Management innovation is the implementation of a new management practice, process, technique or structure that significantly alters the way the work of management is performed. This paper presents atypology categorizing management innovation along two dimensions; radicalness and complexity. Then, the paper introduces the concept of management innovation capabilities which refers to the ability of a firm to purposefully create, extend and modify its managerial resource base to address rapidly changing environments. Drawing upon behavioral theory of the firm and the dynamic capabilities framework, the paper proposes a model of the foundations of management innovation. Propositions and implications for future research are discussed.