Innovation strategies in emerging markets: what can we learn from Indian market leaders
01 Jan 2011-
TL;DR: In this article, the authors compare the innovation strategies of five local market leaders in India on dimensions related to exploration and exploitation, internal and external sources, technology push and market-pull and product and process innovation.
Abstract: What role has innovation played in the leadership positions attained by local firms in emerging markets? What innovation strategies have these firms followed? This paper takes advantage of a natural experiment – the deregulation of the Indian economy – to investigate these questions. We compare the innovation strategies of five local market leaders in India on dimensions related to exploration and exploitation, internal and external sources, technologypush and market-pull and product and process innovation. This study establishes that innovation plays a key role in the leadership position attained by local leaders. These firms display a high degree of ambidexterity in both exploring and exploiting in parallel, an approach that is required to provide speed of response. External sources are tapped for knowledge and ideas, and this learning is integrated with internal innovation. Market exploration, particularly the development of products, services and business models that allow the companies to meet the affordability criteria of the mass market, plays an important role in the innovation strategy of these companies.
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TL;DR: In this article, the authors investigated whether firms' innovation strategies affect their patenting behavior, as measured by both the probability of having a patent portfolio and the number of active patents held.
Abstract: This paper investigates whether firms' innovation strategies affect their patenting behavior, as measured by both the probability of having a patent portfolio and the number of active patents held. Three main dimensions of an innovation strategy are taken into account: the relative importance of basic research, applied research and development work in total RD (2) there is a positive relationship between the patent portfolio of firms and an outward-oriented innovation strategy characterized by RD (3) process-oriented innovators patent less than product-oriented innovators; (4) a stronger focus on basic and applied research is associated with a more active patenting behavior; (5) firms that perceive high barriers to innovation (internal, risk-related or external barriers) have smaller patent portfolios; (6) the perceived limitations of the patent system do not significantly influence the patenting behavior, suggesting that firms patent for other strategic reasons than merely protecting innovation rents.
134 citations
TL;DR: The results indicate that KM has significant positive effects on product and process innovations, and OP, and process innovation was found to have a significant positive effect on OP, while product innovation was not.
Abstract: Purpose
The purpose of this paper is to investigate the effects of knowledge management (KM) on product and process innovations, as well as on operational performance (OP). In addition, the effects of product and process innovations on OP, as well as their mediating effects on the relationship between KM and OP, are also investigated.
Design/methodology/approach
A questionnaire-based survey was designed and used to collect data from 207 manufacturing companies operating in the Jordanian capital Amman. To assess construct validity, exploratory and confirmatory factor analyses were conducted. To test research hypotheses, the bootstrap re-sampling method was applied using Hayes’s SPSS multiple-mediator PROCESS macro.
Findings
The results indicate that KM has significant positive effects on product and process innovations, and OP. Process innovation was found to have a significant positive effect on OP, while product innovation was not. Furthermore, only process innovation was found to significantly mediate the KM-OP relationship.
Practical implications
The findings of this study provide useful insights about the role of KM in facilitating and enhancing product and process innovations, as well as OP in the surveyed manufacturing companies. An important implication concerns the roles of product and process innovations. Manufacturing companies seeking improvements in their OP are recommended to focus on process innovation rather than product innovation. While product innovation may affect other aspects of performance, such as market and financial ones, it was not found to significantly affect OP. Process innovation can also leverage KM’s contribution to manufacturing companies’ OP.
Originality/value
This is a pioneering study in that it developed an integrated model that depicts the interrelationships among KM, product innovation and process innovation and OP, in a developing country context.
91 citations
TL;DR: In this paper, the authors argue that management consultancy firms can fill institutional voids and thus help firms implement innovation initiatives in emerging markets by combining strands of institutional theory with the resource-based view.
59 citations
Cites background from "Innovation strategies in emerging m..."
...Keywords: Emerging economy Institutional void Management consulting firm Innovation input/output...
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TL;DR: This paper introduces convergent innovation as a form of meta‐innovation—an innovation in the way the authors innovate that integrates human and economic development outcomes, through behavioral and ecosystem transformation at scale, for sustainable prosperity and affordable universal health care within a whole‐of‐society paradigm.
Abstract: This paper introduces convergent innovation (CI) as a form of meta-innovation-an innovation in the way we innovate. CI integrates human and economic development outcomes, through behavioral and ecosystem transformation at scale, for sustainable prosperity and affordable universal health care within a whole-of-society paradigm. To this end, CI combines technological and social innovation (including organizational, social process, financial, and institutional), with a special focus on the most underserved populations. CI takes a modular approach that convenes around roadmaps for real world change-a portfolio of loosely coupled complementary partners from the business community, civil society, and the public sector. Roadmaps serve as collaborative platforms for focused, achievable, and time-bound projects to provide scalable, sustainable, and resilient solutions to complex challenges, with benefits both to participating partners and to society. In this paper, we first briefly review the literature on technological innovation that sets the foundations of CI and motivates its feasibility. We then describe CI, its building blocks, and enabling conditions for deployment and scaling up, illustrating its operational forms through examples of existing CI-sensitive innovation.
46 citations
TL;DR: This article examined the impact of gender at three different positions in a firm's hierarchy on innovative activities, looking at over 6474 firms in 30 emerging countries and found that female ownership percentage, female top management, and female majority in the workforce are positively associated with marketing innovation only, and a female majority is not significantly related to any measure.
Abstract: This study examines the impact of gender at three different positions in a firm’s hierarchy on innovative activities, looking at over 6474 firms in 30 emerging countries. We create a dummy variable for each of the six survey questions on product innovation, process innovation, organizational innovation, marketing innovation, and R&D (Research & Development) spending. Each dummy acts as a dependent variable in a separate logit regression, and the sum of the dummies acts as the dependent variable in another ordered logit regression. We use the female ownership percentage, female top management, and female majority in the workforce as test variables. We use the Heckman two-stage model to address endogeneity concerns with gender. We find that the female ownership percentage is generally positively related to individual innovation measures as well as the composite measure, while female top management is positively associated with marketing innovation only, and a female majority in the workforce is not significantly related to any measure. The results suggest that promoting innovation in emerging countries would involve governments encouraging further market participation by women and supporting female CEOs (Chief Executive Officers) to innovate, and firms fostering innovation among female workers.
27 citations
References
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Book•
01 Oct 1984
TL;DR: In this article, buku ini mencakup lebih dari 50 studi kasus, memberikan perhatian untuk analisis kuantitatif, membahas lebah lengkap penggunaan desain metode campuran penelitian, and termasuk wawasan metodologi baru.
Abstract: Buku ini menyediakan sebuah portal lengkap untuk dunia penelitian studi kasus, buku ini menawarkan cakupan yang luas dari desain dan penggunaan metode studi kasus sebagai alat penelitian yang valid. Dalam buku ini mencakup lebih dari 50 studi kasus, memberikan perhatian untuk analisis kuantitatif, membahas lebih lengkap penggunaan desain metode campuran penelitian, dan termasuk wawasan metodologi baru.
78,012 citations
TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.
16,377 citations
Book•
01 Mar 2003TL;DR: Open Innovation: The New Imperative for Creating and Profiting From Technology as discussed by the authors is a book by Henry Chesbrough, which discusses the importance of open innovation for creating and profiting from technology.
Abstract: The article reviews the book “Open Innovation: The New Imperative for Creating and Profiting From Technology,” by Henry Chesbrough.
8,644 citations
TL;DR: The ambidextrous organization as discussed by the authors is an organization that simultaneously pursues both incremental and discontinuous innovation, and adapts the culture and strategy of an organization to its current environment, but to do so in a way that does not undermine its ability to adjust to radical changes in that environment.
Abstract: Organizations evolve through periods of incremental or evolutionary change punctuated by discontinuous or revolutionary change. The challenge for managers is to adapt the culture and strategy of their organizations to its current environment, but to do so in a way that does not undermine its ability to adjust to radical changes in that environment. They must, in other words, create an ambidextrous organization—one capable of simultaneously pursuing both incremental and discontinuous innovation.
4,234 citations
TL;DR: In this article, a contingency view of process management's influence on both technological innovation and organizational adaptation is developed, arguing that while process management activities are beneficial for organizations in stable contexts, they are fundamentally inconsistent with all but incremental innovation and change.
Abstract: We develop a contingency view of process management's influence on both technological innovation and organizational adaptation. We argue that while process management activities are beneficial for organizations in stable contexts, they are fundamentally inconsistent with all but incremental innovation and change. But dynamic capabilities are rooted in both exploitative and exploratory activities. We argue that process management activities must be buffered from exploratory activities and that ambidextrous organizational forms provide the complex contexts for these inconsistent activities to coexist.
3,814 citations