way for innovation to occur. Conceptualizing and managing change through exploiting the learning
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Defense ARJ , Spring 2025, Vol. 32 No. 1
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