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Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms
... This is the main motivation why many studies measure "distances" (or more precisely relatedness) between technologies, including a regional or national dimension (e.g. Hidalgo et al. 2007;Hausmann and Klinger 2007;Boschma et al. 2012). ...
... Other researchers extend previous work on relatedness by including a spatial dimension. Hausmann and Klinger (2007) and Hidalgo et al. (2007) first studied relatedness with international trade data to understand the distance between different exported products. They propose that countries specialized in goods located in the most dense area of the "product space" can shift their production more easily to other products. ...
... The main idea is that a region can specialize more easily into technologies related to the ones in which it is already specialized (Hidalgo et al. 2007). Moreover, Hausmann and Klinger (2007) argue that nations (regions) specialized in a dense part of the product space (knowledge space) can more easily change their products (technologies) specializations, rather than other countries (regions) which are specialized in products (technologies) located in the periphery of the product space (knowledge space). Similarly, in our case, if the regional knowledge space is dense, meaning that it already has many technologies serving the bridging function, the possibility to develop new bridging technologies is also higher. ...
Bridging Technologies connect otherwise unrelated fields in regional knowledge spaces. By establishing new connections between technologies, they enable technological development through processes of recombinant innovation. In this paper, we develop a set of indicators that help us to characterise technologies in terms of their bridging function and study their evolution over time. We apply these tools to the regional and national levels in Germany. Our findings indicate that large patenting regions are not necessarily the ones that embed most new technologies in their knowledge space. For the German knowledge space we find that during the past two decades, it became less dependent on prominent technologies, such as transport, machinery and chemicals. Changes in the German knowledge space in terms of the development of new bridging technologies can be attributed to a regionally dispersed process rather than one driven by single regions.
... Organisation structure is described as the efficient mechanisms that simplify activity interconnectedness and systematic workflow from each node of the full network that is comprised of various offshore providers. A streamlined orchestration of the entire network interactivity is an indication of good understanding of operating systems and organisation knowledge (Brusoni & Prencipe 2006, Henderson & Clark 1990. Given so, the right expectations can be drawn and the structure effectively supported. ...
... Organisation experience is further supported by the leadership quality and the criticality of bias in the decision making process for strategic direction. In terms of cost estimation errors the decision maker must grasp how decisions affect the coordination between nodes, the interdependent activities, and the response capacity of the globally dispersed operation (Anderson 1999, Brusoni & Prencipe 2006, Durand 2003, Ethiraj & Levintal 2004, Hogarth & Makridakis 1981, Henderson & Clark 1990, Kahneman & Lovallo 1993, Kahneman & Tversky 1984, Langlois & Robertson 1992, Loasby 1976, Madsen & Desai 2010, Makadok & Walker 2000, March & Simon 1958, Nadler & Tushman 1997, Nickerson & Zenger 2002, Simon 1955, Srikanth & Puranam 2011, Nadler & Tushman 1997, Thompson 1967. ...
... Nonetheless, the lack of experience is compensated by good comprehension of organisation behaviour and performance that can eventually affect cost, and a proactive adaptation and understanding of individual provider capabilities is vital. Organisation experience is supported by the leadership quality and foresight that is quick to grasp how decisions affect the coordination between interdependent nodes and the response capacity of the globally dispersed operation (Argyres & Mayer 2007, Anderson 1999, Brusoni & Prencipe 2006, Durand 2003, Dibbern et al 2008, Durand 2003, Ethiraj & Levinthal 2004, Grandori 2001, Hogarth & Makridakis 1981, Henderson & Clark 1990, Hutzschenreuter et al 2007, Jensen 2009, Kumar et al 2009, Kahneman & Lovallo 1993, Kahneman & Tversky 1984, Langlois & Robertson 1992, Loasby 1976, Lewin & Couto 2007, Massini et al 2010, Madsen & Desai 2010, Makadok & Walker 2000, March & Simon 1958, Maskell et al 2007, Nadler & Tushman 1997, Nickerson & Zenger 2002, Rawley 2010, Simon 1962, Stringfellow et al 2008, Srikanth & Puranam 2011, Thompson 1967, Williamson 1975. ...
Offshore outsourcing is a prevailing deterrent in the business economic front. Given the competitive pressures put on firms, outsourcing is an elemental practice that can enable cost reduction measures and raise operating efficiencies; or otherwise access resources and competencies by simply choosing how and where to capture gains. This learning mechanism enhances organisation agility across geographical and cultural regions in a practice described unique to cross border operation strategic challenges, regardless of organisation age and size. Within such context, better prospects are expected of organisations with diverse experience, typically serving very broad consumer markets. Competitiveness is nurtured from the right mixture of organisation culture and tacit knowledge; home grown expertise and leadership insight that creates a highly sophisticated value supply chain with a built-in complexity on organisation dynamics that influences the ability of the decision maker over cost implementation. Denmark outsourcing activities are far more aggressive than European counterparts, with a small liberalised state economy and SMEs representing a greater proportion. Given its narrow national consumer base compensated through export oriented policy mechanisms; any structural changes in the economy must tantamount an increased role for the SMEs. In contrast of other European countries, employment protection is weak and Danish firms can fine-tune employment schemes with relative ease, even when more than three quarters of the whole labour force are union members. This peculiar labour market model has resulted to high turnover rates of an average tenure of about eight years. A Danish worker is remunerated with relatively generous unemployment benefits yet sternly reinforced through monitoring and sanction-otherwise known as the flexicurity labour model characterised with extreme wage dispersion particularly in the Danish labour market. This study finds that there are no inhibiting elements on the future growth and development of the Danish SME. Firms engaged in offshore outsourcing see better prospects in those markets, with the leeway of establishing or increasing operations in those specific regions. Strategic alliances and closer relations with providers that seemingly blur the boundaries of the enterprise, has positive impact on the worker capability and wages in Denmark. For the future Danish SME has right disposition and ability to influence change.
... Scholars have learned a great deal about the sources of path dependencies in inventive activities stemming from internal organizational routines ( Nelson and Winter, 1982;Benner and Tushman, 2002). For example, research has shown how routines based on a company's internal communication patterns ( Henderson and Clark, 1990), prior knowledge base ( Cohen and Levinthal, 1990;Simons and Roberts, 2008), and prior experience in organizational fields ( Shane, 2000;Cliff, Jennings, and Greenwood, 2006) can limit its ability to draw on new knowledge in its inventive activities. But research has not fully investigated the possibility that even after a company overcomes these internal obstacles and successfully uses new knowledge, it may still face significant externally driven path dependencies related to how outside organizations evaluate inventive activities that build on new knowledge. ...
... When using their evaluation routines to understand how companies' inventive activities will translate into future products, brokerage firms need to understand how companies obtain and combine the upstream knowledge used to create innovations. Studies show that companies develop innovations by creating new combinations of knowledge components ( Kogut and Zander, 1992;Fleming, 2001) or by reconfiguring how knowledge combinations are connected ( Henderson and Clark, 1990). Exploring new ideas can benefit companies by increasing the amount of knowledge available to develop innovations ( Cohen and Levinthal, 1990;March, 1991). ...
... This complicates brokerage firms' efforts to evaluate the company's knowledge. Henderson and Clark (1990) illustrated the difficulties organizations face in understanding new knowledge combinations, finding that although photolithographic alignment equipment companies could accurately forecast the development of individual components of rivals' technologies, they failed to understand the interaction among these components. Just as a company's increased use of knowledge combinations can hinder rivals' efforts to imitate its knowledge by making it more difficult for them to understand causal linkages that contribute to competitive advantage ( Reed and DeFillippi, 1990;McEvily and Chakravarthy, 2002), the increased number of potential knowledge combinations resulting from a company's use of new knowledge also makes it more challenging for brokerage firms to use their evaluation routines to assess the commercial value associated with the company's inventive activities. ...
This paper examines how path dependencies in evaluation routines affect a brokerage firm’s decision to provide coverage to a company that builds on new knowledge. Companies depend on brokerage firms to gain access to external resources, as a brokerage firm’s coverage is a valuable form of recognition that may lower a company’s cost of capital and increase its value. Yet path dependencies in a brokerage firm’s evaluation routines may make it less likely to cover a company whose inventive activities build on different knowledge than it used in the past. Using data on 183 U.S. publicly traded medical device companies from 1993 to 2006, we examine how a company’s use of new knowledge affects a brokerage firm’s decision to cover the company. Our results suggest that a company may face a tension between exploration and resource dependence, as after it overcomes internal path dependencies that hinder exploration and successfully uses new knowledge, it may still fail to gain the attention of outside organizations on which it depends to access relevant resources due to externally borne path dependencies in the routines these outside organizations use to evaluate novelty. Also, in contrast with existing literature suggesting that brokerage firms have homogenous expectations for which strategies are appropriate for different types of companies, our results highlight that brokerage firms differ in how they respond to companies’ inventive activities based on factors such as their prior exposure to new knowledge, prior evaluation of the companies’ downstream product markets, and scope of technological expertise.
... A fim de verificar este fato, este estudo tem como uma das hipóteses: H1: Há uma relação entre as características das empresas e a inovação. Para justificar a existência dessa hipótese, esta pesquisa se ampara nas seguintes proxies para determinação da inovação: Pesquisa e Desenvolvimento -P&D (LA ROVERE, 2001;FERNANDES;CÔRTES;PINHO, 2004); Inovação Radical (CARVILLE, 2011;HENDERSON, CLARK, 1990;SCHUMPETER, 1961); Inovação Incremental (LEMOS, 1999;HENDERSON, CLARK, 1990;SCHUMPETER, 1961); Inovação de Produto (BOEHE; ZAWISLAK, 2007;OSLO, 2005;WERNKE, 2000;CHRISTENSEN, RAYNOR, 2003); e Inovação de Processo (OSLO, 2005;WERNKE, 2000). ISSN Segundo Busco, Caglio e Scapens (2015), em contextos racionais e funcionalistas, estudos têm argumentado que práticas inovadoras são adotadas porque agregam valor para as organizações (COOPER;KAPLAN 1992;KATZ;SHAPIRO, 1987). ...
... A fim de verificar este fato, este estudo tem como uma das hipóteses: H1: Há uma relação entre as características das empresas e a inovação. Para justificar a existência dessa hipótese, esta pesquisa se ampara nas seguintes proxies para determinação da inovação: Pesquisa e Desenvolvimento -P&D (LA ROVERE, 2001;FERNANDES;CÔRTES;PINHO, 2004); Inovação Radical (CARVILLE, 2011;HENDERSON, CLARK, 1990;SCHUMPETER, 1961); Inovação Incremental (LEMOS, 1999;HENDERSON, CLARK, 1990;SCHUMPETER, 1961); Inovação de Produto (BOEHE; ZAWISLAK, 2007;OSLO, 2005;WERNKE, 2000;CHRISTENSEN, RAYNOR, 2003); e Inovação de Processo (OSLO, 2005;WERNKE, 2000). ISSN Segundo Busco, Caglio e Scapens (2015), em contextos racionais e funcionalistas, estudos têm argumentado que práticas inovadoras são adotadas porque agregam valor para as organizações (COOPER;KAPLAN 1992;KATZ;SHAPIRO, 1987). ...
Este estudo objetiva verificar as relações entre as práticas de controle gerencial e inovação adotadas pelas empresas vinculadas ao Porto Digital. Foram obtidos 30 questionários válidos na pesquisa, objetivando identificar há relação entre as características da empresa e inovação (hipótese 1), concluindo-se que as empresas que prestam contas aos sócios tendem a não investir em inovação, sugerindo que talvez haja uma preocupação de curto prazo com o resultado da empresa. O estudo
também analisou outras duas hipóteses, indicando que algumas práticas gerenciais tradicionais estão associadas a existência de P&D (rejeitando a hipótese 2, ex.: orçamento e avaliação de desempenho), e não evidenciando significância entre práticas contemporâneas e P&D (hipótese 3). A fim de encontrar outras proxies para inovação e constatação da diferença entre práticas gerenciais tradicionais e contemporâneas, foi utilizada a análise fatorial. Verificou-se associação positiva entre uso de técnicas mais avançadas e gestão de pessoas mais permissiva rejeitando a ideia de restrições advindos do controle interferindo na gestão de pessoas. Adicionalmente, verificou-se que a flexibilização do horário dos funcionários não é considerada uma prática que proporciona inovação e também não costuma ser praticada mesmo por aquelas empresas que se dizem mais inovadoras.
... Furthermore, in the case of implementation of a "lonely designed business model" we shall see that the outcomes can be characterized as poorly innovative as they do not change fundamental properties of the dominant business model. Therefore there seem to be a "hidden" contingent variable that characterizes both the business model innovation issues and the coordination system adapted to these issues, thus proposing a mirroring hypothesis (Henderson & Clark, 1990) at the level of business model innovation processes. ...
... In the innovation literature the link between an organization and a design has been coined as the mirroring hypothesis. (Henderson & Clark, 1990) states that the organization of a company mirrors the product that could be designed. Extending the mirroring hypothesis to the design of Business Model and at an ecosystem level, we argue that depending on the way firms cooperate to design a new business model, the set of business model achievable will differ. ...
In this paper we propose to analyse two cases of business model innovation process-Uber and a French health care company-with the models developed by design theory. In particular we demonstrate, relying on C-K theory, how the traditionally unchallenged figure of a lone firm performing business model innovation has implications on the outcomes of the process, preventing innovative business models to emerge. In particular we show that the coordination structure chosen by the firms engaging in business model innovation has major consequences. Therefore we propose a categorization of business model innovation process based on the level of implication of each firm. We argue that a more collaborative approach in designing business models that overcomes the difficulties raised by collective design is needed so that the outcomes are innovative. We discuss the implications of this result for business model innovation literature, disruptive innovation theory and design theory.
... The standards that govern how a system and its modules interact is called the network's architecture (Morris and Ferguson 1993). Henderson and Clark (1990) review two kinds of dynamic processes in modular systems: modular innovation and architectural innovation. The former type retains the architecture of the network, including its joints, but modifies the modules. ...
... In architectural innovation, the modules are largely unchanged, but the architecture that connects them (the jointing system) is changed (Henderson and Clark 1990). The speed of innovation can be fast, as a key part of the system, the modular structure, is retained. ...
This chapter is concerned with the ‘new’ world of information technology and knowledge intensity. This is a world marked by big investments in R&D, dif- ferent cost structures and significantly changed demand conditions. You should read this chapter in conjunction with Chapter 19, which deals with knowledge, information and innovation. In this chapter we are concerned with how the logic of competitive advantage applies to the new conditions in which we find our- selves. To anticipate the conclusions, we will see that the strategic context has shifted a great deal. This means that funda- mental demand and cost conditions have changed, resulting in different strategies.
... It indicates minor changes on existing product (product/service/process), enforces the potential of existing product -regarding an improvement on it -and usually empowers the dominance of established firms (Dewar & Dutton, 1986;Ettlie, Bridges, & O'Keefe, 1984;Nelson & Winter, 1982;Orlikowski, 1991;Tushman & Anderson, 1986). Although it does not end with dramatic developments in science and industry, by calling for considerable skill and ingenuity, the outcome is significant for economic consequences (Henderson & Clark, 1990) and it has particularly importance in science and economics by its follow through after the period of radical innovation (Freeman, 1987). ...
... Through the literature product, process, organizational, service, marketing and market niche innovations are detected as the main distinctive categories of innovation. In addition, modular and architectural innovations (Henderson & Clark, 1990) would be classified as specific product innovation categories through a macro level because of their focus on components of the outcome. Radical innovations affect "the nature of human interaction, productivity, commerce, creativity, and recreation" (Eisenberg & Fullerton, 2012, p. 11). ...
Aim of the present thesis is to explore and analyze recent practices of design driven innovation (DDI) in furniture industries of Turkey and Sweden. Despite the large body of literature on innovation as commercialization, there exist several directions in DDI which need to be further explored especially for developing countries like Turkey. In fact, existing studies mostly comprises of the practices of leading design-based companies to further develop the theoretical ground on DDI. By providing insights to the application of DDI theory in developing countries, we aim to enhance the scope of DDI in terms of its drivers affected by design cultures and innovativeness levels of countries. Hence, besides Turkey, this thesis explores the practices of DDI in Sweden as a leading country in terms of its design culture. Differences and commonalities of DDI practices in these countries are analyzed together to define the effects of design culture on DDI. Furniture industry is selected to frame the thesis due to its design focus and ease of application according to other technology based sectors. Through this way, we aim to better compare and contrast the evidences of different countries. An exploratory approach is internalized in which we conduct case study methods to provide evidence to the theory. Semi-structured interviews are realized with designers and designer managers of leading furniture companies of Turkey and Sweden for data enhancement and validation. Through cross-case analysis of national outcomes, we propose additional drivers to DDI theory as product segmentation, activity research, culture research and concept research.
Keywords: Design-driven innovation, innovation strategies, innovation of meanings, research for innovation
... For SMEs, family ownership may discourage 15 uncertain and resource-consuming R&D investments but also lead to higher R&D productivity, allowing them to invest less in R&D (Duran et al, 2015). The efficient allocation and utilization of R&D resources (Jensen, 2002) depends on organizational practices and routines (Henderson & Clark, 1990), adequate managerial incentive systems, and/or internal control systems (Hitt et al., 1991). Family governance can create incentives for efficiency and parsimony (Gedajlovic 20 et al., 2004). ...
... Firms need to possess dynamic capabilities (Eisenhardt & Martin, 2000;Teece, Pisano, & Shuen, 1997;Zollo & Winter, 2002) to efficiently convert innovation input such as R&D expenditure 25 into output such as patents. The efficient allocation and utilization of R&D resources (Hitt, Hoskisson, Ireland, & Harrison, 1991;Jensen, 2002) depends on organizational practices and routines (Henderson & Clark, 1990), adequate managerial incentive systems, and/or internal control systems (Hitt et al., 1991). For example, Gilbert (2005) illustrates how investments in new technologies do not necessarily result in superior products and services if, for instance, routines are not properly adapted. ...
... Most organizations are looking with bounteous serious issues in their condition, and such issues are a result of fast changes in the earth, particularly mechanical changes. Right now, representatives need to utilize the intensity of inventiveness and advancement so as to adjust and keep pace with fast changes, product offerings, the executives' practices and creation forms [11]. Promoting advancement is alluded to as development in marketing or new advertising techniques‖ with regards to key hierarchical conduct and examples. ...
The purpose of the study is to determine the level of innovation being implemented by massage spa managers in order to attract millennials in terms of product innovation, organizational innovation, marketing innovation, and process innovation. This is called quantitative research using descriptive methods. The respondents were selected by massage spa managers who answered the distributed questionnaires. The frequency, percentage, mean, ANOVA, and t-test were also used as statistical tools. There was a total of 15 respondents who participated in the study. The results of the study showed the following: The level of Innovation Strategies being implemented by Massage Spa Managers in order to attract millennials was rated very high in organizational innovation, process innovation and product innovation and marketing innovation was rated as high. There is no significant difference in the level of innovation strategies being implemented by massage spas in order to attract millennials when analyzed by age, sex, educational attainment, and length of service. The discoveries of the investigation are summed up as follows: As far as the degree of innovation strategies being implemented by massage spas in order to attract millennials, it is indicated that it is always being practiced and implemented specifically with regards to organizational innovation and process innovation, while it is oftentimes implemented through marketing innovation and production innovation.
... Zuboff argued that as it automates procedures, it' simultaneously creates info regarding the underlying processes whereby a company achieves its work'. [7] Additionally, Zuboff argued that this brand new info could be utilized to' create a unique as well as likely even more penetrating, extensive, and informative comprehension of the company [9]. This particular, in turn, could function as the catalyst for significant improvement as well as originality for the generation as well as distribution of services and goods, therefore strengthening the competitive placement of the firm' [20]. ...
Although business analytics is becoming more and more used to provide data-driven insights to support decision making, there is little research on how business analytics may be used at an organizational level to enhance decision making effectiveness. This paper develops a study model linking company analytics to organizational decision-making effectiveness, using the info processing view as well as contingency theory. Based on 740 responses from UK business organizations, the research model is examined using structural situation modelling. Key findings show that business analytics can be done through key findings. Mediating a data driven environment positively affects information processing abilities, which have a good impact on decision-making effectiveness in turn. The findings also show that the pathways from company analytics to decision making are obvious. There are no statistical differences between large and small businesses, but several differences between the manufacturing and professional services industries. Our findings add to the literature on business analytics by offering helpful insights into company analytics applications and the facilitation of data driven decision making. They also improve the knowledge and understanding of managers by showing how business analytics needs to be applied to improve decision making effectiveness.
... Cette notion s'est développée dans la lignée des travaux de recherche ayant affiné depuis les années 1960, la différence entre innovations incrémentales et radicales. Pour des auteurs comme Henderson et Clark (Henderson et Clark, 1990), l'innovation radicale est une innovation qui déstabilise le champ de connaissances nécessaires pour développer de nouveaux produits ou les utiliser. On retrouve cette idée avec d'autres auteurs qui mettent plutôt l'accent sur la notion de déstabilisation des compétences clés (Tushman et Anderson, 1986). ...
... The change can be of any size or type; the change can involve any number of people and take any length of time." Henderson & Clark [7] distinguish between the extent to which subsystems or their networking are changed. The adaptation of the networking of subsystems is also understood as the adaptation of the product architecture. ...
New technical systems are created on the basis of existing systems by different extent of taken over and newly developed and/or adapted subsystems and their linkage. Various approaches aim to characterize these different forms of technical adaptation and to make them formally measurable. The calculation of variation shares according to the model of the PGE is based on the determination of variation types with the help of the C&C²-A modelling of subsystems and the associated reference system element as well as the subsystem structure. Both can generally be selected variably. This contribution investigates the influence of these two parameters on the retrospective analysis of variation shares, using a test bench probe and an actuator in a tooling machine as examples. Variation shares are calculated for different levels of detail of the underlying C&C²-A modelling and subsystem structures with different numbers of subsystems. Observed effects regarding the identification of the variation type of a subsystem as well as regarding the calculation of variation shares for the whole system are discussed. A major conclusion of the investigation is that retrospective analyses of variation shares depend strongly on the two investigated parameters and are mostly not unambiguous.
... Bugün, ister büyük ister küçük olsun her örgütte ortaya çıkan üç büyük düşünce yenilik, yönetim ve strateji alanlanndadır. (Handy, 1995). Yönetim danışmanı Arthur D. Little'ın dünya çapındaki 700 şirketle yaptığı bir ankete göre iş liderlerinin %84 'ü yeniliğin bundan önceki beş yıla kıyasla başarı için çok daha büyük zorunluluk haline geldiğini kabul etmektedirler. ...
Paleontoloj istler; dinazorların çevresel değişim tarafından cezalandırıldıklarını
belirtmekle birlikte nelerin tam olarak değiştiğinden emin değillerdi.
Ancak bazı şeyler değişmişti ve bu canlılar değişime uyak uyduramamıştı.
Doğada evrim sürekli bir süreç olup benzer değişimler işletme çevresinde de
yaşanmaktadır. Bugün ekonomik, politik, sosyal ve yasal ihtiyaçlar, hem
yerel hem de global rekabet ve teknoloji alanındaki bütün gelişmeler tam
olarak belirli değildir. Bununla beraber personel, lider, yapı, kültür, kurum,
bilgi, müşteri ve sosyal paydaşlarla olan ilişkilerine baktığımızda örgütün
kendisi de bir değişim içindedir.
Her işletme değişime adapte olacaktır ya da gözden kaybolup gidecektir.
Yaşamanın ve bunu gerçekleştirebilmenin anahtarı ise "yenilik "te
(innovation) gizlidir. İşletmelerin bir kısmı yenilikçi ve başarılıdıriar. Birçoğu
ise hala sadece ihtiyaç duyulduğunda yenilik yapmaya çalışmaktadırlar.
Diğer bir kısmı ise yeniliği zorlu, sorun yaşatan ve pahalı bir iş olarak görmektedirler.
Ama çoğu çok önemli yaşamsal sürekliliklerini ve karlılıklarını
koruyacak olanın yeniliği yönetmeden geçtiğini bugün bile düşünmemektedirler.
Bugün, ister büyük ister küçük olsun her örgütte ortaya çıkan üç büyük
düşünce yenilik, yönetim ve strateji alanlanndadır.
... Much like in Khun's (1962) assessment of scientific revolutions, innovation is much more likely to emerge in periodical incremental contributions than radical revolutions. In this sense, from simpler distinctions like Nelson and Winter's (1982) "Radical/Incremental" to more detailed analytical frameworks such as Henderson and Clark's (1990) matrix 'Radical/Architectural/Incremental/Modular', these categorizations provide a way to classify the degree of change related to distinct innovations, highlighting the fact they are seldom homogeneous. Also, they allow us to perceive the different impacts of technology in products/services/processes innovations as a whole or only parts of it. ...
Innovation has become widely scrutinized and currently mobilizes many scientific fields in its investigation. However, there is a need for greater diligence when conducting these studies due to innovation’s broad sense and complex dynamics, ranging from individual up to entire economic, political and social systems analysis. This variety makes the organization of what has been studied about innovation an arduous task and may overshadow the collective efforts that culminated in the emergence of the innovation studies field, which has gathered many scholars and research centers around it. Within this emergent field the systems of innovation approach became central given its systemic and interconnected assessment of innovation and its dynamics. Stemming originally from evolutionary economics, this approach is cross disciplinary, involves varied contributions in social sciences and has been vital in terms of knowledge used in policy making, industrial, educational, financial and organizational spheres. The national innovation systems is the most notorious of the systems of innovation approaches and portrays innovation as a process of constant interaction, learning and knowledge flows between its components and activities. These national systems’ most relevant components are government, universities, industries and financial institutions. There are however, other institutions and organizations that interact among these main components that have only recently been investigated as innovation intermediaries, a theoretical framework that focuses on the actors that indirectly enable innovation. Science parks are an example of intermediary components in innovation systems and have been studied over decades, however, their results and positive impacts are still contested by scholars. Despite the fact that these science parks have been largely studied in isolation, it was noticed that they are also collectively represented by many associations in regional, national and international contexts. After identifying that these associations remained uninvestigated, the present thesis combines national innovation systems and innovation intermediaries to analyze associations of science parks in order to better understand their relevance in innovation processes as well as their relations with innovation systems. In a research of qualitative nature, we conducted a bibliographic research, a multiple case study of AURP Canada, Anprotec and IASP, triangulating this data with others from a documental research. The results indicate that the analyzed cases are indeed innovation intermediaries since they present ties with other systemic components and provide various services for their members that enables their innovation efforts. The most relevant services to members are those of information, networking, staff training and development, social activities & status, representation & lobbying and articulation & mobilization, while management, technology & knowledge brokering, regulation & legitimization, financing, and policing public policy services are slightly different in each cases. Additionally, a high level of ties with other intermediary organizations was identified in all cases, revealing a complex dynamic of self organizing components that often interact in a collaborative and interdependent way. These findings point to a more in-depth understanding of how innovation intermediaries act within systems to connect components, building multilateral projects that benefit the system as a whole. Also, the detailed information about how these associations contribute to science parks point to a better assessment of the science parks themselves and of how they may impact innovation through the services provided by the intermediaries they are associated with.
... Breuer (2013) reports some successful examples of Lean Innovation in venturing (see also Euchner, 2013). Innovation can be classified based on the whether it is incremental or radical (Ettlie et al., 1984), or modular or architectural (Henderson & Clark, 1990). At the heart of the innovation work is the ability to connect the strategy and tactics associated with developing a system of innovation from a macro-per¬spective, with the mechanics of effectively transitioning ideas into products, processes, organization, or business models. ...
Actionable knowledge to improve innovation and bring value to the customers and organizations
is essential in today's economy. In the past, there have attempts to apply Lean Thinking
and Six Sigma to the innovation processes, with mixed results. The aim of this article is
discuss how to improve innovation processes using the Lean and Digitize Innovation process,
which integrates digitization into the Lean Six Sigma method. Through the redesign of
innovation processes and their automation, the process aims to add value to customers, improve
effectiveness, eliminate waste, minimize operating costs, and reduce time-to-market.
This new method is characterized by seven stages, or "the 7 Ds" (define, discover, design, develop,
digitize, deploy, and diffusion), with 29 steps. This article describes the Lean and Digitize
Innovation process and presents cases where the approach has been successful in
helping innovation processes from start to end: from the definition of the value for the customers
up to the implementation of a prototype and engineering of the delivery processes
... Der Ansatz der PGE -Produktgenerationsentwicklung nach ALBERS [6] erweitert bisherige Erkenntnisse der klassischen Konstruktionsmethodik [7] und des Innovationsmanagements [8] mit dem Ziel reale Produktentwicklungsprozesse hinsichtlich ihres Neuentwicklungsan- teils beschreiben zu können. Aufgrund strenger Abgrenzungen ist eine Einordnung von Pro- dukten in bestehende Ansätze [7] schwer möglich. ...
Dem Megatrend Individualisierung folgend versuchen Unternehmen zunehmend den vielfältigen Kun-denwünschen mit einem variantenreichen Produktportfolio zu entsprechen. Die hohe Variantenanzahl erfor-dert einen steigenden strukturellen und organisatorischen Aufwand, dem die Unternehmen wiederum mit Hilfe eines systematischen Variantenmanagements zu begegnen versuchen. Hierfür ist es notwendig, sowohl die angebotene als auch die angestrebte Variantenvielfalt innerhalb des Produktportfolios kritisch zu hinterfragen. Im Rahmen dieses Beitrags werden anhand von Fallbeispielen aus der Industrie charakterisierende Aspekte für Varianten empirisch untersucht. Basierend auf den gewonnenen Erkenntnissen wird eine Systematik vor-geschlagen, die eine frühzeitige Einordnung ermöglichen, ob das bearbeitete Objekt als Variante oder neue Produktgeneration zu verstehen ist. Die Einordnung erfolgt anhand von binären Leitfragen und einer Formel zur Differenzierung. Die gewonnenen Erkenntnisse lassen sich im Anschluss nutzen, um die Auswirkungen auf das vorhandene Produktportfolio abzuschätzen und strategische Entscheidungen zu unterstützen. Die An-wendung der Systematik ist ebenfalls anhand eines Fallbeispiels aus der Industrie dargestellt. Abstract: Following the megatrend individualization companies are increasingly trying to meet the diverse customer requirements with a varied product portfolio. The large number of variants requires an increasing structural and organizational effort which companies try to address with a systematic variant management. It is necessary to question both the offered as well as the desired variety of variants critically. In this article at first empirical case studies are conducted to identify characterizing aspects of variants. Based on the findings a systematic is proposed which allows an early classification whether the edited object is to be understood as a variant or a new product generation. The classification is based on binary guiding questions and on a calculation formula for differentiation. The result can be used to assess the impact on the existing portfolio and to support strategic decisions. The application of the systematic is illustrated by a case study from the industry.
... The basic idea behind mirroring has different names in different fields. Organizationdesigntreatsmirroringasanapplicationoftaskcontingencytheorytoproductdesign and development (Lawrence Lorsch, 1967; Drazin Van de Ven, 1985) whereas computer sciencelabelsthephenomenonasConway'sLaw( Conway,1968).Ingeneral,mirroringhypotheses predicts correspondence between technological and organization design decisions but does not imposedirectionofcausality(ColferBaldwin,2010).Previousresearchhasfoundthatitmight be the organizational structure affecting the technical design ( Henderson Clark, 1990), or the technical design affecting the organizational structure ( Chandler, 1977) or there might be reciprocal relationship ( Fixson Park, 2008). Open source development communitieshavebeenexaminedwhenitcomestomirroringbetweentechnologicalarchitecture and ecosystem architecture; however, proprietary technology development projects at the ecosystemlevelhavenotbeenexamined.Topositionsuchmirroringstudyattheintersectionof literature on organization design and organizations as complex systems at the ecosystem level ( Gulati Kletter, 2005;Fjeldstad et al., 2012;Gulati et al., 2012) and the literature on product designandproductsincomplexsystems( Alexander,1964;Parnas,1972Parnas, ,1978Ulrich,1995)would be intuitive and analogical, given the intellectual home of mirroring hypothesis. ...
The aim of this dissertation is to bridge and synthesize the different streams of literature addressing ecosystem architecture through a multiple-lens perspective. In addition, the structural properties of and processes to design and manage the architecture will be examined. With this approach, the oft-neglected actor-structure duality is addressed and both the position and structure, and action and process are under scrutiny. Further, the developed framework and empirical evidence offer valuable insights on how firms collectively create value and individually appropriate value.
... (4) Moreover, the innovation discontinuity can also differentiate the ACAP intensity for a CIN. In fact, (Henderson & Clark 1990) argue that organizations might have more difficulty to absorb knowledge in case of architectural to radical innovations than the one related to incremental to modular ones, since these innovations require changes in the implicit knowledge that is embedded in communication channels, filters and strategies. This is even more accurate in the case of a CIN since architectural innovations would require changes in the collaborative work at the boundaries between the network actors (Unsal & Taylor 2011). ...
More organizations are conducting their innovation projects in collaborative innovation networks (CINs), enabling them to access to critical knowledge and jointly achieve their innovative targets. In this respect, they need to commonly deploy their absorptive capacity, that is to say acquire valuable knowledge from each other or from outside the network, assimilate it and apply it so as to reach their common innovation objective.
While collaborative networks are becoming critical for innovation, no prior research has identified the absorption practices in this specific context. This paper aims to uncover this gap by proposing an operationalization of the absorptive capacity for a collaborative innovation network.
For this purpose, we first conducted 3 case studies of CINs in mechanical, software and medical sectors that we qualitatively analyzed using N’Vivo, generating an initial framework of practices. Then, we organized two focus groups with researchers and practitioners to discuss and enrich our proposed operationalization.
Based on a qualitative methodology, our results highlight the practices, that is to say actions and attitudes that enable knowledge absorption within CINs. Theoretically, it completes the understanding of the absorptive capacity concept by enlarging its scope to the context of a CIN.
... Product modularity was therefore a crucial part of the business model. For such a platform strategy, it was crucial that both parties (module developers and Google) shared the benefits of the concept [53]. Similar to the Google Play Store for apps, where Google currently receives 30% of the revenues (operating fees) [54], it was expected that revenues from the hardware store would be split (IV5, IV12). ...
Mass Customization (MC) has become a major trend in the consumer goods market in recent years. While the economic chances and threats are already described very well, the social and environmental impact of MC products remain unclear. Phonebloks, a design study of a modular smartphone launched in 2013, created a vision about fostering sustainability through MC. Teaming up with Google's Project Ara, a modular and customizable smartphone approach seemed very likely to reach market maturity. In 2016, Google canceled Project Ara shortly before the awaited market introduction. Analyzing the rise and fall of the first large scale MC based business model that was initially designed to foster sustainability in the consumer electronics market, gives us the opportunity to revise the economic, social and ecologic potential of modular and customizable smartphones in general. Furthermore, with constantly growing consumer requirements for new product iterations in shorter time frames, traditional measures for success, such as time-to-market, could change inherently as we are moving closer towards iterative product development processes and much shorter product life-cycles. This, in turn, leads to major changes for ramp-up processes. Using a qualitative case study approach based on expert interviews at two different stages of the Project Ara development process (2015 and 2017), we shed light on the future of modular and customizable smartphones and their economic, social and ecologic sustainability potential. We show that while Project Ara failed in the end, it had the economic potential to outperform its competitors in the field of modular smartphones. We find that an MC approach could lead to longer smartphone or, at least, component life cycles. Finally, we affirm a positive potential for influencing sociocultural behavior in the long tail of the smartphone market.
... The error terms in each regression are linked using a 3SLS regression (see Sakakibara (2010) for similar approach). attractive to licensees as they more likely produce innovations based on valuable architectural knowledge ( Henderson and Clark, 1990), and have the better abilities to transfer the technology ( Ceccagnoli and Jiang, 2013). Our results support these arguments that deep and broad knowledge confer licensors with opportunities and stances that work to slow down the speed of licensing. ...
There has been much research interest in the speed of innovation, although few consistent findings have emerged. In this study, we unpack the innovation process and focus on the commercialization stage to examine two questions: Which licensor and patent characteristics determine the speed of licensing? How does the speed of licensing impact the royalties and lump-sum payments to licensors? We addressed these questions by proposing that licensing speed is influenced by variables for licensor prominence (size and experience), licensor knowledge structuration (technological depth, technological breadth and experience), and patent appeal (forward citations, scope and complexity). We predict and find that these variables work to increase the size, complexity and duration of the licensing-out task, while also allowing licensors to take their time to review, negotiate and select agreements with higher royalty rates. These findings are counter to arguments for a fast-paced innovation strategy, as it suggests that for the commercialization stage of the innovation process the relationship between licensing speed and licensor royalty rates rewards a ‘less haste, greater payoff approach.
... Family managers must fit the level and type of resources needed (namely physical/financial, human and relational capital) for generating process innovation efficiently, which requires resource orchestration ( Helfat et al., 2007). In short, family managers may cause an (in)efficient assignment and use of resources ( Jensen, 2002)-through the employment of firm practices and routines ( Henderson & Clark, 1990) that (hinder) stimulate process innovation, (deficient) satisfactory managerial incentive and control systems ( Hitt, Hoskisson, Ireland, & Harrison, 1991 The theoretical model and the proposed hypotheses are presented in Fig. 1. based on their direct responsibilities and access to information (on average, the survey was filled by approximately 2.5 individuals in each firm). Thus, the quality of this survey data is also ensured, as well as a subsequent validation of the contents. ...
The analysis of technological innovation in a family business context has become a relevant topic in management literature. However, there is a lack of studies examining process innovation and the real impact of family management on the relationship between innovation inputs and outputs. Based on a longitudinal sample of 922 Spanish manufacturing firms, this paper empirically explores the moderating role of family management on the relationship between input mix and the occurrence of process innovation. The results show that family management increases the conversion rate of innovation inputs into process innovation outcomes.
... Research has demonstrated that radical innovation is much less frequent than incremental innovation, only accounting for approximately 5-10 percent of innovations (e.g. Henderson and Clark, 1990;Stringer, 2000;Lassen and Laugen, 2011). However, radical innovation has been demonstrated to affect the long-term performance of companies, and it is considered to be highly important as a primary driver of change, renewal, and economic growth. ...
Purpose
The purpose of this paper is to test the effect of internal and external collaboration on the degree of newness (incremental/radical) in innovation projects. This adds to the understanding of the particular patterns of open innovation (OI) and what characterizes the innovation emerging through this approach.
Design/methodology/approach
Tests are performed on the effect of internal and external collaboration on the degree of newness (incremental/radical) in innovation projects. This adds to the understanding of the particular patterns of OI and what characterizes the innovation emerging through this approach. The empirical analysis is based on a data set including responses from 512 Danish engineers.
Findings
The results show that external collaboration has significantly different effects on the degree of newness depending on the type of external partners involved, and they also show that radical innovation output is positively related to involving the R&D department (internal) and universities (external involvement) and negatively related to involving suppliers.
Originality/value
The results provide a more detailed understanding of how different OI patterns affect the development of incremental vs radical innovation in existing organizations. In particular, three findings add new insights into how OI affects innovation to reach the highest degree of newness: high importance of collaboration with external partners with distinct interests and skills; low reliance on existing customers and suppliers for the development of radical innovation; and narrow and focused internal involvement rather than broad internal involvement.
... Imitation also allows late movers to build absorptive capacity for further innovation (Cohen and Levinthal 1990). Imitation can also be a stepping stone to innovation, because innovation often comes from borrowing rather than invention, and new knowledge is not created on its own but from learning and recombining existing knowledge (Fleming 2001, Henderson and Clark 1990, March and Simon 1958. ...
... Literature on product architecture has interesting developments that consider the interaction between the firm and its users. Based on evidence of the relationship between product architecture and the success of firms, these studies confirm that the division of labour in firms reflects the principle of bounded rationality and consequently mirrors the configuration of the product into the information processing structures of the firm [40,41]. As a consequence, the arrangement of the product architecture can affect the organisational learning curve and the exercise of authority between organisational divisions [42]. ...
This paper examines the role of design in the creation of new firms. A new interpretation of firm design is developed to explain the dynamics of entrepreneurship. This paper seeks to expand the conversation between design and management studies by focusing on the concept of shaping the firm. The study of the shape of the firm seeks to characterise the dependencies between the features of products and the organizational possibilities of new firms. We intersect theories from the fields of management and design theory to examine the shape of the firm in the entrepreneurship context. From this study, opportunities are identified for research approaches to address the entanglement between the shape of the product and the shape of the firm. Implications for practice are discussed.
... The fragmentation of product technological development and manufacturing stimulated a new organisation of production and value chain governance (Sanchez & Mahoney, 2013;1996;Henderson & Clark, 1990;Colfer, 2007;Colfer & Baldwin, 2010;Battisti, Colombo, & Rabbiosi, 2014). The modular pattern of product development and engineering enabled dividing the value chain into separate functional elements for which individual companies could be responsible (Langlois, 2002;Sturgeon, 2002;. ...
Objective: The aim of the paper is to present modular value chains (MVCs) as a technological and organisational phenomenon that affects industrial organisation and innovation, and to identify the characteristics and types of SME positions (roles) in modular value chains that are associated with innovation development and growth. Research Design & Methods: The study employs two methods, which are literature review and a multiple-case study approach based on two SMEs in the IT industry of which one acts as an independent innovator generating proprietary solutions and the other one is a supplier of production capacity in the area of lower to medium value-adding solutions. Findings: SME roles in modular value chains range from lowest-tire subcontractors in captive or market-based governance to major roles typical of large players in modular governance, e.g., quasi-lead firms and quasi-contract manufacturers. The latter two roles are associated with innovation and high growth. Implications & Recommendations: The recommendations as to the role of public policy and geographical context are provided regarding how to facilitate SMEs’ integration into MVCs with a focus on innovativeness and expansion. The question for further research is whether the roles identified in the case studies can be treated as SME-specific models of participation in modular value chains, or are they only development stages of growth SMEs towards the roles of large firms – leader firms and contract manufacturers (system integrators). Contribution & Value Added: The paper contributes by identifying the roles that SMEs can play in modular value chains and by identifying governance arrangements that SMEs apply to accomplish innovation and high growth.
... knowledge sharing) but that it is crucial to pay equal attention to the underlying characteristics of the knowledge that is being deployed (Grant 1996b). When firms interact with multiple partners through alliance portfolios, their focus shifts from a predominant consideration of the characteristics of knowledge embedded within organizations (Henderson & Clark, 1990) to a greater attention for the characteristics of knowledge residing in the external environment (Garriga, von Krogh, & Spaeth, 2013). ...
Our research extends the current knowledge based view on the configuration of alliance portfolios and their deployment in different external knowledge environments. We study these alliance portfolios in a longitudinal sample (1996-2010) for over three thousand firms that operate in a large number of industries in the Netherlands. Our findings indicate that partner type variety and partner type relevance, as different dimensions of partner diversity in alliance portfolios, both have an inverted U-shaped association with firm innovation performance. However, alliance portfolios characterized by both high partner type variety and high relevance cause inferior innovation performance. Different external knowledge environments, characterized by different levels of industry modularity and scope of knowledge distribution, moderate the inverted U-shaped associations of partner type variety and relevance in alliance portfolios with firm innovation performance in opposing directions. While for partner type variety, a high level is found to be optimal in environments with greater modularity or broader scope of knowledge distribution, for partner type relevance it turns out that a low level is optimal under more modular industry conditions. This article is protected by copyright. All rights reserved.
... Furthermore, dichotomous classification of innovation into radical and incremental is, according to some scholars (Henderson & Clark, 1990;Tushman, Anderson & O'Reilly, 1997), insufficient to capture the current trends, too general, and conceptually ineffective. Thus, user innovation literature would gain from some additional insights on types of changes that are created by users, whether they are incremental or radical in respect to market and technology, architectural, modular or generational. ...
Given the rising role of users in innovation processes and the increasing amount of research in this field the aim of this paper is to explore the limits of our understanding of the user innovation (UI) concept. In doing so, the study addresses four basic questions: (1) Why do users create and share innovation? (2) Who is the user-innovator? (3) What type of innovation do users create? (4) How do users innovate? The results of a systematic literature review identified the main research streams on user innovation, together with weaknesses of past research and perspectives for future studies.
... Current economies show the advent of many technological advances in information technology, biotechnology, nanotechnology, etc. that generate corporate, industrial and economic change (Arora et al., 2001;Henderson and Clark, 1990;Nicholson et al., 1990;Teece et al., 1997;Van de Ven at al., 2008;von Hippel, 1988). The literature in these research fields has suggested several approaches to explain the technological and industrial change, such as the theory by Christensen (1997Christensen ( , 2006) that introduces the concept of disruptive technologies of new entrants that disrupt the competitive advantage of incumbents in the presence market dynamisms. ...
This study proposes the concept of disruptive firms: they are firms with market leadership that deliberate introduce new and improved generations of durable goods that destroy, directly or indirectly, similar products present in markets in order to support their competitive advantage and/or market leadership. These disruptive firms support technological and industrial change and induce consumers to buy new products to adapt to new socioeconomic environment. In particular, disruptive firms generate and spread path-breaking innovations in order to achieve and sustain the goal of a (temporary) profit monopoly. This organizational behaviour and strategy of disruptive firms support technological change. This study can be useful for bringing a new perspective to explain and generalize one of the determinants that generates technological and industrial change. Overall, then this study suggests that one of the general sources of technological change is due to disruptive firms (subjects), rather than disruptive technologies (objects), that generate market shifts in a Schumpeterian world of innovation-based competition.
... As the theory developed this path dependence was succinctly described as the tendency for precedents to become normative standards ( Hannan and Freeman, 1984). Incremental innovation reinforces the normative standards and the capabilities of established organisations, whereas more ambitious innovation strategies force organisations to ask new questions and to develop new skills ( Henderson and Clark, 1990). Thus, if organisations are seeking to overcome organisational inertia then they must develop new organizational capabilities. ...
Rigidities describe the sluggishness of an organization's response in the face of discontinuous external change, and routine rigidity is the failure to change the organization's processes. This article aims to provide empirical evidence that substantiates the relevance of routine rigidity in the discussion on environmental sustainability. A qualitative approach employs a logic model to analyse two sequences of events and tracks the implementation of innovations that had been overlooked for some time. The evidence shows that the selected organizational innovations were previously inhibited by a failure to change the organization's formal processes and informal cultural norms. This is especially true of innovations that altered the daily routines of the focal firm's employees and of innovations that potentially alienated customers. The characteristics of the innovations (high impact and low barrier to implementation) indicate that firms are now less able to justify inaction through the traditional barriers of environmentally focused innovation. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
... Les développements de cette théorie offrent une typologie des configurations des droits de propriété [Alchian et Demsetz, 1972 ;Jensen et Fama, 1983, Henderson et Clark 1990, dont la thèse centrale de la supériorité du système de droits la propriété privée sur tout autre. Dans la perspective agroalimentaire, Demsetz [2008] défendait cette thèse. ...
Cette recherche apporte un éclairage sur l’effet de certains mécanismes de la gouvernance d’entreprise agroalimentaire sur son niveau d’innovation. Notre étude est menée sur un échantillon de 44 entreprises d’un segment de la filière boissons (69,2 %), en étudiant l’influence de la structure de propriété (sa forme, sa nature, l’engagement de propriétaires, et le conseil d’administration, comme des éléments constituants) et la capacité cognitive de l’entrepreneur, sur la vitesse de l’innovation. Dans cette recherche, nous déployons une méthode nettement empirique en utilisant deux types de modélisation pour les déterminants de l’innovation, une régression linéaire multiples, de type MCO, et une régression logistique, de type Logit Binaire. Les résultats de l’étude montrent que les variables de la gouvernance d’entreprise agroalimentaire ont une influence significative et particulière sur sa capacité d’innovation.
... In particular, for instance, technical systems evolve by integrating all the elements that constitutes the system, in order to reduce human active involvement, or to proceed from macro to micro level, as it has been happening in all contemporary technical systems. These changes affect single components, or the entire architecture (Henderson and Clark, 1990), but in any case, new products can be interpreted as a set of modifications to the system, that make the difference if compared to their predecessors. Independently by the level at which they occur (i.e. ...
The development of radical innovations includes issues in several stages, from choosing which project support to design phases. Indeed, the technology behind radical innovations usually leads to wrong investing decisions, and even when these decisions are correctly taken, designers can not rely on customers and have to face the tough task of designing a product without having a clear idea of the effects on customer perception. Hence, the present study proposes a model that evaluates which are the most appropriate design decisions in order to have a more promising product, and, accordingly, estimates the chance of success of new ones. The model is based on a database of past successful innovations and market failures, which are used to build the metric applying a Logistic Regression. The model can be used by designers to getting advice on how specific design choices affect product success, and by managers to addressing resources to the most promising projects.
Solving the great problems of our time will require reimagining capitalism by balancing the power of the free market with capable, democratically accountable government and strong civil society. Changing the purpose of the firm has the potential to make this process of rebalancing significantly easier. Purpose-driven firms could be catalysts in the drive for systemic change by supporting transformation within their own industries, supporting cooperation in the public interest and modelling public/private partnerships, and supporting the strengthening of global democracy. Transforming the purpose of the firm will require not only changing corporate law, but also changing the metrics used to control and measure firms and the social norms that constrain and guide corporate behavior.
The banking industry has always been at the forefront when using modern technologies and innovations to conduct its business and now experiences the era of digital transformations suffering the impacts of disruptions in its various lines of business. At the same time that banks deal with market pressures and regulators need to act quickly to remain competitive against new competitors that are not trivial and use digital technologies to access entire markets or parts of the banking business, as is the case with Fintechs (Technology companies that operate in the financial sector) and Big techs (Big technology companies), which represent imminent risk to banks and that can access their markets with great speed and high impact, as is the case of Google, Amazon, Facebook and Apple . Digital natives use new technologies and do not have great legacies as old systems and physical agencies can evolve more quickly in the digital world. These accelerated transformations bring great opportunities and risks to the banking business model, challenging the fundamentals of this sector, from which emerges the need to understand the relationships between competitive and innovation strategies that have high potential to generate highly relevant competitive advantage. The present study analyzes the relationships between competitive strategies and innovation strategies in large private banks. In this context, the word relation refers to the influence, causality or organizational results perceived by the leaders of the organization targeted by the research. To achieve the objectives, a case study was carried out in a large private organization in the Brazilian banking industry, which is one of the largest banks in Latin America. This study is the first to identify the existing relationships between competitive and innovation strategies in a large organization in the banking industry considering (1) to identify the competitive strategies and innovation strategies adopted by the target organization of the research, (2) to identify the possible relationships between competitive strategies and innovation strategies, (3) identify whether, in the perception of executives, the results of this relationship contribute to obtaining competitive advantage. The results obtained were satisfactory and obtained with the use of qualitative methodology, supported by widely studied theories, view of the banking industry of the author who works in large banks in Latin America as a senior executive in the areas of technology, innovation and business combined with solid experience and vision of the leaders of the research target organization.
Keywords: Innovation Strategies, Competitive Strategies, Banking Industry, Financial Services, Private Banks.
Der Einsatz von Methoden der Zukunftsvorausschau ist für viele Unternehmen ein wichtiger Erfolgsfaktor, da er die Möglichkeit der frühzeitigen Identifikation von Veränderungen, Potentialen und Risiken sowie die Ableitung von entsprechenden Maßnahmen bietet. Probleme ergeben sich in der Praxis in Unternehmen derzeit dabei, die Ergebnisse der Vorausschau in systematischer Form für die Zielsystembildung in der Frühen Phase der Produktgenerationsentwicklung nutzbar zu machen. Wesentliche Herausforderungen liegen in der Interpretation und Aggregation der Informationen aus der Vorausschau sowie der gezielten Verknüpfung mit bekannten Ansätzen zur Potentialfindung wie Produktprofilen. Darüber hinaus ist die Integration von lösungsoffenen Aspekten (z.B. Differenzierungsziele: Das Fahrzeug bremst besser als der Wettbewerber), wie sie häufig aus der Vorausschau resultieren, und lösungsspezifischen Aspekten (z.B. das Fahrzeug nutzt die bestehende Bremse aus dem Baukasten), die häufig auf Vorgängergenerationen oder anderen Referenzsystemen stammen, notwendig.
Im vorliegenden Beitrag wird daher ein Vorgehensmodell zur systematischen Überführung von Zukunftsszenarien in Produktprofile entwickelt. Das Vorgehensmodell stellt einen Leitfaden zur Entwicklung des initialen Zielsystems bereit. Zur Unterstützung der Phasen des Vorgehensmodells wurden gezielt Methoden entwickelt, die zum einen aus der praktischen Anwendung in der Automobilentwicklung abgeleitet und zum anderen auf Basis von Forschungserkenntnissen integriert werden. Sowohl für die Entwicklung als auch zur Evaluation des Vorgehensmodells und der Methoden wird dabei neben der Praxis der Automobilentwicklung ein studentisches Live-Lab genutzt.
Innovation literature advises the organizations to follow innovation in different aspects of their activities, especially in their products, as a key factor of competitive advantage. To sustain this advantage, they need to follow the process innovations fit to and aligned with those product innovations. This article is to propose the process innovations fit to the product innovations of the organizations, especially in defense industry, to improve their performance by following the proposed model. Therefore, the conceptual model which is derived from the literature study is tested in a population consisting of several organizations in the defense industry.
To conduct the test, the product and process innovation strategy of each organization is assessed and then compared to the proposed model and the sample is divided into two groups based on following the proposed model. By a comparison of the performance in the organizations following the proposed model, with those who didn’t follow the model, it is observed that the followers of the model had a meaningful superiority in performance than the other members.
Finally, the regression model of organizational performance as a function of coordination with the model is described, and based on the statistical results; the theoretical results and several titles for the future research are suggested.
The intensification of the international competition and the necessity to compete in a global context push companies to introduce new organizational forms; the continuous evolutions of the contexts both in terms of market demand and available technologies, the progressive reduction of the time-to-market, the necessity to personalize the offering according to the expectations of the single customer favour the development of new organizational paradigms such as the ”networked enterprise”. Supply-chain organization constituted by clients and suppliers has to consider also a series of actors with very different competences and specializations. If the concept of innovation is interpreted as the output of a new recombination of existing factors, nets of companies appear proper and coherent with the development activities. In many industries the access to tacit and distribute knowledge constitutes one of the principal critical success factor: for example, in the textile industry, the interaction with actors such as research centre, designer, design services, etc. allows to access and to interpret the diffused knowledge along the entire development chain. In this kind of scenario the ICTs cover a critical role. The identification of a model able to describe potential interrelations and synergies between ICTs and organizational structures has to consider a double aspect: (i)On the one hand the diffusion of new organizational models based on the networked enterprise constitutes a continuous stimulus for the creation of new technologies able to improve the effectiveness and the efficiency of the knowledge flows; (ii)On the other hand the availability of new information technologies offers the opportunity to create new organizational models. The increasing presence of international competition as well as the importance of socio-cultural and contextual settings are transforming the future of industrial and social scenarios. The increasing pressures of international competition are challenging companies that find themselves unable to reach international sources of supply of components and knowledge, as well as unable to offer their products and services worldwide. Moreover, historical, social, demographic and industrial factors are also forcing companies to develop a system of offerings that merge profitability with social and cultural values. Couple these factors with an ever-increasing standard of living means that the development of products and industrial processes in order to survive must not only be profitable for the manufacturers, but also socially constructive. For this reason companies must develop the knowledge and new product development processes that can support them in designing and developing socially, culturally and physically constructive products. The obstacles that obstruct the development of this kind of products are related to two fundamental capabilities: the capability to develop new technologies, and the capability to understand and design new lifestyles. While several methods exist that support companies in understanding the needs from a technically functional basis (such as Quality Functional Deployment) or in managing the explicit knowledge of organisations (Knowledge Management Systems), a methodology for the identification, capturing and interpretation of value intensive information related to socio-cultural trends and latent needs is less formalized.
R&D stands for Research and Development and while research is essential for new product development in biotechnology, the development and its integration with research (the transfer from research to development) is underexplored. Without efficient and successful process development, biotech companies would not sustain in the long run as process development is a necessary condition en route to industrial commercialization. Based on qualitative interviews with 31 biotech companies and experts, we test a framework with technological, operational and organizational boundary conditions influencing the transfer between product and process development. Our results uncover two additional dimensions: relational and market determinants. We further identify uncertainties in the transfer and investigate if standardization can mitigate these uncertainties and eventually facilitate the integration of product and process development. We find that standardization is a beneficial mechanism for successful integration of the front end of process development activities. The present investigation contributes to the understanding of standards as a knowledge and technology transfer instrument for complex and critical development activities.
The authors show how to use the house of quality, which is the core of quality function deployment (QFD), to develop strategically aligned innovative capabilities. The proposed framework integrates extant prescriptions and assesses the alignment of innovative capabilities with business-unit innovation strategy using a structured, systematic, and customizable approach. The framework was tested using a sample of software business units in India. Results indicate a good fit of the framework between strategic capability and innovation performance, and between ideation capability and innovation performance. The results suggest that the framework may be very useful to business units that can customize the list of constituent innovative capabilities to the specific characteristics of their industry.
This paper investigates the contribution of external-to-the-firm knowledge to the inventive process inside companies by exploiting a survey of industrial inventors combined with patent data. In the empirical analysis, inventors’ knowledge sourcing strategies are employed as explanatory factors for their inventive performance. The results suggest that both the separate and joint use of external scientific and market knowledge are positively and significantly associated with inventors’ quantity and quality of inventions. In addition, higher levels of education act as a moderating factor of the joint use of scientific and market knowledge. Tracing a positive link between external knowledge and individual inventive process is relevant for research as well as policy, considering that knowledge exchange across a wide range of organisations is at the core of the innovation policy agendas in most countries.
Research Summary: While it has long been recognized that the business model can be a source of performance heterogeneity, less is known about how the business model affects consumers' perceptions about a firm's products and services. By taking a demand‐side perspective, I argue that business models create and capture value when the elements that compose a business model improve how consumers perceive a firm's products and better enable heterogeneous consumers to act on their willingness‐to‐pay. I develop theory on how the freemium business model competes with the premium business model and test hypotheses in the market for digital PC games. Results show that freemium games are played less and generate less revenues and that greater variety in games' menus of paid items is associated with higher revenues.
Managerial Summary: Freemium business models are increasingly prevalent in the digital economy, yet very little is known about how freemium affects consumers' perceptions of value and their willingness‐to‐pay. In this article, I study how the freemium business model competes with the premium business model in the market for digital PC games. Results show that freemium games are played less and generate less revenues than premium games and that greater variety in games' menus of paid items is associated with higher revenues. This implies that in order to achieve competitive parity with firms operating the premium business model, firms operating the freemium business model need to create more value (e.g., through improved product quality, income from advertisements, or unlocking network externalities) or operate at lower costs.
This conceptual paper extends the traditional view of disruptive change, which considers the effects of rivalry between an incumbent and new entrant firm, by examining the impact of disruption upon the ‘innovation ecosystem’ in its entirety – the group of organisations that collaborate in creating a holistic value proposition for the end-user. Following Adner’s “ecosystem-as-structure” perspective, we develop propositions that anticipate structural differences between incumbent and disruptive innovation ecosystems, and then review these propositions in the context of three historical, disruptive innovation cases; Bakelite (a synthetic plastic), microwave oven, and photocopier. Through these cases, we illustrate that the manner of innovation ecosystem reconfiguration is likely to depend on the design attributes of the product, as well as the type of disruption experienced. We conclude by reflecting upon contemporary cases of disruption enabled through digital technologies, and proposing a framework that can guide future research. © Universidad Alberto Hurtado, Facultad de Economía y Negocios.
Building on the recombinatory view of innovation and an institutional perspective, this study investigated how the level of institutional development in a firm’s home region and the institutional distance between the home and export markets might influence the effectiveness of learning through exporting. For exporters in emerging economies, more support for R&D and better-developed market intermediaries at home were found to enhance the positive effect of exporting on firms’ innovation, while market openness in the home region tends to dampen it. Exporters exporting more to other emerging economies tend to be more innovative than those exporting more to advanced markets. These findings arise from an empirical study of exporting and innovation among Chinese manufacturers.
The urgent need for innovation to address multifaceted and intertwined water-related challenges is becoming increasingly clear, acknowledged and responded to with cumulating sources and amounts of funding. Nevertheless, the water sector has been claimed to be less innovative than other sectors. This Special Volume (SV) on the dynamics of water innovation is based on the realization that, in general, there is a striking absence of academic studies on the dynamics of water innovation. This SV is therefore designed to lay the foundations for the field of water innovation studies, in an effort to integrate the emerging insights. Together, the contributions in this SV capture the current understanding of the dynamics of water innovation and provide insights into how the water innovation process can be fostered. The purpose of this introductory article is threefold, namely to frame the discussion on water innovation dynamics in order to contextualise the contributions of this SV, to provide systematic guidance for studying water innovation dynamics and to suggest the way forward for water innovation studies. It captures the extent of the field of water innovation studies with a review of the literature of the last three decades and frames water innovations. Based on five decades of innovation research and drawing on three areas (management, strategy and policy), we provide an innovation studies taxonomy that consists of four organising dimensions: type of innovation, stage of innovation, level of analysis and measurement. This taxonomy enables researchers to study the dynamics of water innovation from different combinations of conceptual and thematic angles, drawing on the field of innovation studies in a systematic fashion. Finally, we reflect on the way forward for water innovation studies with suggestions for future research.
A inovação apresenta-se nas organizações na implantação de um produto, método de produção, marketing ou organizacional, novo ou significativamente melhorado, na empresa, em seu mercado ou no mundo, gerando competitividade. A pesquisa teve o objetivo de identificar inovações em uma empresa do ramo vitivinícola da Serra Gaúcha, entre 2005 e 2015. Realizou-se uma pesquisa qualitativa, por meio do estudo de caso único, exploratório, por meio de entrevistas individuais em profundidade com o Diretor e o Enólogo da Vinícola. Para a análise de conteúdo, foi utilizado o software NVivo 11® e realizada uma codificação a priori com base no referencial teórico. Na análise de conteúdo das entrevistas, identificou-se que a Vinícola implementou 26 inovações, nas dimensões, nos tipos e graus de novidade. Conclui-se, que as inovações apresentadas são resultado do trabalho familiar, com foco na qualidade, desenvolvendo vinhos finos de excelência. ABSTRACT Innovation presents itself in organizations in the process of a product implantation, method of production, marketing or organizational, launched or significantly improved, in the company, in its market or in the world, engendering competitiveness. The research had the objective of identifying innovations in a winery company in the Serra Gaucha between 2005 and 2015. A qualitative research was conducted through a single, exploratory case study, through in-depth individual interviews with the Wine Director and Winemaker. For the content analysis, the software NVivo 11® was used and a priori codification was carried out based on the theoretical reference After analyzing the content of the interviews, it was identified the Winery implemented 26 innovations, in the dimensions, in the types and degrees of novelty. According to the interviewees, the innovations are results of the family work, focusing on developing the quality and excellence of fine wines.
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