H EALTH C ARE S UPPLIES S ECTOR

2011).⁴¹ The website thus rationalizes a focus on innovation by providing the utility of it (it improves lives) and normalizes it by referencing to normal functioning (innovation is at the heart of LEO Pharma). In LEO Pharma‟s annual report and on its website I thus found one text containing rationalization and one containing normalization.

In sum, the pharmaceutical industry, here represented by Novo Nordisk, Lundbeck and LEO Pharma, through texts disseminated to external stakeholders, primarily legitimates its focus on innovation through rationalization where the organizations explicitly provide the utility or function of innovation, innovative practices or innovative products. To a lesser extent, but still apparent, normalization is employed by describing innovation as almost a given practice in the respective organizations. It is also apparent that all organizations to some extent share the societal discourse on innovation, with Novo Nordisk and Lundbeck having adopted the discourse or trend more than LEO Pharma. The results from the pharmaceutical industry are as follows:

Table 2:

Pharmaceutical Sector Novo Nordisk Lundbeck LEO Pharma

Rationalization: 16 9 1

Normalization: 5 0 1

Authorization: 1 0 0

Narrativization: 0 0 0

Coloplast, through a number of new and improved products, has “retained its position as a leading innovator.” (Coloplast, 2010: 10). The text goes on say:

Even with already high innovative focus, Coloplast further accelerated its ambitions during the financial year. Gaining inspiration from leading multinational brands with particular innovative strength, we have implemented a new way of driving innovation. We have reallocated resources to strengthen the early stages of new product development, and innovation has become an integral part of the overall organization. (Coloplast, 2010: 10)

In this text, two legitimation strategies concerning innovation are apparent: normalization and authorization. Normalization is apparent through phrases such as “we have retained our position as a leading innovator” and “innovation has become an integral part of the overall organization.” Authorization, on the other hand, is when Coloplast states that they have got inspiration “from leading multinational brands.” Even though these authorities are not explicitly specified, the “leading multinational brands” represents an authority: they have institutional authority since they are “leading.”

On Coloplast‟s website, a text concerning enterprise risk management mentions that

“profitable growth, globalization and innovation are key focus areas in our efforts to achieve our business goals” (Coloplast website, August 2011).⁴² Innovation as a key focus area is thus rationalized by providing its utility: to achieve business goals. Apart from this mention of innovation, no texts deal with innovation on Coloplast‟s website. In sum, then, Coloplast does communicate a focus on innovation, and legitimates it through normalization, which I found in two texts, and authorization and rationalization, each of which I found in one text.

5.2.2 GN Store Nord

In GN Store Nord‟s 2010 annual report the words „innovation‟ and „innovative‟ are mentioned several times throughout the report, clearly indicating that GN Store Nord describes itself as being innovative. The entire report can thus be seen as a text legitimating a focus on innovation through normalization. In the foreword by the chairman of the board of

42

http://www.coloplast.com/About/InvestorRelations/enterpriseriskmanagement/Pages/enterpriseriskmanage ment.aspx

directors, Per Wold-Olsen, sentences like “our innovation objectives,” “our innovation skills,”

and “in other words, the innovation engine is also running at full speed” clearly normalize a focus on innovation as the texts render innovation a natural functioning for GN Store Nord (GN Store Nord, 2011: 3). Some rationalizations are also apparent, such as “we need to continue to develop innovative products [to cement our achievements] …,” and “in 2010, GN ReSound delivered as promised, generating positive organic growth by taking a lead in the innovation race …” (GN Store Nord, 2011: 3).

The references to innovation as a normal behavior are seen consistently throughout the report, such as: “through its Jabra brand, GN Netcom is a world leader in innovative headset solutions” (GN Store Nord, 2011: 8), “technology innovation, consistent launch processes, sales and service excellence and the supply chain transformation are our key focus areas” (GN Store Nord, 2011: 12), and “… the R&D department demonstrated its innovation capabilities

…” (GN Store Nord, 2011: 15). All these references to innovation describe innovation as a natural functioning for GN Store Nord and are thus normalizations. Three instances of authorization are also present, e.g.: “Jabra STONE2 has won the prestigious CES “Best of Innovations” Design and Engineering Award in the category of Wireless Handsets Accessories at CES, the world‟s largest consumer electronics show” (GN Store Nord, 2011:

10).

On its website, GN Store Nord has an interview with Per Wold-Olsen in which he very explicitly normalizes innovation: “Innovation and the commercialization of innovation and technology is what created GN 139 years ago, and this is still the basis for GN” (GN Store Nord website, August 2011).⁴³ This is clearly describing innovation as a natural functioning for GN Store Nord, and it is done through retrospective references making innovation natural to GN Store Nord. In a similar interview, the then CEO of GN ReSound, a part of GN Store Nord, Mike van der Wallen, stated that “innovation has always been a stronghold for GN ReSound and we are continuously working hard to stay out in front with leading quality products” (GN Store Nord website, August 2011).⁴⁴ Some rationalization is present in this text (being innovative to stay in front), but yet again, innovation is being normalized as something natural. In sum, the leadership of GN Store Nord, although some rationalization is apparent, is primarily employing normalization to legitimate a focus on innovation. I found 14

43 http://www.gn.com/EN/GNNews/2008/GNnews3_2008/Pages/InterviewwithPerWold-Olsen.aspx

44 http://www.gn.com/en/gnnews/2009/issue1/pages/onefootontheaccelerator.aspx

texts containing normalizations, 6 texts containing rationalizations, and 3 texts containing authorization in the material I analyzed from GN Store Nord.

5.2.3 William Demant

William Demant‟s 2010 annual report also primarily legitimates innovation through normalization: “… we must strive for a high innovation level through a flexible and knowledge-based organization” and “… to constantly be at the forefront of trends and deliver the most innovative solutions …” (William Demant, 2011: 18). And later in the report: “it is therefore also vital in the long term to maintain the Group‟s innovative edge and to attract the most qualified and competent staff” and “it is our policy to take out patents for our own groundbreaking innovations …” (William Demant, 2011: 22). A focus on innovation is thus not explicitly legitimated, but described as a natural functioning for William Demant.

On its website we also find legitimation through rationalization. In a text about Oticon Medical, a part of the William Demant Group, it is explained that “through user-driven product development, innovation and dedicated service, this synergy will propel the performance of bone anchored systems to greater heights” (William Demant website, August 2011).⁴⁵ Innovation is thus supposed to enhance performance. Innovation is, however, still primarily described as something natural to William Demant: “The William Demant Holding Group of international companies develops, manufactures and sells innovative and high-technology solutions incorporating micro-electronics, micro-mechanics, wireless high-technology, software and audiology” (William Demant website, August 2011).⁴⁶

In sum, William Demant primarily legitimates a focus on innovation through normalization.

Innovation is often mentioned as something William Demant „is‟ and a focus on innovation is seldom explicitly legitimated: it is a natural functioning for William Demant. In the annual report and on the company website, I found six texts containing normalization and two texts in which rationalization is employed.

Taking the three organizations in the health care supplies sector together, it is clear that they all share the societal discourse on innovation. In addition, all three organizations primarily legitimate their focus on innovation through normalization: innovation is rarely explicitly

45 http://www.demant.com/companies.cfm

46 http://www.demant.com/mission.cfm

legitimated, but very often described as something normal or natural. And as Vaara et al.

(2006) argue, normalization can be seen as the primary type of legitimation: when something is the way it is simply because it is that way, and no explicit legitimation is needed (Vaara et al., 2006: 798). The results from the health care supplies sector are as follows:

Table 3:

Health Care Supplies Coloplast GN Store Nord William Demant

Rationalization 1 6 2

Normalization 2 14 6

Authorization 1 3 0

Narrativization 0 0 0