Monday, 6 February 2017

Mind mapping the topic of innovation

Mind mapping the topic of innovation



Joseph Kim-keung Ho
Independent Trainer
Hong Kong, China



Abstract: The topic of innovation is a main one in Business Management. This article makes use of the mind mapping-based literature review (MMBLR) approach to render an image on the knowledge structure of innovation. The finding of the review exercise is that its knowledge structure comprises four main themes, i.e., (a) Descriptions of basic concepts and information (b) Major underlying theories and thinking, (c) Main research topics and issues, and (d) Major trends and issues related to practices. There is also a set of key concepts identified from the innovation literature review. The article offers some academic and pedagogical values on the topics of innovation, literature review and the mind mapping-based literature review (MMBLR) approach.
Key words: Innovation, literature review, mind map, the mind mapping-based literature review (MMBLR) approach



Introduction
Innovation is a main topic in Business Management. It is of academic and pedagogical interest to the writer who has been a lecturer on Business Management subjects for some tertiary education centres in Hong Kong. In this article, the writer presents his literature review findings on innovation using the mind mapping-based literature review (MMBLR) approach. This approach was proposed by this writer in 2016 and has been employed to review the literature on a number of topics, such as supply chain management, strategic management accounting and customer relationship management (Ho, 2016). The MMBLR approach itself is not particularly novel as mind mapping has been employed in literature review since its inception. The overall aims of this exercise are to:
1.      Render an image of the knowledge structure of innovation via the application of the MMBLR approach;
2.      Illustrate how the MMBLR approach can be applied in literature review on an academic topic, such as innovation.
The findings from this literature review exercise offer academic and pedagogical values to those who are interested in the topics of innovation, literature review and the MMBLR approach. Other than that, this exercise facilitates this writer’s intellectual learning on these three topics. The next section makes a brief introduction on the MMBLR approach. After that, an account of how it is applied to study innovation is presented.

On the mind mapping-based literature review approach
The mind mapping-based literature review (MMBLR) approach was developed by this writer in 2016 (Ho, 2016). It makes use of mind mapping as a complementary literature review exercise (see the Literature on mind mapping Facebook page and the Literature on literature review Facebook page). The approach is made up of two steps. Step 1 is a thematic analysis on the literature of the topic chosen for study. Step 2 makes use of the findings from step 1 to produce a complementary mind map. The MMBLR approach is a relatively straightforward and brief exercise. The approach is not particularly original since the idea of using mind maps in literature review has been well recognized in the mind mapping literature. The MMBLR approach is also an interpretive exercise in the sense that different reviewers with different research interest and intellectual background inevitably will select different ideas, facts and findings in their thematic analysis (i.e., step 1 of the MMBLR approach). Also, to conduct the approach, the reviewer needs to perform a literature search beforehand. Apparently, what a reviewer gathers from a literature search depends on what library facility, including e-library, is available to the reviewer. The next section presents the findings from the MMBLR approach step 1; afterward, a companion mind map is provided based on the MMBLR approach step 1 findings.

Mind mapping-based literature review on innovation: step 1 findings
Step 1 of the MMBLR approach is a thematic analysis on the literature of the topic under investigation (Ho, 2016). In our case, this is the innovation topic. The writer gathers some academic articles from some universities’ e-libraries as well as via the Google Scholar. With the academic articles collected, the writer conducted a literature review on them to assemble a set of ideas, viewpoints, concepts and findings (called points here). The points from the innovation literature are then grouped into four themes here. The key words in the quotations are bolded in order to highlight the key concepts involved.

Theme 1: Descriptions of basic concepts and information
Point 1.1.              The term ‘innovation’ has been defined by the great Austrian economist Joseph Schumpeter as: the commercialization of all new combinations based upon the application of: new materials and components; the introduction of new processes; the opening of new markets; the introduction of new organizational forms” (Janszen, 2000);
Point 1.2.              “…invention relates to new ideas, novel breakthroughs, and new discoveries. The key feature of an invention is its newness and the fact that, as such, it is not normally immediately ready for the market. Accordingly, innovations include not only the invention itself, but also the activities and processes designed to commercialize these new ideas” (Arlbjøn, Haas and Munksgaard, 2011);
Point 1.3.              Innovation processes not only relate to processes of commercializing new ideas, but innovation also refers to the broader capability of an organization to continuously renew itself” (Arlbjøn, Haas and Munksgaard, 2011);
Point 1.4.              The concept of creativity refers to the intention or creation or materialization of a new concept/idea/thing that has a certain value. Normally, creativity is associated with artwork and literary work and is linked with technology as well. A related concept is that of innovation which is mostly associated with technology and is referred to as the creation of better and more effective products, services, technologies, etc.” (Bezergianni, 2013);
Point 1.5.              The innovation orientation culture arises from being externally focused and being flexible. This orientation is characterized by searching for new information in the external environment, advocating changes, taking risks, creativity, competition, anticipation, enough room for experimentation and a wish to be successful. Power is primarily based on individual knowledge and the ability to solve problems” (Das, 2003);
Theme 2: Major underlying theories and thinking

Point 2.1.              “…technological niches can be conceived as protected socio-economic spaces where radical innovations are developed and tested. In this context business incubation can occur, i.e. rooms where the process of novelty (and its development) becomes a greatly valued criterion and where there are quite different selection mechanisms with respect to the normal environment” (Lopolito, Morone and Taylor, 2013);
Point 2.2.              Among the different types of innovation strategies that companies may choose, time-based strategies generate the most comments. There are two opposing strategies: leadership—that is, being first on the market—and followership—bringing out a better or cheaper product later through creative imitation” (Bel, 2013);
Point 2.3.              Cycles of hype and disappointment are frequently observed in relation to new technologies. These cycles involve proponents of a new technology promoting their positive forecasts about the technology’s potential effects. Promotion of positive forecasts leads to increasingly widespread enthusiastic expectations about the technology. Subsequently, expectations fall and disappointment rises as positive expectations cannot be met” (Fox, 2013);
Point 2.4.              Firm size necessitates and facilitates the adoption of organizational innovation …. Increasing size leads to a corresponding increase in inherent differentiation and complexity of the organization. These increases, in turn, demand for innovative organizational methods to cope with arising coordination problems” (Ganter and Hecker, 2013);
Point 2.5.              “The literature on competing technologies during a transformative period exhibits a consensus that a winning technology emerges through the socio-political dynamics among industry stakeholders, in particular those on the supply side of technology” (Kim and Pennings, 2009);
Point 2.6.              “The NSI [National Systems of Innovation] concept rests on one fact and two well-established beliefs: (i) countries exhibit systematic differences in terms of economic performance; (ii) the latter largely depends on different technological and innovation capabilities on the one side, and development of institutions on the other side ….; (iii) innovation and technology policies are an effective tool for fostering innovation performance of countries” (Filippetti and Archibugi, 2011);
Point 2.7.              Top management can create an innovation vision, formulate the strategy (the funding and resources dedicated to innovation, the targets of innovation as well as the type of innovation—products, services, solutions, business model), and support the building of a company’s process from idea to market …, but it rarely matches the strength of an entrepreneurship culture unleashing the creative and innovative power of hundreds or thousands of employees” (Bel, 2013);
Point 2.8.              “What disrupts incumbent firms in Christensen’s story is not their inability to conceive of the disruptive technology: ….. he identifies the root of the tension in disruptive innovation as the conflict between the business model already established for the existing technology, and that which may be required to exploit the emerging, disruptive technology. Typically, the gross margins for the emerging one are initially far below those of the established technology” (Chesbrough, 2010);
Point 2.9.              “Whenever something new is introduced into an organization, smooth functioning can only be achieved when people actively participate in the introduction of the innovation. Furthermore, innovation implementation cannot be planned in such a way that no unexpected problems occur along the way. Problems must therefore be anticipated and dealt with proactively and the implementation itself often requires that people think about and use new procedures with a self-starting sense” (Baer and Frese, 2003);
Point 2.10.         “… two climate dimensions are of particular importance in complementing the successful adoption of process innovations. First, the organizational environment has to be supportive of an active approach toward work…..   Second, the work environment has to be one in which people are safe to take interpersonal risks and value each individual’s contribution to the work process” (Baer and Frese, 2003);
Point 2.11.         ….for him [Schumpeter], innovation was very closely linked to the emergence, growth and decline of industries, which historically marked the development of capitalism” (Malerba, 2006);
Point 2.12.         “….knowledge sourcing and inter-organisational collaboration in geographical proximity are especially important for industries that rely on a synthetic or symbolic knowledge base since interpretation of the knowledge they deal with tends to differ substantially from place to place” (James, Leiblein and Lu, 2013);
Point 2.13.         “…organizational innovations usually reflect a high degree of idiosyncrasy and complexity. They are typically specific to organizational context and tightly entangled with the structures and resources of the implementing firm” (Ganter and Hecker, 2013);
Point 2.14.         A technological niche is successful when the firm that introduced the innovation grows stronger and/or when other firms imitate the novel design. …. this results in an attack on the stability of the dominant socio-technical regime” (Lopolito, Morone and Taylor, 2013);
Point 2.15.         “Choosing the business model as their unit of analysis, they [Amit and Zott] identify novelty, lock-in complementarities and efficiency as key aspects of business model innovation. However, these may often conflict with the more traditional configurations of firm assets, whose managers are likely to resist experiments that might threaten their ongoing value to the company” (Chesbrough, 2010);
Point 2.16.         “Companies frequently attempt to gain a competitive advantage in their market through innovation, yet this critical factor is often elusive. Obtaining innovation requires both exploration to tap new opportunities and exploitation to enhance existing capabilities. The ability to excel at these conflicting modes of innovation can be termed organisational ambidexterity” (Andriopoulos and Lewis, 2010);
Point 2.17.         “For managers, two questions need to be answered in designing an innovation-focused organization: (1) What is the locus of knowledge? (2) By which principles do we integrate that knowledge?” (Wallin and Krogh, 2010);
Point 2.18.         “In Pavitt’s taxonomy, professional, financial and business services belong for the most part to the category of “supplier-dominated firms” (i.e., supply of instruments and technical systems). The main characteristics of this type of firm are as follows: they tend to be small, have no R-D function and they may have difficulty in appropriating innovation through technical means, which forces them to fall back on non-technical procedures, such as branding, marketing, etc.” (Gallouj, 2002);
Point 2.19.         Innovation resistance is the resistance offered by consumers to changes imposed by innovations. It is a special version of resistance to change. It is normal response, not abnormal” (Dunphy and Herbig, 1995);
Point 2.20.         Innovative efforts not only create new markets …, but also bring existing industries to new states, extend their life cycles, and reshape their competitive landscapes” (Kim and Pennings, 2009);
Point 2.21.         “Making decisions about collective good is political almost by definition. Hence, if the democratization of innovation is relevant anywhere, then it certainly is in public services such as tram transport” (Nahuis, 2005);
Point 2.22.         Making decisions about innovation occurs ever more frequently in complex networks in which no dominant actors can be identified And experts, consultants, intermediaries, environmental and consumer organizations, and users themselves have acquired considerable influence in the processes of innovation. Whether the process succeeds or fails has become dependent on horizontal links and the capacity to create intelligent alliances with other actors” (Nahuis, 2005);
Point 2.23.         Networks are critical not only for accessing knowledge to create in-house innovations, or for the diffusion of technological innovation, but they are equally important for learning about innovative work practices that other organizations have developed or adopted” (Pittaway et al., 2004);
Point 2.24.         “Notwithstanding their benefits, alliances entail mutual dependence on partners’ complementary resources, and this is particularly true for vertical R&D alliances, where the development of technological innovation depends largely on suppliers’ R&D results. In such settings, alliances may be prone to rigidities when it comes to developing breakthrough innovations” (Gassmann, Zeschky, Wolff and Stahl, 2010);
Point 2.25.         Organisational ambidexterity is the ability to excel at exploration and exploitation e vital, but conflicting modes of innovation. Respectively, these modes spark the imagination, invention and experimentation to create future opportunities, and enhance current skills, specialisation and capacity to meet today’s business demands” (Andriopoulos and Lewis, 2010);
Point 2.26.         Organizational innovation represents an important source of sustainable competitive advantage …. This type of innovation has the potential to significantly increase firm performance. Reducing production and transaction costs, improving labor productivity, helping to gain access to non-tradable assets (such as non-codified external knowledge), and building of value adding capabilities all contribute to achieving this goal” (Ganter and Hecker, 2013);
Point 2.27.         “Stevens and Burley …  developed a universal success curve that is valid across most industries. They show that out of 3,000 initial ideas, 300 gave rise to experiments or patent files, out of which 125 became real projects, generating two product launches. Of these, only one became a real commercial success” (Bel, 2013);
Point 2.28.         Technology by itself has no single objective value. The economic value of a technology remains latent until it is commercialized in some way via a business model. The same technology commercialized in two different ways will yield two different returns. In some instances, an innovation can successfully employ a business model already familiar to the firm” (Chesbrough, 2010);
Point 2.29.         The way firms innovate, search and learn over time, is … importantly affected by a large array of institutions including the way labour market works, industrial patterns of specialization, industrial relationships, education system and financial structure” (Filippetti and Archibugi, 2011);
Point 2.30.         “There are two approaches to measuring innovation at the level of the firm. One utilizes indicators available in the public domain, such as R&D expenditure, number of patents and new product announcements. The other uses survey instruments to capture a broader range of indicators such as the proportion of technical, design or research personnel, and proportion of sales or profits accounted for by products launched in the past three or five years” (Tidd, 2001);
Point 2.31.         “When defining their innovation cooperation strategies, firms search for two kinds of external partners: (a) those that allow them to incrementally build on the firm’s existing internal knowledge and (b) those that provide knowledge to aid defining trajectories that are new to the firm” (Faria, Lima and Santos, 2010);
Point 2.32.         “….factors that affect the pace of the innovation process are different for various industries. Innovation speed is particularly important in environments characterized by competitive intensity … and for firms facing rapid technological change and compressed product life cycles … such high-technology (high-tech) industries” (Goktan and Miles, 2011);
Point 2.33.         “Whereas, inventions can be realized by an individual organization, innovations are realized by efforts of a group of inter-related organizations forming an industry. Successful breakthroughs or radical innovations require endeavor of more than one organization, which facilitate each other’s work in terms of skilled manpower, information, research, venture capital and entrepreneurship” (Sabir and Sabir, 2010);
Theme 3: Main research topics and issues
Point 3.1.              “….innovation management `best practice' is contingent on a range of factors, and …… we need better characterizations of the technological and market contingencies which affect the opportunity for, and constraints on, innovation” (Tidd, 2001);
Point 3.2.              “…systematic research and knowledge about supply chain innovation (SCI) is little developed. There is a lack of common terminology, of agreement about the conceptual understanding, and of related empirical work” (Arlbjøn, Haas and Munksgaard, 2011);
Point 3.3.              “Although product innovation is a key tool for firms competing in the marketplace, innovating firms often fail to obtain economic returns from their product innovations …. Thus, how an innovating firm can profit from its product innovation represents an important research question” (Su et al., 2013);
Point 3.4.              “Over the past 25 years, the technology strategy literature has examined how four primary mechanisms—patents, secrecy, lead time, and complementary assets—influence whether and to what extent firms capture value generated by their innovations. Although this literature has had a profound impact on our understanding of how firms capture value from innovation, we have yet to develop a robust theory that allows us to unbundle the characteristics of institutions, industries, firms, and individual technologies that affect the selection of particular value cap­ture mechanisms” (James, Leiblein and Lu, 2013);
Point 3.5.              “We expect that shared leadership will play a role in facilitating the teams’ ability to adapt to change and thus will be associated with team innovative behavior….   Shared leadership reflects a situation where multiple team members engage in leadership and is characterized by collaborative decision-making and shared responsibility for outcomes” (Hoch, 2013);
Point 3.6.              “…many innovative firms do not apply for patent protection and that a patent application is not an innovation, but only one of many possible innovation indicators. Though the use of patents as innovation indicators has been debated, many scholars argue that it is a proper measure of innovation” (Andersson and Lööf, 2012);
Point 3.7.              “A significant amount of study and research has been invested in describing traits and differences between early adopters and laggards but little effort has been made to understand the differences between innovations and the potential adopter perception of attributes that are most important in determining his rate of adoption” (Dunphy and Herbig, 1995);
Point 3.8.              “Although ambidexterity studies have multiplied, together they provide an incomplete guide to ambidexterity. Prescriptions remain fragmented and largely targeted toward top management, in spite of claims that innovation tensions pervade organisations. James March described exploration-exploitation tensions as nested across multiple levels, complicating management challenges” (Andriopoulos and Lewis, 2010);
Point 3.9.              Conceptual and empirical literature in the field of international management has long suggested two distinct missions when it comes to transnational innovations …: One, focusing on the exploitation of the firms’ existing capabilities, the other on the creation (augmentation, exploration) of new capabilities” (Ambos and Schlegelmilch, 2008);
Point 3.10.         “Conceptually, it is not difficult to identify the contribution innovation can make to competitiveness ….. However, it is more difficult to establish a strong empirical relationship between innovation and performance. For example, at firm level, the relationships between innovation inputs and outputs is much weaker than at industry level. The weakness in the relationship may be caused by methodological shortcomings or by the random unpredictability of innovation” (Tidd, 2001);
Point 3.11.         “Concerning the relationship between innovation and business cycles, two extreme hypotheses can be outlined: according to the first, innovation is cyclical and therefore firms tend to reduce their innovation efforts during the downswing of the economy, while according to the second, it is instead counter-cyclical and claims that recessions are a fertile environment for firms to innovate” (Filippetti and Archibugi, 2011);
Point 3.12.         “Considerable attention has been focused on the ways in which emerging market firms can obtain and mobilize the knowledge and resources required for innovation. Innovation is a particular challenge in emerging markets because of inadequate external institutions” (Chen et al., 2014);
Point 3.13.         “The notion of customer acceptance of a technological innovation has largely been neglected in research on marketing. Of all of the ingredients required for a successful innovation, the most important is customer need. Businesses need to understand the reasons behind customer acceptance or rejection in order to become more efficient in their development efforts, and to recognize ways to improve competitiveness and profitability” (Dunphy and Herbig, 1995);
Point 3.14.         “The question of how firm size is related to innovation has inspired scholars to produce one of the largest bodies of literature in the field of industrial organization ….. Still, a substantial part of this research may be associated with the two contrasting Schumpeterian hypotheses—the importance of innovative activity increases or decreases more than proportionately with firm size” (Andersson and Lööf, 2012);
Point 3.15.         With few exceptions, the study of innovation was long synonymous with the study of new product and production process development. Recently, researchers increasingly criticize such a narrow notion focusing exclusively on technological innovation” (Ganter and Hecker, 2013);
Point 3.16.         “… when firms invite volunteer users to contribute their knowledge to innovation, they cannot apply traditional organizational hierarchy or leadership authority to directing, incentivizing, and monitoring volunteers’ efforts. However, researchers have only begun to focus on how managers can design their organizations to facilitate the use of outside knowledge in the innovation process” (Wallin and Krogh, 2010);
Point 3.17.         There was a shift of attention away from transformation and industrial dynamics towards the relationship between innovation and firm size, on the one hand, and innovation and market structure, on the other” (Malerba, 2006);
Theme 4: Major trends and issues related to practices
Point 4.1.              “‘Innovation has become the industrial religion of the late 20th century. Business sees it as the key to increasing profits and market share. Governments automatically reach for it when trying to fix the economy’ …. In particular, innovations aimed at enhancing organizational production and service procedures and processes …. have been embraced by a wide variety of businesses with increasing frequency” (Baer and Frese, 2003);
Point 4.2.              “According to the concept of national innovation system …, the growth of a nation depends upon its capacity to produce innovative and high-tech goods to be offered within and outside its territories. More and more countries are focusing on enhancing their competitiveness through innovation for development” (Sabir and Sabir, 2010);
Point 4.3.              Cooperative firms have, on average, higher overall performance levels than do non-cooperative firms …. and a higher R&D intensity …. since they are able to share investment costs and may take advantage of partners’ resources and capabilities. The engagement in cooperation activities, with the knowledge management it implies, also increases the profitability of R&D” (Faria, Lima and Santos, 2010);
Point 4.4.              Despite much talk of customer orientation, user insight, and customer focus, the reality is that the user is often not at the core of the innovation process. Manufacturers still believe that designing and manufacturing a new product is a very complex task that cannot be left to customers” (Bel, 2013);
Point 4.5.              Innovative products often generate controversy and uncertainty in the market …. Initial offerings are often crude, show many shortcomings, and evoke doubts about their potential benefits. In addition to technical uncertainty, there is uncertainty as to whether a market for the innovative products exists and whether users are willing to switch from their current products” (Kim and Pennings, 2009);
Point 4.6.              “Over the past decade, an increasing number of firms have started actively to involve customers, suppliers, and other parties in product and process innovation. This phenomenon is commonly referred to as ‘‘open innovation.’’ Open innovation can help firms by reducing the cost of product development and process improvement, accelerating time to market for new products, improving product quality, and accessing customer and supplier expertise outside the organization” (Wallin and Krogh, 2010);
Point 4.7.              Process innovations are assumed to bring multiple benefits to an organization and help an organization achieve competitive advantage. However, a considerable number of businesses have adopted these practices without much success” (Baer and Frese, 2003);
Point 4.8.              “Since the 1980s, the increasing instability of the competitive environment, with shorter product and technological life cycles, has forced firms to reconsider their innovation strategy in order to widen their technology base … In this context, cooperation has gained an important role in the innovation process at the firm level, since innovation cooperation activities are considered an efficient means for the industrial organization of complex R&D and innovation processes” (Faria, Lima and Santos, 2010);
Point 4.9.              “The competences and quality of the human resources, the specialization in the high technology sector, together with the development of the financial system seem to be the structural factors which are able to offset the effect of the economic downturn on innovation investments of firms across Europe” (Filippetti and Archibugi, 2011);


Each of the four themes has a set of associated points (i.e., idea, viewpoints, concepts and findings). Together they provide an organized way to comprehend the knowledge structure of the innovation topic. The bolded key words in the quotation reveal, based on the writer’s intellectual judgement, the key concepts examined in the innovation literature. The referencing indicated on the points identified informs the readers where to find the academic articles to learn more about the details on these points. Readers are also referred to the Literature on innovation studies Facebook page for additional information on this topic. The process of conducting the thematic analysis is an exploratory as well as synthetic learning endeavour on the topic’s literature. Once the structure of the themes, sub-themes[1] and their associated points are finalized, the reviewer is in a position to move forward to step 2 of the MMBLR approach. The MMBLR approach step 2 finding, i.e., a companion mind map on innovation, is presented in the next section.

Mind mapping-based literature review on innovation: step 2 (mind mapping) output
By adopting the findings from the MMBLR approach step 1 on innovation, the writer constructs a companion mind map shown as Figure 1.





Referring to the mind map on innovation, the topic label is shown right at the centre of the map as a large blob. Four main branches are attached to it, corresponding to the four themes identified in the thematic analysis. The links and ending nodes with key phrases represent the points from the thematic analysis. The key phrases have also been bolded in the quotations provided in the thematic analysis. As a whole, the mind map renders an image of the knowledge structure on innovation based on the thematic analysis findings. Constructing the mind map is part of the learning process on literature review. The mind mapping process is speedy and entertaining. The resultant mind map also serves as a useful presentation and teaching material. This mind mapping exercise confirms the writer’s previous experience using on the MMBLR approach (Ho, 2016). Readers are also referred to the Literature on literature review Facebook page and the Literature on mind mapping Facebook page for additional information on these two topics.

Concluding remarks
The MMBLR approach to study innovation provided here is mainly for its practice illustration as its procedures have been refined via a number of its employment on an array of topics (Ho, 2016). No major additional MMBLR steps nor notions have been introduced in this article. In this respect, the exercise reported here primarily offers some pedagogical value as well as some systematic and stimulated learning on innovation in Business Management. Nevertheless, the thematic findings and the image of the knowledge structure on innovation in the form of a mind map should also be of academic value to those who research on this topic.



Bibliography
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[1] There is no sub-theme generated in this analysis on innovation.

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  1. Pdf version at : https://www.academia.edu/31258419/Mind_mapping_the_topic_of_innovation

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