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Mapping different approaches to innovation (Verganti, 2003). 

Mapping different approaches to innovation (Verganti, 2003). 

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Since the beginning of the 1990s, innovation management literature has attempted to overcome some oversimplified dichotomies coming from well-established theories (e.g., open vs. closed, external vs. internal, cooperation vs. competition, knowledge vs. learning). The design-push approach to the study of new product development has demonstrated that...

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... and knowledge about customers’ explicit needs. The market-pull approach is pri- marily characterised by the dominant role of the comprehension of market needs over the introduction of new technologies. In this particular approach, the main source of innovation is the market, and new product development is a direct conse- quence of explicit needs manifested by consumers (Stein and Iansiti, 1995; Leonard and Rayport, 1997; Seybold, 2001; Thomke and Von Hippel, 2002; Chayutsahakij and Poggenpohl, 2002). However, the primary assumption of this approach is that user needs are explicit elements that can be identified, captured and translated into requirements for new products to able to satisfy the these needs. The technology- push approach views the innovation process from a completely different perspective; in fact, this approach does not believe in a market-driven process. Instead, it believes that innovation stems from the research and development activities of the company that, through the exploration and exploitation of technological opportunities, creates new functions for products (Abernathy and Clark, 1985; Henderson and Clark, 1990; Tushman and Anderson, 1990; Christensen and Rosembloom, 1995). If, in the market-pull approach, the central role is covered by the market and the consumer, it is given to the company and its development of new technologies that subsequently drive the company’s innovation processes in the technology-push approach. While the new product development process is a complex, multifaceted phenomenon, where success depends on the firm’s capability to integrate knowledge of customers’ needs and knowledge of technological opportunities, the more traditional literature sees technology-push and market-pull as two discrete alterna- tives, or in most advanced views, as two polarities of a continuum. In any case, the firm seems to be in front of a trade-off between a coherent R&D strategy, supported by powerful marketing tests and aimed at developing new successful technologies, and a coherent marketing strategy, supported by the availability of useful technological solutions and aimed at developing higher abilities in satisfying the evolution of customers’ needs. Salomo (2007) suggests a four-factor model of degree of innovativeness, where newness can be defined relative to the market, to the technology involved, to a firm’s internal resources, and also to external factors, such as industry norms and values. These studies are generally based on empirical surveys and case studies on new products developed within science-based or knowledge-based industries, such as automotive, microelectronics, information technology, advanced machinery. Consequently, we can expect that new product development in traditional industries, where technologies are mature, change follows well-defined trajectories, operations and marketing processes are stable and predictable, and where the primary sources of innovation are suppliers, and could be shaped by limited goals, such as reducing costs, by prevalence of marketing competencies and by a low degree of innovation (Pavitt, 1984; Malerba, 2002). We contend this assertion, since it derives from the assumptions underlying the dual approaches to the study of innovation; we assume that in traditional industries, like the wine industry, innovation strategy could develop not only in order to add new technical functions deriving from a wider range of technological options now available as the result of scientific progress (e.g., avoiding limits of climatic and geographical factors thanks to advancement in biotechnologies), not only in order to add new marketing methods deriving from the openness of global elec- tronic marketplaces, but also carrying out radical innovations based on creativity in managing interdependencies between technologies and semantics. Moreover, due to historical, cultural, and simplicity factors, the wine is a special product, since its success is deeply linked to the firms’ ability to deliver delightful experiences for the consumers. In this sense, the wine seems to be a suitable product for research on innovation; as stated in the introduction of their recent book by Utterback et al. (2007), “ . . . a design-inspired product delights the customers. The product empha- sizes sophisticated simplicity and economy of means and low impact. If a product’s use is apparent, simple, and clear, it will stand out from all those compete for our attention. Great products are those that have grown in meaning and value over their lifetimes. They capture our hearts and make our lives easier, better, or more interesting . . . ”. Verganti (2003 and 2006) questions the over-simplified dichotomies of market- pull vs. technology-push and technical function vs. semantics dimension of the new product, proposing the design-push approach as a third complementary model able to embrace the polarities proposed by traditional theories. In the design-push approach (see Fig. 1), the degree of newness depends not only on the availability of new functions coming from advanced technological competencies of the firm but also, and especially, on the capability of generating new messages and new meanings for the customers (e.g., the Swatch, which generates the new meaning of watch not only as time meter, but also as fashion accessory; or the Apple iPod, which generates new meanings of mp3 player, not only as moving music player, but also as freedom and peace signal). The relationship that exists between the technology-push and design-push approaches becomes clear: while in the technology-push approach, the driver is the development of new technologies, in the design-push approach, the driver is the meaning or semantics of the resulting product, but product languages and messages can be modified by acting on the technologies. This is because the relationship between the market-pull and design-push approaches lies mainly in the fact that a consumer can manifest explicit needs from a semantic perspective only when the innovation is incremental. A radical design driven innovation, however, drives towards the development of new meanings that change the socio-cultural context. Consequently, as long as the degree of innovation is incremental, the two approaches can coincide and operate complementarily. This, however, cannot be the case when the degree of innovation tends towards the radical, since the market or consumer is not able to manifest coherent needs that can stimulate the company in developing new product meanings that break with the past. More specifically, it is presumed that the role of market factors in the design-push approach changes according to the level of novelty of product meanings. Market drivers become remarkable in the case of incremental innovation of product meanings, where, in other words, incremental adaptations of product meanings are determined by the continuous and natural evolution of explicit cultural models adopted by customers. On the other hand, market factors lose importance in the case of radical innovation of product meanings, where innovations originate from a cultural scenario developed through collaboration between companies and designers. In other words, radical innovations of product meanings require the comprehension of possible or latent social dynamics that can successfully influence consumers’ lifestyles and behaviours. The above considerations can be summarised in the following two propositions (Verganti ...

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... The interplay between technology-push and market-pull in new product development (NPD) in the wine industry has been researched extensively, where the coherence between technology, function, language and message of a new wine has been identified as imperative (Dell'Era and Bellini, 2009). On the other hand, important downstream branding activities for old world SEM wineries have been identified: presence at the international wine fairs, direct sales activities and/or selling to restaurants and other hospitality customers (Giacomarra et al., 2019;Muscio et al., 2017). ...
Article
Purpose The purpose of this paper is to explore brand innovation practices in small and medium enterprise (SME) wineries to found mid-range theory of brand innovation and to explain the interaction between upstream and downstream brand innovation during brand (re)launch. Design/methodology/approach This study deploys a qualitative research method. Data was collected through semi-structured telephone interviews with winery owners and managers from 20 German wineries. The approach explored both product and product line brands, organizational brands regarding upstream and downstream innovation and their mutual interaction. Findings The analyzed wineries provide evidence for up- and downstream brand innovation in the wine industry, thereby confirming previous findings that the wine industry is increasingly driven not only by tradition but also by innovation. The cases demonstrate that upscale SME wineries are able to distinguish between upstream and downstream innovation and integrate them in a meaningful way. Furthermore, the results point to the importance of team knowledge sharing and professional networks for successful upstream brand innovation, as well as social media for downstream brand innovation. Originality/value This paper presents a novel mid-range theory of brand innovation in winery SMEs, where resource constraints and a frugal approach to innovation demand for an integrated, hands-on approach.
... As a result, the characteristics of asset-focused as well as consumer-driven markets with high emotional value and complexity of the product need to be considered in the wine context (Orth et al., 2007). Satisfying the needs of the different worlds, the product complexity as well as the need to deal with the transition of the market as described and the underlying changes of consumers stretches the entrepreneurs and might require technical as well as marketing innovation competence (Dell'Era & Bellini, 2009;Granata et al., 2019). ...
Article
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In order to provide needed orientation of innovation management in the SME wine industry, a multi-case study was realized. The innovation activities of four German wineries for their entire value-creation coverage were analysed. The focus of the study was on an apparent challenge whether wineries should emphasise viticultural (back-end) or marketing and sales (front-end) innovations. The results of the four cases analysed suggest that innovation matters, strategic positioning influences each wineries' innovation portfolio, winery size and organization impact the innovation portfolio, resource dependency offers can be reduced through cooperative action at the industry level, and smaller producers must leverage their entrepreneurial orientation. All integrated wine producers need to address front-and back-end innovation, but with flexibility for innovation accentuation and individual innovation portfolios. Wineries also need to recognize the synergetic value of two different challenges: (1) convincing products require optimal planting and farming whereas (2) the product assortment and its treatment should consider customer profiles. Hence, front-and back-end innovations need to be synchronized and considered in parallel, without ignoring each winery's strategic accents and therefore individualization of the innovation portfolio. A synergetic innovation approach, exploiting technology and data mining, can foster the development of competencies and best practices when using existing wine industry resources and capabilities. Knowledge exchange at the industry-level helps producers reach consensus on innovation activities, goals, and strategies, and to improve the business ecosystem by identifying elements that are obsolete or ripe for change.
... The industry is characterised by seasonal production, influenced by climate change, and subject to occasional meteorological disasters (Gilinsky et al., 2008). Innovation in the wine industry is based on managing interdependencies between designing new wines, developing new technologies for grape cultivation and transformation, and generating new business practices and marketing activities (Dell'Era and Bellini, 2009). The wine industry is characterised by incremental innovation and relatively little formal R&D (Doloreux & Lord-Tarte, 2014). ...
Article
This paper explores the geography of collaborations and interactions that are linked to DUI (Doing, Using, and Interacting) and STI (Scientific and Technologically based Innovation) innovation modes in the wine industry: that is, the geography of interaction modes. DUI and STI interaction modes are analysed by exploring their association with innovation and the extent to which this varies with geography. The results, based upon firm‐level data from a sample of 151 Canadian wineries, suggest that different types of innovation are connected to specific interaction modes. We show that the effects of each interaction mode are strongly dependent on whether the mode is deployed regionally or non‐regionally. In particular, the paper highlights marked differences between regional and non‐regional DUI and between regional and non‐regional STI interactions modes with respect to their association with innovation outcomes.
... These intangible values concern for example emotional and socio-cultural needs, symbolism, experiences and psychological satisfaction (Candi et al., 2017;Dell'Era et al., 2011;Han et al., 2016;Hirschman, 1982;Krippendorff, 2006;Kumar et al., 2015;Norman, 2005;Verganti, 2008). The product appearance communicates these intangible values and helps users to interpret the meaning of products (Dell'Era and Bellini, 2009;Hatch, 2012;Karana and Hekkert, 2010;Verganti, 2008). People attribute meanings to products and artifacts, regardless if this meaning was created with intent or not. ...
... This study presents how new product meanings are continuously influenced throughout all phases of the product-development process, from early design decisions to final presentation at the retailer. For example, as previously discussed in literature, new product meanings are communicated through product features (Dell'Era and Bellini, 2009;Hatch, 2012;Karana and Hekkert, 2010;Verganti, 2008). Therefore, in this case study, limitations in material choice and lack of flexibility at the suppliers influence the overall communication of the new product meaning. ...
Article
Purpose This study aims to explore the enablers and barriers to design-driven innovation, defined as the innovation of product meanings, in the product-development process. Previous research provides some insights into what enables and hinders design-driven innovation; however a detailed understanding of these factors is missing. Design/methodology/approach A long-term case study was conducted at a furniture company between 2009 and 2016. Interviews were conducted with respondents within the company, as well as with partners such as retailers and designers. Findings This paper presents an overview of the identified enablers and barriers. The results demonstrate that enablers and barriers occur in all phases of the product-development process. Second, the connections between enablers and barriers are presented. These are found both within and across different phases, and extend beyond the company’s influence. Research limitations/implications This study demonstrates how the innovation of product meanings is influenced throughout all phases of the product-development process. Therefore, there is a need to go beyond the mere identification of enablers and barriers. More is gained from generating a thorough understanding of the causes and connections of these factors, including the changes over time. Practical implications This study demonstrates the need for companies to be able to map what enables and hinders design-driven innovation in their product-development process, where a distinction needs to be made between internal and external factors, to enhance value creation. Originality/value This study presents a rare long-term case study on design-driven innovation. This study provides new knowledge on the enablers and barriers a company faces while adapting its product-development process to accommodate design-driven innovation.
... et al. (2012), DeBerry-Spence (2008), Dell'Era and Bellini (2009), Dell'Era et al. (2011),Goto and Ishida (2014),Gotzsch (2006),Helfenstein (2012),Karana and Hekkert (2010),Krippendorff (1989),Krippendorff and Butter (1984),Monö (1997),Rampino (2011), Schifferstein (2010,Souto (2014),Verganti and Öberg (2013),Verganti (2003Verganti ( , 2008 andWilkes et al. (2014) Dynamic DeBerry-Spence (2008), Gotzsch (2006), Ligas (2000), Souto (2014) and Wilkes et al. (2014) Intangible attributes Beltagui et al. (2012), Dell'Era and Verganti (2009, 2011), Dell'Era et al. (2008, 2010), Domzal and Kernan (1992), Goto and Ishida (2014), Gotzsch (2006), Gotzsch et al. (2006), Hakkio and Laaksonen (1998), Helfenstein (2012), Hirschman (1982), Hsieh et al. (2013), Jahnke and Johansson-Sköldberg (2014), Karana and Hekkert (2010), Krippendorff (1989), Krippendorff and Butter (1984), Kum et al. (2012), Ligas (2000), Monö (1997), Mugge et al. (2005), Müller (2012), Rampino (2011), Schifferstein (2010), Smith (2015), Souto (2014), Verganti and Öberg (2013), Verganti (2003, 2008, 2009) and Wilkes et al. (2014) Product appearance Product semantics Beltagui et al. (2012), Dell'Era and Bellini (2009), Dell'Era and Verganti (2009), Dell'Era et al. (2011),Goto and Ishida (2014),Gotzsch (2006),Krippendorff (1989),Krippendorff and Butter (1984) and Rampino (2011) Product languageBellini et al. (2012), Dell'Era andBellini (2009), Dell'Era andVerganti (2009,Farhana and Bimenyimana (2015),Leavy (2010),Simoni et al. (2014),Verganti (2003Verganti ( , 2008Verganti ( , 2009) Semiotics ...
Article
Purpose The concept design-driven innovation focuses on innovating product meanings. It has been studied from a variety of perspectives and contexts since the early 2000s. However, a complete overview of the literature published in this area is currently missing. The purpose of this study is to provide a comprehensive understanding of how design-driven innovation contributes to value creation in product development. Design/methodology/approach In this systematic literature review, 57 papers and book chapters that cover design-driven innovation were identified and analyzed. An iterative coding process was followed to derive five facets of design-driven innovation that contribute to value creation. Findings Design-driven innovation creates value by focusing on the intangible values of products. The following five facets of design-driven innovation that contribute to value creation were identified: development of new product meanings, knowledge generation, actors and collaborations, capabilities and process. These facets and their interrelations are presented in a theoretical framework. Practical implications The main practical implication of this study is that it is now clear that the five facets of design-driven innovation are interrelated and reinforce each other. Therefore, companies need to approach design-driven innovation from a holistic perspective. Originality/value This paper contributes to theory by presenting the theoretical framework that provides an overview of available knowledge and that creates a context for future research.
... The specific innovation process that firms can use to develop or acquire innovations includes R&D and/or many other activities (Dell'Era and Bellini, 2009;Ndou et al., 2012;Sánchez-Hernández et al., 2010): ...
... This evidence confirms the segment of the literature that underlines how traditional manufacturing sectors innovate more in processes than in new products (Dell'Era and Bellini, 2009;Dressler, 2013;Lee et al., 2010;Ndou et al., 2012;Sánchez-Hernández et al., 2010). ...
Article
Full-text available
This paper analyses the impact on performance of the open innovation of SMEs in the Italian wine sector. Currently, innovation is one of the main fac- tors affecting the increasing competition and performance in a traditional manufacturing business such as the wine sector. Following a quantitative re- search approach, the study analyses the impact of innovation process man- agement (evaluated in terms of investment in R&D and management of key- factors, activities and instruments) on performance, identified by profitability efficiency based on a sample of 109 winegrowing SMEs. The research contributes to filling the gap in the literature where there is a lack of innovation studies in mature sectors and provides information to help wine managers and owners improve their business by identifying the best business investment area.
... While meanings are not simply given, and we therefore can only attempt to understand these through market research, they can be innovated, even radically, as a result of the evolution of the socio-cultural context and the emergence of new technologies (Dell'Era & Bellini, 2009;Dell'Era, Marchesi, & Verganti, 2010;Dell'Era & Verganti, 2007;Verganti, 2006Verganti, , 2011. Innovation can be based on new technologies, meanings, or both. ...
Article
The design‐driven innovation literature focuses on meanings that people give to products and services. This paper investigates how new meanings can be designed and proposed to society rather than to individuals in the particular context of smart mobility. Smart mobility is characterized by a wide range of digital technologies that aim to make all mobility services within a city or territory more accessible and easy to use for citizens. At the same time, to effectively create value, the opportunities digital technologies offer must meet the needs of emerging lifestyles. In modern life, people manifest their interest in the semantic dimension by embracing solutions that are personally constructive and aligned with their cultural values. From an empirical point of view, this paper relies on two case studies that illustrate radical innovation of meanings in the smart mobility domain. Both case studies suggest a multi‐level perspective: on the one hand, they address landscape pressure and the need for more sustainable solutions for future mobility; on the other hand, they propose a new understanding of transport and travel.
... Traditional open innovation practices are not considered to be the best approach when companies and/or innovation managers seeks to go beyond finding new ideas and solutions to existing problems (how) (Verganti, 2009(Verganti, , 2017Sinek, 2011). When a company seeks to discover new reasons to use (why) products and services (Dell'Era and Verganti, 2007;Dell'Era et al., 2008b;Dell'Era and Bellini, 2009;Verganti, 2009;, small groups of radical individuals can be more apt (Verganti, 2009;Verganti and Shani, 2016). In other words, this type of innovation concerns a novel vision that redefines the problems worth addressing and takes innovation to a higher level -not only a new 'how' but especially a new 'why', proposing a new reason why people use things, a new value proposition, i.e., a novel interpretation of what is relevant and meaningful in a market, a new direction (Verganti, 2017). ...
... Traditional open innovation practices are not considered to be the best approach when companies and/or innovation managers seeks to go beyond finding new ideas and solutions to existing problems (how) (Verganti, 2009(Verganti, , 2017Sinek, 2011). When a company seeks to discover new reasons to use (why) products and services (Dell'Era and Verganti, 2007;Dell'Era et al., 2008b;Dell'Era and Bellini, 2009;Verganti, 2009;, small groups of radical individuals can be more apt (Verganti, 2009;Verganti and Shani, 2016). In other words, this type of innovation concerns a novel vision that redefines the problems worth addressing and takes innovation to a higher level -not only a new 'how' but especially a new 'why', proposing a new reason why people use things, a new value proposition, i.e., a novel interpretation of what is relevant and meaningful in a market, a new direction (Verganti, 2017). ...
The rising cost of R&D activities and the increasing complexity of technologies and markets have led to the widespread diffusion of collaborative and open innovation processes. As a consequence, different open innovation paradigms have become the protagonists of many innovation strategies. Although this type of approach is an optimal strategy to identify solutions to specific problems and introduce functional innovations (Verganti, 2017), it is less useful when a company wants to develop new visions. This study shows that radical circles, i.e., small groups of radical individuals, can support the development of new visions. This work is based on the examination of two radical circles that created two significant cultural movements: Memphis and Slow Food. Radical circles have particular characteristics, such as a yearning for rebellion, voluntary and closed participation, and peer criticism. We discuss the implications for companies seeking to introduce new visions.
... Symbols and languages allow products and services to convey precise meanings (Verganti, 2006(Verganti, , 2008Dell'Era and Verganti, 2007;Dell'Era et al., 2008). Currently, more than ever before, products and services are defined by their meanings through the dialogue that they establish with users and through the symbolic nature from which they emanate (Dell'Era and Bellini, 2009;Dell'Era and Verganti, 2009;Dell'Era and Verganti, 2010 Verganti (2009), Safaricom's simple M-Pesa service allows people to use mobile phones, one of the most trusted and popular devices in Kenya, to send money to relatives without opening a bank account, thus introducing simple telecommunications devices into the world of banking. ...
Article
Purpose Notwithstanding the importance innovation scholars have accredited to design-driven innovation (DDI), no attempts have been made so far to systematically study whether and how this innovation strategy can be used in the retail context in order to gain and nurture competitive advantage. The purpose of this paper is to make a first step towards closing this gap, and therefore understand whether and how companies involved in retail service can create competitive advantage by the adoption of a strategy based on innovation of meanings. Design/methodology/approach Due to the complex ecosystem of variables that inevitably influence the problem, the case study approach represents the best option to grasp the different aspects highlighted by the research objectives. The analysis undertook a thorough and systematic comparison with the use of an ad hoc “paired comparison method”, in which common systemic characteristics have been intended as a controlled variable in order to minimise the variance and quantity of factors that can have an impact on the selected case studies; intersystemic differences have been understood as explanatory variables to decree the contribution in terms of novelty in relation to the current paradigm. Findings The paper provides empirical insights about how radical innovation in meanings can be a very important lever on which retail firms can act to gain and nurture their competitive advantage. Research limitations/implications Of course the study has several limitations, which represent however opportunities for future research. The authors say that the findings, given the exploratory nature of the study, cannot be generalised to any population of firms or markets, rather they should be used as a basis to develop theoretical understanding of a complex phenomenon and draw research propositions and hypotheses to be tested in subsequent deductive empirical research. Practical implications This paper highlights the importance to think, beyond shopping experience, at the role of new meanings when designing service innovation in retail firms. Although the findings do not have statistical relevance, given the exploratory nature of the study, they suggest that DDI can be a viable option for retail firm managers to improve their firms’ competitiveness. Originality/value The study presented in this paper has merit to broaden the generalisability of the DDI model to other industries, different from those where it was initially studied and applied. This is an important step toward conceptualising DDI as a novel management paradigm.