scholarly journals Measuring radical innovation project success: typical metrics don’t work

2018 ◽  
Vol 39 (4) ◽  
pp. 34-41 ◽  
Author(s):  
Jimmi Normann Kristiansen ◽  
Paavo Ritala
Keyword(s):  
Radical Innovation ◽  
Incremental Innovation ◽  
Content Type ◽  
International Firms ◽  
Innovation Activities ◽  
Innovation Projects ◽  
Innovation Project ◽  
And Performance ◽  
Depth Interviews

Purpose Firms frequently struggle with measuring the performance of their radical innovation activities. Due to the uncertainty and ambiguity involved, key performance indicators (KPIs) used for incremental innovation projects are often not useful in this context. The purpose of this paper is to explore suitable KPIs particularly useful for radical innovation projects. Design/methodology/approach This study first reviews commonly used measures for innovation projects, which is then followed by case-study evidence from three industry-leading international firms. This study includes 13 in-depth interviews with innovation managers and directors in these firms, providing insights on how they measure the progress and performance of radical innovation projects. Findings KPIs used commonly in incremental innovation showed lackluster results in the case firms and were problematic for radical innovation context. A key finding was that radical innovation project performance should be evaluated based on the process rather than on the expected outcome. Concurrently, based on the literature review and the cases, three sets of KPIs with 13 specific KPIs useful for radical innovation projects are proposed. Originality/value The paper addresses a core challenge in using established KPIs in a radical innovation context. The paper gathers and synthesizes a range of measurement points suitable for radical innovation projects and provides specific suggestions for appropriate metrics that innovation managers can use.

scholarly journals Agri-food in search of sustainability: cognitive, interactional and material framing

2012 ◽  
Vol 12 (2) ◽  
pp. 99-110 ◽  
Author(s):  
Joyce Zwartkruis ◽  
Ellen Moors ◽  
Jacco Farla ◽  
Harro van Lente
Keyword(s):  
Egg Production ◽  
Food Sector ◽  
Face To Face ◽  
Innovation Projects ◽  
Innovation Project ◽  
Global Discourse ◽  
Technical Innovations ◽  
Depth Interviews ◽  
Innovation Processes

The agri-food sector is under pressure to move towards sustainability and broad socio-technical changes are needed. In such encompassing innovation processes that concern the whole agri-food chain, actors with different institutional backgrounds are confronted with each others interests, ideas and perspectives. Framing, then, may both support and hinder the alignment of actors and interests. In this paper we investigate how framing occurs in multi-actor innovation projects and how it facilitates or hinders the continuity of these projects. We first review the broad literature on framing, which leads to a typology of three levels of framing: face-to-face interaction (between individuals), global discourse (within society) and localised collective (in projects). In addition, we add a third category to the traditional distinction between ‘cognitive’ and ‘interactional’ framing. We argue that in socio-technical innovations also ‘material’ framing occurs. In an empirical case study, based on in-depth interviews and document analysis of the Roundel project (2004-2010), a Dutch innovation project aimed at sustainable egg production and marketing, we trace and analyse these different forms of framing. The project survived several critical episodes, due to changes in framing. Our study yields general lessons about framing in complex innovation projects, both conceptual and practical.

Governance and performance in co-exploitation and co-exploration projects

2020 ◽  
Vol 35 (5) ◽  
pp. 875-894
Author(s):  
Miguel Solís-Molina ◽  
Miguel Hernández-Espallardo ◽  
Augusto Rodríguez-Orejuela
Keyword(s):  
Governance Mechanism ◽  
Informal Governance ◽  
Content Type ◽  
Collaborative Innovation ◽  
Innovation Projects ◽  
Innovation Project ◽  
Contractual Governance ◽  
Complementary Assets ◽  
And Performance ◽  
The One

Purpose This study aims to investigate how contractual vs. informal governance influences the performance of collaborative innovation projects considering their exploitation vs. exploration character. Design/methodology/approach Data are collected from a sample of 218 companies that have developed innovative projects in collaboration with other organizations. Regression models are estimated to test the hypotheses. Findings The results indicate that contractual governance is the most effective for co-exploitation projects compared to informal governance. Specialization in either contractual or informal governance is more effective for co-exploration projects. Practical implications Developing collaborative innovation projects with other organizations is an alternative for firms to innovate either by exploiting complementary assets or by exploring new opportunities. Thus, the success of the collaborative innovation project is significantly affected by the way the collaboration is governed. On the one hand, for co-exploitation projects, companies should rely on contracts to improve their performance. On the other hand, for co-exploration projects, governance may specialize in either contracts or informal mechanisms to reach higher performance. Originality/value Despite previous studies analyzing the effect of contractual or informal governance on the performance of collaborative innovation projects, no research has focused on comparing simultaneously these effects, by using the innovation character of the project of co-exploitation or co-exploration as a moderator. Therefore, this paper explores comparatively the most effective type of governance mechanism for co-exploitation and co-exploration projects.

Fostering incremental and radical innovation through performance-based contracting in buyer-supplier relationships

2016 ◽  
Vol 36 (11) ◽  
pp. 1482-1503 ◽  
Author(s):  
Regien Sumo ◽  
Wendy van der Valk ◽  
Arjan van Weele ◽  
Christoph Bode
Keyword(s):  
Pay For Performance ◽  
Transaction Cost Economics ◽  
Radical Innovation ◽  
Incremental Innovation ◽  
Organizational Relationships ◽  
Supplier Relationships ◽  
Content Type ◽  
Negative Effect ◽  
And Performance ◽  
Underlying Mechanisms

Purpose While anecdotal evidence suggests that performance-based contracts (PBCs) may foster innovation in buyer-supplier relationships, the understanding of the underlying mechanisms is limited to date. The purpose of this paper is to draw on transaction cost economics and agency theory to develop a theoretical model that explains how PBCs may lead to innovation. Design/methodology/approach Using data on 106 inter-organizational relationships from the Dutch maintenance industry, the authors investigate how the two main features of PBCs – low-term specificity and performance-based rewards – affect incremental and radical innovation. Findings The authors find that term specificity has an inverse-U-shaped effect on incremental innovation and a non-significant negative effect on radical innovation. Furthermore, pay-for-performance has a stronger positive effect on radical innovation than on incremental innovation. The findings suggest that in pursuit of incremental innovation, organizations should draft contracts with low, but not too low, term specificity and incorporate performance-based rewards. Radical innovation may be achieved by rewarding suppliers for their performance only. Originality/value The findings suggest that in pursuit of incremental innovation, organizations should draft contracts with low, but not too low, term specificity and incorporate performance-based rewards. Radical innovation requires rewarding suppliers for their performance only.

scholarly journals Capital market penalties to radical and incremental innovation

2019 ◽  
Vol 23 (2) ◽  
pp. 291-313 ◽  
Author(s):  
Daniel Stefan Hain ◽  
Jesper Lindgaard Christensen
Keyword(s):  
Small Firms ◽  
Probit Model ◽  
Radical Innovation ◽  
Incremental Innovation ◽  
Behavioral Characteristics ◽  
Firm Level ◽  
Content Type ◽  
External Finance ◽  
Innovation Activities ◽  
Negative Effect

Purpose The purpose of this paper is to investigate how access to financing for incremental as well as radical innovation activities is affected by firm-specific structural and behavioral characteristics. Design/methodology/approach Deploying a two-stage Heckman probit model on survey data spanning the period 2000–2013 and covering 1,169 firms, this paper analyzes the effect of a firm’s engagement in incremental and radical innovation on its likelihood to get constrained in their access to external finance, and how this effect is moderated by the firm’s age and size. Findings In line with earlier research, it is confirmed that the type of innovation matters for the access to external finance, but in a more nuanced way than generally portrayed. While incremental innovation activities have little negative effect on the access to external finance, radical innovation activities tend to be penalized by capital markets. This effect appears to be particularly strong for small firms. Originality/value This paper provides nuanced insights into the interplay between types of firm-level innovation activities, structural characteristic and access to external finance.

The inconvenient truth of the relationship between open innovation activities and innovation performance

2015 ◽  
Vol 53 (3) ◽  
pp. 625-647 ◽  
Author(s):  
Colin C.J. Cheng ◽  
Eric C. Shiu
Keyword(s):  
Open Innovation ◽  
Radical Innovation ◽  
Innovation Performance ◽  
Least Square ◽  
Organizational Capabilities ◽  
Incremental Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
The Relationship ◽  
Knowledge Learning

Purpose – Despite extensive published research into the relationship between open innovation (OI) activities and performance, the nature and direction of the relationship remain inconclusive. The purpose of this paper is to investigate the relationship as to how firms’ inbound and outbound OI activities, as well as their interaction influence incremental and radical innovation performance. The authors also consider the potentially mediating roles of knowledge learning and organizational capabilities in such a relationship. Design/methodology/approach – To investigate this relationship, data were collected from a cross-industry survey of 304 leading Taiwanese-based firms. Three-stage least square analysis was employed to test the model. Findings – Analyses reveal that knowledge learning and organizational capabilities mediate the OI activities-innovation performance relationship. In addition, a firm focussing on inbound activities enhances its radical innovation performance, but hinders its incremental innovation performance, while focussing on outbound activities produces the opposite effects. Among the findings, it is worth emphasizing that the effect of the interaction between inbound and outbound activities on innovation performance can be counter-productive. Research limitations/implications – The findings demonstrate that existing studies only partially explain the effects of OI activities on innovation performance. Understanding how OI activities influence innovation performance will facilitate more informed decision making, leading to more effective use of OI activities. Practical implications – The results suggest that managers need to consider knowledge learning and organizational capabilities in order to fully capture the potential effects of OI activities. Managers also need to be aware of the limitations of OI activities. Originality/value – The theoretical model presented here offers a timely contribution to the theory base underpinning the development of OI activities for innovation performance.

Innovation capabilities in food and beverages and technology -based innovation projects

2014 ◽  
Vol 116 (2) ◽  
pp. 228-250 ◽  
Author(s):  
Mersiha Tepic ◽  
Frances Fortuin ◽  
Ron G.M. Kemp ◽  
Onno Omta
Keyword(s):  
Success Factors ◽  
Negative Impact ◽  
Project Performance ◽  
Market Potential ◽  
Incremental Innovation ◽  
Content Type ◽  
Food And Beverages ◽  
Functional Capabilities ◽  
Innovation Projects ◽  
Innovation Project

Purpose – The aim of this paper is to establish the differences between the food and beverages (F&B) and technology-based industries with regards to the relation between previously identified success factors and innovation project performance. Design/methodology/approach – These differences are established on the basis of logistic regression analysis, using 38 innovation projects (18 F&B and 20 technology-based). Findings – Newness of the innovation project to the company, communication capabilities and market potential have a more negative impact on innovation project performance in the F&B than the tech-based industry. Especially functional upstream capabilities increase the likelihood of success in F&B, when compared to tech-based innovation projects. Practical implications – While functional upstream capabilities are important for success of F&B innovation projects, there is still room for improvement in order to deal effectively with newness of the innovation project to the company. Internalization of resources from the network and a balanced radical/incremental innovation project portfolio contribute to additional enhancement of functional capabilities of the F&B companies, improving their capacity to deal with newness. Through a larger focus on co-innovation with retail, F&B companies can improve their intra- and inter-firm communication capabilities to attain more consumer-oriented integration of R&D and marketing activities, improving the market potential of their innovations. Originality/value – This paper demonstrates that the previously identified critical success factors for innovation projects differ in impact and importance for F&B innovation project performance when compared to innovation projects in the technology-based industry.

Non-R&D Innovation Patterns in Chinese SMEs: An Empirical Study from Zhejiang Province

2016 ◽  
Vol 13 (06) ◽  
pp. 1640014
Author(s):  
Gang Zheng ◽  
Yanting Guo ◽  
Yajuan Wang
Keyword(s):  
Organizational Innovation ◽  
Zhejiang Province ◽  
Policy Makers ◽  
Marketing Innovation ◽  
Innovation Activities ◽  
Use Of Resources ◽  
And Performance ◽  
Innovation Patterns ◽  
Policy Incentives

During the last few decades, research and development (R&D) have always been regarded as the most important or even the only factor in the attempt to explain the innovation capability and performance of enterprises, industries and economies, while to a large extent, those heterogeneous innovation activities beyond formal R&D are ignored or underestimated. Some research has shown that non-R&D innovation activities contribute to make full use of resources beyond R&D to promote performance, especially to small- and medium-sized enterprises (SMEs) with weak R&D capability. However, non-R&D innovators’ behavior is still a black box by far, and especially few empirical research have been conducted in China context. This paper first explores the heterogeneous innovation patterns of non-R&D innovation by survey among Chinese SMEs in Zhejiang Province. It shows that, product and service customization, imitation and design, technology adoption and incremental modification, organizational innovation and marketing innovation are the main patterns of non-R&D innovation in China. Then, a case study is followed to cross-validate the patterns and relationships between non-R&D innovation and growth of SMEs in China. Generally, this study has implications for both academia and policy-makers. As it demonstrates, non-R&D innovation is an effective way for SMEs to quickly grow and sustain competitiveness in competition. On the other hand, this study helps to optimize some of current innovation policies for SMEs in China, where policy incentives are mainly R&D-focused. It also likely sheds light on the SMEs in other emerging economies.

Managing multichannel coordination in retail banking: the influence of customer participation

2006 ◽  
Vol 24 (5) ◽  
pp. 327-345 ◽  
Author(s):  
Loïc Plé
Keyword(s):  
Organizational Design ◽  
Retail Banking ◽  
Customer Participation ◽  
Content Type ◽  
Quantitative Studies ◽  
Retail Banks ◽  
The Impact ◽  
Depth Interviews

PurposeThe purpose of this research is to explore the combining of marketing and organizational literature. This paper seeks to evaluate the relationships between multichannel coordination and customer participation, as seen through the lens of potential customer opportunism. It aims at showing the impact of this opportunism on the organizational design of multiple channels structures.Design/methodology/approachThe research reports on an exploratory case study in a French retail bank. A total of 25 in‐depth interviews were conducted, and the use of other sources enabled data triangulation.FindingsThe results show first that an increase in the number of distribution channels is liable to favor customer opportunistic behavior. To counter this, the bank mainly relies on impersonal coordination modes. An emerging result highlights the role of the customer as a “perceptual filter” between the different channels of employees.Research limitations/implicationsCustomer opportunism is studied via channels employees perceptions. An investigation using a customer survey may help to better understand this construct, e.g. to identify its antecedents, and to measure it precisely. Moreover, further qualitative and/or quantitative studies with larger sample sizes are needed to try and generalize these results.Practical implicationsIt is recommended not to forget that customers can facilitate or hinder multichannel coordination. Retail banks have the power to use them conveniently, provided that they are fully conscious of the scope of the “partial employee” role played by the customer.Originality/valueThis paper broadens understanding of how multichannel distribution structures are coordinated, and in a way belies traditional organizational design literature. The emerging result gives birth to the concept of “reversed interactive marketing”, which has interesting theoretical and practical repercussions.

scholarly journals Innovation and cross-functional teams

2018 ◽  
Vol 24 (1/2) ◽  
pp. 84-105 ◽  
Author(s):  
Daniel Marasquini Stipp ◽  
Márcio Lopes Pimenta ◽  
Daniel Jugend
Keyword(s):  
Single Case ◽  
Field Research ◽  
Incremental Innovation ◽  
Future Research ◽  
Content Type ◽  
The Public ◽  
Tax Management ◽  
Functional Teams ◽  
Practical Implications

Purpose The aim of this paper is to characterize how innovation may happen through cross-functional teams (CFT) in an organization of the public sector. Design/methodology/approach A case study helped to characterize several behavior patterns, team structures and respective links with generating innovation in internal processes and public answering contexts. Findings The results highlight that formal-temporary teams present a higher capacity to generate incremental innovation in products, whereas permanent-informal teams have a higher capacity to generate innovation in the internal processes and public answering contexts. Research limitations/implications The limitations of this research relate to the fact that this is a single case study, and although it is an important case to examine innovation and CFTs, by its very nature, it is not possible to extend and generalize the obtained data to other organizations. The evaluation of its propositions was merely qualitative, and future research is needed to validate its characteristics. Practical implications Several settings of CFTs are presented, as well as their ability to generate different types of innovation, such as the computerization of documents, petitions and papers, which decreases the time to answer the taxpayer. Moreover, CFTs can help to create products, such as computer programs that can be used not only locally but also in several public organizations related to tax management. Originality/value The field research provides the perceptions of the respondents regarding CFT characteristics that can lead to specific types of innovation, as well as the types of products or services that can be generated by these processes.

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