...School Draft Working Paper: November 2006 Innovation: Basic Concepts and Models By S. N. Nasirpourosgoei and A-M Coles For many firms the development of new products is a major business activity, although Ettlie (2006) points out that many new products are merely copies or imitations of existing ones. The study of innovation is concerned with identifying how firms use their existing knowledge and technical resources to develop goods, processes and services that are significantly novel. Innovation is often seen as a key driver of economic growth for a country and increased firm productivity (Gann, 2003 cited in Abbott and Jeong, 2006). Trott (2005) demonstrates that the industrial revolution of the nineteenth century was fuelled by technological innovations, while Abbott and Jeong (2006) argue that there is now increasing emphasis on the importance of innovation for long-term economic success. At an organisational level, specific benefits include such factors as market growth, reductions in production cost, competitive positioning and opening up of new markets (Slaughter, 1998). For Ettlie the key questions in the study of innovation relate to the way some firms can utilise individual creativity in innovation more successfully than others. Innovation is has become a vital part of business survival and is supported by much academic study into reasons for its success and failure, for example, in 1994 – 1995, 275 books published in the US had the word ‘innovation’ in their title...
Words: 3264 - Pages: 14
...[pic] Ecole Superieures Libre des Sciences Commerciales Appliquees Doctorate of Business Administration Human Capital Management Paper on Dynamic Capabilities of Firms Presented to: Dr. Sherif Delawar By Mohamed Antably March 2012 Cairo, Egypt. Abstract: From one hand the dynamic capabilities of firms are the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. Other hand, Human capital ultimate objectives are linking HR practices and knowledge with goals of the firm to achieve and develop Competitive advantages. Accordingly, linking both statements would generate that HC is not only working to achieve the organizations objectives and but also to formalize, maintain and develop the firm dynamic capabilities. HC should also work on sharing and collecting success stories, lessons learnt and implicit individuals' knowledge into institutional explicit knowledge. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining which is more difficult among horizontal levels but easy in the vertical levels applying the chain of command), shaped by the firm's asset positions (such as the firm's portfolio of difficult-to-trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited. The importance of path dependencies is ampled...
Words: 4356 - Pages: 18
...038 INNOVATION PROJECT MANAGEMENT: A RESEARCH AGENDA SERGEY FILIPPOV; HERMAN MOOI DELFT UNIVERSITY OF TECHNOLOGY, DEPARTMENT OF INNOVATION SYSTEMS RESEARCHER AT DELFT CENTRE FOR PROJECT MANAGEMENT (THE NETHERLANDS) Abstract th Originally developed in the mid-20 century, project management has become a distinctive way to manage business activities nowadays. Another important development is virtually universal recognition of the role of innovation and technology in the corporate change, growth and profitability. It is unsurprising that development of innovation is often run as a project. Yet, theoretically both project management and innovation studies have evolved over time as distinctively separate disciplines. In this paper we make an attempt to conceptualise the innovation project management and to specify the idiosyncratic nature of innovation projects as opposed to conventional projects. By doing so, we contribute to the nascent academic debate on the interplay between innovation and project management. Key words: project management, innovation, technology 1. Introduction This paper is concerned with three topics and the interplay between them, namely “Innovation”, “Research and Development (R&D)” and “Project Management”. The interest in these topics has exploded recently as they emerged both on the policy agenda and in the corporate strategies. The contribution of technological innovation to national economic growth has been well established in the...
Words: 9508 - Pages: 39
...INTERNATIONAL CONFERENCE ON ENGINEERING DESIGN, ICED’07 28 - 31 AUGUST 2007, CITÉ DES SCIENCES ET DE L'INDUSTRIE, PARIS, FRANCE AN APPROACH TO INCREMENTAL INNOVATION THEORIES AND ITS METHODS IN INDUSTRIAL PRODUCT DEVELOPMENT Hannu Oja Tampere University of Technology ABSTRACT A quest for powerful tools to support creation of innovative solutions exists in industry. Majority of development efforts aims for incremental development of products, either by means of improved performance in use or during manufacturing process. New concepts or solutions on product’s functionality and behaviour (behaviour meaning how the functionality is delivered, response) are needed to bring benefits. Generic product development theories, models and methods are applicable for new product development, as their approach is linear and founded on functional requirements and means to execute them. However, in industry the product development activities preferably start from existing product or concept with pre-determined goals rather than from scratch. Creativity techniques and multidisciplinary workgroups have been referred in literature as means for creating innovations. However, these methods lack context of technical system and are general in nature and could be used for any problem with assistance of experienced moderator and a group of individuals. These techniques and methods are not included in this study. An approach from retrospective case study is presented. It was found that the mental process...
Words: 4589 - Pages: 19
...understand and delineate the role of marketing in explaining business performance differences between firms. Most of the theory base for any such attempts has to be informed by strategic management theory, since the primary question that strategic management seeks to answer is why some firms outperform others over time. This paper synthesizes three major streams of thought in strategic management with the empirical and theoretical literature on strategic marketing to develop an integrative theory-based conceptual framework linking marketing with firms’ business performance. Keywords Marketing strategy . Marketing resources . Marketing capabilities . Positional advantage . Competitors . Market performance . Financial performance Introduction The role of marketing in explaining firms’ business performance has received significant attention throughout the history of the marketing discipline. The need to link marketing with business performance has become more Acknowledgements Doug Vorhies contributed to much of the thinking represented in this paper—a version of which we set out to write together more than a decade ago but never got time to drive to completion in the face of competing projects. Naturally, all errors in the present paper remain mine alone. The author also gratefully acknowledges insightful comments and suggestions in the development of this paper from Costas Katsikeas and Lopo Rego, and the JAMS Editor (Tomas Hult) for his helpful feedback. ...
Words: 14979 - Pages: 60
...(Strasbourg) RESOURCES AND COMPETENCES PERSPECTIVES ON STRATEGY OF THE FIRM: A discussion of the central arguments F. Amesse, A. Avadikyan, P. Cohendet Introduction: In 1994, Wernerfelt received an award for the best paper of the decade in Strategic Management Review (A resource-based view of the firm, 1984). Considering the fortune of the article among practicing managers (Wernerfelt, 1995), he admitted that such a fortune had been leveraged by the 1990 article of Prahalad and Hamel in Harvard Business Review (“The Core Competence of the Corporation”). Directly addressed to people in management and strategy, this article was clearly prescriptive as to the best way to set winning strategies for the firm, especially as to diversification and the abusive use of SBUs (Strategic Business Units) in highly decentralized profit centres. “In the 1990s, top executives will be judged on their ability to identify, cultivate, and exploit the core competencies that make growth possible”. Since the 1990s, the resource based view (RBV) and the core competence approach (CCA) became very attractive for many researchers and consultants. Such interest was well supported by what seemed to be a clear and superior way of setting strategies by large Japanese groups which frequently served as a benchmark case of core competence management. The strong and pervasive trends for continuous technological innovation and for technological alliances created also a rich context for the use of...
Words: 14148 - Pages: 57
...Cornell University ILR School DigitalCommons@ILR CAHRS Working Paper Series Center for Advanced Human Resource Studies (CAHRS) 5-1-2003 Extending the Human Resource Architecture: Relational Archetypes and Value Creation Sung-Choon Kang Cornell University Shad S. Morris Cornell University Scott A. Snell Cornell University, ss356@cornell.edu Follow this and additional works at: http://digitalcommons.ilr.cornell.edu/cahrswp Part of the Human Resources Management Commons This Article is brought to you for free and open access by the Center for Advanced Human Resource Studies (CAHRS) at DigitalCommons@ILR. It has been accepted for inclusion in CAHRS Working Paper Series by an authorized administrator of DigitalCommons@ILR. For more information, please contact hlmdigital@cornell.edu. Extending the Human Resource Architecture: Relational Archetypes and Value Creation Abstract Theories of knowledge-based competition focus on internal resources as the source of value creation. The HR architecture (Lepak & Snell, 1999) brought human resource management directly into this forum by developing a model of human capital allocation and management. We attempt to extend the HR architecture by introducing a framework of relational archetypes—entrepreneurial and cooperative—that are derived from unique combinations of three dimensions (cognitive, structural, and affective) that characterize internal and external relationships of core knowledge employees. Entrepreneurial...
Words: 12286 - Pages: 50
...Innovator’s Dilemma When New Technologies Cause Great Firms to Fail CLAYTON M. CHRISTENSEN Harvard Business School Press Boston, Massachusetts 2 Copyright © 1997 by the President and Fellows of Harvard College All rights reserved The Library of Congress has catalogued the hardcover edition of this title as follows: Christensen, Clayton M. The innovator’s dilemma : when new technologies cause great firms to fail / Clayton M. Christensen. p. cm. — (The management of innovation and change series) Includes index. ISBN 0-87584-585-1 (alk. paper) 1. Creative ability in business. 2. Industrial management. 3. Customer services. 4. Success in business. I. Title. II. Series. HD53.C49 1997 658—DC20 96-10894 CIP ISBN 0-87584-585-1 (Microsoft Reader edition) 3 Contents In Gratitude Introduction PART ONE: WHY GREAT COMPANIES CAN FAIL 1 How Can Great Firms Fail? Insights from the Hard Disk Drive Industry 2 Value Networks and the Impetus to Innovate 3 Disruptive Technological Change in the Mechanical Excavator Industry 4 What Goes Up, Can’t Go Down PART TWO: MANAGING DISRUPTIVE TECHNOLOGICAL CHANGE 5 Give Responsibility for Disruptive Technologies to Organizations Whose Customers Need Them 6 Match the Size of the Organization to the Size of the Market 7 Discovering New and Emerging Markets 8 How to Appraise Your Organization’s Capabilities and Disabilities 9 Performance Provided, Market Demand, and the Product Life Cycle 10 Managing Disruptive...
Words: 82673 - Pages: 331
...ETM / IEL Working Paper Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Subramanian A.M. No. 01/12 Division of Engineering & Technology Management (D-ETM) Institute of Engineering Leadership (IEL) Faculty of Engineering 1 Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Annapoornima M.S. Abstract The appropriate type of innovation which can meet the needs of the mass population in the bottom of pyramid (BOP) has not been studied much in the literature. Based on the theory of disruptive innovation, we offer 11 cases from India and China – the two biggest emerging markets to show that disruptive innovation could be an appropriate, feasible, and powerful innovation force to the companies and the economies involved. We also examined the R&D strategies used in these cases based on the framework proposed by Yu & Hang (2011) and found that 3 out of the 4 strategies commonly used in the cases from developed markets were also applied in the cases from emerging markets. In addition, we have identified 3 unique strategies which emerged from the cases from India and China, namely frugal engineering, modularization, and drastic manufacturing cost reduction. Based on the frequency of the usage of these strategies, we drew practical implications for local companies and multinational companies. Our study also provides critical insights to policy makers...
Words: 10301 - Pages: 42
...Managing Supplier Integration into Product Development: A Literature Review and Conceptual Model Finn Wynstra and Ferrie van Echtelt Eindhoven Centre for Innovation Studies/Institute for Purchasing & Supply Development, Eindhoven University of Technology, PO Box 513 - 5600 MB Eindhoven, Netherlands Tel. +31 40 2473841, Fax +31 40 2465949, j.y.f.wynstra@tm.tue.nl, f.e.a.v.echtelt@tm.tue.nl Abstract This paper presents a critical literature review concerning the effects of involving suppliers in product development, the critical processes underlying the management of this involvement and the potential driving and enabling factors for managing supplier involvement in product development. Together they constitute the building blocks for a ‘input-throughput-output’ model that helps in understanding the crucial elements of how to manage supplier involvement in product development. This model draws on our previous work in this area, but focuses more clearly on the ‘inputs’ and ‘outputs’ of managing supplier involvement. Introduction to managing supplier integration in product development Literature on product innovation has been pervasively trying to distil the key ingredients for company success. Many of the internal and external actors that are involved in product development - and the interfaces between them - have been subjects of research. Especially the interface between R&D on the one side and marketing and customers on the other side has been investigated (Souder and Chakrabarti...
Words: 12263 - Pages: 50
...org/10.5465/amj.2009.0530 OFFSETTING ILLEGITIMACY? HOW PRESSURES FROM SECURITIES ANALYSTS INFLUENCE INCUMBENTS IN THE FACE OF NEW TECHNOLOGIES MARY J. BENNER University of Minnesota RAM RANGANATHAN University of Pennsylvania We study how analysts’ recommendations affect firms’ strategies during radical technological shifts. We find, from our study of firms in three industries undergoing technological change, that analysts’ recommendations trigger changes in strategic investments during periods of uncertain technological change. We also find that firms that make high investments despite negative analysts’ recommendations announce a higher value of share repurchases, an action that may offset the growing illegitimacy of these increased investments by signaling alignment with shareholders’ interests. Radical technological changes provide a source of exogenous variation that contributes to explanation of how firms balance technological pressures for adaptation and institutional pressures for legitimacy. The challenges and opportunities for firms faced with technological changes in their environments have been documented in a large body of organization and strategy research (e.g., Agarwal & Helfat, 2009; Christensen & Bower, 1996; Cooper & Smith, 1992; Henderson & Clark, 1990; Tushman & Anderson, 1986). Prior research has explored the difficulties firms face developing the new knowledge and capabilities required to respond to these major environmental shifts. This work has largely...
Words: 15241 - Pages: 61
...THE PDMA HANDBOOK OF NEW PRODUCT DEVELOPMENT T HIRD E DITION Kenneth B. Kahn, Editor Associate Editors: Sally Evans Kay Rebecca J. Slotegraaf Steve Uban JOHN WILEY & SONS, INC. Cover image: © Les Cunliffe/iStockphoto Cover design: Elizabeth Brooks This book is printed on acid-free paper. Copyright © 2013 by John Wiley & Sons, Inc. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 7486008, or online at www.wiley.com/go/permissions. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with the respect to the accuracy or completeness of the contents of...
Words: 165678 - Pages: 663
...CSAC05 1/13/07 9:21 Page 123 5 Analyzing Resources and Capabilities Analysts have tended to define assets too narrowly, identifying only those that can be measured, such as plant and equipment. Yet the intangible assets, such as a particular technology, accumulated consumer information, brand name, reputation, and corporate culture, are invaluable to the firm’s competitive power. In fact, these invisible assets are often the only real source of competitive edge that can be sustained over time. —HIROYUKI ITAMI, MOBILIZING INVISIBLE ASSETS You’ve gotta do what you do well. —LUCINO NOTO, FORMER VICE CHAIRMAN, EXXON MOBIL OUTLINE l Introduction and Objectives l The Role of Resources and l Organizational Capabilities Classifying Capabilities The Architecture of Capability l Appraising Resources and Capabilities Establishing Competitive Advantage Sustaining Competitive Advantage Appropriating the Returns to Competitive Advantage l Putting Resource and Capability Capabilities in Strategy Formulation Basing Strategy on Resources and Capabilities Resources and Capabilities as Sources of Profit l The Resources of the Firm Tangible Resources Intangible Resources Human Resources Analysis to Work: A Practical Guide Step 1 Identify the Key Resources and Capabilities 123 CSAC05 1/13/07 9:21 Page 124 124 PART II THE TOOLS OF STRATEGY ANALYSIS Step 2 Appraising Resources and Capabilities Step 3 Developing Strategy Implications l Developing Resources and Capabilities...
Words: 20499 - Pages: 82
...UK Irene Yousept, Feng Li University of Newcastle upon Tyne Business School, United Kingdom Irene.Yousept@ncl.ac.uk, Feng.Li@nc,.ac.uk Abstract The Internet has facilitated the emergence of new strategies and business models in several industries. In the UK, significant changes are happening in supermarket retailing with the introduction of online shopping, especially in terms of channel development and coordination, business scope redefinition, the development of fulfilment centre model and core processes, new ways of customer value creation, and online partnerships. In fact the role of online supermarket itself has undergone some significant changes in the last few years. Based on recent empirical evidence gathered in the UK, this paper will illustrate current developments in the strategies and business models of online supermarket retailing. The main evidence has been collected through an online survey of 6 online supermarkets and in-depth case studies of two leading players. Some of the tendencies are comparable to what happened in retail banking with the introduction of Internet banking, but other tendencies are unique to the supermarket retailing industry. This is a rapidly evolving area and further studies are clearly needed. 1 Introduction The Internet has facilitated the emergence of new business models in several industries. Previous research has revealed that the integrated models of retail banking have been challenged in the last few years, typified by...
Words: 10246 - Pages: 41
...five contributions to the study of Entrepreneurship. Introduction Businesses are any undertaking created for the purpose of creating utility. Utility is simply the satisfaction derived from consuming certain goods and services. Businesses are created by a special kind of labour which is also referred to as the entrepreneur. Entrepreneur is regarded as a special kind of labour because not all labour possesses entrepreneurial abilities which enable them to start a business from the scratch. Thus, entrepreneurship is simply the establishment of a new business or business enterprise or venture. This Unit looks at the development of the concept of entrepreneurship and the various ways in which this concept can be defined. Quick Review questions I. Businesses are not any undertaking created for the purpose of creating utility. True or False II. 1.3. Entrepreneur is regarded as a special kind of labour True or False Entrepreneurship – Origin Various scholars have written extensively on the origin of entrepreneurship. What is interesting is that most of the scholars who wrote about the origin of entrepreneurship are either economists or historians. Basically, the concept...
Words: 63960 - Pages: 256
