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Six keys to creating new-growth businesses
... To further study the relationship between BMI and organizational adaptation process, distinctions between types of BMI will need to be evaluated Just as any kind of innovation, different transformation arrangements will result in different outcomes. Christensen & Raynor (2003) categorized innovations based on two dimensions. The first dimension is the nature of the innovation and the second dimension is the extent of the impact it has on performance. ...
... This is indicated by its tendency to grow through vertical integration as well as the application of centralized control mechanisms embedded in its administrative system. Such innovation processes are suitable for Sustaining Innovations, which are innovations that expand the customer base or introduce a breakthrough product in the same industry (Christensen & Raynor 2003). Innovations that result in incremental improvements do not create serious conflicts with existing operations, and, therefore, can be managed simultaneously within current business structure (Markides & Charitou 2004). ...
... Innovation Types(Christensen & Raynor 2003) ...
The main objective of this study is to develop a research framework for strategic management researchers to develop sound strategic business model innovation that has practical implication on how to innovate firms' business models. The research identifies factors attributing to effective business model: business strategies, type of business model innovations and types of resource configurations. This study framework can guide leaders and managers to acquire the appropriate capability of coping with business model dynamics as well as major transformation that arises from business model innovations. In addition, the study provides insightful contributions in explaining the influence of business strategies (defender, prospector, analyzer) on business model innovations and firm resource configuration, and their influence on business model effectiveness. This study model is valuable considering the limited amount of empirical work previously done on the topic in question. Based on a case-study research survey in seven companies in Indonesia that took place in 2011-2012, we have drawn first conclusions expressed in four research propositions that deem further tests. One case (Food Co.) is highlighted for the description of the study to show some presence and absence of alignment between business strategy, business model innovation, and resource configuration. Abstrak Tujuan studi ini adalah mengembangkan rerangka penelitian strategi dan inovasi model bisnis. Riset ini mengidentifikasi faktor-faktor yang mempengaruhi efektivitas model bisnis, yaitu strategi bisnis, tipe J u r n a l M a n a j e m e n T e k n o l o g i 167 J u r n a l M a n a j e m e n T e k n o l o g i 168 inovasi model bisnis, dan tipe konfigurasi sumber daya. Rerangka studi ini memberi perspektif kepada pemimpin dan manajer dalam bagaimana memperoleh dan membangun kapabilitas yang sesuai untuk menghadapi dinamika model bisnis dan transformasi model bisnis. Studi ini juga berkontribusi dalam menjelaskan pengaruh strategi bisnis (defender, prospector, analyzer) terhadap inovasi model bisnis, konfigurasi sumber daya, dan pengaruhnya pada efektivitas model bisnis. Studi ini penting mengingat masih terbatasnya studi empiris yang melihat keterkaitan strategi bisnis, inovasi model bisnis, konfigurasi sumber daya, dan efektivitas model bisnis. Satu ilustrasi kasuistik (Food Co.) dalam tulisan ini menggambarkan hadirnya dan ketiadaan kesesuaian antara strategi bisnis, inovasi model bisnis, dan konfigurasi sumber daya. Berbasis pada survei riset studi kasus tujuh perusahaan di Indonesia yang dilakukan pada 2011-2012, penulis menyampaikan simpulan-simpulan awal dalam empat proposisi penelitian dan saran kajian lebih lanjut. Katakunci: efektivitas model bisnis, inovasi model bisnis, strategi bisnis, tipologi strategi bisnis, konfigurasi sumber daya
... Following his ideas, we argue that it is also relevant to discuss how such a renewal initiative may interface with the MNC to overcome organizational rigidities. Balancing these issues is a question that we believe is central to the domain of entrepreneurial strategies in MNCs and other market incumbents (Chesborough, 2005;Christensen et al., 2003;Hamel, 1996). ...
... Parts of the industry dynamics and the innovation management literature have discussed the reactive nature following MNCs' complex and rigid structures, hence its inability to respond proactively or react quickly to changing market signals (Christensen et al., 2003;Henderson and Clark, 1990). MNCs are typically resource-rich and structured to support continuity and operational optimization with limited variety to support economies of scale and scope. ...
This paper, responds to the recent calls in research, to address the theoretical underpinnings of entrepreneurial strategies in MNC’s. Today, a multiplicity of entrepreneurial approaches exists, cf. skunk work, bricolage, bootlegging. However, these exists in disparate literature, that provides limited oversight to managers in, that need to select between a manifold of different entrepreneurial strategies. Moreover, these approaches typically originate from a distinctively different organizational context, namely SMEs. Through a literature review we identify two important axiomatic assumptions concerning entrepreneurial strategies within the organizational conditions of MNCs. The first fundamental assumption concerns the organizational origin of such effort. The second theoretical assumption deals with how the entrepreneurial initiative can meet either organizational resistance or support. We synthesize these two dimensions into a two-by-two matrix, that provides an answer to our research question: what are the critical dimensions for entrepreneurial strategies in an MNC context? We then employ this typology to categorize predominant entrepreneurial strategies in current literature, to create a overview that can be used both for structuring the debate in the literature; as well as a basis to discuss important implicit assumptions, that should guide the selection of entrepreneurial strategy in a MNC context in practice.
... Unfortunately this cannot be used to predict timescales -the pace of technical development depends on the prospects for developing markets. Christensen, Raynor & Anthony (2003) argue that disruptive innovation either creates a new market or it takes the low end of an existing markets where customers are poorly served and incumbents are unwilling to defend to any degree. In the case of a low end strategy, there is a gradual movement "upmarket" as the innovations fulfils more and more niche needs. ...
... Affuah (1998) suggested that this reflects the need to gain access to, and share not only capabilities but endowments (e.g. an IPR protection system and skilled workforce). On the other hand, Christensen, Raynor & Anthony (2003) believe that decisions on integration/partnering should be driven by understanding what drives the performance that customers value. In the early days of a radical innovation, customers usually value factors that affect raw performance (e.g. ...
Considerable interest has been generated in alternative energy sources as a result of links between pollution, health and climate change. The opportunity exists, therefore, for radical innovation to address the societal and market problems that current technologies fail to address, and to develop sustainable technologies. Fuel cells, which use hydrogen and oxygen to produce electricity, are an attractive, clean, quiet, reliable, and resource-efficient energy source, with a range of applications in the automotive, portable electronics, and power generation markets. The resulting innovations are likely to be extremely disruptive, however -fundamentally altering supply chains, product markets, and people's behaviour, and requiring a step-change in companies' capabilities and existing technology. Understanding the drivers, barriers and the interaction of company innovation processes and system drivers in different countries, is a necessary first step to address the key question: How can the time-scales for development and diffusion of disruptive innovation be optimised? This paper is a first report on research being funded by the Economic and Social Research Council under its Sustainable Technologies Programme. It focuses on fuel cell development and diffusion in the UK, comparing and contrasting actual experiences with that predicted by key literature on disruptive innovation. The research findings provide insights into the barriers and drivers experienced by fuel cell developers in the UK, with initial results suggesting that fuel cell development and diffusion in the UK is not necessarily following the pattern suggested by the innovation literature. For example, small companies are very active in core technology development. The role of Government is also highlighted, both in terms of funding where there is a perceived failure in the UK to support commercialisation of development and in terms of creating demand through legislation. Timescales for fuel cells in laptops – driven by market demand – is contrasted with timescales for fuel cells in cars, shaped by emissions legislation.
... The literature widely analyses the impact of innovation on variables such as financial performance (Capon et al., 1992;Yeh-Yun Lin and Yi-Ching Chen, 2007) and business growth (Christensen et al., 2003;Piperopoulos and Scase, 2009;Vaccaro et al., 2010;Börjesson and Löfsten, 2012;Szczygielski et al., 2017). Alam et al. (2013) show that to have a greater impact on a firm's overall performance, organisations need to implement effective innovation, which enables them to grow on a larger scale. ...
During environmental crises, it has always been particularly interesting to investigate how companies, specifically small- and mid-sized enterprises (SMEs), find solutions to survive and learn how to act in adverse situations. We conducted our study during the current coronavirus pandemic to analyse how stakeholder pressure affects both the innovation capabilities of SMEs and their firm performance. On the one hand, we examine whether the market and financial performance are better in the presence of less stakeholder pressure. On the other hand, we analyse whether SMEs implement internal mechanisms that enhance their innovation capacity to solve external problems caused by greater stakeholder pressure, which in turn affects firm performance. Our main findings show that during the pandemic, stakeholder pressure is related to the innovative capacity of SMEs; therefore, the higher the pressure, the more important the innovative response of SMEs. However, with higher pressure, the company's performance would be directly reduced in the short term, as the conditions set would be more unfavourable. Innovation capacity also plays a mediating role in preventing poor business performance because of increased stakeholder pressure. Owing to the importance of the chief executive officer (CEO) in SMEs, we test, through multigroup analysis, the differences based on the CEO's educational level. For example, commitment to innovation in SMEs may be more important for managers with higher education. Finally, our findings show how managers can learn to face new challenges in unfavourable environments.
... Associations can use IT to instrument processes and then conduct controlled experiments. Leaders may manage performance to higher levels by using information to evaluate changeability in execution whether it happens immediately or is brought about by controlled trials and understanding its center causes [10,11]. ...
Under the pattern of financial globalization, execution the executives has drawn in a great deal of consideration from scholarly and industry. Related empowering innovations make the human asset execution the executives business smarter. As one of the vital innovations in man-made brainpower, huge information-driven examination further develops the presentation seriousness of human asset industry by mining the secret information worth and expected capacity of modern huge information and assists undertaking pioneers using sound judgment in different complex human asset execution the executives conditions. This paper gives a hypothetical examination premise to large-information-driven innovation to direct decision-production in human asset execution the board, completely exhibiting the practicability of enormous information-driven innovation in the astute human asset execution the executives, including key benefits and interior inspiration. A reasonable system of smart dynamic in view of modern enormous information-driven innovation is proposed in this review, which gives important experiences and musings to the serious difficulties and future examination bearings in this field.
... Innovation has been analysed due to its impact on variables such as performance (Yeh-Yun Lin and Yi-Ching Chen 2007) and business growth (Christensen and Raynor 2003;Piperopoulos and Scase 2009;Vaccaro et al. 2010;Börjesson and Löfsten 2012;Szczygielski et al. 2017). The work of Jaruzelski et al. (2011) claims that firms which display cultures that are closely aligned to innovation may see their value increase by as much as 30% compared to their rivals. ...
Creating shared value (CSV) is an opportunity for sustainable growth for small and medium-sized enterprises that entails jointly achieving both social and business value. Currently there are few practical approaches that underpin the importance of CSV and that explore which variables have a positive impact on SMEs. Our paper seeks to shed light on this issue by proposing a measuring and governance model to assess the benefits of CSV in SMEs, using a sample of Spanish SMEs for the empirical analysis, and PLS-SEM as the analysis technique. We first highlight innovation management as a key variable for CSV. It is essential to take innovative strategic decisions to identify which initiatives generate shared value. Our findings confirm that innovative business management helps cultural transformation processes to be implemented with high shared value, which is a source of opportunities in a global economy and, consequently, lead to sustainable growth. Secondly, we aim to highlight how innovative firms enhance their reputation, which in turn has an impact on the creation of social and business value. We also find that if SMEs emphasise social value, they boost the creation of business value, with their role as mediators proving to be vital. We present a strategic management model based on variables such as innovation management, social value and reputation, due to their impact on business value.
... Innovation has also been analysed for its impact on variables such as performance (Yeh-Yun Lin and Yi-Ching Chen 2007) and business growth (Christensen et al. 2003;Piperopoulos and Scase 2009);Vaccaro et al.2010;Börjesson and Löfsten 2012;Szczygielski et al. 2017). The work of Jaruzelski et al. (2011) contends that firms which have cultures closely aligned with innovation grow in value by up to 30% compared to their rivals. ...
This work focuses on the importance of responsible human resource management, and its link to innovation and reputation, which are deemed to be relevant intangible assets for all firms, although particularly for entrepreneurial SMEs, and which are of particular interest since they have remained relatively unexplored despite their key role in the business fabric. Specifically, we present an explanatory model comprising three variables; the latent independent variable is socially responsible human resource management (SR-HRM), and the corresponding endogenous variables are reputation and innovation. In order to empirically validate the conceptual model developed, we design a survey which has been answered by a representative sample of entrepreneurs of their own firms. Using partial least squares (PLS), we analyse both the measuring model as well as the structural model. Results prove satisfactory and allow us to confirm the direct positive and significant relation between socially responsible human resource management and reputation, as well as the causal relation when innovation acts as a mediating variable.
... Des secteurs industriels jusqu'alors relativement protégés comme l'industrie bancaire ou de l'énergie font désormais face à des modèles d'affaires, des technologies, et des acteurs nouveaux. Cette accélération du rythme et de l'intensité de l'innovation attestée par de nombreux chercheurs (Christensen, Raynor, & Anthony, 2003 ;Hatchuel, Starkey, Tempest, & Le Masson, 2010 ;Phelps, 2013) transforme les organisations, bouscule leurs frontières, les obligeant à se reconfigurer et à innover régulièrement pour ne pas disparaître. Preuve en est, la durée de vie moyenne d'une entreprise américaine du S&P 500 est passée de 67 à 15 ans au cours des 80 dernières années, et 76 % des entreprises britanniques du FTSE 100 ont disparu au cours des 30 dernières années (Foster & Kaplan, 2011;Hill, Mellon, & Goddard, 2018). ...
L’accélération et l’intensification du rythme de l’innovation sont des traits majeurs des mutations contemporaines. Cette évolution de fond oblige les organisations à faire évoluer leurs modèles et dispositifs de gestion pour être résilientes dans le temps, en développant une capacité à renouveler fréquemment tout à la fois leurs compétences, produits, services et même modèles d’affaires. Or, tant d’un point de vue théorique que pratique, la manière dont se développe une telle capacité reste relativement peu comprise et étudiée, de même que les enjeux que sa mise en œuvre soulève.
Pour commencer à apporter des éléments de réponse à ces questions, cette thèse interroge les modalités d’émergence et d’organisation d’une forme d’organisation adaptée à un régime d’innovation intensive pour des populations de concepteurs expérimentés. C’est-à-dire pour des collectifs d’employés qui ont la particularité d’être à la fois très autonomes, très qualifiés et d’avoir le métier de concevoir et de créer des connaissances, des produits, des méthodes et des procédés nouveaux. Notre travail s’appuie pour cela sur une ethnographie de près de trois ans au sein de l’Institut de recherche d’Hydro-Québec (IREQ), qui a voulu développer des capacités d’innovation qui pourraient convenir à la nouvelle réalité de l’industrie de l’énergie en réponse à une multitude d’avancées technologiques et de l’apparition de nouveaux joueurs dans une industrie autrefois très centralisée.
Travaillant sur un certain nombre d’enjeux et de limites qui n’avaient pas ou peu été vraiment abordé par les auteurs en management de l’innovation à partir d’anomalies détectées sur le terrain, notre recherche nous a amenés à conceptualiser et à caractériser un nouveau modèle d’organisation pour l’innovation adapté à ces collectifs de concepteurs expérimentés que nous avons appelés la fonction d’innovation disséminée. Une forme d’organisation a la particularité de laisser beaucoup d’autonomie pour renouveler les voies d’explorations et les territoires d’actions aux individus et aux collectifs qui la compose.
Au-delà de ce travail de caractérisation, cette démarche nous a permis de dégager deux grands résultats principaux pour répondre aux deux grandes questions adressées par cette thèse : Comment faire émerger une fonction d’innovation disséminée ? Quels dispositifs pour coordonner et organiser de manière pérenne une fonction d’innovation disséminée ?
1) Notre étude permet premièrement de mieux saisir les enjeux de la dissémination d’une fonction d’innovation et de travailler sur les conditions initiales permettant son émergence, notamment en montrant les effets que des dispositifs comme la formation à des méthodes d’innovation peuvent induire. De plus, elle permet de préciser les tensions et les limites que peut rencontrer un tel modèle pouvant créer de l’anxiété et de l’ambigüité, demandant de repenser les leviers de coordination de l’organisation.
2) Dans un contexte de plus en plus fréquent où l’action collective nécessite une coordination du travail entre des domaines, très différents et sujets à évoluer dans le temps, avec des concepteurs expérimentés très autonomes au sein de leur champ d’expertise, la thèse permet de discuter des dispositifs et des rôles de gestion aux frontières permettant de dépasser le dilemme coordination-autonomie. Elle met notamment en évidence qu’une telle gestion aux frontières nécessite le déploiement de trois grandes fonctions - une fonction instrumentale, une fonction symbolique, une fonction politique.
... also Rosenberg, 1972). Therefore, they will only attract niche customers in small or emerging markets that value their nonstandard performance attributes (Adner, 2002;Bower and Christensen, 1995), or the price-sensitive low end of the mainstream market ( Christensen et al., 2003;Govindarajan and Kopalle, 2006). However, over time the disruptive innovation will improve more rapidly than the established technology with regard to mainstream performance attributes, making it performance- competitive also in the mainstream market (Christensen and Bower, 1996). 2 It can then "invade" the mainstream market (Bower and Christensen, 1995) and even displace its established technol- ogy (Adner, 2002). ...
... This innovation eventually disrupts the existing market and causes the established leaders and alliances to be replaced. In this way, an entirely new performance trajectory for the business is established (Christensen et al., 2003). The proposed framework is also in line with the market-driving perspective, which suggests that firms can and do induce turbulence in the market and change the behavior of other players (Jaworski et al., 2000). ...
Purpose
The purpose of this paper is to examine the indirect relationship between dynamic capabilities (DCs) and organizational outcomes through matching and creating market change. In addition, the research aims to gain a deeper understanding of the role of marketing in DCs and to extend beyond a simplistic discussion of DCs by studying proactive market orientation and value innovation as specific DCs.
Design/methodology/approach
A questionnaire was developed and data were collected from 270 senior executives. After ensuring reliability and validity, the hypotheses were examined by applying structural equation modeling and Monte Carlo simulation.
Findings
The findings indicate that dynamic marketing capabilities (DMCs) are critical in the reconfiguration of operational marketing capabilities, which in turn lead to enhanced organizational performance. The results also suggest that organizations with enhanced DMCs are able to initiate market disruption and achieve superior performance by out-competing their rivals.
Practical implications
The research provides guidelines for managers wanting to exploit their DMCs by showing that organizations can match the environment, create market turbulence or combine both strategies to fully exploit their DMCs. This study also provides managers with actionable tools that are specific, robust and easily applied.
Originality/value
This study is one of the few to incorporate induced market turbulence into the DC literature and conceptualize, develop and validate scales to measure it. The study provides empirical evidence for the claim that operational marketing capabilities are necessary to utilize the benefits of DMCs.
... Theoretical and applied research in the field of innovation emphasizes different factors in the explanation and the role innovation plays in the economy; Fagerberg (2005) shows how innovation enhances competitiveness and productivity in firms. Christensen and Raynor (2003) argue that firms have to innovate in order to adapt and survive in a market economy. Analyses by Audretsh andFeldman (1996, 2003), Porter (2000), Fabrizio and Thomas (2011), Isaksen and Onsager (2010), Laursen, Masciarelli and Prenicpe (2012) and Lorentzen and Jakobsen (2015) show how sectorial and spatial differences are an influence on the rate of innovation collaboration. ...
The objective of the paper is to analyse why some firms innovate while others do
not. The paper combines different theories of innovation by relating innovation to
internal, firm specific assets and external, regional factors. Hypotheses are derived
from theories and tested empirically by using logistic regression. The empirical
analysis indicates that internal funding of R&D and size of the firm are the most
important firm specific attributes for successful innovation. External, regional factors
are also important. The analysis shows that firms located in large urban regions
have significantly higher innovation rates than firms located in the periphery, and
firms involved in regional networking are more likely to innovate compared to firms
not involved in networking. The analysis contributes to a theoretical and empirical
understanding of factors that influence on innovation and the role innovation plays
in the market economy. Innovation policy should be targeted at developing a tax
system and building infrastructure which give firms incentives to invest and allocate
internal resources to R&D-activities and collaborate with others in innovation. From
an economic policy perspective, consideration should be given to allocating more
public resources to rural areas in order to compensate for the asymmetric distribution
of resources between the centre and periphery. The paper contributes to the scientific
literature of innovation by combining the firm oriented perspective with weight on
firm specific, internal resources and a system perspective which focuses on external
resources and networking as the most important determinants of innovation in firms.
Keywords: innovation, region, location, centre and periphery, firm specific and
external resources, networking, Norwegian industry, logistic regression.
For download: http://jemi.edu.pl/vol-12-issue-2-2016
... Gopalakrishnan and defined innovation as programs, policies, systems, equipment, service, product, behavior or idea which is newly adapted to organization ( Shanthi and Fariborz, 2000: 15). Innovation represents the development of an entirely new product, service category, or production system, where knowledge experience are limited (Damanpour, 1989;Wolfe, 1994;Christensen and et al. 2003). Wang, et al., expresses that innovation is conceptually a process that begins with a novel idea and concludes with market introduction" (2010, p. 767). ...
Researchers have begun to focus on identifying organizational capabilities, but still relatively little is known on the types of business capabilities stimulating innovation. From this point forth, this study investigated the possible relationships among production capabilities, marketing capabilities and innovation. By the findings of this study we aim to reveal whether primary capabilities effect innovation or not and which one effect more. Many researchers suggest that capabilities can be determined via the value analysis of functional areas such as production, marketing, finance, research and development, human resource management (Snow and Hrebiniak, 1980; Hitt and Ireland, 1985; Acar, 1993; Hafeez, Zhang and Malak 2002;). Based on this common idea and aiming to contribute a better understanding of innovation in relation to capabilities, firstly, a brief review of resource based view is given and then production and marketing capabilities evaulated in this study are discussed. For this study a research model and hypotheses have been developed. In order to test the model and hypothesis, 122 organizations that are operating in Kocaeli, in Turkey were surveyed. Which capabilities can contribute positively to innovation is tried to be determined by regression analysis. As a result, according to the findings from this study, it can be said that there are significant relationships among marketing capabilities, production capabilities and innovation.
... These stages are challenging when the new idea (for a new product or new features) covers technology fields where the organization has little experience. Here, the challenge will be to make sure that the process does not reduce the highly innovative topics back to what the company " always has been doing " or in the words of Christensen: " when firms have a single process for all the various forms of innovation, what comes out the other end of the process looks like what has been approved in the past, and it all looks like sustaining innovation " (Christensen/Raynor/Anthony [11]). In order to address this issue one has to make transparent and clearly define what " highly innovative " or a " high degree of innovativeness " is. ...
Mechatronics design is about integration of mechanics, electronics and software. As new functionality in products is realized to a large extent through integration of mechanics, electronics and software the need for knowledge integration between these disciplines becomes central. Thus, the innovation and product development process has to be able to cope with low and high degrees of innovativeness in the same organization, for the same portfolio. After a brief wrap-up of recent concepts of innovation processes, the authors describe the specific characteristics of mechatronics design. Using the "degree of innovativeness" a key tailoring criterion, the authors will show how the existing and proven concept of idea management and innovation processes proposed by Thom as well as the staged-gate process proposed by Cooper have to be expanded to support mechatronic systems design and development. In the end, using this approach the development of a new product, an electro-hydraulic compact axis, is briefly sketched within the context of the proposed process.
... An important link also exists between a government's tertiary education strategy and its business growth agenda. However, not all governments, higher education institutions and organizations have been able to understand what creativity really means or what is needed for successful creativity (Christensen et al. 2003) and feel that establishing an environment to nurture and promote creativity is a challenging undertaking (Eppler et al. 2011). In addition to the lack of understanding, Robinson (cited in Vilalba 2008) warns that education seems to be killing creativity. ...
Measuring creativity scientifically seems to be a challenging undertaking at the tertiary educational level. The purpose of the research reported in this paper was to test and operationalize a model to measure creativity at the tertiary educational level using SPSS and AMOS. These software packages were used to run causal path analysis and cause-effect relationships using the Pearson's product correlation coefficient (PPMC), a multiple regression analysis and structural equation modelling (SEM) which included a confirmatory factor analysis (CFA). The Fields Educational Creativity Model (FECM) was the result of the test and operationalization and showed a mediating influence of cognitive psychology on the interplay between motivation and creativity. Creativity can be measured at tertiary educational level and this can positively influence the globalized knowledge economy because graduates will be critical, creative and imaginative thinkers and leaders who can work through complex problems and make creative and purposeful changes and adaptations.
... Gopalakrishnan and Damanpour defined innovation as programs, policies, systems, equipment, service, product, behavior or idea which is newly adapted to organization ( Shanthi and Fariborz, 2000: 15). Innovation represents the development of an entirely new product, service category, or production system, where knowledge experience are limited (Damanpour, 1988;Wolfe, 1994;Christensen and Raynor, 2003). Wang, et al., expresses that innovation is conceptually a process that begins with a novel idea and concludes with market In this study we use the term innovation broadly that includes the development of products, programs or services and also a process including different stages. ...
Nowadays, managers recognize the value of knowledge as an intangible asset which stimulates innovation in organisations. However, few studies examine the role of human resource management in fostering knowledge capability which leads more innovation in enterprises. For this reason, this paper investigates the impacts of the policies and practices of human resource management in the relationship between knowledge management capability on innovation. The study is empirically based on the primary data collected from 122 medium and large sized organizations that are registered to Kocaeli Chamber of Industry, operating in Kocaeli, one of the most important industrial cities of Turkey. Data obtained from questionnaires will be analyzed through the SPSS statistical packet program and PLS-Graph. The Sobel test is used to measure the significance of mediation effect of knowledge management capability. The results indicate that Human Resource Management (HRM) Capabilities are positively related to Knowledge Management (KM) Capability which turn into innovation. Furthermore, HRM Capabilities have both direct and indirect effect mediated by KM Capabilities on Innovation.
... Innovation in service may be expressed either as a new service (product innovation), of which the book site 'Amazon' is one example, or as change and development in the process of service provision (process innovation), expressed by the organisation's ability to improve its processes to a level that makes its product/process competitive in quality or price. The American shopping internet site 'Wall Mart' is famous for its process innovation, since it enabled the internet to offer its products at 'market breaking' prices (Christensen et al., 2003; Parnell and Lester, 2008). ...
As competition is increasing both locally and globally, more and more organisations face the need to preserve their customers while minimising preservation and marketing costs. Through an empirical analysis of customers of a logistics service provider in Israel, it is argued that service providers can intelligibly influence customers' impression and the emotional experience they get through the service provision interaction. Moreover, if this impression is positive, customers perceive an incremental value in the service interaction and tend to develop a long-lasting commitment to the organisation which can develop into loyalty. In general, this rationale is validated by the research. In addition, it was discovered that price is not the main element of customer loyalty; even its role is found to be less dominant than the role of emotion. Implication and projections for further studies are also discussed in the paper.
... also Rosenberg, 1972). Therefore, they will only attract niche customers in small or emerging markets that value their nonstandard performance attributes (Adner, 2002; Bower and Christensen, 1995), or the price-sensitive low end of the mainstream market (Christensen et al., 2003; Govindarajan and Kopalle, 2006). However, over time the disruptive innovation will improve more rapidly than the established technology with regards to mainstream performance attributes, making it performance-competitive also in the mainstream market (Christensen and Bower, 1996). 2 It can then " invade " the mainstream market (Bower and Christensen, 1995) and even displace its established technology (Adner, 2002). ...
Abstract
The creative destruction of existing industries as a consequence of discontinuous technological change is a central theme in the literature on industrial innovation and technological development. Established competence-based and market-based explanations of this phenomenon argue that incumbents are only seriously challenged by ‘competence-destroying’ and ‘disruptive’ innovations, respectively, that make their existing knowledge base and business models obsolete and leave them vulnerable to attacks from new entrants. This paper challenges these arguments. With detailed empirical analyses of the car industry and the gas turbine industry, we demonstrate that they overestimate the ability of new entrants to destroy and disrupt established industries and underestimate the capacity of incumbents to perceive the potential of new technologies and integrate them with existing capabilities. Moreover, we show how intense competition in the wake of technological discontinuities, driven entirely by incumbents, may instead result in late industry shakeouts. We develop and extend the notion of ‘creative accumulation’ as a way of conceptualizing the innovating capacity of the incumbents that appear to master such turbulence. Specifically, we argue that creative accumulation requires firms to handle a triple challenge of simultaneously (a) fine-tuning and evolving existing technologies at a rapid pace, (b) acquiring and developing new technologies and resources and (c) integrating novel and existing knowledge into superior products and solutions.
Key words: creative accumulation, technological discontinuity, creative destruction, disruptive innovation, competence-destroying innovation, electric vehicles, gas turbines
... Examples include continual development of faster microprocessors, flatter screen for computers or higher -resolution medical scanning devices or Short Message Service (SMS) for cellular phones. Disruptive innovations offer a different, original and often untested solution to a larger category of needs (Christensen & Raynor, 2003).They are diffused throughout the economy like electricity, transistors, or machine tools in the past and computers, networks, and robots nowadays. They often provide the basis for the emergence of new industries that create major new markets. ...
This chapter argues there is a lack of taxonomy of the various marketing capabilities that are necessary
to achieve the market success of innovation. It tries to fill this gap by proposing a model that subsumes
two classes of Marketing Core Competencies (MCC) for successful innovative companies. The first category
of core competencies is related to a superior ability of the firm to identify and to connect the actual
market needs with the innovation during the preparation of the new product launching phase. Once the
innovation is on the market, a second group of core competencies is associated with the capacity of the
firm to ease the customers’ tensions in order to facilitate the acceptance of the innovation and turn it
into a market success through adoption and diffusion. In conclusion, the chapter underlines the importance
of the place of these two categories of Marketing Core Competencies (MCC) in innovative firms
... Novelty: Several authors have used degree of novelty to characterize innovation (Christensen, 1997, Christensen & Overdorf, 2000, Christensen & Raynor, 2003, Damanpour, 1991, Henderson & Clark, 1990, Norling & Statz, 1998, Tidd et al., 2001. Innovations can be divided into incremental and discontinuous according to degree of novelty. ...
Diss. -- Lappeenrannan teknillinen yliopisto.
The international entrepreneurial ecosystem adopts the roles of nations or triple helix (university-industry-government) at its central force in the ecosystem. These build and encourage innovation, especially open innovation that in turn infuses technology transfer and enhances absorptive capacity of the firms. This chapter provides a critical review and expands the understanding of the concepts of open innovation model and the international entrepreneurial ecosystem leading to community benefits globally. The international entrepreneurial ecosystem should interweave itself with every nation’s legal framework to foster open innovation move beyond geographical boundaries. These two domains interact and integrate with each other to create products and services for economic growth and development. The chapter looks at the differences, relationships, and interactions of these concepts. However, these interactions should be viewed with cautious trade-offs given the growing challenges of pandemics, climate changes, and other grand challenges to the world.
Much has been written about trust and trust-building, but no consensual definition of trust has been developed. In this article, the definition of trust as a catalyst is proposed based on a deduction from an aggregation of peer-reviewed articles from across several disciplines and hermeneutic examination of the contents. The paper suggests that discipline-related points of view and common usage of trust as a noun and or a verb leads to confusion in trying to develop a consensual definition. Given the accepted universality of trust, a consensual definition would help achieve a further understanding of both trust and trust-building. The proposed definition permits recognition of discipline-related definitions and suggests the focus of trust should be directed to establishing the conditions under which trust enables successful exchange interactions (i.e., trust-building). The separation of trust and trust-building has implications for management and other relationships. Suggestions for further research are included.
Analyzes the terms “change” and “innovation” and presents the various types of change as well as the reasons for an organization to introduce change
Bilgi, İnsan Kaynakları Ve Ekonomik İklimin İnovasyon Üzerine Olan Etkisinin Araştırılması
Turkish Abstract: Bu çalışmanın amacı bilgi ekonomilerinde rekabet gücü oluşturulması perspektifinde inovasyon kavramının dünya genelinde analiz edilmesi amaçlanmaktadır. İçsel düzeyde olan eğitim ve insan kaynaklarının inovasyona olan etkisi ve dışsal düzeyde ekonomik teşviklerin inovasyona olan etkisi incelenmektedir. İnovasyonun bir bütün halinde bilgi ve dış faktörler ile olan etkilerinin incelenmesi ve ülkeler arasında yapısal farklılıkların ortaya konulması hedeflenmektedir.
(Research Proposal)
English Abstract: Innovation has been become an essential part of the economies after 1990s. The companies which want to lead to markets need to concentrate on its R&D development activities. Hence human capital and economic environment are crucial for companies to gain market and competitive advantage. The aim of establishing competitiveness in the knowledge economy in the world of work is intended to analyze the concept of innovation perspective.
Organizational resources and capabilities realized by business practitioners and
researchershave significant importanceas they support firmperformance and competitive advantage. However, what exactly core competence is not clearly understood since terms such as resource, capability and compe
tence are used interchangeably by researchers. From this point forth, this article provides a framework for separating organization's core competencies from resource and capability. We propose three empirical determiners such as uniqueness,inimitability
and extendibilityto the research modelfor separating organization's core competencies from resource and capability.Second, the proposed core competence framework serves as a tool for assessing the relationship between core competencies and innovation. Finally, the paper intended to help leaders and managers about how they can enhance firm performance by means of supporting core competencies and innovation.
The publisher of QuickBooks accounting software claims that it is simple enough to be operated by entrepreneurs without prior training in accounting. However, many accounting professionals have found that QuickBooks users frequently lack a sufficient understanding of the operation of the software and the associated accounting concepts to record transactions correctly. The authors, through their external consulting activities, have trained over 500 small business entrepreneurs in the use of QuickBooks accounting software. As a result of these activities, we have identified 14 of the most common software-related and accounting mistakes made by users of QuickBooks. The purpose of this paper is to share these findings with entrepreneurs who use QuickBooks, and the consultants who advise them, to increase the accuracy of these transactions and the resulting financial statements and other financial reports.
Small Schools, Big Ideas shows how the principle-based and equity-focused model from the Coalition of Essential Schools (CES) can be used to redesign existing schools and create new schools that prepare students for this century's challenges and opportunities. Filled with inspirational stories and illustrative examples from schools that have successfully implemented CES principles and practices, Small Schools, Big Ideas offers information and inspiration needed to: Transform schools in order to achieve equitable outcomes for all students. Understand various school design options. Establish school vision, mission, and goals to raise educational expectations and results. Develop transformational leadership. Cultivate a professional learning community. Implement student-centered teaching, learning, and curricula. Build productive relationships with families and communities. Establish strategies for sustainability.
Model analysis in system dynamics (SD) entails articulating exactly how the structure of circular, feedback relations among variables in a system determines its performance through time. This article combines disruptive innovation (DI) theory with SD to show the use and benefits of model analysis with the pathway participation metric (PPM), implemented in the Digest® software. The model replicates the hard-disk makers' overshoot and collapse dynamics that DI allegedly caused. Multiple insights emerge from the dynamics the model computes. Model analysis shows that, over five distinct time phases, four different feedback loops become most prominent in generating the hard-disk makers' population dynamics from 1973 to 1993. And Digest® helps detect exactly how changes in loop polarity and prominence determine system performance.
Innovation practice changes with time. In the 1980s and early 90s we were talking about new products, core competences, total quality management, matrix organization, and technology transfer. Then came the extreme market focus of our times, as well as contin- uous innovation processes, globalization, and virtual collaboration. Future trends may include value chain integration, exploitation of customers' attitudes, tougher fight for values, and an intense search for new ideas. Networking and information brokerage will be highlighted. Our modern society needs innovation to survive. Businesses must serve society and its people. Those companies that understand their role in the global cul- ture will also be those that can meet the future with great expectations.
The article offers a systematic review of strategic options available to incumbents coping with threats and attacks by a global firm. The framework makes it possible to review and analyze action alternatives based on the entry stage, the attack focus, and defense tactics. Even though the globalization process has exposed domestic incumbents to greater threats, incumbents' options have also increased. The doors of trade liberalization swing both ways. Opportunities for collaboration increase while anti-globalization movements and national patriotism can be mobilized for effective defense. The framework presented in this article builds on existing strategic theories and concepts in addition to published case studies. It offers a flexible and dynamic approach for reviewing alternative strategies for implementation and research.
An exploratory system dynamics (SD) model presents disruptive innovation diffusion as a replicable process that can spawn business growth for d, Inc., a company that offers an over the air digital subscription TV service. Building on diffusion processes in epidemiology, marketing and sociology, the eight-sector SD model shows customer switching in the high-end, low-end and non-consumption markets the disruptive innovator exploits. As extreme-condition scenarios test its robustness, the model shows performance results for multiple market penetration and defense tactics that disrupter and incumbent firms employ over time. In a relentless hunt for superior performance and a sea of external-change triggers and internal-change levers, d, Inc. takes on cable operators who overlook low-end markets to invest in higher-end tiers, their service tailored to more demanding customers. Low-end markets cannot absorb sustaining innovation that exceeds the utility subscribers need or know how to exploit. Those segments are left vulnerable to the advent of disruptive innovators promising less functionality for lower price. The results show that despite high environmental turbulence, market risk and competitive retaliation facing d, Inc., introducing discontinuity and instability systematically into a market driven by incremental competence improvement suggests ample opportunity for sustainable disruptive growth.
To encourage premium-quality information systems IS research in areas where dynamic complexity rules, this article combines disruptive innovation strategy DIS theory with the system dynamics SD modeling method. It presents a computer simulation model of the hard disk HD maker population overshoot and collapse dynamics. Data from the HD maker industry help calibrate the parameters of the SD model and replicate the HD makers' overshoot and collapse dynamics, which DIS allegedly caused from 1973 through 1993. SD model analysis entails articulating exactly how the structure of feedback relations among variables in a system determines its performance through time. The analysis of the HD maker population model shows that, over five distinct time phases, four different feedback loops might have been most prominent in generating the HD maker population dynamics. The article shows the benefits of using SD modeling software, such as iThink®, and SD model analysis software, such as Digest®. The latter helps detect exactly how changes in loop polarity and prominence determine system performance through time. Strategic scenarios computed with the model also show the relevance of using SD for IS research and practice.
International architectural, engineering and construction (AEC) firms need to decide on the appropriate market entry mode and business strategies when undertaking projects overseas. The objectives of this research are to investigate the effective market entry modes for penetrating China and the effective business strategies for managing projects in China. The research method is based on a structured questionnaire and data were collected via postal survey. Interviews have been conducted to complement the survey. The results show that establishing a wholly owned subsidiary in China is the most effective entry mode. Foreign AEC firms need to adopt a differentiation strategy by providing niche and superior service. They must also pay great attention to customer satisfaction to gain competitive advantage and clinch and manage projects. To succeed in China, foreign AEC firms need to set up a physical office there, to develop a good understanding of local by-laws, understand client requirements better and therefore provide them with a superior product or service.
Business and Information Systems (IS) alignment is a key management issue and has been largely investigated. Yet, little research shows companies how a fit between these "two worlds" can be achieved. The assumption of this paper is that making explicit the business model can contribute to improving the business/IT alignment. Moreover information systems supporting environmental scanning, strategic or competitive intelligence, and technology assessment, which are of prime importance for organizations, are much less investigated. This paper also aims at deriving a theoretical framework for assessing a technology environment from its properties such as complexity, uncertainty and disruptiveness.
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