The expansive research on innovation in organizations has primarily followed a technological imperative, postulating that organizations organize their innovation efforts through research and development (R&D) activities. Theories of innovation are thus shaped mosdy from the studies of technology-based innovations in the manufacturing sector, yet are applied in all contexts. This article advocates research on managerial innovations - new approaches to devise strategy and structure of tasks and units, modify the organization's management processes and administrative systems, motivate and reward organizational members, and enable organizational adaptation and change. We examine the conceptual development, generation and adoption processes, antecedents, and influences of managerial innovation on organizational conduct. By increasing an understanding of managerial innovation, this article aims to complement existing theories of innovation derived from the studies of technological innovations and thus help extend and advance theory and research on innovation process and outcome in organizations.