Study note on innovation capability

Study note on innovation capability

References with extracted contents

Teck-Yong Eng & Duygu Okten (2011) Exploring a dynamic framework of innovative capability: a theoretical integration of technological and marketing capabilities, Technology Analysis & Strategic Management, 23:9, 1001-1013.

".... the capability perspective of innovation .....focuses on a firm’s ability to innovate and develop competitive advantage. This capability perspective is related to a firm’s resources and capabilities to support organisational innovativeness. Although empirical research has shown that market orientation is an antecedent of organisational innovativeness ..., no study has yet examined the link between marketing capabilities based on market orientation to innovative capability. Prior research has mainly examined market orientation as a cultural construct rather than through a capability perspective. In addition, few studies have examined the innovation processes of exploration and exploitation learning, and their influence on capability development to enhance innovative capability";

".... Marketing and technological capabilities are part of organisational capabilities, which generate competencies rooted in processes and business routines. The positive relationship between these capabilities (marketing and technological) and firm performance requires a capability perspective to differentiate organisational routines and dynamic capabilities by understanding how the processes of exploration and exploitation learning support innovative capability";

"The analysis of technology is often implied in innovation but possession of new technologies alone cannot be regarded as competencies. Using a capability perspective, technological capability can be defined broadly as pertaining to the use of technological knowledge, know-how engendered by R&D, technology development and implementation of information technology in business solutions .... Technological capability is concerned with the ability of a firm to mobilise and deploy information technology based resources in combination or co-present with other resources and capabilities";

Louis Raymond , François Bergeron & Anne-Marie Croteau (2013) Innovation Capability and Performance Of Manufacturing SMEs: The Paradoxical Effect of IT Integration, Journal of Organizational Computing and Electronic Commerce, 23:3, 249-272.

"A basic characterization of innovation in empirical research lies in the distinction between product innovation and process innovation. Product innovation has been defined as the introduction on the market of “a product whose technological characteristics or intended uses differ significantly from those of previously produced products” or “an existing product whose performance has been significantly enhanced or upgraded,” whereas process innovation is defined as “the adoption of technologically new or significantly improved production methods” .... Hence, developing a product innovation capability would enable manufacturing SMEs to maintain their position in the market or their relation with important customers ..., whereas developing a process innovation capability would aim to improve their competitiveness by reducing production costs and increasing the flexibility of their productive apparatus";

"With regard to process innovation capability, a number of manufacturing SMEs have been found to adopt and assimilate advanced manufacturing technologies (AMT) such as computer-aided design and manufacturing (CAD/CAM) and flexible manufacturing systems (FMS) that enable them to achieve a competitive advantage with more flexibility, reduced delay (from product design to introduction on the market), and quick response to market changes";

"A review of empirical studies in the manufacturing sector reveals that 37% of SMEs aimed at product innovation, 43% aimed at both product and process innovation, and only 1% at process innovation exclusively (Becheikh et al. 2006). In addition, accumulating evidence suggests that for SMEs, the strategic use of IT is essential in enabling innovation to be converted into increased organizational performance";

Minna Saunila (2017) Innovation capability in achieving higher performance: perspectives of management and employees, Technology Analysis & Strategic Management, 29:8, 903-916.

"Innovation capability has been defined in several ways in the current literature. The categories used in the area of innovation capability often adopt a certain type of innovation, instead of the overall innovation capability. Innovation capability has also been divided into radical and incremental innovation capability (Sen and Egelhoff 2000). Also the effects of innovation capability on firm performance have usually been studied by using the above-mentioned categories. A majority of these studies has concentrated on large companies and relationship between their innovation capability and performance";

"Innovation capability has been suggested to be a multi-faceted construct. Lawson and Samson (2001) consider innovation capability as actions that can be taken to improve the success of innovation activities. Perdomo-Ortiz, González-Benitoa, and Galende (2006) use the term business innovation capability to describe the critical success factors of innovation processes. These critical factors can be interpreted as business innovation capability dimensions, and the capability can be measured with the factors. Thus, one viewpoint is to specify the organisational aspects of innovation. A body of literature has identified the common factors shared by innovative organisations and the factors that impact on the ability to manage innovation (Smith et al. 2008). According to earlier literature, these factors include for example leadership practices, employees’ skills and innovativeness, processes and tools for idea management, supporting culture, external sources for information, development of individual knowledge, and employees’ welfare";

Lillis, B., M. Szwejczewski and K. Goffin. 2015. "The development of innovation capability in services: research propositions and management implications" Oper Manag Res 8, Springer: 48-68.

"The ability to innovate gives the organisation a way to obtain competitive advantage (Barney 1991). For service organisations, innovation can help it to raise quality and productivity levels, meet changing customer needs and overcome superior competitor offerings. Unfortunately, knowledge on services innovation lags behind that on product innovation because the majority of innovation studies are conducted in the manufacturing sector (Goffin and Mitchell 2010). This is despite the dominance of the service sector in most developed economies";

"The nature of services causes the service innovation process to be less tangible (than in manufacturing companies) and interwoven with the capabilities embedded in the processes, procedures and routines of the organisation (den Hertog et al. 2010). Consequently, it is recognised that the approach to innovation (and the associated tools and techniques) which is well established in manufacturing companies cannot be simply transferred to the service setting";

"... most service companies do not have an ‘R&D’ department. Consequently, the operations function (including the front office and back office employees) usually is, de facto, responsible for innovation activities in service companies. Various studies have identified that innovation in services is often a bottom up process resulting from the employees’ actions rather than a structured top down approach ..... Innovation can arise from employees making small changes to the service production and delivery processes as they attempt to meet customer needs or deal with problems that occur";

Matti Tuominen & Saara Hyvönen (2004) Organizational Innovation Capability: A Driver for Competitive Superiority in Marketing Channels, The International Review of Retail, Distribution and Consumer Research, 14:3, 277-293.

"Organizational innovation has been described as the fundamental reconceptualization of business models and the reshaping of existing markets by breaking the rules and changing the nature of  rivalry ..... Indeed, innovation has been posited as providing a firm with an indirect approach to avoid competition and thereby achieve a differential advantage over its competitors ....  Innovation is also at the core of dynamic organizational capabilities ......, and, thus, innovators not only focus on rivals and their own competitive position within the marketing channel, but they also look across substitute channels ..... Nevertheless, after 30 years of research on innovation and business performance, fundamental concepts and measures are often ambiguous";