No full-text available
To read the full-text of this research,
you can request a copy directly from the authors.
The Three Stages of Disruptive Innovation: Idea Generation, Incubation, and Scaling
Abstract
Facing imminent disruption, many large, established firms have embraced innovation as a way to develop new growth businesses. To succeed in the face of disruptive change requires established firms to master three distinct disciplines: ideation, to generate potential new business ideas; incubation, to validate these ideas in the market; and scaling, to reallocate the assets and capabilities needed to grow the new business. This article illustrates how two successful firms (Amazon and IBM) have developed approaches that address all three disciplines.
... The global scenario is characterized by the presence of great transformations arising from new technologies [1]. Thus, products, services and business models need to be constantly rethought within a new ecosystem, leading to a constant concern for the companies to be able to predict and be ahead of these changes. ...
... Open innovation is a type of external innovation, since it consists of a decentralized process of innovation, in which companies interact with different stakeholders to share knowledge. This model allows the collaboration and co-creation between different agents of the entrepreneurial ecosystem, directly impacting the development of new products, services, processes, and business models [1], [19]. ...
... Another benefit for the start-up is the access to the market, facilitated via the transfer of information and knowledge from the corporation about the consumer market, also enabling scale gains [29]. Thus, companies can maximize the market opportunity of accelerated companies [1]. Other benefit for start-ups to be highlighted is the networking, generating a greater recognition and reach [30], and favoring the other potential partnerships [31]. ...
The current fast-changing scenario, mainly
impacted by aspects related to digital transformation, requires
companies to keep high levels of innovation and technological
development to remain competitive. In this sense, the
collaboration with start-ups has been seen as an efficient
solution for this matter, in which the Corporate Accelerator
Model presents itself as one of the opportunities that satisfy all
the involved parties. The present work aims to identify the
dominant benefits, challenges, and critical success factors of
Corporate Accelerators. For this purpose, the methodology used
comprises three main steps: (i) a Systematic Literature Review
using the PRISMA Method to map the major publications
related to the topic; (ii) a bibliographic analysis of the most
important quantitative indexes related to the portfolio of
articles; and (iii) a Content Analysis, supported by the MaxQDA
software. The results include a descriptive analysis for a final
portfolio with 32 articles, which provide a better comprehension
of the evolution scenario about Corporate Accelerators. In
addition, the main benefits and challenges were identified, both
for the start-up and larger companies that carry out accelerator
programs. Furthermore, 13 critical success factors were
organized into three dimensions related to Strategy,
Management, and Structure. Thus, the present research
contributes to the discussion about Corporate Accelerators,
providing tools to assist companies to structure Corporate
Accelerator Programs, focusing on key matters that have been
proven to be directly linked to success.
... Strategic alliances refer to voluntary partnerships among firms to exchange, share, or co-develop technologies, products, or services (Gulati, 1998: 293). An alliance network represents a valuable channel through which technology scale-ups can access and orchestrate the resources needed for growth (Carnes et al., 2017;O'Reilly and Binns, 2019). Furthermore, alliance networks are composed of network communities, each with its structure of relationships and idiosyncratic information flows and resources (Baum et al., 2003;Gulati et al., 2012;Reagans and Zuckerman, 2001). ...
... More specifically, Zeng et al. (2023: 632-633) assert that to achieve successful scaling, a firm needs to maintain an "effective network of interconnected actors to build an ecosystem with shared resources, network externalities, knowledge spill-overs, local endowments, and governmental support." Hence, a firm's alliance network represents a valuable channel through which scale-ups can access and orchestrate the resources needed for growth (Achtenhagen et al., 2017;Carnes et al., 2017;O'Reilly and Binns, 2019). Nevertheless, the role of alliance networks in a firm's MRBS has remained relatively underexplored. ...
Which factors lead to firms' massive rapid business scaling? The prior work has predominantly focused on factors inside the firm, assuming that the possession of internally controlled idiosyncratic resources and capabilities largely explains the phenomenon. We extend this work by arguing that the alliance network community in which a scaling firm is embedded represents a distinct valuable channel through which it can access and orchestrate resources needed for its rapid growth. Network communities are structural groups of firms that are densely connected internally and sparsely linked to firms in other groups. We focus on three key characteristics of network communities: size, density, and stability. We theorize that the access to and orchestration of diverse and complementary network community resources influence firm rapid scaling through the expansion, replication, and synchronization of resources and business practices. Using a sample of firms publicly traded on the North American stock exchanges and observed over 1990–2020, we find that these firms' business scaling positively relates to the size and density of their network communities, yet the relationship between firm scaling and network community stability is negative.
... As a positive and substantial deviation from a venture's previous growth trajectory, scaling typically involves redefining and adopting new business models (Rao and Sutton, 2014;Reuber et al., 2021), as well as reallocating assets and the capabilities needed to pursue scaling (O'Reilly and Binns, 2019). This redefinition and reallocation may lead to higher job demands for employees in terms of increasing the quantity and scope of work tasks and activities (Chandler, 1990;DeSantola and Gulati, 2017). ...
Although academic interest in organizational scaling is growing, extant research has focused primarily on the antecedents and processes, neglecting how employees experience scaling. Drawing on the scale-up, firm growth, and well-being literature, we take an employee perspective to examine the impact of scaling on employee burnout and job satisfaction. Using a sample of 10,908 new venture employees in Sweden, we show that scaling is positively associated with employee burnout, and negatively with job satisfaction. We also show that the link between scaling, burnout, and job satisfaction depends on whether the employee is in a managerial position or has prior new venture experience.
... Originated from the seminal work by Abernathy and Clark (1985), disruptive innovation has become one of the most influential concepts in strategic management and innovation research, leading to profound findings from academic research and business practice (e.g., Christensen & Bower, 1996;Christensen et al., 2018;O'Reilly & Binns, 2019). The growing importance of disruptive innovation as a crucial way to build sustainable competitive advantage has attracted scholars to elucidate the influencing factors and how to promote disruptive innovation. ...
How to enhance disruptive innovation to build sustainable competitive advantage has become an essential issue in strategic management research. However, few studies exist to elucidate the influencing mechanism of disruptive innovation in the context of the digital era. Using multivariate regression analysis and bootstrapping method, we examine the underlying mediating mechanism and contextual condition in the relationship between digital transformation and disruptive innovation. Our results demonstrate that the digital transformation of entrepreneurial firms has a significant positive effect on disruptive innovation. Interorganizational collaboration mediates the relationship between digital transformation and disruptive innovation. Moreover, we demonstrate that dynamic capabilities positively moderate the indirect effect of digital transformation on disruptive innovation through interorganizational collaboration. Our findings contribute to disruptive innovation research by explaining the mediating mechanism of how to utilize digital transformation to promote disruptive innovation vis interorganizational collaboration. Our results also explain how dynamic capabilities interact with interorganizational collaboration and significantly affect disruptive innovation.
... AI needs to be implemented in the supply chain roadmap to gain competitive advantages with the improvement of metrics, such as the accurate projection and forecast the customer demand, reduction in the cost of inventory quantity, overproduction, idle machine capacity, achieving quick reactions to the change in the market, and finally providing customers a better experience [28]. AI-enabled supply chain systems help business managers optimize key performance indicators, review in real-time, cut cost, reduce waste, and speed up the time to market [31]. A series of algorithms and datasets enables the AI system to integrate supply chain business toward (a) getting 100% accurate projection and forecast customer demand, (b) optimization of R&D by enhancing the quality and reducing costs, (c) identifying target customers and demography, and (d) providing a better customer experience [32]. ...
Sustainable digitalized supply chain management in a pharmaceutical company can help reduce operation costs, improve assets, enhance shareholders’ value, positively respond to customer demand, and generate profits. Guided by the theory of constraints, this qualitative multiple-case study aimed to explore strategies pharmaceutical managers use to digitalize integrated supply chain systems to increase sustainability and profitability. The participants were senior supply chain managers from various pharmaceutical companies in the US with strategies to digitalize their integrated supply chain systems. Data collection included semistructured interviews and publicly available company documents analysis. Data were analyzed using the six-step thematic process, and three themes emerged: (a) constraints in the current supply chain system, (b) digital technology enablers, and (c) sustainable, resilient, and agile supply chain systems. A system model was developed as an outcome of the research. The primary recommendation for pharmaceutical supply chain managers is to identify constraints in the current supply chain system, follow a digital road map using digital enablers and maintain a sustainable, resilient, and agile supply chain system. Implications for positive social change include the potential to improve the delivery and quality of pharmaceutical products needed for patients by not compromising environmental, social, and economic sustainability.
Keywords: digitalization; pharmaceutical supply chain; sustainability, TOC.
... Other studies (Zimmermann et al., 2018;O'Reilly & Binns, 2019;Campanella et al., 2020) focused on the impact of contextual factors, such as competition for scarce resources and leadership characteristics, on ambidexterity and on the interaction between E&E, producing different types of innovation, allowing organizations to be innovative and flexible without compromising their stability and efficiency (Khan & Mir, 2019;Simsek, 2009). This reinforces the idea that ambidexterity and innovation have been pursued and managed in different ways, as processes responsible for the sustainability of organizations over time. ...
... In the past decade, the concept has increasingly influenced academic literature and management thinking (Reinhardt and Gurtner, 2011;Si and Chen, 2020;Sadiq et al., 2022). Successful examples of disruptive innovations are Amazon with its online distribution (O'Reilly and Binns, 2019); Apple with its strategic action in the industries of music and cellular telephony (Burgelman and Grove, 2007); and Dell through selling computers directly to the customer (Charitou and Markides, 2003). ...
Innovation boosts economic growth, and one of the most critical factors when considering innovation-driven growth is the role of disruptive innovation, which is hailed as a lodestar by leaders of both small and large firms. However, little is known about the role of entrepreneurial orientation (EO) and digitalization strategy in enhancing or hindering firms’ disruptive innovation. Our study thus addresses the relationships between EO and firms’ ability to develop disruptive innovation under consideration of the firm’s digital strategy. Our empirical analysis is based on quantitative survey data from a sample of 242 firms across a variety of industries, geographic locations, and sizes. Our results demonstrate that EO has a significant positive effect on disruptive innovation and that deployment of a digitalization strategy is perceived as a metaphorical cage for disruptive innovation among highly entrepreneurially oriented firms. However, a digitalization strategy supports disruptive innovation when firms are less entrepreneurially oriented. The insight of this work is that firms should focus on EO to allow disruptive innovation and increase or decrease digitalization strategy deployment and planning depending on the level of EO.
... Technically, innovation is greater than research and development, as it includes three specific stages: discovery, incubation and acceleration [3]. In contrast, research and development is only one part of the first stage. ...
In academic discussions about how to achieve sustainable growth in the world, it is stated that this is not possible without spending on research and development and innovative activities so that countries can maintain their competitiveness in the global environment. The EU has defined strategies that consider innovation as a key element for stimulating growth and creatung employment. In this context, this study examines the relationship between R&D expenditures and the global innovation index in the scope of EU countries. A PVAR model and annual data from 2007 to 2020 were used for the relationship between research expenditures and growth in the innovation of EU countries. We first examined the cross-sectional and cross-country homogeneity of slopes. The second-generation unit root test was then applied using the Pesaran CIPS (2007) test, and the ARDL panel model was applied to test for cointegration. Causal analyses with the panel ARDL model and the error correction model were applied to determine the relationships of the variables and their direction. For the long-term dynamic effects between variables, an impulse response function (IRF) was used, and for the degree of the effect between R&D expenditures and the global innovation index, variance decomposition was used. The results of this paper reveal a long-term positive significant relationship between R&D spending and the global innovation index, whereas in the short-term, this relationship is negative. Furthermore, the causality results of the error correction ARDL model show unidirectional short-run and long-run causality from research and development to the global innovation index in EU countries. Finally, this paper enhances the understanding of the relationship between research and development spending and the global innovation index in EU countries.
... Other studies (Zimmermann et al., 2018;O'Reilly & Binns, 2019;Campanella et al., 2020) focused on the impact of contextual factors, such as competition for scarce resources and leadership characteristics, on ambidexterity and on the interaction between E&E, producing different types of innovation, allowing organizations to be innovative and flexible without compromising their stability and efficiency (Khan & Mir, 2019;Simsek, 2009). This reinforces the idea that ambidexterity and innovation have been pursued and managed in different ways, as processes responsible for the sustainability of organizations over time. ...
... First, prior studies have considered the expansion of an organization's offerings and operations over time as part of scaling (Bocken et al., 2016;Hellmann and Kavadias, 2016). Expansion has been associated with broadening the geographical scope of a firm's activities and user base or turnover, and may manifest in advancing value propositions, launching new or related products, as well as retaining customers (Huang et al., 2017;O'Reilly and Binns, 2019). Scholars have argued that HGFs can exploit their business model at scale and increase their customer or user base significantly by accumulating resources, maximizing opportunities, and leveraging economies of scale (Piaskowska et al., 2021;Reuber et al., 2021). ...
Even as research on scaling and High Growth Firms (HFGs) is gaining momentum, the corpus of accumulated research remains largely fragmented and dispersed, with little in the way of a central conceptual foundation or ‘theoretical true north’ to guide empirical development. This Special Issue provides a forum for works that push the theoretical and empirical frontiers of research on scaling and HGFs. We provide a multi‐dimensional conceptualization that recognizes scaling as a dynamic capability entailing routines and processes for expansion, replication, and synchronization. We also present a typology that specifies the multiple types of HGFs. Inspired by the four studies published in the special issue, we finally outline five priorities for future research.
... A systemic business ecosystem is very important due to its environment in the module of a system (O'Reilly & Binns, 2019). Disruptive innovation mainly changes the systematic architecture, which refers to the purpose and shape of system parts as well as their communication and connection with each other. ...
Destructive innovation will progressively enter the global markets as efficiency rises, devouring more customer base until it replaces the previous top technology. The competitors' ability to compete has been weakened by destructive innovation, which has altered the industry's old norms of competitiveness. The idea created a brand-new customer value structure that newcomers can use strategically to catch up. The study of negative innovation has gained popularity in technological finance and strategic management. The issue with equating disruptive innovation with any scientific discovery that modifies the nature of competition in a market would be that various forms of development demand multiple sorts of strategic approaches. It's not likely that every business in a changing market will indeed be able to benefit from the insights that can be learned on how to become a successful "disruptive innovator" (or "fight off a disruptive rival").
... Value for Organisation Fig. 3. Recipients of value from pub and brewery strategic innovation during restricted trading conditions. and new business models (O'Reilly & Binns, 2019;Vecchiato, 2017). However, the abrupt and complex crises caused by the COVID-19 landscape are unprecedented, demanding novel solutions. ...
This case focuses on the entrepreneurial use of multi-stakeholder value co-creation to emerge stronger from challenging trading conditions. In particular, it examines Pennine Pubs, a small-/medium-sized enterprise (SME) operating several rural public houses, which are licensed to sell food and alcoholic drinks to guests. Based in Northern England, it has adapted commercial strategies to mitigate government-enforced Covid-19 lockdowns. Pennine Pubs’ Managing Director is currently considering how to build upon the multi-stakeholder value co-creation strategy which emerged quickly immediately before and during the first lockdown period, when customers were prohibited from visiting pubs. He expects the outcome to be a more refined and sustainable commercial strategy which retains the most significant benefits of his lockdown-period innovations. The case considers how co-creation is applied as a reaction to unforeseen business challenges, and how it can underpin proactive strategies to capitalise upon favourable trading conditions. The concept is explored in the context of rapidly evolving, unpredictable and highly problematic constraints upon retail trade, and the ‘new normal’ of customers returning to retail premises, albeit with expectations modified by recent experiences. Finally, the case considers the impact of SMEs collaborating with suppliers, customers and other stakeholders to co-create mutual, commercially sustainable value.
... We teach "how to fish", not "how to catch a fish". [16][17][18][19][20][21] Taking into account all aforenamed transformations, we could combine the KPI of the student business incubator: The amount of students who passed the training program makes a "contribution to sponsoring the university's mission" [15]. We should measure the number of students who went through the incubation program from beginning to end. ...
Diploma or Dropout - it is argued, whether graduation is more important than a successful startup. Students drop either college or their ideas. A presented exploratory study about the incubation of technological startups among students tries to solve this contradiction. The curricula business incubation as the educational discipline inside of the curriculum was offered in opposition to the extracurricular activities of students. There is not a lot of data about this model of student incubation outside of the university's entrepreneurship center and every contribution is valuable. The used research method is Qualitative studies, so the surveys among students are conducted during and after the incubation process on the educational discipline "Startup & Technological Entrepreneurship". At the end of this research, the framework was proposed, a set of actions, for helping students to go all the way from Idea to Product and Techno-Business. The framework is tested on a limited number of students in several universities in developing countries. The experiment is about embedding the syllabus into the Curriculum and measuring of achievements of students. The course is supposed to be elective and only students wishing to develop something are accepted. Later, interviews are conducted with two groups of students: those who passed the offered course and those who tried to develop startups independently. The final aim is to prove whether the inter-curricular framework works and how it overperforms other similar extra-curricular solutions.
... For example, Morizet et al. [45] believe that latecomers' implementation of disruptive innovation needs to go through three stages: the learning stage, the use stage and the deprivation stage. O'Reilly et al. [46] divided disruptive innovation into three stages: idea generation, incubation, and scaling. ...
In the context of digitalization, start-ups cultivate the dynamic capabilities enabled by digital technology and promote disruptive innovation, which has become the key for enterprises to achieve catch-up in the digital age. However, the path to achieving disruptive innovation with dynamic capabilities has not been revealed to date. This paper summarizes the dynamic capability dimension in the digital context by applying the grounded theory method and divides the evolution of disruptive innovation into the sprout stage, growth stage, and expansion stage. Based on the logic of “motivation–action–result”, this paper reveals the path of realization path for the disruptive innovation of start-ups under the influence of dynamic capabilities in the digital context. The results show that the disruptive innovation of start-ups can be attributed to the different dimensions of dynamic capabilities. Digital technology allows for enterprises to achieve disruptive innovation by enabling dynamic capabilities. This paper broadens the research on dynamic capability theory and disruptive innovation theory in the digital context. Furthermore, it provides a reference and inspiration for start-ups in the same situation, aiming to realize disruptive innovation by cultivating dynamic capabilities with digital technology.
... On the other hand, resource dependency affects the resource allocation process, as a company's investments are usually based on the profile of available resources (Cozzolino et al. 2018). Thus, companies are locked into the business in which they have accumulated resources and are unwilling to devote those resources to a more uncertain, lower-margin business (Velu and Stiles 2013;O'Reilly and Binns 2019). As a result, companies typically respond to the emergence of competitively threatening innovations by increasing their investments in conventional technologies valued by their current customers, which hinders the development of potentially disruptive innovations (Christensen and Raynor 2003;Yu and Hang 2010). ...
Today companies are facing challenges to survive due to substantial transformations induced by digital technologies, ever-changing consumer demands, and environmental uncertainties. Thus, companies need to be innovative to sustain competitive advantages. Scholars and practitioners have recognized the potential of disruptive innovations as a key factor for a company’s competitiveness. Yet, such innovations often challenge established companies due to the tensions between their traditional business model and the newly emerging business model required for disruptive change. The theory of ambidextrous organizations has offered a variety of solutions to tackle these barriers referring to the alignment of exploration and exploitation within an organization’s structure. Current literature, however, faces inconsistencies regarding how this can be achieved. With this study, we therefore aim to provide a comprehensive understanding of how ambidextrous structures enable incumbent companies to reduce the barriers to disruptive business models. On the basis of a systematic literature review, we analyze and compare potential structures and their characteristics proposed in the ambidexterity literature. Drawing on our review, we conceptualize a framework linking the different organizational structures to the barriers associated with disruptive business models. Our framework identifies a range of seven structures which can resolve the barriers and thus support managers in their structural decisions on how to align exploration and exploitation to pave the way for disruptive business models.
... The pandemic accelerated this conflict, making adaptation, innovation and virtual collaboration necessary both for entrepreneurs of all kinds and for higher education. These factors motivated the inception of Disruptors v. Defenders, a virtual, course-long simulation competition designed to give students a taste of the ongoing battle of innovation between disruptors and corporate entrepreneurs (O'Reilly & Binns, 2019;van Rensburg, 2015). ...
Zusammenfassung
Dieser Artikel untersucht, wie Unternehmen Open Strategy als transparenten und inklusiven Ansatz der Strategiearbeit nutzen können, um disruptiven Gefahren erfolgreich zu begegnen. Es werden verschiedene offene Strategieformate vorgestellt, die es Unternehmen ermöglichen, neue disruptive Geschäftslogiken zu entwickeln und zu implementieren. Anhand von Praxisbeispielen werden die Chancen und Herausforderungen für Unternehmen bei der Öffnung ihrer Strategieprozesse diskutiert und fünf Erfolgsfaktoren einer offenen Strategie identifiziert. Der Artikel schließt mit der Erkenntnis, dass Open Strategy ein effektives Instrument sein kann, um potenziell disruptive Geschäftslogiken zu realisieren.
Framing is a powerful tool shaping innovation success, failure, and transformation. However, innovation framing is not recognized as a unified domain of research and the extant literature is theoretically fragmented across diverse fields. Inconsistencies in definition and operationalization of constructs stall theoretical advancement of innovation framing theory and practice. Importantly, an understanding of the underlying mechanisms enabling framing to mediate innovation outcomes has been missing. Using a systematic literature review (SLR), we integrate diverse theoretical perspectives. Stemming from this, we develop a unified conceptual framework of innovation framing. In so doing we make three vital contributions to the field. First, we develop a typology of construct categories of innovation framing, defining these framing concepts and identifying their theoretical basis. Next, we emphasize the importance of key mechanisms (sensemaking, interpretive flexibility, consensus) in explaining innovation outcomes. Our third contribution identifies innovation stage‐specific differences in the role of framing processes, frame types and characteristics, and the temporal elements of these. Finally, we discuss the implications of our research for innovation practitioners, while concluding with a detailed agenda for future innovation framing research.
Sumber daya manusia merupakan unsur yang akan terlibat dalam kegiatan perusahaan. Perusahaan pastinya memiliki goals yang akan dicapai yang didukung oleh sumber daya manusia atau yang disebut karyawan. Di dalam perusahaan karyawan dapat memberikan kontribusi berupa ide dan kreativitas yang dapat meciptakan nilai baru bagi perusahaan. Kreativitas yang dimiliki karyawan yang akan menghasilkan inovasi. Dari kreativitas dan inovasi tersebut yang dapat diimplementasikan dan dikembangkan oleh perusahaan. Penelitian ini dihasilkan dengan menyebar google form yang berisi kuesioner berjumlah 28 pertanyaan dengan 22 pertanyaan pada variabel adult playfulness dan 6 pertanyaan pada variabel perilaku inovatif. Ukuran sampel efektif terdiri dari 102 responden yang kuesionernya telah diisi dan digunakan untuk analisis. Teknik analisis data yang digunakan dalam penelitian ini adalah analisis deskriptif, uji validitas, uji reliabilitas, uji hipotesis meliputi: regresi linier sederhana, uji T dengan SPSS. Berdasarkan uji parsial (uji T) yang sudah dilakukan, pada pengujian ini dapat disimpulkan bahwa variabel X memiliki T hitung 7,881 > T tabel 1,984, maka hipotesis adanya pengaruh adult playfulness terhadap perilaku inovatif diterima. Dan variabel X memiliki nilai signifikansi sebesar 0,000 > 0,050 yang berarti variabel adult playfulness (X) memberikan pengaruh positif dan signifikan terhadap variabel perilaku inovatif (Y).
Purpose
The purpose of this paper is to begin to explore the strategic priorities of unicorn ventures as pursuers of market disruption. This study approaches this task by drawing on the positive deviance concept for studying outliers with the intent of understanding the strategic priorities of these ventures.
Design/methodology/approach
This is a comparison study of the priorities of 75 unicorn ventures, 37 early-stage ventures and 45 Fortune 500 organizations. The authors use computer-aided text analysis to conduct within-sample and between-sample means comparison tests of 12,487 newswires from 2022.
Findings
Where early-stage ventures emphasize their mission, and Fortune 500 companies emphasize financial results, unicorn ventures, occupy the middle of the spectrum, balancing their priorities between pursuing market disruption and achieving financial results. These high-growth outliers indicate their priorities by using significantly less positive tone, affective and prosocial language, and focusing less on corporate social responsibility initiatives, compared to early-stage ventures (and using more of this language compared to Fortune 500 ventures). An additional finding emphasizes that public Fortune 500 companies focus significantly more on money than their topic of interest.
Originality/value
This work has implications for understanding the strategic priorities of entrepreneurial ventures in different development stages. The results suggest that unicorn ventures actively work to balance their startup mission, which allows them to experience high-growth and achieve market disruption, with the financial demands of venture capital investors. This novel conclusion demonstrates the value of using positively deviant outlier cases, such as unicorn ventures, as a viable sample for studying market disruption.
Tags: VUCA, Boolean Networks, Ambidextrie, Organisationsstruktur, Simulationsprogramm
Over the years, more and more industries are focused on digitizing their manufacturing operations by using a bunch of advanced technologies like Machine Learning and Artificial Intelligence based on different equipments and materials, such as sensors, cameras, and lidar. All of them could be combined to wireless technology communication and create an IoT network. In this context, the objective is to present our contribution in the field of failure prediction in Rotation machinery based on diagnosis and prognosis system for predictive maintenance. With the help of the new intelligent diagnostic indicators, it is possible to target default points in real time before taking actions using the stream processing. Machine analysis behavior is a traditional approach used in maintenance field to capture damage and failure. It is also a perfect tool for detecting and then diagnosing operating default in rotating machines.The present work is about predicting the situation using a new Wireless sensor Network in rotating machinery by capturing and treating all the collected data and testing them with Machine Learning algorithm.KeywordsPredictive MaintenanceWireless Sensors NetworkRotating MachineryVibration analysis
Organizations are seeking to improve their management systems in a period of economic industrialization in which the environment is becoming increasingly competitive and widespread. In the industry 4.0 era, most businesses strive to be reactive and agile by incorporating new technologies such as artificial intelligence (AI) in supply chain management.Nowadays, Supply chains (SC) differ from those of just a few decades ago, and they are evolving in a highly competitive economic system. Dynamic supply chain processes require a technology that can cope with their increasing complexities. Moreover, quality user stories, budget control, and a firm’s agility in the light of economic opportunities and uncertainties are all dependent on supply chains. The only way of increasing operational efficiency is to use the right technology at the right time.In recent years, several functional supply chain applications based on artificial intelligence (AI) have emerged. Artificial intelligence has the potential to significantly improve the performance of the overall economy. However, it could have a greater influence by serving as a method of invention that can revolutionize the nature of the process of innovation in SC and R&D institutions.The main purpose of this paper is to identify the critical role of AI technology in providing greater flexibility and control to supply chain processes, and also to bring light to SC reaction between its benefits and challenges.KeywordsArtificial intelligence (AI)New technologiesSupply chain management (SCM)
Innovation management is a prime concept of making changes and innovations in the business to make the business globally famous. The conceptual understanding of the innovative strategies has been covered in this book. Besides this, the discussion of key elements and the challenges a company might face to implement innovation has been discussed here. Identification and discussion, including the application of the innovation, have been covered here. The impact of the implementation of innovation-based managerial theories as well as practices have also been evaluated within the study to develop a critical understanding of business proceedings.
Crowdsourcing has become a new normal for many customer-centric businesses, which narrows down the distance between companies and customers. Empowering the crowd comprising customers, stakeholders, and potential investors has shown encouraging results in improving the business practices of companies and strengthened their competitive position. This chapter discusses ideation process through crowdsourcing, which helps to serve open innovation platforms and develop customer-centric innovations in a firm. In addition, this chapter comprehensively discusses the role of crowd-based ideation to design and marketing practices, open innovation, social networks, and new product development. This chapter argues that the crowdsourced information guides the manufacturing and business operations through the experiences of stakeholders, peers, gatekeepers, and customers.
Scaling has recently found its way into the academic discourse. However, the term has been used inconsistently and mixed up with other terms such as growth. To overcome these impediments to knowledge accumulation, we review the literature, identifying four broad applications of the scaling concept: market scaling, volume scaling, financial scaling, and organizational scaling. Building on their commonalities and setting scaling apart from growth, we develop an inclusive definition of scaling: Scaling describes an increase in the size of a focal subject that is accompanied by a larger-than-proportional increase in the performance resulting from the said subject. We further propose a set of measures that makes it possible to compare the scaling performance of organizations and track their scaling performance over time. Based on our insights as well as a list of “hot topics” in the management literature, we conclude by identifying promising areas for further research.
Globalization trends have been increasing all over the world and firms are overly emphasizing advanced technologies in the business world for gaining competitive advantages. While disruptive innovation is also a trigger for these firms to adapt and capture lower-end markets. This is a big challenge for the top managers of organizations to derive disruptive innovation by encouraging their subordinates for utilizing the knowledge process capabilities and creating novel ideas. The purpose of this study was to examine the relationship of knowledge process capabilities with disruptive innovation of the manufacturer and service sector small and medium enterprises. Data was collected from 194 senior managers of manufacturer and service sector SMEs in Pakistan (N = 194) and valid scales were used for measuring all constructs of this study model. SPSS and AMOS programs were used for analyzing the CFA of the measurement model and SEM of the study model. The study results indicated significant and positive relationships between knowledge process capabilities and subordinate creativity and disruptive innovation. Furthermore, subordinate creativity was completely mediated in the relationship between knowledge process capabilities and disruptive innovation. This study contributed to the literature on knowledge management and innovations. This is a cross-sectional study and can guide SMEs to adopt disruptive innovation for capturing low-end markets where lower-stream customers are demanding cheap products/services. Through practicing this study model, practitioners, researchers, and CEOs of SMEs can foster disruptive innovation.
Globalization trends have been increasing all over the world and firms are overly emphasizing advanced technologies in the business world for gaining competitive advantages. While disruptive innovation is also a trigger for these firms to adapt and capture lower-end markets. This is a big challenge for the top managers of organizations to derive disruptive innovation by encouraging their subordinates for utilizing the knowledge process capabilities and creating novel ideas. The purpose of this study was to examine the relationship of knowledge process capabilities with disruptive innovation of the manufacturer and service sector small and medium enterprises. Data was collected from 194 senior managers of manufacturer and service sector SMEs in Pakistan (N = 194) and valid scales were used for measuring all constructs of this study model. SPSS and AMOS programs were used for analyzing the CFA of the measurement model and SEM of the study model. The study results indicated significant and positive relationships between knowledge process capabilities and subordinate creativity and disruptive innovation. Furthermore, subordinate creativity was completely mediated in the relationship between knowledge process capabilities and disruptive innovation. This study contributed to the literature on knowledge management and innovations. This is a cross-sectional study and can guide SMEs to adopt disruptive innovation for capturing low-end markets where lower-stream customers are demanding cheap products/services. Through practicing this study model, practitioners, researchers, and CEOs of SMEs can foster disruptive innovation.
Im Kap. 15 unternehmen wir den Versuch, Innovationsbeiträge zu identifizieren, welche sich miteinander in Bezug setzen und damit vergleichen lassen. Unser Ziel ist, in die große Zahl verschiedener Beiträge zur Innovationsforschung etwas Ordnung hineinzubringen und dadurch mehr Transparenz zu erreichen. Dabei können wir zwei Kategorien unterscheiden: InnovationsmodelleInnovationsmodell und GeschäftsentwicklungsmodelleGeschäftsentwicklungsmodell. Es ist uns klar, dass die hier unternommene Anstrengung und die damit erreichten Resultate in keiner Weise abschließend sind. Ein Anfang ist aber trotzdem gemacht und ein erster Schritt in Richtung vermehrter Transparenz scheint ebenfalls erreicht zu sein.
This chapter elaborates in detail on the design thinking process for innovation. It discusses the empathy, defining the challenge, ideation, crafting the prototype and testing phase. To complement it, several idea-generation techniques are exemplified. The chapter also approaches leading innovation, segmentation and market analysis, passion–confidence matrix for finding the most suitable ideas for a business as well as disruptive innovation.KeywordsDesign thinking processLeading innovationMarket analysisDisruptive innovation
Purpose
There are uncertainties concerning how innovators can successfully venture into disruptive innovations and how incumbents can react to the emergence of such innovations. Disruptive digital innovations, which use information technology to disrupt business contexts and can evolve rapidly to either successes or failures, have unique challenges. The literature has largely remained silent concerning these. Also, existing studies often focus on innovations originating in developed economies and just on successful cases. There is a lack of comparative focus on successful and failure cases emerging across economies. The purpose of this paper is to fill these gaps.
Design/methodology/approach
This paper assesses the evolution of disruptive digital innovations in various contexts through a financial management-motivated conceptual framework. Contrary to existing works, this paper focuses on both successful and failure cases and regards the influence of various stakeholders further to innovators and incumbents to explain the successes or failures of the innovation.
Findings
There are some common success factors for disruptive digital innovation. These include an inherent focus on social value, alignment to financiers' interests and rivals' actions and strategic collaborations to create a synergy effect.
Research limitations/implications
Innovators can cause effective digital disruption by focusing on social and financial values. Success can also largely depend on strategic partnerships rather than actions by an individual entity. Thus, venturing and managing disruptive digital innovation is not an isolated but a social process.
Originality/value
This paper recommends propositions for innovators and incumbents to venture into and confront disruptive digital innovations effectively. Its originality lies in focusing on both successful and failure cases, unexplored in literature, to develop the propositions.
У монографії поглиблено науково-методологічні підходи та запропоновано практичні рекомендації щодо побудови ефективної системи взаємопов’язаних і цілеспрямованих інноваційних змін в управлінні бізнесом з метою забезпечення його досконалості в умовах інформаційно-комунікаційної технологізації.
Розкрито теоретичні засади управлінської інноватики в бізнесі, поглиблено вивчення інформаційно-комунікаційного контексту забезпечення досконалості бізнесу, удосконалено методологію дослідження проблем бізнесу та оцінки рівня його досконалості в умовах інформаційно-комунікаційної технологізації. Досліджено проблеми бізнесу промислових підприємств України та здійснено оцінку рівня досконалості його ведення в умовах інформаційно-комунікаційної технологізації. Запропоновано комплекс управлінських інновацій із забезпечення досконалості бізнесу промислових підприємств України.
Видання розраховане на наукових працівників, викладачів ЗВО і коледжів, керівників бізнес-структур, а також усіх, хто має намір поглибити знання з управління бізнесом.
The current industrial and corporate ecosystem is heavily conditioned both by the technological advances and by the existence of globalized and interconnected markets. Consequently, this makes it highly dynamic and volatile, with a high degree of uncertainty. Further polarization of this context is brought up by digitalization, revealing thus the need to develop disruptive innovations in order to keep long-term corporate competitiveness. Both technological viability and commercialization are the most significant challenges facing the development of disruptive innovations. Although it is one of the most critical phases, commercialization remains greatly understudied in this type of innovations
Its potential findings will increase the chances of market success through the identification of the key factors to take into account and the activities to undertake during each of the phases of the innovation process, more specifically on the acceleration phase.
The research combines a systematic review of existing literature on
commercialization within the context of the overall process of high uncertainty innovations, in particular in the acceleration phase, with a qualitative and exploratory methodology based on multiple case study (Yin, 2003). The sample analyzed comprises 20 spinoffs and 15 corporate ventures (derived from 8 multinational companies) belonging to a diversity of industrial sectors such as information technology, telecommunications, electronics, engineering services, consumer goods, health care and biotechnology.
The main findings of the research are:
- Defining the concept of commercialization in disruptive innovations and
identifying influencing factors.
- Designing a theoretical model for the commercialization of disruptive
innovations based on the DIA model (O'Connor y de Martino, 2006).
- Propose of a list of commercialization activities during each of the stages of the acceleration phase for corporate ventures and spinoffs, with the goal of improving the success rate during this phase. Identifying and comparing the different challenges facing corporate ventures and spinoffs.
- Provide a list of verification activities and benchmarks to evaluate maturity and determine the right time to transfer disruptive projects from a corporate venture into a business unit.
What are the most important factors for the success of a startup? This study aims to shed light on this issue through the statistical analysis of a bibliographical sample of 60 recent articles. Through a detailed study of the selected literature, but from the perspective of business experience, we have identified the comparative relevance of those factors that recent research has highlighted as the main drivers of start-up success. Our analysis allows us to define a core of seven practical business success factors supported by the academic literature (Core-7 SF). This core makes it possible to identify the intersection between success in business practice and academic research. Our Core-7 SF shows that the most important variable to predict the success of a start-up is the Idea, followed by the CEO’s Leadership, the Business Model, the Marketing approach, and the Entrepreneurial Team. In addition, we found some differences between the geographic areas of affiliation of the authors, suggesting that cultural characteristics influence the weight given to the various reasons for success.
The demand for innovative, solutions-oriented approaches to closing learning competency gaps is leading to the recasting of organizations as learning and innovation-centric organizational communities. The makerspace movement is a sector where new communities are emerging to include diverse groups of entrepreneurs. The findings in this study provide insight that will assist in meeting the challenges posed by declining economic and social conditions of former industrial centers and rural communities that were part of thriving economic pipelines during the height of the industrial age. The study examines a makerspace as a solution for creating jobs, filling gaps in the supply chain, and reimagining local manufacturing. The IOC approach also possesses potential for helping to reduce equity gaps and facilitating inclusive practices. The concept of innovation-centric organizational communities, based on maximizing affective learning, is consistent with emerging 21st century workforce demands and their relationship to entrepreneurial opportunities for underserved communities.
Compared to the other classic supply chain, the biopharmaceutical supply chain has many key challenges, such as complexity, cold chain transportation, long lead time, and vulnerability to counterfeiting. The biopharma supply chain does have different steps starting from research and discovery, clinical development, manufacturing, packaging, commercial production, distribution, and patient support. Forecasting accuracy is a critical success element of the biopharma supply chain and remains a big challenge in business process management. Driven by the critical demand forecasting challenges in the biopharmaceutical companies, including complexity, high variability, and lengthy lead time, artificial intelligence (AI) digital enablers help improve the end-to-end supply chain. The purpose of this multiple qualitative case study was to investigate the artificial intelligence enablers to improve demand forecasting. AI-powered technologies in the pharmaceutical supply chain help in end-to-end visibility to supply chain managers. AI helps in demand forecasting, automation, optimizing predictive maintenance, and protecting the integrity of the pharmaceutical supply chain from counterfeit drugs. The study involved interviewing various pharmaceutical managers with proven digital strategies for implementing AI-based digital enablers. The theory of constraint was used as the conceptual framework for this qualitative multiple case study. Data from interviews and supporting documents were analyzed using data triangulation to discover themes. Two main themes emerged from data analysis: (a) Known or unknown constraints in the current biopharmaceutical supply chain system and (b) implementation of AI-based digital enablers. Five key strategies were developed to pertain to these two themes.
Sustainability transitions are required to address challenges of climate change, economic development, ecological integrity, and social justice. Driving sustainability transitions is difficult but necessary work. We discuss sustainability challenges and the need for transitions, with a focus on the vital roles that change agents can play. These change agents exhibit a desire to make change happen. They encourage others to join them in their efforts. After discussing the work of change agents in driving sustainability transitions, we present a case study of change in Perth, Australia, where change agents have attained considerable success in placing that city on a path toward sustainable water management practices. We suggest sustainability transitions can be effectively enabled when change agents: (1) Clarify the problem and articulate a clear vision; (2) Engage others to identify workable solutions and implementation pathways; (3) Secure support from influential stakeholders; (4) Establish effective monitoring tools and learning systems; (5) Foster long-term relationships of trust and mutual support; and (6) Develop narratives that support on-going action.
The research was instigated by the “Organizational Resilience for Innovativeness in Service Delivery” project of the Hunter Water. The aim of the project was to assess the readiness of innovative capabilities of the water utilities in Australia. With this end, doctoral research was identified with title “Organizational Innovativeness for Service Delivery in Water Utilities”. Primarily, the scope of research was limited to 3 water utilities in the New South Wales. Later, it was changed to nationwide study with the cooperation and support of the Hunter Water and the Water Services Association of Australia (WSAA). It started with a simple and straightforward question: What factors should be taken into account in developing organizational innovativeness for service delivery? It was then followed several research objectives and the main theme was to determine the level of existence of relevant factors of service delivery innovativeness in Australian water utilities. that contribute to innovative service. In this way, the simple research got highly enriched. Through a rigorous systematic literature review, 102 individual influencing factors of organizational innovativeness were identified and classified into 10 thematic groups, and these were culture, HRM functions, top management orientation, external environment, organizational proficiencies, leadership, knowledge management, market pressure and competition, technology adaptation and research and development. Since the nature of the water utilities are different than other industries, the focus was shifted towards the service industry, which is the closest domain of water utilities. Considering this, 102 chosen factors were reduced to 81 individual influencing factors, under the same 10 thematic groups. Questions were raised whether all these 81 factors were relevant for Australian water utilities plus how to measure the level of existence of the essential factors enabling innovativeness in the water utilities. The research thus adopted a combination of both qualitative and quantitative method in two phases. In the first phase of the research, 3 focus group discussions were conducted where the innovation champions and managers from different water utilities across Australia have participated and they endorsed 14 influencing factors like teamwork, vision training & development, customers’ requirements, to name but a few. In addition, they added 2 new factors in the list. Furthermore, the focus group members also finalized 5 measuring factors of organizational innovativeness in service delivery which include Frequency of Innovative Change, benefits of Innovative Change, Speed of Innovative Change, Experience of Innovative Change and Risks associated with Innovative Change. In the second phase, comprehensive quantitative research was carried out to reach the research objectives in the form of survey questionnaire, which was newly developed resulting from the first phase of the research. The researcher received more than 500 responses, among them 465 responses were complete and usable. Based on the 465 responses, the quantitative analyses revealed only a few factors, i.e., Customers' Requirements, Regulators' Influence: change Teamwork exist at higher level (not completely). So, it is very clear that the water utilities in Australia are truly less innovative in their service delivery. The story was interesting when the responses from the managers and non-managers were analysed separately. The managerial employees found that idea generation, customers’ requirements, capital resources, industry relationships etc. in work improvements are negatively significant towards the innovation outcome. On the other hand, the non-managerial employees feel that teamwork and regulators’ influence: in work change are negatively significant towards the innovation measures. Vital and Immediate Further Extensive Research Required Though the research objectives were fully achieved, and the research question was properly answered with adequate evidence, the researcher feels that this research has brought into light the problems in the organizational innovativeness for service delivery in the water utilities across Australia. Consequently, it will become vulnerable in meeting the demand because of climate change, high migrants and obviously lack of innovativeness in service delivery. The authority must consider the findings from the doctoral research and concentrate on the further research to solve the problems for the better future of the nation.
This chapter is presenting the relationship between trust and the attitudes toward knowledge sharing among students from Polish universities. The self-reported survey was used to gather data from 434 students from three universities in Poland. The obtained results confirmed that trust is an antecedent of the students’ knowledge-sharing attitudes. The trust dimensions that are adopted from the ABI model (such as ability, benevolence, and integrity) affect the attitude differently. The strongest predictor of attitudes toward knowledge sharing among students is integrity-based trust. This study contributes to both the knowledge-management research and the knowledge sharing in the student-to-student context. This chapter has practical implications for individual performance and provides recommendations for employers on important aspects of trust and knowledge sharing (such as a newcomer’s experiences and expectations toward an employer and the cultural differences in knowledge-sharing behavior).
In diesem Kapitel werden die aus der Perspektive des Praktikers wichtigsten Ansätze als Elemente eines agilen Innovationsmanagements einzeln vorgestellt. Ziel ist ein grundlegendes Verständnis der Methoden mit ihren Vorteilen und in Erwägung zu ziehenden Nachteilen. Für eine erfolgreiche praktische Durchführung reichen die fokussierten Ausführungen nicht aus. Zu diesem Zweck verweisen die entsprechenden Quellenangaben auf Spezialliteratur. Zudem gibt es professionelle Beratungsangebote.
Student success in higher education depends on a complex set of services that must be integrated seamlessly and delivered to students. This chapter looks at the complex, and often competing, interests of students, faculty, administration, and external stakeholders as they seek to improve student success in higher education. Administrators, mid-level managers, change agents, faculty and ancillary student support services all need to understand the importance of their role in working together to make the changes necessary to improve teaching and learning. The great challenge is managing the change that this will require. Educational institutions in the 21st century need to become agile and able to manage change imposed by both internal and external pressures.
This paper addresses the topic of social manufacturing, with the aim of understanding the key features of such a new manufacturing, network-based model, its enabling factors and the reasons-why a company should join and/or establish it. Building on the literature about social manufacturing and disruptive innovation, we develop a new framework to address our research questions. During the COVID-19 pandemic, many Italian manufacturing companies quickly adopted a network-based production approach, to provide a rapid response to healthcare organizations needing surgical masks, sanitisers, and pieces of equipment like ventilators. We discuss this transformation with two companies, Ferrari Cars and Isinnova, which developed a social manufacturing network that was successful in an emergency situation. Building on the empirical evidence stemming from these case-studies, we explain how and to what extent this emergency model could become stable and profitable in a post-pandemic scenario, creating economic value and opening up business opportunities.
The COVID-19 pandemic created significant challenges for the British pub industry, due to the uncertain conditions caused by the virus, changes in consumption patterns and government measures. Studies recommend that organisations adopt innovative and flexible business models to generate added value for customers and other stakeholders as a survival and growth strategy. However, such measures require business ecosystems which encourage co-creative engagement. This qualitative study extends the concept of value co-creation beyond its current boundary as a customer-driven experiential paradigm, reconceptualising it as a driver for societal benefits. Over the period March-December 2020, we carried out in-depth interviews with pub and brewery owners, managers, and customers, combined with netnographic and offline observations of pubs' engagement with customers. We uncovered three stages of strategies and innovation during this period, which we term 'survive', 'secure', and 'sustain'. We demonstrate how multiple stakeholders benefit from the innovations of pubs and breweries negotiating each stage, advancing current scholarship on sustainable value co-creation.
With the rise of innovation and entrepreneurship as avenues for journalists to take in their search for journalistic work, we need to critically interrogate how these terms are understood. Various journalism institutions are pushing a particular understanding of journalism, and of what constitutes meaningful and innovative journalism. In this paper, we review the literature on these themes and draw on experimental research done by one of the authors to argue for a more process-oriented approach to journalistic innovation and entrepreneurship. As a researcher-maker, one of the authors created an innovative journalistic project and tried to develop a business model for this project. She participated in an accelerator process organised by one of the main funds aimed at journalism innovation in the Netherlands. We show that one existing, and prevalent, understanding of innovation in journalism is one that is linear, rational and outcome-oriented. We challenge this understanding and draw on process-oriented theories of innovation to introduce the concepts of effectuation, improvisation and becoming as new lenses to reconsider these phenomena. These concepts provide clearer insight into the passionate and improvisational nature of doing innovative journalistic work.
Despite the rapid increased of attention given to new product development (NPD), development project failure rate is still very high. Many companies develop interesting products, but only those firms that are effective in developing products that meet customer needs and efficient in allocating their development resources will succeed in the long run. Strategies are developed to improve the process of NPD. The strategies receive great attention in both managerial and academic areas. As innovation is rapidly producing new products, research into the NPD process is also gaining interests, producing new methods of configuring and managing development projects.
“Every day, I try to go out and grab lightning.”
—Terry Fadem, Director, New Business Development, DuPont Corporation
Dynamic capabilities have been proposed as a useful way to understand how organizations are able to adapt to changes in technology and markets. Organizational ambidexterity the ability of senior managers to seize opportunities through the orchestration and integration of existing assets to overcome inertia and path dependence, is a core dynamic capability. While promising, research on dynamic capabilities and ambidexterity has not yet been able to specify the specific mechanisms through which senior managers are actually able to reallocate resources and reconfigure assets to simultaneously explore and exploit. Using interviews and qualitative case studies from thirteen organizations, this article explores the actions senior managers took to implement ambidextrous designs and identify which ones helped or hindered them in their attempts. A set of interrelated choices of organization design and senior team process determine which attempts to build ambidextrous organizations are successful.
The authors review and meta-analytically integrate the existing literature on leadership and innovation to show a complex and inconsistent picture of this relationship. Current research has mostly neglected the complex nature of innovation processes that leads to changing requirements within these processes. The main requirements of innovation are exploration and exploitation as well as a flexibility to switch between those two activities. The authors propose an ambidexterity theory of leadership for innovation that specifies two complementary sets of leadership behavior that foster exploration and exploitation in individuals and teams — opening and closing leader behaviors, respectively. We call this ambidextrous leadership because it utilizes opening and closing leader behaviors and switches between them to deal with the ever-changing requirements of the innovation process. Routes to ambidextrous leadership and opportunities for future research on leadership and innovation are discussed.
We develop a contingency view of process management's influence on both technological Innovation and organizational adaptation. We argue that while process management activities are beneficial for organizations in stable contexts, they are fundamentally inconsistent with all but incremental innovation and change. But dynamic capabilities are rooted In both exploitative and exploratory activities. We argue that process management activities must be buffered from exploratory activities and that ambidextrous organizational forms provide the complex contexts for these inconsistent activities to coexist.
A comprehensive and multidisciplinary view of the emerging paradigm of user and open innovation, offering both theoretical and empirical perspectives.
The last two decades have witnessed an extraordinary growth of new models of managing and organizing the innovation process that emphasizes users over producers. Large parts of the knowledge economy now routinely rely on users, communities, and open innovation approaches to solve important technological and organizational problems. This view of innovation, pioneered by the economist Eric von Hippel, counters the dominant paradigm, which cast the profit-seeking incentives of firms as the main driver of technical change. In a series of influential writings, von Hippel and colleagues found empirical evidence that flatly contradicted the producer-centered model of innovation. Since then, the study of user-driven innovation has continued and expanded, with further empirical exploration of a distributed model of innovation that includes communities and platforms in a variety of contexts and with the development of theory to explain the economic underpinnings of this still emerging paradigm. This volume provides a comprehensive and multidisciplinary view of the field of user and open innovation, reflecting advances in the field over the last several decades.
The contributors—including many colleagues of Eric von Hippel—offer both theoretical and empirical perspectives from such diverse fields as economics, the history of science and technology, law, management, and policy. The empirical contexts for their studies range from household goods to financial services. After discussing the fundamentals of user innovation, the contributors cover communities and innovation; legal aspects of user and community innovation; new roles for user innovators; user interactions with firms; and user innovation in practice, describing experiments, toolkits, and crowdsourcing, and crowdfunding.
Contributors Efe Aksuyek, Yochai Benkler, James Bessen, Jörn H. Block, Annika Bock, Helena Canhão, Jeroen P. J. de Jong, Emmanuelle Fauchart, Dominique Foray, Nikolaus Franke, Johann Füller, Helena Garriga, Fred Gault, Fredrik Hacklin, Dietmar Harhoff, Joachim Henkel, Cornelius Herstatt, Christoph Hienerth, Venkat Kuppuswamy, Karim R. Lakhani, Christopher Lettl, Christian Lüthje, Ethan Mollick, Hidehiko Nishikawa, Alessandro Nuvolari, Susumu Ogawa, Pedro Oliveira, Stefan Perkmann Berger, Frank Piller, Christina Raasch, Susanne Roiser, Fabrizio Salvador, Pamela Samuelson, Tim Schweisfurth, Sonali K. Shah, Christoph Stockstrom, Katherine J. Strandburg, Stefan Thomke, Andrew W. Torrance, Mary Tripsas, Georg von Krogh
We present a large-sample survey of open innovation adoption and management in large firms, a follow-up to a previous study. We repeat some of the survey measures from the first survey, finding that open innovation continues to be widely practiced in about 80 percent of responding firms. Outside-in open innovation is more often practiced than inside-out. In other words, large firms are net takers of free knowledge flows, in part because they are concerned about IP protection for outbound knowledge. When we added new measures to examine open innovation at the project level, we found that firms selectively manage knowledge flows into and out of projects and are formalizing processes as they move from problem definition to execution. We conclude with observations about the organizational challenges and risks of shifting to an open innovation approach.
This paper analyzes the strategic effects of corporate venture capital investments. Specifically, by studying the deals of 163 corporations over a four-year period, it documents the effects of driving, emerging, enabling, and passive investments on the pool of innovative opportunities available to incumbents and the scale efficiency gains they experience as a result of these investments. The study suggests that by making driving and enabling investments, incumbents position themselves in the industry to take advantage of increased pools of innovative opportunities and improve scale efficiency yields. At the same time, emerging and passive investments are detrimental for both of the strategic goals considered in this paper.
Innovation has become a primary force driving the growth, performance, and valuation of companies. Our research reveals a wide gap between the aspirations of executives to innovate and their ability to execute. Many companies make the mistake of trying to spur innovation by turning to unreliable best practices and to organizational structures and processes. Our research shows that executives who focus on stimulating and supporting innovation by their employees can promote and sustain it with the current talent and resources - and more effectively than they could by using other incentives. Three approaches can help executives mount innovation efforts. First, senior management should actively support behavior that promotes innovation. Second, network analysis can identify where the capacity for innovation already exists within an organization and help it build more innovative networks. Finally, executives should seed innovative thinking by focusing on selected managers and projects.
Three of the people attending the meeting in a Chicago suburb were going broke. They had spent most of their money and all of their time for the past two years trying to commercialize a radical innovation called “Liquid Life,” an all-natural beverage made 100% from pureed fruit. They had developed an attractive plastic package, six good tasting flavors, and eye catching point-of-sale promotional materials. Grocery stores had told them they loved the idea and would gladly carry the product. However, consumers knew nothing about “Liquid Life” and it would take millions of dollars to commercialize the innovation the way the three entrepreneurs wanted to do it. Now, they had run out of money and time.
Four other people were at the meeting. Two were investment bankers, one a venture capitalist, and one a vice-president from Big Food, Inc., a Fortune 100 food and beverage company. Three of these four tried, once again, to convince the “Liquid Life” entrepreneurs to sell their ideas and technology to the food company. Once again, this advice was met with an emotional refusal.
The argument was always the same: the food company loved the breakthrough technology and was desperate for a radical new idea that might pump life into one of its existing product categories, but they could not pay much for an unproved innovation. The “Liquid Lifers” loved the idea of having a big company's resources behind them, but they knew the food company would strangle their commercialization dreams and control the way they developed future products. None of them wanted to join a large—though very successful—public company. The investment bankers had brought the food company to the meeting and advised the “Liquid Lifers” to sell. The venture capitalist wasn't so sure.
As product complexity and the rate of market change have dramatically increased over the last years, firms find it increasingly difficult to forecast product requirements in their development processes. This article redefines the problem from one of improving forecasting to one of increasing product development agility and thus reducing the need for accurate long-term forecasts. It introduces the notion of development flexibility, shows how it can be measured, and presents results from a large empirical study on integrated systems development, which found that projects using flexible technologies outperformed projects using inflexible technologies by a factor of 2.2 (in person-months). Finally, the article proposes three major strategies for introducing flexibility into organizations. These strategies can help firms increase their agility and position themselves to succeed in accelerating and more turbulent markets.
Managers need guidance on how to cope with turbulent environments in order to improve corporate performance. Research on environmental turbulence has suggested that firms adopt a less centralized, more organic structure in dynamic, uncertain environments. Little work has been done specifically, however, on how environmental turbulence affects strategy planning for new product development (NPD). In this article, we specify a baseline model with firm innovativeness, market orientation and top management risk taking as antecedents to NPD speed and corporate strategic planning; these in turn are modeled as antecedents to NPD program (not project) performance. Two conceptualizations of the role of environmental turbulence are examined: (1) that market turbulence and technological turbulence are additional direct antecedents to NPD program performance; and (2) that the baseline model is moderated by turbulence (that is, that the strengths of the paths differ depending on levels of turbulence). A cross-sectional survey methodology including four diverse industries [automotive, electronics, publishing, and manufacturing/research and development (R&D) laboratories] was used to test the hypotheses. The latter conceptualization is supported. In particular, the paths from innovativeness to strategic planning and from risk taking to NPD speed are significantly greater in highly turbulent environments. A set of managerial recommendations and implications are provided. First, managers must recognize the possible improvements in new product performance by actively including NPD personnel in corporate strategic planning and also by involving corporate planners in NPD activities. Second, managers also should recognize that turbulent environments heighten the need to make risky investments, and sometimes, risky decisions; risk-taking decisions ought to be encouraged in such environments.
Although most managers publicly acknowledge the need to explore new businesses and markets, the claims of established businesses on company resources almost always come first, especially when times are hard. When top teams allow the tension between core and speculative units to play out at lower levels of management, innovation loses out. At best, leaders of core business units dismiss innovation initiatives as irrelevancies. At worst, they see the new businesses as threats to the firm's core identity and values. Many CEOs take a backseat in debates over resources, ceding much of their power to middle managers, and the company ends up as a collection of feudal baronies. This is a recipe for long-term failure, say the authors. Their research of 12 top management teams at major companies suggests that firms thrive only when senior teams lead ambidextrously--when they foster a state of constant creative conflict between the old and the new. Successful CEOs first develop a broad, forward-looking strategic aspiration that sets ambitious targets both for innovation and core business growth. They then hold the tension between innovation unit demands and core business demands at the very top of the organization. And finally they embrace inconsistency, allowing themselves the latitude to pursue multiple and often conflicting agendas.
Large companies have long sensed the potential value of investing in external start-ups, but more often than not, they fail to get it right. Remember the dash to invest in new ventures in the late 1990s and the hasty retreat when the economy turned? This article presents a framework that will help a company decide whether it should invest in a particular start-up by first understanding what kind of benefit might be realized from the investment. The framework--illustrated with examples from Intel, Lucent, and others--explains why certain types of corporate VC investments proliferate only when financial returns are high, why other types persist in good times and in bad, and why still others make little sense in any phase of the business cycle. The framework describes four types of corporate VC investments, each defined by its primary goal--strategic and financial--and by the degree of operational linkage between the start-up and the investing company. Driving investments are characterized by a strong strategic rationale and tight operational links. Enabling investments are also made primarily for strategic reasons, but the operational links are loose. Emergent investments, which are characterized by tight operational links, have little current--but significant potential--strategic value. Passive investments, offering few potential strategic benefits and only loose operational links, are made primarily for financial reasons. Passive corporate VC investments dry up in a down economy, but enabling and driving investments usually have more staying power. That's because their potential returns are primarily strategic, not financial. In other words, they can foster business growth. Emergent investments may make sense even in a weak market because of their potential strategic value--that is, their ability to help companies identify and spark the growth of future businesses.
Reilly is the Frank E. Buck Professor of Management and Co-director, Leading Change and Organizational Renewal at the Stanford Graduate School of Business
- O Charles
Charles O'Reilly is the Frank E. Buck Professor of Management and Co-director,
Leading Change and Organizational Renewal at the Stanford Graduate School of
Business (email: coreilly@stanford.edu).
Binns is the Managing Principal of Change Logic, a consulting firm based in Boston, and Executive Fellow, Center for Future Education
- J M Andrew
Andrew J. M. Binns is the Managing Principal of Change Logic, a consulting firm
based in Boston, and Executive Fellow, Center for Future Education, Drucker
School of Management (email: andrew.binns@change-logic.com).
The Meaning of Design Is up for Debate. And That's a Good Thing
- Clay Chandler
Clay Chandler, "The Meaning of Design Is up for Debate. And That's a Good Thing," Time,
March 12, 2018, http://time.com/5180711/the-meaning-of-design-is-up-for-debate/.
Academy of Management Perspectives
- O' Charles
- Michael Reilly
- Tushman
Charles O'Reilly and Michael Tushman, "Organizational Ambidexterity: Past, Present and
Future," Academy of Management Perspectives, 27/4 (November 2013): 324-338;
From Lab to Market: Accelerating Research Breakthroughs and Economic Growth
- Tom Kalil
- Charina Choi
Tom Kalil and Charina Choi, "From Lab to Market: Accelerating Research Breakthroughs
and Economic Growth," 2014, https://obamawhitehouse.archives.gov/blog/2014/03/14/
lab-market-accelerating-research-breakthroughs-and-economic-growth.
How Does Digital Transformation Happen? The Mastercard Case
- Nathan Furr
- Andrew Shipilov
Nathan Furr and Andrew Shipilov, "How Does Digital Transformation Happen? The
Mastercard Case," INSEAD Case IN1463, 2018, https://www.thecasecentre.org/educators/
products/view?id=150710.
Corning Incorporated (A): Reinventing Business Development
- Lyn Denend
- Robert Burgelman
Lyn Denend and Robert Burgelman, "Corning Incorporated (A): Reinventing Business
Development," Case No. SM-167A, Graduate School of Business, Stanford University,
Stanford, CA, 2008.
Cypress Semiconductor: A Federation of Entrepreneurs
- David Caldwell
- Charles O' Reilly
David Caldwell and Charles O'Reilly, "Cypress Semiconductor: A Federation of
Entrepreneurs," Stanford Case OB-8, Graduate School of Business, Stanford University,
Stanford, CA, 2012.
The Four Steps to the Epiphany
- Steve Blank
Steve Blank, The Four
Steps to the Epiphany (Pescadero, CA: K&S Ranch Publishers, 2013).
- Alex Osterwalder
- Yves Pigneur
- Tim Clark
- Alan Smith
Alex Osterwalder, Yves Pigneur, Tim Clark, and Alan Smith, Business Model Generation
(Hoboken, NJ: Wiley, 2010).
- O' Charles
- Iii Reilly
- J Bruce Harreld
- Michael Tushman
Charles O'Reilly III, J. Bruce Harreld, and Michael Tushman, "Organizational Ambidexterity:
IBM and Emerging Business Opportunities," California Management Review, 51/4 (Summer
2009): 75-99.
Scaling Up Excellence: Getting to More without Settling for Less
- Robert Sutton
- Huggy Rao
Robert Sutton and Huggy Rao, Scaling Up Excellence: Getting to More without Settling for Less
(New York, NY: Crown Business, 2014).
Creative Confidence: Unleashing the Creative Confidence within All of Us
- Tom Kelley
- David Kelley
Tom Kelley and David Kelley, Creative Confidence: Unleashing the Creative Confidence within All of
Us (New York, NY: Crown Business, 2013).