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The Intensification of Innovation
Abstract
This paper suggests that the innovation process has intensified as a result of the application of new digital technologies. These technologies that simulate, model and integrate, intensify the innovation process through facilitating economy of effort and definiteness of aim. Of all the many analytical lenses used to examine innovation, the most valuable in accounting for this “automation of innovation” is Rothwell's concept of the 5th Generation Innovation Process. Our paper revisits this element of Rothwell's (1992) prize-winning article in R&D Management. It reviews the use of a range of enabling technologies and strategic management practices for the automation of innovation that were either in gestation or unknown at the time of Rothwell's paper. Rothwell's speculation about the increased “electronification” of the innovation process, and of related technological and strategic integration, has proven to be correct. The use of the new “electronic toolkit” can transform the innovation process by facilitating the transfer, transformation and control of information. Using insights from contemporary innovation and management research, this paper examines the benefits and limitations of these digital technologies in dealing with the challenges of innovation of reducing costs and increasing speed, predictability and strategic organisational integration. It presents a conceptual framework for assessing the intensification of innovation and outlines some strategic managerial precepts that will facilitate effective use of these technologies. The paper concludes with speculations about future developments in the intensification of innovation and its impact for strategic management, together with questions for further research.
... The approach to LL is useful to overcome fi rms' boundaries (Cosgrave, Arbuthnot and Tryfonas, 2013) as it concerns innovation from contributions off ered by stakeholders, in line with open innovation (Chesbrough, 2011) and aiming at reducing the costs in acting with open innovation communities. The starting phase of a multi-stakeholder innovation process aims at combining the suitable quantity and quality of resources, leading to merge resource integration with innovation, namely the so-called 'intensifi cation of innovation' (Dodgson et al., 2002). To achieve this goal, supra-national institutions, such as the EU, have recently begun to off er technical support to the creation of LLs. ...
... The development of new services is crucial in smart city projects and it is a need in improving the answers to citizen needs; this consideration is a contribution to the call for research by Wuenderlich et al. (2015) . New services are proposed through technology , as one of the focal features of a LL, since it levers the resources collected through a 'molecular democracy' (Kacser and Burns, 1979 ) towards the 'intensifi cation of innovation' (Dodgson et al., 2002) In detail, LLs support a more democratic and inclusive approach in smart cities and represent a motivation for city governance to drive these initiatives through actors engagement (Coe, Paquet and Roy, 2001), which represents the main reason for their success, even if aims can diverge (Walravens, 2012). The proactive participation of actors (Bergvall-Kåreborn and Ståhlbröst, 2009), especially citizens, the co-creation of innovative services, the att empt to ensure sustainability , and the use and upgrade of technologies represent useful areas for the integration of the service ecosystems (Veeckman and van der Graaf, 2015) with governance processes. ...
Our purpose is to identify the relevance of participative governance in urban areas characterized by smart cities projects, especially those implementing Living Labs initiatives as real-life settings to develop services innovation and enhance engagement of all urban stakeholders. A research on the three top smart cities in Europe – i.e. Amsterdam, Barcelona and Helsinki – is proposed through a content analysis with NVivo on the official documents issued by the project partners (2012-2015) to investigate their Living Lab initiatives. The results show the increasing usefulness of Living Labs for the development of more inclusive smart cities projects in which public and private actors, and people, collaborate in innovation processes and governance for the co-creation of new services, underlining the importance of the open and ecosystem-oriented approach for smart cities.
... Desde el punto de vista de la innovación sustentable, Lall (2001) establece que afecta positivamente a la competitividad empresarial, ya que dicha innovación vuelve a las organizaciones más eficientes; más responsables y, a la vez, más rentables (Montes, 2008). El autor añade que no se trata de dividir a la organización con la implementación de la innovación sustentable y la eco-eficiencia en la búsqueda del desarrollo sostenible, sino por el contrario integrarlas de una manera sistémica; ya que resultan ser elementos necesarios para las empresas que simplemente desean seguir siendo competitivas o perseguir ventajas a largo plazo (Dodgson et al., 2002). 2007), proponen que la capacidad de una empresa para implementar innovación sustentable, puede determinar la diferenciación de la marca y fomentar su comercialización y orientación estratégica, logrando eventualmente una competitividad superior. ...
En el contexto global relacionado con la crisis social y ambiental, este artículo tiene como objetivo realizar un análisis de las variables que influyen en la competitividad de las empresas multitiendas de la Región de Coquimbo, Chile, a partir de la formulación y uso efectivo de una propuesta de valor sustentable. Se presenta un modelo causal compuesto por siete hipótesis, con seis variables de estudio: propuesta de valor sustentable (socio-ambiental), fidelidad del cliente, co-creación de valor, innovación sustentable, eco-eficiencia y, competitividad empresarial. La población objetivo, mediante muestra representativa de 383 personas, son los consumidores de las principales tiendas del retail regional. Para el contraste del modelo propuesto se emplea el método de ecuaciones estructurales, a través de los Mínimos Cuadrados Parciales (PLS). Se determina que las hipótesis planteadas son aceptadas y que los factores señalados explican en un 89,9% la varianza de la competitividad empresarial.
... Organisational change is driven by an environment integrated with innovation. This insight is supported by studies of technological advances and the acceleration of creativity, both of which have been studied for two decades [20]. Below ( Figure 5) shows the human aspects of the automation process under strategic planning. ...
... These include support resources (e.g., Hornsby et al., 2002), energy resources (e.g., de Clercq et al., 2016Weinberger et al., 2018;Williamson et al., 2019), autonomy resources (e.g., de Spiegelaere et al., 2014;Hornsby et al., 2002), control resources (e.g., de Clercq et al., 2016Janssen, 2000), and fairness resources (e.g., Janssen, 2004;Moon et al., 2008). By enabling the exploration of ideas and reducing the effort of collecting and transferring information and feedback, digital affordances support innovative activities (Dodgson et al., 2002;Kankanhalli et al., 2015). Hence, employeeperceived information technology (IT) support for innovation is likely to reflect a perceived gain of support resources (see Halbesleben et al., 2014) that is associated with digital affordances and allows for resource accumulation and thus a higher likelihood of net resource gains when engaging in corporate entrepreneurial behavior. ...
Based on conservation of resources theory, this paper examines the mediating mechanisms in the relationship between digital affordances and employee corporate entrepreneurship participation likelihood. Findings from an experimental study with 207 employees show a statistically significant and positive indirect effect of digital affordances on employee corporate entrepreneurship participation likelihood through employee‐perceived information technology support for innovation and a statistically significant and—contrary to our expectations—positive indirect effect through employee‐perceived work overload. Results are corroborated by insights from in‐depth interviews with senior managers. They provide support for digital affordances as action potentials that are associated with resource gains that in turn foster employee corporate entrepreneurship participation likelihood.
... The single organization model however only covers the management level of an organization which is participating in construction innovation in the capacity of either OO or SO. The functional organization of a construction related firm can be divided into management (business) level and project levels (Gann and Salter, 2002)the former level deals with the strategic interests of the firm, whereas the latter level focuses on the project in hand. ...
... Interestingly, despite its similarity with the word creativity, innovation is found to be five times more likely to collocate with business (n=4049, span=20) than creativity does (n=782, span=20) in 1.9-billion-word Corpus of Global Web-Based English (GloWbE) (Davies, 2013). One possible reason is that innovation in business is more closely related to tangible products (Dodgson et al., 2002;Purcell, 2019;Startupr Hong Kong Limited, 2018), while creativity in business has a meaning closer to my definition, that it is focused on the mental or physical process of creating (including identification of opportunities) rather than the products (DeTienne & Chandler, 2004;Gundry & Kickul, 1996;Sarasvathy, 2001;Timmons, 1989). ...
Creativity is the new literacy; we cannot leave a whole generation of people behind."-Chase Jarvis (TNW, 2017) "You can't use up creativity. The more you use, the more you have."-Maya Angelou "If I can try to make it fun that for me is what being creative is about; it's having fun and looking at life through like a sort of the lens of a child really."-Taika Waititi (TED x Talks, 2010).
... Technology-infused reality drives organizational change. The research on flexible automation and on the intensification of innovation-the themes known for over two decades-confirms this observation (Cainarca, Colombo, and Mariotti 1989, Bucklin, Lehmann, and Little 1998, Sanchez 1995, Azani and Khorramshahgol 1991, Dodgson, Gann, and Salter 2002. ...
There is a resurging interest in automation because of rapid progress of machine learning and AI. In our perspective, innovation is not an exemption from their expansion. This situation gives us an opportunity to reflect on a direction of future innovation studies. In this conceptual paper, we propose a framework of innovation process by exploiting the concept of unit process. Deploying it in the context of automation, we indicate the important aspects of innovation process, i.e. human, organizational, and social factors. We also highlight the cognitive and interactive underpinnings at micro- and macro-levels of the process. We propose to embrace all those factors in what we call Innovation-Automation-Strategy cycle (IAS). Implications of IAS for future research are also put forward. Keywords: innovation, automation of innovation, unit process, innovation-automation-strategy cycle
... Interestingly, despite its similarity with the word creativity, innovation is found to be five times more likely to collocate with business (n=4049, span=20) than creativity does (n=782, span=20) in 1.9-billion-word Corpus of Global Web-Based English (GloWbE) (Davies, 2013). One possible reason is that innovation in business is more closely related to tangible products (Dodgson et al., 2002;Purcell, 2019;Startupr Hong Kong Limited, 2018), while creativity in business has a meaning closer to my definition, that it is focused on the mental or physical process of creating (including identification of opportunities) rather than the products (DeTienne & Chandler, 2004;Gundry & Kickul, 1996;Sarasvathy, 2001;Timmons, 1989). ...
[URL of published article: http://www.hkaect.org/jce/5(1)/Law_2021_5(1)_pp121-134.pdf] Creativity is the new literacy; we cannot leave a whole generation of people behind."-Chase Jarvis (TNW, 2017) "You can't use up creativity. The more you use, the more you have."-Maya Angelou "If I can try to make it fun that for me is what being creative is about; it's having fun and looking at life through like a sort of the lens of a child really."-Taika Waititi (TEDx Talks, 2010)
... new products/processes), since changes originate from all the elements comprising a firm's business model. Innovation moved on from the technology push theory (Freeman, 1994;Rothwell, 1994) to the market pull process (Rothwell, 1992;Brem and Voigt, 2009), continuing towards the coupling innovation process theory (Rothwell and Zegueld, 1985), a combination of the previous two theories, then followed by the functional integration innovation process theory (Imai et al., 1985) and the systems integration and networking innovation process theory (Dodgson et al., 2002). In sum, innovation has been progressively based on models of systems integration and open innovation Huizingh, 2011). ...
Purpose
The study aims to investigate whether and how digital transformation, in terms of digital collaboration, joint efforts with internal/external partners to achieve common goals and the adoption of digital tools supporting this practice, affect social innovation capital in the context of small innovative enterprises (SIEs).
Design/methodology/approach
The research hypotheses derived from the analysis of the literature, evaluating how sharing resources, sharing intensity and digital patterns affect the collective capacity of SIEs to innovate, were investigated by applying multiple regression analysis. Data were retrieved from a sample of Italian SIEs through an online survey.
Findings
The main findings suggest that the propensity to spread resources and the sharing intensity positively affect the collective capacity of SIEs to innovate. Also, the effect of resources sharing on collective innovation increases as more digital patterns are used as tools. The connection is weaker for the intensity of resources sharing.
Research limitations/implications
The study is conducted on Italian SIEs, a particular cluster of small and medium enterprises (SMEs). It would be interesting to compare and contrast the results of an analysis of a large sample of international companies, of different sizes and belonging to digital and non-digital sectors.
Originality/value
The results enrich the existing literature on social innovation capital, by clarifying its competitive benefits on the characteristic context of the SIEs and underlining the mediating role of the digital patterns.
... Similarly, regulatory factors have changed the requirements of engineers and technicians, such as changes in government policies in intellectual property law, new product approval procedures, environmental issues, sustainability issues, infrastructure development, and capacity building (Gann et al., 1998). Companies and research institutions seek efficient ways to improve economic efficiency and develop new products and services (Dodgson et al., 2002). Traditional research and development, design, and engineering practices are challenged by new ways in which information and communication technology play a central role. ...
Engineering management research objects have gradually been transformed from micro-scale projects to macro-scale built environment. Built environment has driven the advancement of civilization through human history. From the Stone Age to the modern era, built environment, which refers to manmade surroundings, has provided the setting for human activities. Built environment has undergone developments and evolution processes as civilization grew. Today, technological advancements cause influences of built environment to encompass every aspect of life, as material, spatial and cultural products of the human labor force, which combines material factors and energy in a lively way of work and in forms. However, the concept of built environment remains unclear. Built environment faces a major challenge, such as the use of science and technology to solve key national and global issues. Thus, the definitions of built environment were systematically reviewed and summarized from different perspectives and levels to address these issues. The grand challenges of built environment, including climate change and energy consumption, urbanization and infrastructure construction, growth, and innovation, were summarized. Furthermore, the corresponding management issues and future development strategies were proposed to solve identified challenges of built environment.
... La innovación se convierte en un factor crítico del crecimiento (Dodgson, Gann, y Salter. 2002. Citados por Mathison, et al. 2007) y generación de ventajas competitivas como aquellos elementos que se poseen y permiten establecer diferencias con otras organizaciones y a la vez permiten producir mejorías o superioridades de una con relación a otra. ...
The objective of this paper was to present a model of innovation and sustainability, which would allow entrepreneurs and managers of SMEs to improve the performance of their organizations and facilitate the achievement of business results.
The MISsme´s is the result of "melting" two models of innovation in the mathematical equations that represent them and explain their best performance: The collaborative open innovation model and the modernization model for organizational management (MMOM) in its pure analysis of those competitive elements that best explain the organizational component of innovation and knowledge.
In the methodology, the field work was carried out with a Panel with 11 experts for the validation of the instrument and preliminary theoretical framework. A structural analysis was carried out, from the application of the MICMAC (Matrix of Impacts Crossed Multiplication Applied to a Classification) (Godet, 2000), to a random sample of 41 of business students of SMEs of postgraduate of the different programs of the Universidad EAN, who were studying in the first quarter of 2017.
The multiple regression model yielded ten (10) analyzes in which it proposed to eliminate those variables of lesser interference in strategic direction until it was determined that the variables of Associativity and new markets are those that explained it in a greater percentage. In business terms and as a preliminary conclusion of this phase, the strategic direction in this MISpymes is explained in a 61.2% by the variables New markets and Associativity, which would mean for a manager of this type of companies that it would be necessary to work very strongly in these two variables to ensure in that percentage a strategic direction that allows your company to sustain itself over time. With this finding, the first hypothesis, H1, is verified: "The variable strategic direction in the economic dimension-creation of value, in the MISPyme model is explained by the variables Associativity and new markets".
... They differ from organizational ordinary operational capabilities as they, among other things, involve long-term commitment to specialized resources and are essential in the response to disruptive technological shifts, the integration of e-business transformation with existing operations of the business, and the connection with customers and suppliers as a response to disruptive innovations (Karimi and Walter, 2015, p. 43). In accordance with and supplementary to the gain in significance of dynamic capabilities, following organizational capabilities were found to be high importance with regard to DT: organizational learning (Kim et al., 2007), knowledge (Norton, 2000), operational efficiency (Kaefer and Bendoly, 2004), handling ambidexterity (Bergek et al., 2013), and complementary capabilities (i.e., combining new electronic tools for innovation with managerial resources, organizational structures, and new working practices) (Dodgson et al., 2002). ...
... While his work did not explicitly mention the Internet, it is clear that the kinds of innovation management challenge posed by the emergence of this new form fit well with the model. Although such fifth-generation models and the technologies that enable them appear complex, they still involve the same basic process framework [70]. ...
Managing Innovation is the bestselling text for graduate and undergraduate students and a classic in the field. Emphasizing practical, evidence based tools and resources, this title provides students with the knowledge base to successfully manage innovation, technology, and new product development. The holistic approach addresses the interplay between the markets, technology, and the organization, while relating the unique skill set required to manage innovation and innovation processes.
... They differ from organizational ordinary operational capabilities as they, among other things, involve long-term commitment to specialized resources and are essential in the response to disruptive technological shifts, the integration of e-business transformation with existing operations of the business, and the connection with customers and suppliers as a response to disruptive innovations (Karimi and Walter, 2015, p. 43). In accordance with and supplementary to the gain in significance of dynamic capabilities, following organizational capabilities were found to be high importance with regard to DT: organizational learning (Kim et al., 2007), knowledge (Norton, 2000), operational efficiency (Kaefer and Bendoly, 2004), handling ambidexterity (Bergek et al., 2013), and complementary capabilities (i.e., combining new electronic tools for innovation with managerial resources, organizational structures, and new working practices) (Dodgson et al., 2002). ...
... Following a review of current literature, it was found that organisational culture can both encourage and support the transfer of knowledge for problem solving (Dodgson et al., 2002). Firstly, the strategy of the organisation should support and encourage a culture of innovation and change, which should be communicated through the mission and vision statements (Dobni, 2008). ...
... Where BIM software is implemented, it is often not updated in real-time between the construction office and the construction site. Thus there is not the intensification of innovation in this context that would be expected to result from digitization and use of 3D software (Dodgson et al. 2002;Boland et al. 2007). ...
Researchers are developing techniques to use augmented reality for construction progress monitoring, but these are not widely diffused. A barrier to wider use is that BIM software is often not updated in real-time between the construction office and the construction site. This paper proposes an integrated cloud-based framework to enable construction progress monitoring by creating an automated real-time bidirectional flow of information between the construction site and planning office. This seeks to take advantage of the new opportunities arising because of the consumer VR/AR devices that have come to market in the last year, and the potential for engineers and site personnel to take ownership of these low-cost devices and use them in their role. It contributes to the trajectory of research on virtual and augmented reality in construction by articulating a novel approach to construction progress monitoring through passive data acquisition, cloud-based processing and use of consumer VR/AR devices. The paper concludes by articulating next steps to develop prototypes and work with industry partners to enable them to engage in innovation.
... Innovation is a process whereby organisations transform ideas into new or improved products, service or processes in order to advance, compete and differentiate themselves successfully in the marketplace (Baragheh et al., 2009;Dodgson et al., 2002). Innovation may be more severe and difficult to control than other organisational processes and transactions because of its characteristics of newness and change (Kerssens-van Drongelen and Bilderbeek, 2009;Zhao, 2003). ...
This study aims to explore the effects of: (1) the project characteristics of asset specificity, uncertainty and complexity on the performance of, and, the use of formal and social controls in inter-firm innovation projects, and, (2) the use of formal and social controls on the performance of inter-firm innovation projects. In addition, the mediating role of the use of formal and social controls in the relationships between the characteristics and performance of inter-firm innovation projects is also examined. Survey data from 75 organisations in innovation–active industries in Australia were analysed using the structural equation modelling with the Partial Least Square technique. The results show that uncertainty and complexity affected performance of inter-firm innovation projects, but in opposite directions. Higher levels of uncertainty were associated with less use of social controls but higher levels of complexity were partnered with a greater use of both formal and social controls. The use of formal and social controls individually impacted on inter-firm innovation project performance. Finally, the use of formal and social controls played a partial mediating role in the relationships of uncertainty and complexity with inter-firm innovation performance. Responding to gaps in research, this study clarifies that asset specificity may be irrelevant whilst uncertainty and complexity may be highly relevant in the performance of, and, the use of controls in inter-firm innovation projects. The study offers valuable insights into how a complementary use of controls contributes to the performance of inter-firm innovation projects.
... New generations of software bring previously separate activities together (D'Adderio, 2001(D'Adderio, , 2003, automating workflows and creating new forms of interdependence. They are enabling new forms of project delivery across project-based industries (Levitt, 2011;Whyte and Levitt, 2011); transforming innovation processes (Dodgson et al., 2002(Dodgson et al., , 2005Brynjolfsson and McAfee, 2014) and propagating innovation across the firms involved in the digital delivery of projects (Boland et al., 2007). ...
Digital delivery of complex projects, using integrated software and processes, is an important emerging phenomenon as it transforms relationships across the associated ecology of project-based firms. Our study analyses how a project-based firm, ‘Global Engineering’, builds new project capabilities for digital delivery through work on three major road and railway infrastructure projects. We find that it seeks to: (1) align the project set-up with the firm’s existing capabilities; and (2) reconcile differing agendas and capabilities in collaborating firms across the project ecology. Here, aligning involves influencing the set-up of digital delivery and renegotiating that set-up during project implementation; and reconciling involves managing across multiple digital systems; accommodating and learning other firms’ software and processes; and using digital technologies to create shared identity across the firms involved in delivery. We argue that creating relative stability enables firms to use existing, and build new, project capabilities, and hence aligning and reconciling are important to project-based firms in environments where there is high interdependence across heterogeneous firms and rapid technological change. We find that building these capabilities involves both ‘economies of repetition’ and ‘economies of recombination’; the former enabling the firm to capture value by mobilizing existing resources and the latter, requiring additional work to re-combine existing and new resources. Our study thus provides insight into how project-based firms build project capabilities for the digital delivery of complex projects in order to remain competitive in their existing markets, and has broader implications for learning in the project ecologies associated with these projects.
... The single organization model however only covers the management level of an organization which is participating in construction innovation in the capacity of either OO or SO. The functional organization of a construction related firm can be divided into management (business) level and project levels (Gann and Salter, 2002)the former level deals with the strategic interests of the firm, whereas the latter level focuses on the project in hand. ...
As a leverage to improve productivity and to gain competitive advantage, the concept of innovation has been evolving as an additional dimension in construction apart from the cost, quality and time factors. However, owing to the very nature of the industry and production practices, the rate of innovation in construction is reported to be slower than expected. This paper considers that the source of the problem of the low rate of innovation in construction could be traced in the behaviour of construction firms especially at the production (project) level. The fundamental questions of "why" the construction firms would initiate and implement innovation and "how" the firms would behave and interact during the initiation and implementation process are addressed. A qualitative systems thinking model was developed to depict the behaviour of and interaction among the individual parties that get involved in implementation of innovation on construction projects. Four main sets of feedback loops were developed to explain the dynamics of implementation process of construction innovation. On the feedback loop model, judgment and decision points were identified. The understanding of these points could help in finding the ways to foster innovation in construction.
... Although the impact of organizational size on three constructs measuring innovation processes was negative, it still might be the case that larger research organizations offer other advantages, as discussed above. For example, we might expect projects within larger research organizations to have more research resources, be able to attract or retain higher quality management, or put forth a more visionary, cross-disciplinary strategy (Dodgson et al. 2002;Etzkowitz and Leydesdorff 2000;Nelson 1971). ...
We explore the impact of organizational size in six federally funded research organizations on a range of organizational processes
related to the pursuit of innovation. The data utilized consisted of 266 scientists drawn from 64 research projects across
five programmatic research areas: alternative energies, biology, chemistry, geophysical sciences, and material sciences. A
sixth project category was added to accommodate the highly interdisciplinary character of a handful of projects. Although
the data had some limitations, it was found that organizational size had a negative impact on three categories of innovation
processes: the amount of time spent in research and professional activities, how research time is spent, and exchanges of
technical knowledge. In addition, some potential advantages of larger size, such as: greater research resources, better perceived
managerial quality or a visionary strategy, were not found to be significant.
... Process innovation. Process innovations include the introduction of new elements such as systems, equipment, materials, information, and work practices used to produce a product or service (Damanpour, 1991;Dodgson et al., 2002;Ettlie and Reza, 1992). Empirical evidence shows that process innovation impacts manufacturing efficiency and productivity (Frishammar et al., 2012;Hollen et al., 2013). ...
Although innovation is considered the lifeblood of many organisations, firms are often challenged to derive the anticipated performance benefits of innovation. Research on the performance outcomes of innovation is similarly beset with mixed results and ambiguity. Through a meta-analysis of 62 studies over 20 years, this paper confirms a strong linkage between innovation and performance and reveals several contingencies. First, we find that inconsistency across performance outcomes is driven in part by stakeholder appropriation. Second, we find that hypercompetition is persistent over time and across industries. Finally, our aggregation of the evidence shows the integration of product and process innovation yields stronger performance gains than product innovation alone, and large firms reap greater performance benefits from innovation than small firms do. We build on these findings to bring focus to areas in which managers may improve performance gains from innovation, and highlight additional areas that can be informed by future research.
... Rogers (1998) stresses both the creation of new knowledge and the dissemination of existing knowledge in the innovation process. However, according to Dodgson, Gann, and Salter (2002), innovation is the productive use of knowledge manifested in the successful development and introduction of new products, processes, and/or services. Amabile (1996) points out that the concept of creativity is the production of new and appropriate ideas in every field of human activity. ...
For a local tourist system, the ability to innovate its offers becomes a crucial strategic factor in global competition with other destinations. The study first discussed the conceptual links among creativity, innovation, and tourist areas, following two basic perspectives: territorial or destination level and individual company or organization level. The goal is to clarify the relationships between creativity, innovation and territory through knowledge transmission and sharing within the geographically located and interconnected system of actors. On the empirical level, the aim is to analyze cases of Italian events, highlighting underlying creative and innovative processes. The chapter has important managerial implications. At meta-level management it highlights the role of the learning destination, while at the organizational level it stresses the key role of the project team in making events effective.
Keywords: experience economy, creativity, innovation, event management, destination management, learning destinations.
... The construction industry is the most conservative and inert field of real sector of economy. This statement is reflected in various studies [Gann 2000 Innovation is the productive use of knowledge manifested in the successful development and introduction of new processes, products and/or services [Dodgson et al. 2002]. Innovation is the introduction of new goods, new methods of production, the opening of new markets, the conquest of new sources of supply and the carrying out of a new organization in any industry [Schumpeter 1934, р.112]. ...
Nowadays, conscious management of innovation in construction firms is becoming increasingly necessary. The research investigates the role of innovation management as an element of firm-level strategies of innovation diffusion. As a part of larger study of Russia's construction industry, a survey was conducted and data was collected via mailed questionnaires. The questionnaire requested respondents to provide specific data about the type of innovations adopted, the barriers to innovation diffusion and strategies to innovation promotion. The main objective of the paper is to find which management methods and practices are used by construction companies to become innovative.
... Collaborative networks allow companies to develop, to keep and to manage service innovation, as argued by . In this sense, Rothwell (1992) and Dodgson et al. (2002) described innovation as a process of accumulation of know-how through learning from inside and outside of the company using innovative ways. ...
The main original contribution of this doctoral dissertation is a model for the management of the social innovation in dynamic environments. This model is theoretically classified under the fields of open innovation, product innovation and service innovation, aimed at contributing towards the emerging field of social innovation. Furthermore, this model was built based on empirical evidences about social innovation enabled by information and communication technology, using multiple-case studies and clinical inquiry research. Moreover, the empirical study was based on the analysis of thirteen highly innovative projects in Brazil and Italy. These projects have been thoroughly analysed in the context of dynamic environments, which are special geographical locations that presented high variability in terms of the four main characteristics: velocity, complexity, ambiguity and unpredictability. From this perspective emerges the original contribution of this research, the model for managing social innovation. At the macro-level process of social innovation, the model is based on three different levels: internal, open and social. This model supports public-private partnerships for assessment of turbulence and ambidexterity during the innovation process. At the micro-level process, the model presents an in-depth framework in order to develop an understanding of the relationship between organisational innovation and user innovation. This research makes three original contributions towards the innovation management field. Firstly, this research establishes a model that deals with the management of social innovation within dynamic environments, and it addresses social needs and business opportunities. Secondly, this research defines two new terms, social innovation of high impact (SIHI) and social innovation in living labs (SILL). Thirdly, this research presents a set of nine propositions for further research. Finally, the main practical implication of this research is the development of the social innovation impact matrix, which can play an instrumental role when used by public-private partnerships in order to categorise social innovation projects.
... Models of innovation were discussed by Kline and Rosenburg (1986), and a typology of them was given by Dodgson, Gann, and Salter (2002). The traditional linear model has tasks passing smoothly from one team to the next without feedback loops. ...
This paper seeks to show how a firm will react to the costs of collecting information when making a decision in conditions of uncertainty and complexity. At its core is a simple model of a decision in which information is collected sequentially. The model builds on previous work by Casson and Wadeson (1998), and Wadeson (1999). The optimal decision-making procedure for any particular individual, or organization, will be dependant on both initial beliefs, and on the structure of information costs. The structure of information costs faced depends on many factors including information technology, past activity, existing knowledge and expertise, geographical location, personal contacts and relationships, contracting relationships, organizational structure, and organizational routines. This paper will derive hypotheses by assuming an efficient response to information costs, given a fixed set of initial beliefs. In order to allow searches to be carried out efficiently a firm needs to maintain flexibility, and ensure that information flows effectively both within itself and across its boundaries. It is argued that there is a tension between common incentive mechanisms and efficient decision making with costly information. Some applications of the theory are discussed. One is in helping to analyse interactions between managers and their subordinates, and between different parts of a firm. Another is in analysing project management techniques. The relevance of the theory to interactions at the boundaries of the firm, and to other transaction cost issues, is also considered.
... . enterprise resource planning (ERP); and . electronic data interchange (EDI) (Dodgson et al., 2002). ...
Purpose – The purpose of this paper is to present a general framework describing how new generations of agile innovation processes can benefit from using KM 2.0 technologies. Design/methodology/approach – An extensive literature review coupled with expert interviews and combined with the authors' experiences and models were used to develop the framework. Findings – A framework including the past and recent concepts and trends in terms of innovation management was developed. It is centered on the new critical roles that customers and the crowd can play in the innovation process. Knowledge management, Web 2.0 and Enterprise 2.0 technologies are important enablers of this framework. Originality/value – The paper presents the framework of a KM environment that can enable agile innovation management processes. Very few frameworks have been developed to support the full innovation process.
Purpose – In the ever-evolving digital landscape, this study aims to explore which specific personality traits contribute to the innovativeness of startups, with a particular emphasis on understanding how technology adoption mediates this relationship. By doing so, the authors strive to unveil the nuanced dynamics of personality, technology adoption and startup innovativeness in the digital era. Design/methodology/approach – The authors conduct a quantitative empirical analysis using a sample of 1,314 German startups. This study utilizes a mediation analysis to examine the effects of personality traits on the innovativeness of startups, taking technology adoption as a mediator into account.
Findings – The empirical results show certain personality traits have direct effects on innovativeness. Also, the results show that technology adoption is a driver of startup innovativeness. In addition, these traits are (partially) mediated by technology adoption.
Research limitations/implications – The results shed new light on the interplay of entrepreneurs’ personality and technology adoption in relation to startup innovativeness and therefore underline the importance of technology in this triangular relationship. The authors employ secondary data from startups in Germany, which complicates generalization of the results to other geographical and cultural contexts. Originality/value – This study contributes to the scientific debate on the role of personality traits in entrepreneurship by providing empirical evidence on the mediating effect of technology adoption in the relationship between personality traits and startup innovativeness. The findings offer valuable insights for researchers, entrepreneurs and policymakers interested in understanding and promoting innovativeness in the context of startups.
This study aimed to understand whether the increased use of digital technologies improves innovation performance of firms. Previous studies reveal that the more the firms use digital technologies, the more they can be potentially innovative. However, this is a myth. In fact, one of the main limitations of such studies is their undifferentiated approach toward the vast ocean of digital technologies. Yet, given the increasing pervasiveness of digital technologies at all levels, business and society, a question emerges: how they impact the capability of firms to be innovative? Counter-intuitively, we argue that most frequently used digital technologies have very low impact on innovation performance of firms as innovation is the result of creativity and of constant R&D efforts. By contrast, excess use of digital technologies may even deplete the long-run innovation capability of firms, for instance, by impoverishing the relational capital.
We performed two different statistical analysis to understand whether this intuition was grounded and hypotheses would be confirmed. First, we used a principal component analysis to identify the digital technologies that are salient for innovation performance. Second, we conducted a multivariate analysis of variance to understand if the identified technologies predicted innovation performance. All tests were conducted on a large-scale sample of firms operating the European Union. The findings confirmed that digital technologies have very low impact on innovation performance, whilst R&D expenses are the most reliable predictor of innovation. These results challenge the false belief that digital technologies improve innovation performance. At a practical level, the results suggest that decision makers should debias themselves from considering digital technologies as the ultimate ingredient for a successful innovative firm, as this may backfire eventually.
Innovation helps organizations to grow. Growth, though measured in turnover and profit, can also occur in knowledge, experience, efficiency, and quality. Innovation is the process of making changes to existing, and it can be radical or incremental, applied to products, processes, or services. It can happen at all levels, from management teams to departments to individual. Various factors encourage and drive an organization to innovate. Each of these drivers demands continuity and learning. These drivers create a sense of urgency to create new organizational goals and generate new ideas for meeting these goals. The term innovation is often associated with products, but can also occur in processes that make products, services, or deliver products and services, including intangibles. This chapter focuses on innovation in the organizational context, describes concepts underlying innovation, and tries to understand the core of the innovation process: What drives innovation in organizations?
This chapter explores the relevance of digital technologies for innovation
Purpose
Organizations are consistently seeking innovative strategies and novel pathways to enhance business processes and create differentiation. The global business ecosystem is changing and there is growing demand for multi-modal digital technologies, big data consolidation and data analytics to harness a cost-competitive agile system. Technological convergence and integration of digital systems is one of the preferred methodologies that facilitates new and effective workflows and revives business processes. The progressive interlinking of digital technologies with business operations leads to the convergence and blending of management disciplines, devices and applications. The growing inconsistencies in managerial understanding regarding the benefits of convergence prompts a comprehensive examination of digital convergence pathways, identifying the impacts on converging entities and business objectives. The State bank of India (SBI) mega-merger case study was selected to investigate the pragmatic framework of digital convergence and to understand the impacts on interlinked entities such as: business operations, strategic management, project team that support value creation and competitive differentiation. The purpose of this paper is to focus on the phenomena of techno-fusion of emerging technologies creating new opportunities, business models and unique strategies for global banking and financial service organizations.
Design/methodology/approach
This study applies the qualitative, inductive research method using critical reflection of before and after the implementation of convergence and digital integration strategies. The SBI case study employs this research strategy based on the premise that banks must stay agile and highly responsive to the changing environment to enhance its value proposition and competitive differentiation objectives. The study methodology incorporates cooperative inquiry and multiple levels of analysis using data collection techniques of exhaustive review of archives, informal interviews, questionnaires and observations to identify the synergistic process improvement pathway. The study is grounded on the concept that the convergence of diverse business pathways involves innovative and interlinked project, strategic and information technology (IT) workflows that results in open innovative systems.
Findings
The studies identify that organizational innovation and creative solutions are a result of ecosystem turbulence, environmental force diversity, competitive pressure and the need for differentiation. Organizations that harness the power of digital fusion and convergence of management, systems and data generate a competitive advantage. The technological convergence strategy pulls multiple business and technology processes (project, strategic, IT, Cloud, AI and business process management) at the organizational, divisional or functional level generating new opportunities and threats, new business models and unique growth strategies for global banking and financial services organizations. Organizations that fully integrate techno-fusion of business and digital strategies produce synergistic effects and enhance adaptability, innovation and resiliency in the face of competitive challenges.
Research limitations/implications
Additional areas that can be explored further as an extension of this study are listed below: identifying factors to improve the speed of convergence; the current results are limited to large size organizations where formal management and technology functions are distinctive. Similar studies on smaller organizations are warranted.
Originality/value
This study focuses on the evolving field of technology innovation, which is increasingly being intertwined with business operations. Innovative digital technology is enabling the convergence of the disciplines of management, digital devices and applications. This facilitates the creation of a pragmatic framework that supports convergence of business operations, strategic management and digital fusion which leads to value creation and competitive differentiation. The techno-fusion of emerging technologies and digital strategies generates new opportunities and threats, new business models and unique growth strategies for organizations.
Purpose
In industrial markets, different players concur to diffuse the new products and services. However, in high-regulated industries, firms might find substantial limitations to their usual strategies. This paper aims to analyze the strategic marketing approaches adopted by firms to overcome these limitations.
Design/methodology/approach
The authors used a case study approach to explore the strategies adopted by two multinational health-care companies to promote their new products in the Italian health-care market.
Findings
The two firms adopted three specific strategic marketing approaches: educational activities for all the different players of the market with the involvement of highly reputed partners (e.g. opinion makers, scientific societies and patients’ associations); simulation of the innovation’s impact on the entire system realized; and creation of an ad hoc organizational unit, called market access unit, to deal with the specific issues of this highly regulated market.
Originality/value
The study contributes to the literature on marketing strategies aimed at promoting the diffusion of new products in highly regulated industrial markets by illustrating the strategic approaches that innovative firms can adopt to both achieve regulatory compliance and promote the diffusion of their new products.
Las empresas de familia contribuyen en alto grado a generar riqueza y empleo en la economía, así como al crecimiento económico mundial. Esto demanda que la academia responda a los desafíos de gestión que este tipo de empresas tiene, tanto en contextos de economía local, como en mercados internacionales, y que les permita desarrollar ventajas competitivas. Con el objetivo de conocer si las empresas de familia realizan inversión en innovación, se trabajó, con la metodología de estudio de caso, una muestra de 62 pymes registradas en la base de datos del Grupo Gicea, siendo 23 de ellas empresas de familia. La mayoría son pequeñas empresas y pertenecen al sector comercio al por mayor y al por menor; ninguna de ellas refiere clientes a nivel internacional y tan solo un número reducido de ellas realiza inversión en innovación.
This study articulates how increasingly pervasive digital information transforms project delivery models. It builds on and extends the literature on innovation and knowledge codification, analyzing London’s evolving digital innovation ecosystem across 15 years of industry/government initiatives and infrastructure megaprojects. Findings suggest profound and ongoing changes in digitally enabled project delivery models. Novel contributions are: first, to identify new generations of integrated solutions; second, to articulate changes in supply chains and relationships with owners, operators, and end users; and third, to recognize the growing importance of digital workflows and analytics, rather than documents. There are implications for project management practice and scholarship.
From a social construction of technology (SCOT) perspective on innovation in construction, this chapter analyses the role of clients and users in sociotechnical change. Drawing on a broad range of documentary material and research interviews, we explore five case studies from Denmark, Sweden and France. It is found that interactions between clients/users and the construction industry take place in a number of different ways, and can result in all types of innovations: product, process, organisation and marketing. Sociotechnical change in construction is guided by the configuration of two dominant technological frames: a construction frame and a user frame. Finally, three different agency positions are identified: (1) the client as a user, (2) the client as a producer and (3) the client as an intermediary. In each of the agency positions, a client may pursue different governance strategies with specific implications for construction innovation.
It is argued that, within organisations, innovation is a cultural attribute, rather than something that is based on process. Nevertheless, one can conceive an informal process through which change is introduced from its first conception through to realisation as comprising the following activities: scan, focus, resource, implement, learn (Bessant, 2003). Successful innovation is the property of organisations that take an holistic approach to design and that pay significant attention to the last activity of the notional process, i.e. learning. Innovation concerns not only invention, but the vision and ability to take an idea through to application (which may be commercial success or delivery of societal benefit). In many respects, it is the tacit knowledge that an organisation has at its disposal that determines its levels of creativity and innovation. An historical perspective on innovation in aeronautics is also provided.
Innovation helps organizations to grow. Growth, though measured in turnover and profit, can also occur in knowledge, experience, efficiency, and quality. Innovation is the process of making changes to existing, and it can be radical or incremental, applied to products, processes, or services. It can happen at all levels, from management teams to departments to individual. Various factors encourage and drive an organization to innovate. Each of these drivers demands continuity and learning. These drivers create a sense of urgency to create new organizational goals and generate new ideas for meeting these goals. The term innovation is often associated with products, but can also occur in processes that make products, services, or deliver products and services, including intangibles. This chapter focuses on innovation in the organizational context, describes concepts underlying innovation, and tries to understand the core of the innovation process: What drives innovation in organizations?.
Abstract
For a local tourist system, the ability to innovate its offers becomes a crucial strategic factor in global competition with other destinations. The study first discussed the conceptual links among creativity, innovation, and tourist areas, following two basic perspectives: territorial or destination level and individual company or organization level. The goal is to clarify the relationships between creativity, innovation and territory through knowledge transmission and sharing within the geographically located and interconnected system of actors. On the empirical level, the aim is to analyze cases of Italian events, highlighting underlying creative and innovative processes. The chapter has important managerial implications. At meta-level management it highlights the role of the learning destination, while at the organizational level it stresses the key role of the project team in making events effective.
Keywords: experience economy, creativity, innovation, event management, destination management, learning destinations.
There is a wide recognition that, innovation is a key and strategic process, that is, essential for the survival and growth of individual firms, and also, for sustainable national and regional economic growth. Meanwhile, on the one hand, collaboration is a necessary approach for the innovation process in today's environment, and, on the other hand, information technology (IT) tools are indispensable means for collaboration across different boundaries. Web 2.0 is a new generation of web tools that are providing new ways for work and new opportunities for interaction and collaboration. These new tools are increasingly being used by various organizations to enhance collaboration, to the end of, supporting and improving the innovation process. This review aims to assess the extent and scope to which the literature has examined web 2.0 tools in the context of the innovation process. For this purpose, scholarly articles, published from 2002 to 2012, on each of the topics of innovation and web 2.0, were collected by the literature search. The study here adopted the systematic approach of lexical analysis for extracting relevant articles from the corpus and for the analysis of those articles.
Large research on innovation based on Brazilina large national databases (72.000 industrial firms, 95% of the Brazilian industrial value added, 5.6 million workers).
Availabel at http://www.ipea.gov.br/portal/images/stories/PDFs/livros/Inovacao_Padroes_tecnologicos_e_desempenho.pdf
As a leverage to improve productivity and to gain competitive advantage, the concept of innovation has been evolving as an additional dimension in construction apart from the cost, quality and time factors. However, owing to the very nature of the industry and production practices, the rate of innovation in construction is reported to be slower than expected. This paper considers that the source of the problem of the low rate of innovation in construction could be traced in the behaviour of construction firms especially at the production (project) level. The fundamental questions of "why" the construction firms would initiate and implement innovation and "how" the firms would behave and interact during the initiation and implementation process are addressed. A qualitative systems thinking model was developed to depict the behaviour of and interaction among the individual parties that get involved in implementation of innovation on construction projects. Four main sets of feedback loops were developed to explain the dynamics of implementation process of construction innovation. On the feedback loop model, judgment and decision points were identified. The understanding of these points could help in finding the ways to foster innovation in construction.
This paper explores how developing-country manufacturing organisations undertake open innovation activities along different stages of new product development (NPD) process. The data were collected through face-to-face interviews with senior research and development executives, and design and product engineers in three manufacturing organisations in Pakistan. The results suggest that inbound open innovation activities such as customer involvement, external networking and inward licensing were prevalent in selected organisations, whereas outbound innovation activities such as venturing or spin-offs and outward licensing of intellectual property were not practiced. The three cases add to the academic knowledge via the extension of Coopers Stage-Gate model of NPD. The proposed staged model of open innovation not only demonstrates the dynamics of open innovation along different stages of NPD, but also incorporates the enabling role of information and communication technology. Given the focus of current open innovation literature on developed regions, this study explores different stages of the open innovation process in developing-country organisations.
This paper discussed the Single Deck Bus design development process through an integrated industrial design approach for commercial production. Bus and coach building is a growing industry where the development process frequently ignored to satisfy customer demands and dateline resulted with almost similar facade and lack of design quality. The research applies visual inconsistencies analysis to identify significance features and as design comparative studies between manufacturers with international buses as a design benchmark. The design direction also aim to create manufacturer branding image with strategic production series and concept where the modelling and 1:1 prototype studies carried to provide clear direction and evaluation during development process with an emphasis to utilize a composite material for commercial production.
Countries differ in their economic performance due to the way their respective science, technology and production systems interact. The creation, adoption and transmission of knowledge are at the core of each of these systems. In developing countries knowledge is not uniform, but combines indigenous skills and know-how with modern ones. Policies promoting the prevalence of modern over traditional knowledge have resulted in the dependence on imported knowledge and the incapacity to create an endogenous know ledge base. At the same time these policies have accelerated the loss of valuable indigen ous knowledge that would otherwise help improve the capacities and quality of life of vast sectors of the population. Technical cooperation can play a critical role in building an endogenous science and technology base as well as in promoting the integration of indigenous and modern knowledge, technology and production. Three sets of policies are required to fulfil that purpose: those related to the domestic integration ofknowledge, technology and production; those that establish links with the global knowledge, tech nology and production systems; and those that create a favourable policy environment for the other two.
In recent years, industrial collaboration has been defined in a very flexible way by a large number of researchers and scientists from various disciplinary areas. As a consequence, although widely studied, industrial cooperation still remains a very complex issue. To try to bring about a deeper comprehension of how external linkages can contribute to innovatory activity, this article concentrates on a detailed, although far from exhaustive, survey of the relevant literature on technological collaboration, centring on its growing importance, the main reasons leading to cooperation, its advantages and disadvantages, and the focus and forms of industrial collaboration. The role of trustful partnerships is also analysed, since they may turn out to be a crucial element of competitiveness, bearing in mind that trust encourages and reinforces effective inter-firm linkages.
Hall (1993b) found that the market value of corporate R&D; relative to ordinary capital investment fell precipitously during the 1980s. The present paper examines this result more closely and finds that it was due both to an increase in the value of ordinary capital and to a steep decline in the absolute value of R&D; assets. The latter was concentrated in the electrical, scientific instruments, electronics, and computing sectors. Firm-level productivity results show that the contribution of R&D; to sales or output growth was low during the 1970s and the first half of the 1980s but has increased recently, except in the electrical industry and in the large firm part of the computing, machinery, metals, and motor vehicle industries. The overall explanation for these findings is that the very substantial restructuring of the manufacturing sector during the 1980s raised the valuation of ordinary capital (and of R&D; capital in the medium-technology sectors). At the same time entry by smaller firms and new technology coupled with a speed-up in product cycles eroded the profits in the electrical and computing sectors, leading to a substantial decline in the valuation of these profits.
An expanded paradigm is needed to explain how competitive advantage is gained and held. Firms resorting to 'resource-based strategy' attempt to accumulate valuable technology assets and employ an aggressive intellectual property stance. However, winners in the global marketplace have been firms demonstrating timely responsiveness and rapid and flexible product innovation, along with the management capability to effectively coordinate and redeploy internal and external competences. This source of competitive advantage, 'dynamic capabilities', emphasizes two aspects. First, it refers to the shifting character of the environment; second, it emphasizes the key role of strategic management in appropriately adapting, integrating, and re-configuring internal and external organizational skills, resources, and functional competences toward changing environment. 5 Only recently have researchers begun to focus on the specifics of developing firm-specific capabilities and the manner in which competences are renewed to respond to shifts in the business environment. The dynamic capabilities approach provides a coherent framework to integrate existing conceptual and empirical knowledge, and facilitate prescription. This paper argues that the competitive advan is tage of firms stems from dynamic capabilities rooted in high performance routines operating inside the firm, embedded in the firm's processes, and conditioned by its history. It offers dynamic capabilities as an emerging paradigm of the modern business firm that draws on multiple disciplines and advances, with the help of industry studies in the USA and elsewhere.
This paper focuses on patterns of technological change and on the impact of technological breakthroughs on environmental conditions. Using data from the minicomputer, cement, and airline industries from their births through 1980, we demonstrate that technology evolves through periods of incremental change punctuated by technological break-throughs that either enhance or destroy the competence of firms in an industry. These breakthroughs, or technological discontinuities, significantly increase both environmental uncertainty and munificence. The study shows that while competence-destroying discontinuities are initiated by new firms and are associated with increased environmental turbulence, competence-enhancing discontinuities are initiated by existing firms and are associated with decreased environmental turbulence. These effects decrease over successive discontinuities. Those firms that initiate major technological changes grow more rapidly than other firms.
The authors review and categorize the research in applications of artificial intelligence (AI) and expert systems (ES) in new product development (NPD) activities. A brief overview of NPD process and AI is presented. This is followed by a literature survey in regard to AI and ES applications in NPD, which revealed twenty four articles (twenty two applications) in the 1990–1997 period. The applications are categorized into five areas: expert decision support systems for NPD project evaluation, knowledge-based systems (KBS) for product and process design, KBS for QFD, AI support for conceptual design and AI support for group decision making in concurrent engineering. Brief review of each application is provided. The articles are also grouped by NPD stages and seven NPD core elements (competencies and abilities). Further research areas are pointed out.
Computerized system monitors and decision aids are increasingly common additions to critical decision-making contexts such as intensive care units, nuclear power plants and aircraft cockpits. These aids are introduced with the ubiquitous goal of “reducing human error”. The present study compared error rates in a simulated flight task with and without a computer that monitored system states and made decision recommendations. Participants in non-automated settings out-performed their counterparts with a very but not perfectly reliable automated aid on a monitoring task. Participants with an aid made errors of omission (missed events when not explicitly prompted about them by the aid) and commission (did what an automated aid recommended, even when it contradicted their training and other 100% valid and available indicators). Possible causes and consequences of automation bias are discussed
This paper demonstrates that the traditional categorization of innovation as either incremental or radical is incomplete and potentially misleading and does not account for the sometimes disastrous effects on industry incumbents of seemingly minor improvements in technological products. We examine such innovations more closely and, distinguishing between the components of a product and the ways they are integrated into the system that is the product "architecture," define them as innovations that change the architecture of a product without changing its components. We show that architectural innovations destroy the usefulness of the architectural knowledge of established firms, and that since architectural knowledge tends to become embedded in the structure and information-processing procedures of established organizations, this destruction is difficult for firms to recognize and hard to correct. Architectural innovation therefore presents established organizations with subtle challenges that may have significant competitive implications. We illustrate the concept's explanatory force through an empirical study of the semiconductor photolithographic alignment equipment industry, which has experienced a number of architectural innovations.
The availability of automated decision aids can sometimes feed into the general human tendency to travel the road of least cognitive effort. Is this tendency toward "automation bias" (the use of automation as a heuristic replacement for vigilant information seeking and processing) ameliorated when more than one decision maker is monitoring system events? This study examined automation bias in two-person crews versus solo performers under varying instruction conditions. Training that focused on automation bias and associated errors successfully reduced commission, but not omission, errors. Teams and solo performers were equally likely to fail to respond to system irregularities or events when automated devices failed to indicate them, and to incorrectly follow automated directives when the contradicted other system information.
New software technologies for personal productivity, research documentation and workgroup applications are analysed as instances of knowledge "codification". The analysis reveals that the social processes governing disclosure and cooperation in codification processes are as necessary as technological capabilities for some of the most promising applications. The conclusions suggest that research should focus on the nature and processes of "epistemic" communities (collective efforts organized to pursue common goals that are governed by procedural authority) to better understand how codification works. Copyright 2000 by Oxford University Press.
This paper develops a framework for analyzing the competitive implications of innovation. The framework is based on the concept of transilience - the capacity of an innovation to influence the established systems of production and marketing. Application of the concept results in a categorization of innovation into four types. Examples from the technical history of the US auto industry are used to illustrate the concepts and their applicability. The analysis shows that the categories of innovation are closely linked to different patterns of evolution and to different managerial environments. Special emphasis is placed on the role of incremental technical change in shaping competition and on the possibilities for a technology based reversal in the process of industrial maturity.
Ford Motor Company was ranked fourth in the Fortune 500 for the year 2000. Ifs 1999 revenues of over $162 billion come from eight automotive brands (Aston-Martin, jaguar, Volvo, Lincoln, Mercury, Ford, and Mazda) and four service divisions (Ford Credit, Hertz, Quality Care, and Quik-Fit). These businesses give Ford a presence in more than 200 countries and territories, with a workforce approaching 400,000 and 140 manufacturing plants. Ford Motor Company was founded in 1903, and by 1908 had become an industry pioneer, essentially inventing mass production as we know it today. Jacques A. (Jac) Nasser was named president and chief executive officer of the company on January 1, 1999. Born in Lebanon and raised from age four in Australia, Mr. Nasser has been executive vice president of the company, and president of Ford Automotive Operations. Before that, he was group vice president-Product Development. Nasser was elected a company vice president in 1993 as the chairman of Ford Europe, following three years as president of Ford Australia, an organization he joined in 1968, after studying international business at the Royal Melbourne Institute of Technology. Mr. Nasser has held a number of other global positions in Asia-Pacific and South America, giving him the broad base of experience that is typical of Ford executives destined for high-level promotions.
In this paper, we propose a resource-based model to explain how expert systems generate sustained competitive advantage for a firm. Specifically, we analyze the extent to which expert systems (ESs) exhibit the attributes of value, rareness, imperfect imitability, and nonsubstitutability associated with a rent-generating resource (e.g., Barney, 1991). Then, we discuss how expert systems yield sustainable competitive advantage through fostering organizational knowledge development and utilization. Finally, we examine the role of ESs in engendering a reciprocal, mutually enhancing relationship with organizational competencies, leading to sustained competitive advantage. Propositions are offered to facilitate future research.
This paper explores the management of innovation in project-based firms. Our research indicates that the traditional boundary between manufacturing and services is becoming obsolete as new forms of manufacturing emerge to supply physical products packaged together with intangible services. Many complex products are now designed, produced and operated as discrete or small batch projects, leading to a growth in firms specialising in project-based activities. These range from the provision of specialist services to co-ordination and systems integration. Not enough is known about how project-based firms manage technology. This paper attempts to develop a framework for understanding the dynamics of project-based firms. It offers a new approach to understanding how they improve performance by focusing on the development of technical capabilities in the context of the provision of enhanced services.
Management systems are critical to exploiting technological, process and product innovations. This paper examines the adoption of a particular systems innovation, Electronic Data Interchange (EDI). This empirical study of 379 organisations compares organisations in the stages of adoption. A systems innovation approach is used in order to examine the internal effects of adoption. The specific issues evaluated are the effects on users regarding satisfaction with training, involvement, participation, and the MIS/User interface. Implementation issues are found to be the principal difference between adopters and non-adopters. Different factors are found to affect the timing of the adoption. Organisation size and systems satisfaction discriminate between early and late adopters. This indicates that future adoptions are likely to be influenced more by a new set of characteristics that are primarily internal rather than external to the organisation. Adoption patterns are found to vary between industries. Adoption choice is affected by the type of pressure experienced by the organisation. The type of pressure is also found to have an impact on internal management practices. Recommendations are made for addressing the internal issues which will be affected by the changing pattern of EDI adoption.
There are few publications that provide benchmarking of suitable forms and mechanisms for the co-ordination of international R&D and innovation processes in multi-national corporations. This paper aims to help close this gap on the basis of interviews conducted in 18 Western European and Japanese enterprises. In this respect, the analysis of the differences between European and Japanese corporations is highly important because the co-ordination in Japanese firms is often regarded as a model of "best practice". The empirical results reveal that the major strengths of Japanese companies are their effective co-ordination of the value chain and integration of R&D into their business strategies. Both advantages are achieved through intensive use of personal contacts, informal communication and socialisation. However, European enterprises obviously underestimate these instruments and rely more on internal quasi-markets in R&D. These advantages in Japanese R&D management are also accompanied by drawbacks: while co-ordination is successfully supported within the company in Japan, the integration of international R&D is rendered more difficult.
Experimentation, a form of problem-solving, is a fundamental innovation activity and accounts for a significant part of total innovation cost and time. In many fields, the economics of experimentation are being radically affected by the use of new and greatly improved versions of methods such as computer simulation, mass screening, and rapid prototyping. This paper shows that a given experiment (and the related trial and error learning) can be conducted in different "modes" (e.g., computer simulation and rapid prototyping) and that users will find it economical to optimize the switching between these modes as to reduce total product development cost and time. The findings are confirmed by a large-scale empirical study of the experimentation process in the design of integrated circuits containing either (1) electrically programmable logic devices (EPLDs); or (2) application-specific integrated circuits (ASICs). In comparing their different experimentation strategies for analogous design projects, I found that the former (EPLD)-an approach that utilizes many prototype iterations-outperformed the latter (ASIC) by factor of 2.2 (in person-months) and over 43 percent of that difference can be attributed to differences in experimentation strategies. The implications for managerial practice and theory are discussed and suggestions for further research undertakings are provided.
In this paper, we propose a resource-based model to explain how expert systems generate sustained competitive advantage for a firm. Speciftcally, we analyze the extent to which expert systems (ESs) exhibit the attributes of value, rareness, imperfect imitability, and non substitutability associated with a rent-generating resource (e.g., Barney, 1991). Then, we discuss how expert systems yield sustainable competitive advantage through fostering organizational knowledge development and utilization. Finally, we examine the role of ESs in engenden’ng a reciprocal, mutually enhancing relationship with organizational competencies, leading to sustained competitive advantage. Propositions are ofleered to facilitate future research.
The key challenges for the strategic management of technology depend on a company9s size and its core business: small firms must focus on defining and defending their product niche; large firms on building and exploiting competences based on R&D or on complex production or information systems. In all cases, they require continuous learning, the capacity to integrate specialists, and a willingness both to break down established functional and divisional boundaries and to take a view to the long term.
The research presented examines the visual communication practices of engineers and the impact of the implementation of computer graphics on their visual culture. The study is based on participant observation of day-to-day practices in two contemporary industrial settings among engineers engaged in the actual process of designing new pieces of technology. In addition, over thirty interviews were conducted at other industrial sites to confirm that the findings were not an isolated phenomenon. The data show that there is no one best way' to use a computer graphics system, but rather that use is site specific and firms and individuals engage in mixed paper and electronic practices as well as differential use of electronic options to get the job done. This research illustrates that rigid models which assume a linear theory of innovation, projecting a straight-forward process from idea, to drawing, to prototype, to production, are seriously misguided.
Defines an expert system (ES) as a decision-making tool that captures perishable expertise from an expert and stores this knowledge in the computer, and also as a computer system that can solve problems using human expertise and knowledge of the system environment. Notes that expert systems have found many applications in the area of production and operations management (POM). Explains the key role of the ES as a management tool to enhance productivity, improve quality, increase profits and capture expertise in many business settings. Highlights that the field of POM has a heavy orientation towards problem solving and decision making, hence it is a very fertile area for application for ES. Evaluates the current use of ES in POM and discusses future prospects.
Not only is technology changing rapidly, but the process of the commercialisation of technological change—the industrial innovation process—is changing also. The paper traces developments in the dominant perceived model of industrial innovation from the simple linear ‘technology push’ and ‘need pull’ models of the 1960s and early 1970s, through the ‘coupling model’ of the late 1970s to early 1980s, to the ‘integrated’ model of today. The latter (the 4th Generation innovation process) marked a shift from perceptions of innovation as a strictly sequential process to innovation perceived as a largely parallel process. This shift owed much to observations of innovation processes in leading Japanese corporations. Recent developments indicate the possibilities attainable in the proposed ‘strategic integration and networking’ model, elements of which are already in place. According to this 5th generation model, innovation is becoming faster; it increasingly involves inter-company networking; and it employs a new electronic toolkit (expert systems and simulation modelling).
Knowledge acquisition and representation has been characterised as the major bottleneck in the development of expert systems (Barr & Geigenbaum, 1982), especially in problem domains of high complexity. Financial analysis is one of the most complicated practical problems, where the expert systems technology is highly applicable, mainly because of its symbolic reasoning and its explanation capabilities. The aim of this paper is to present a complete methodology for knowledge acquisition and representation for expert systems development in the field of financial analysis. This methodology has been implemented in the development of the FINEVA multicriteria knowledge-based decision support system for the assessment of corporate performance and viability. The application of this methodology in the development of the FINEVA system is presented.
This paper develops a theoretical framework based on empirical case study research that explains the role of tacit knowledge in technical change and how scientific knowledge is used in innovation. It develops a theoretical argument that proposes that science cannot be directly applied to produce technology because science answers the wrong question. Innovation starts with a desired end result and attempts to find the unknown starting conditions that will achieve it. Scientific knowledge, by contrast, goes in the opposite direction, from known starting conditions to unknown end results. This difference in direction is overcome by following tacitly understood traditions of technological knowledge that co-evolve with technological paradigms, but are themselves outside the realm of science. The paper demonstrates how technologies are `constructed socially' and embody sociological and political conceptions of problems and appropriate solutions, but the theory maintains a very realist perspective. The Cognitive approach treats knowledge as a capacity that is embodied in the brain, and embedded in socialised practices, using the metaphor of `pattern'. The paper explores why scientific patterns cannot be perfectly extrapolated for complex, non-trivial technologies and shows why technical change is dependent on learnt tacit conceptions of similarity that cannot be reduced to information processing.
The aim of this study is to investigate a specific aspect of the science and technology interface: inventor-author relations. The subject area is application of lasers in medicine. The empirical material consists of a set of 30 patents, representing the ‘technology side’ and 1057 publications authored by the inventors, representing the ‘science side’ of lasers in medicine.Our study includes four different approaches. First, we tried to find evidence, by looking at the scientific part, for the claim that references in patents to non-patent literature (NPL references, mostly scientific publications) indicate ‘science intensity’. It appeared that inventors of patents with many NPL references did not publish significantly more in science than inventors of patents with few NPL references. The former did, however, use more basic scientific journals to publish in than the latter.Second, we tried to identify at the science side one paper per patent which would best represent the R&D activities related to the patent. Here, a weak correlation was found between the number of NPL references in the patents and the number of references in their scientific counterparts.In our third approach, we compared the number of NPL references in the patents with expert assessments about the science intensity of each individual patent. Moreover, other aspects were taken in consideration, such as legal status of a patent (number of claims), complexity of the invention (number of pages), size of the inventor team. We found out that some of these other aspects could be related to a higher number of NPL references in patents.In the fourth and final approach of the study, we analysed the inventors' publications in more detail, in particular for the period before and around the patent application date. We tested and found evidence for two hypotheses. These two hypotheses state that, in preparation of a patent application, (1) co-inventors increase their co-activity in science; and (2) companies and universities level up their co-operation.
The ability to design is widespread amongst all people, but some people appear to be better designers than others. This paper addresses what we know about this `natural intelligence' of design ability, and the nature of design activity. Quotations and comments from some acknowledged expert designers are used to reinforce general findings about the nature of design activity that have come from recent design research. The role of sketching in design is used to exemplify some of the complexity of designing. In conclusion, comments are made about the value and relevance of research into artificial intelligence (AI) in design. It is suggested that one aim of research in AI in design should be to help inform understanding of the natural intelligence of design ability.
This paper highlights distinctive features of a neglected class of economic activity in the domain of innovation, namely the creation and development of high cost, complex products and systems (CoPS), asking how their nature might be expected to affect innovation and industrial organisation. It argues that because CoPS are highly customised, engineering-intensive goods which often require several producers to work together simultaneously, the dynamics of innovation in CoPS are likely to differ from mass produced commodity goods. To consider the argument, the paper describes some of the defining features of CoPS and counterpoises two ideal-type innovation schemes: a `conventional' mass production innovation scheme, and an idealisation more suited to CoPS. Implications for innovation and industrial coordination are discussed, pointing to the project and the project-based organisation as natural CoPS organisational forms. While major differences between groups of CoPS are apparent, user involvement in innovation tends to be high and suppliers, regulators and professional bodies tend to work together with users ex-ante to negotiate new product designs, methods of production and post-delivery innovations. Markets are often bureaucratically administered and contestability is low in contrast to commodity goods which are characterised by arms-length market transactions. In relating the critical attributes of CoPS to industrial processes and organisational form, the paper emphasises the wide variety of possible innovation paths and points to the CoPS project, rather than the single firm, as a chief unit of analysis for innovation, management and competition analysis.
This paper suggests that Chandler's (Chandler, A.D., 1990. Scale and Scope: The Dynamics of Industrial Capitalism. Belknap Press of Harvard Univ. Press, Cambridge, MA.) organisational capabilities framework can be modified to explain how suppliers of complex product systems (CoPS) build the capabilities necessary to expand successfully into new lines of business. In addition to Chandler's functional and strategic capabilities, we propose the concept of ‘project capabilities’ to refer to important CoPS activities of bid preparation and project execution. An organisational learning cycle model is presented to show CoPS firms can move from the first bid or project of its kind in a new domain of business, to achieve what we call ‘economies of repetition’ by putting in place organisational changes, routines and learning processes to provide a growing number of similar bids and projects more efficiently and effectively.
Although flexibility and firm competitiveness have been linked by a considerable body of research, most efforts to advance our understanding of flexibility have been focused on manufacturing, the economics of firms, and competitive strategy. This paper examines the link between technology and flexibility during product design and its impact on development performance and strategies for managing development risk, particularly in environments of high uncertainty. Using “the incremental cost and time of modifying a design as a response to endogenous and exogenous change” as a measure of flexibility, I compared analogous development projects from a large-scale empirical study of integrated circuit (IC) design. It was found that projects using flexible design technologies outperformed projects using inflexible technologies by a factor of 2.2 (in person-months) and over 23% of that difference can be attributed to differences in managing the risk of design changes: high flexibility enabled designers to tolerate high levels of risk, whereas low flexibility resulted in significantly higher resource investments that were aimed at minimizing the risk of design changes. The implications for managerial theory and practice are discussed and approaches that would allow firms to enhance design flexibility are proposed.
The experience of introducing expert systems technology into six automotive component manufacturing organizations in the mid-western United States is described. The domain of expert system application as well as the procedural and organizational hurdles that were encountered are also documented. An overview of relevant literature shows the shortage of studies of this kind. A synthesis is provided of the study observations and implications for better management of expert systems adoption in manufacturing.
As pressure to conduct research and development (R&D) faster and more efficiently has increased over the years, firms have embraced many novel technologies and approaches in an attempt to develop new capabilities that would give them an advantage over their competitors. While the connection between building and renewing capability and performance has been shown in a number of different settings, the contents and routines of many such capabilities have not been studied in detail and the processes by which these capabilities lead to performance gains are still somewhat unclear. In this paper, I will try to provide a better understanding of one rapidly emerging capability—the ability to utilize advanced simulation in R&D—and examine how it can affect performance and the associated learning process. With the aid of a detailed empirical study in the area of automotive development, I will show that computer simulation is already having a dramatic impact in at least one very critical area—the design for crashworthiness—and is rapidly changing other important fields as well. First, by speeding up and simultaneously reducing the cost of design iterations, developers can increase the frequency of problem-solving cycles while reducing the total amount of time and money spent on R&D. Second, the ability to conduct more diverse experiments with novel technical possibilities and to learn more effectively than with alternative methods can lead to better R&D output. The implications for managerial practice are discussed and suggestions for further research undertakings are provided.
This paper will first summarise some key findings of empirical research in the 1960s on the role of external sources of scientific, technical and market information in successful innovation by business firms. This work demonstrated unambiguously the vital importance of external information networks and of collaboration with users during the development of new products and processes. Moreover, the dilemmas of cooperative research in competitive industries were recognised and studied long ago [35,62,76]. What then is new about the present wave of interest in “networks of innovators”? Are there new forms of organisation or new technologies or new policies which justify renewed research efforts since they go beyond those developments already analysed in earlier empirical and theoretical work?Section 2 reviews the evidence of new developments in the 1980s in industrial networks, regional networks and government-sponsored innovative activities. It shows that there has indeed been a major upsurge of formal and semi-formal flexible “networks” in the 1980s, including some new types of network. It also shows that some older forms of research cooperation have been modified and transformed. The papers at Montreal largely concentrated on the role of regional supplier networks, which are a good example of such “new wine in old bottles”. This paper attempts to locate the regional network discussion within a wider context of new developments in networking.Section 3 discusses the causes of these new developments and whether they are likely to remain a characteristic of national and international innovation systems for a long time to come, or prove to be a temporary upsurge to be overtaken later by a wave of take-overs and vertical integration.Finally, section 4 sums up some of the other key issues which require further research and debate, and the implications for social science theory.
This paper addresses theoretical, empirical, and analytical studies pertaining to human use, misuse, disuse, and abuse of automation technology. Use refers to the voluntary activation or disengagement of automation by human operators. Trust, mental workload, and risk can influence automation use, but interactions between factors and large individual differences make prediction of automation use difficult. Misuse refers to over reliance on automation, which can result in failures of monitoring or decision biases. Factors affecting the monitoring of automation include workload, automation reliability and consistency, and the saliency of automation state indicators. Disuse, or the neglect or underutilization of automation, is commonly caused by alarms that activate falsely. This often occurs because the base rate of the condition to be detected is not considered in setting the trade-off between false alarms and omissions. Automation abuse, or the automation of functions by designers and implementation by managers without due regard for the consequences for human performance, tends to define the operator's roles as by-products of the automation. Automation abuse can also promote misuse and disuse of automation by human operators. Understanding the factors associated with each of these aspects of human use of automation can lead to improved system design, effective training methods, and judicious policies and procedures involving automation use.
Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science, 1995. Includes bibliographical references (p. [322]-331). by Stefan H. Thomke. Ph.D.
The rapidly changing developments in genomics and combinatorial chemistry, generating new drug targets and large numbers of compounds, have caused a revolution in high-throughput screening technologies. Key to this revolution has been the introduction of robotics and automation, together with new biological assay technologies (e.g., homogeneous time resolved fluorescence). With ever increasing workloads, together with economic and logistical constraints, miniaturisation is rapidly becoming essential for the future of high-throughput screening and combinatorial chemistry. This is evident from the introduction of high-density microtitre plates, small volume liquid handling robots and associated detection technology.
This paper explores how changes in genetics, database, high-throughput screening and bioinformatics technologies have allowed pharmaceutical firms to exploit economies of scale in experimentation. Traditional craft-based, sequential experimentation in chemistry and biology has been complemented by firstly, the automated, mass-production analysis of populations and secondly, by "in silico" experimentation using simulations and databases. The changes are analysed within a Chandlerian framework that highlights how increases in the "throughput" of R&D are dependent on organizational and managerial responses to systemic uncertainty. Copyright 2000 by Oxford University Press.
Efforts to improve the design process in new product development
often take the form of new information technologies, and they have had
varying degrees of success. This paper considers the modern technologies
of design and their impact on creativity. The analysis considers such
design issues as problem structure, engineering knowledge, expert
systems, ideation and the social context of technologies that affect
their adoption and use. There exists a general bias toward the goals of
effective coordination over enhanced creativity in the systems
supporting design. Suggestions for research and practice are discussed
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