Abstract
Proposes that the understanding of innovation, as so far revealed by academics, has only given a limited insight into what really happens when people innovate. Previous studies have researched innovation using perspectives and methodologies which were unable to reveal what people actually do when they are innovating. This is because these other studies have chosen a level of analysis which is too far removed from the activities carried out by innovators. To examine innovators more closely a “grounded theory” approach has been used. By using a combination of participant observation, individual and focus group interviews, over an extended period of time, the detail of the innovator′s behaviour has been revealed. These insights are known as basic social processes which reflect the ideologies, beliefs, and values which drive innovators. The three basic social processes revealed by this research are, ambiguity, transformation and reflexivity. Although the context of these research findings is situated in a Swedish opera company, called Folkoperan, the findings are likely to be of interest to anyone involved in research into innovation since basic social processes are never limited to specific research contexts. Also explains the nature of the unorthodox incorporation and sophisticated relationships Folkoperan had with the financial community.