the impact of innovation management techniques on radical ... · pdf file4. people management...
TRANSCRIPT
The impact of innovation management techniques on radical
innovation: An empirical study
7th International Conference on Industrial Engineering and Industrial Management, Valladolid, 10-12 Julio 2013
Juan Ignacio Igartua, PhD, PMP1 ; Nekane Errasti , PhD, PMP2; Jaione Ganzarain, PhD3
1,2,3 Departamento de Mecánica y Producción [email protected]@mondragon.edu
The impact of innovation management techniques on radical innovation: An empirical study 3
Index
Introduction and Objectives
Innovation Management Techniques (IMTs)
Research Methodology
Empirical Results
Discussion and Conclusions
The impact of innovation management techniques on radical innovation: An empirical study 4
Introduction and Objectives
Innovation ManagementTechniques (IMTs)
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Main Objective
This paper analyses the way innovation management techniques (IMTs)
influence innovation in firms. Specifically, this paper focuses on studying
the role of IMTs on radical innovation.
Radical
Innovation
Determinants
“black box”
Innovation Management Techniques
While research in innovation management has provided many insights
the role of innovation management techniques and tools has been over
overlooked.
The impact of innovation management techniques on radical innovation: An empirical study 5
Innovation Management Techniques (IMTs)
Innovation Management Techniques (IMTs)
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Shehabuddeen (1999)
The impact of innovation management techniques on radical innovation: An empirical study 6
Innovation Management Techniques (IMTs)
Innovation Management Techniques (IMTs)
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
What are innovation management techniques and tools?
A management tool is document, framework, procedure, system ormethod that enables a company to achieve or clarify an objective(Brady et al., 1997).
A management technique is a structured way of completing part of aprocedure within a process (Shehabuddeen et al., 1999 ).
Management techniques and tools
Innovation management techniques and tools (IMTs) can be definedas the range of tools, techniques and methodologies that support theprocess of innovation in firms and help them in a systematic way tomeet new market challenges” (Phaal et al., 2006).
IMTs
The impact of innovation management techniques on radical innovation: An empirical study 7
Innovation Management Techniques (IMTs)
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Innovation Management Techniques (IMTs)What are the IMTs available: IMT typologiesGroup of Thechniques
Authors
1 2 3 4 5 6 7 8 9 10 11 12 TOTKnowledge management techniques * * * * * 5Business intelligence techniques * * * * * * * 7Cooperative and networking techniques * * * * * 5Human resource management techniques * * * * * * 6IPR techniques * * * 3Creativity development techniques * * * * * * * * 8Process improvement techniques * * * * 4Innovation project management techniques * * * * * * 6Design management techniques * * * * * 5Business creation tools * 1Technology management techniques * * * * * * * * 8Strategic management techniques * * * * * * 6Organizational management techniques * * * 3New product development techniques * * * * * * 6Operations management techniques * * * * 4Innovation financing techniques * * 2Innovation Commercialization techniques * 1
(1) (European Commission, 2004) (2) (Phaal et al., 2006) (3) (Bakouros and Demetriadou, 2001) (4) (Cotec, 1998)(5) (Mañà, 2000) (6) (Cetindamar et al., 2006) (7) (Komninos et al., 2002) (8) (Hagemann and Zimmer, 2005)(9) (Whitney, 2007) (10) (Bessant and Tidd, 2007) (11) (Goffin and Mitchell, 2005) (12) (Bu ̈yu ̈ko ̈zkan et al., 2004)
The impact of innovation management techniques on radical innovation: An empirical study 8
Innovation Management Techniques (IMTs)
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Innovation Management Techniques (IMTs)Innovation Management Techniques
1. Creative development (TCrea) • Creativity workshops, brainstorming, Lateral thinking, Six Thinking Hats, Mind Maps, TRIZ
2. Technology management (TTec) • Technology Foresight (S Curve, Extrapolation of trends, technological Roadmaping, etc.)
• Technology Prospective (Technology watch, DELPHI analysis, Scenarios, etc.)
3. Strategic management (TEstr) • SWOT Analysis, Five Forces Model • Value Chain Analysis • Portfolio Analysis (BGC Matrix, ADL, McKinsey, Product-Process-
Market-Technology matrixes) 4. People management (TPers) • Advanced techniques for selection and recruitment (selection
online, etc.) • Advanced systems of recognition and reward • Advanced Training (E-Learning, blended learning, ..) and
competency management • Advanced information / communication systems (corporate
Intranets, etc.) 5. Business intelligence (TIntel) • Business intelligence
• Data Mining 6. Management innovative projects
(TProy) • Project and program management, Portfolio Management • Risk Management
7. Development of new products-services (TLNP)
• Concurrent Engineering • Quality Function Deployment (QFD) • Lead Users • Benchmarking
8. Techniques and practices for collaboration and networking (TRed)
• Groupware and Teamwork techniques • Supply Chain Management • Web 2.0
The impact of innovation management techniques on radical innovation: An empirical study 9
Innovation Management Techniques (IMTs)
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Innovation Management Techniques (IMTs)Innovation Management Techniques
9. Design management (TDis) • CAD Systems, Rapid prototyping • Usability tests, Value Analysis
10. Knowledge management (TCon) • Knowledge Audits, Knowledge Maps, Document management 11. New business development
(TEmpr) • Business Plan / Business Simulations / Models Business • IPR transfer (exploitation of patents and licenses, joint ventures, R
& D in cooperation, etc.) • Spin-offs / Spin-outs
12. Financial resource management (TFinan)
• Government Grants, Funds from the EU • Access to Venture Capital • Loans
13. Industrial property rights management (TProp)
• Protection by Patents, Utility Models and / or Industrial Design • Protection by secret • Protection of distinctive signs and/or copyright
14. Production management (TFabr) • Lean Management, Just in Time • ERP
15. Marketing (TMarkt) • Marketing research (Mega marketing, consumer behavior, Geo marketing, ...)
• Clients portfolio management • Brand Management • Sales and distribution network management
16. Organizational practices (TOrg) • Mini-company • Self-managed environments
17. Process improvement (TMej) • Process Management / Process Redesign / Business Process Reengineering (BPR)
• Six Sigma / Quality improvement / problem solving techniques (FMEA, etc.)
• EFQM Excellence Model (Self Assessments Models) • Quality Audits
The impact of innovation management techniques on radical innovation: An empirical study 10
Research Methodology
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Technical sheet The main features of this research are summarized in the following technical sheet:
Characteristics SurveyUniverse 6282 Basque companiesGeographical scope Basque CountrySampling procedure Stratified probability samplingInformation Collection Self-administered questionnaire addressed to the head of
innovation in the enterpriseSample size 566 (9.01% of population)
First Round 349 (62% of the sample)Second Round 217 (38% of the sample)
Sampling error 5.2%Confidence level 99% (K = 2.38) for the worst case p = q = 0.5Date of fieldwork December 2008-April 2009Documentation Letter and questionnaireShipping Method EmailedMethod of contact and follow-up TelephoneReception method Email, mail, and faxSupport data SPSS 16
The impact of innovation management techniques on radical innovation: An empirical study 11
Data Analysis Descriptive Statistics: IMTs T-Statistic: Innovation
Product Service Process Other innovations
Descriptive Statistics: IMTs ANOVA: Innovation (product-service x process)Business Innovation &
Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
The impact of innovation management techniques on radical innovation: An empirical study 12
Data Analysis Descriptive Data: Radical Innovation Linear Regression: IMTs
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Descriptive Data: Incremental Innovation Linear Regression: IMTs
Descriptive Data: Radical Innovation Multiple Linear Regression: IMTs groups
Descriptive Data: Incremental Innovation Multiple Linear Regression: IMTs groups
The impact of innovation management techniques on radical innovation: An empirical study 13
T-Statistics: IMTs and Innovation
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Innovation
N Mean Std.D. Std. Err. Mean
Prod Inno
Yes 362 2,4700 ,67465 ,03546 No 186 1,7004 ,63001 ,04619
Serv Inno
Yes 327 2,4267 ,68541 ,03790 No 221 1,8741 ,73550 ,04948
N Mean Std.D. Std. Err.
Mean Proc Yes 378 2,4235 ,71159 ,03660 Inno No 176 1,7732 ,67540 ,05091 Other Yes 409 2,4319 ,69673 ,03445 Inno No 148 1,6291 ,62068 ,05102
The impact of innovation management techniques on radical innovation: An empirical study 14
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Anova: IMTs and InnovationProd-Serv Inno Process Inno Group N
YES YES
NO 1 85 YES 2 332
NO NO
YES 3 44 NO 4 93
The impact of innovation management techniques on radical innovation: An empirical study 15
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Anova: IMTs and InnovationProd-Serv Inno Process Inno Group N
YES YES
NO 1 85 YES 2 332
NO NO
YES 3 44 NO 4 93
The impact of innovation management techniques on radical innovation: An empirical study 16
Linear Regression: IMTs & Radical-Incremental innovation
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Radical Innovation Model R R2 Adj. R2 Std.Err. of
Estimate
1 ,596a ,355 ,354 ,77389 a. Predictors: (Constant), IMTs
Incremental Innovation Model R R2 Adj. R2 Std.Err. of
Estimate
1 ,641a ,411 ,410 ,78352 a. Predictors: (Constant), IMTs
InnoRadical InnoIncremental IMTs
InnoRadical Pearson correlation 1,000 ,732** ,596**
Sig. (bilateral) ,000 ,000N 551 546 551
InnoIncremental Pearson correlation ,732** 1,000 ,641**
Sig. (bilateral) ,000 ,000N 546 548 548
IMTs Pearson correlation ,596** ,641** 1,000Sig. (bilateral) ,000 ,000N 551 548 564
**. The correlation is significant at level 0.01 (bilateral).
The impact of innovation management techniques on radical innovation: An empirical study 17
Multiple Linear Regression: IMTs & Radical-Incremental innovation
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Radical Innovation
Coeficientsa
Model Unstand. Coef.
StandCoef.
t Sig. 95% Confidence
Interval for B
Correlations Collinearity Statistics
B Error. Beta Lower Upper Zero-Order
Partial
Semipartial
Toleran. VIF
5 (Constant) ,364 ,099 3,681 ,000 ,170 ,558TRed ,203 ,054 ,195 3,755 ,000 ,097 ,309 ,512 ,164 ,132 ,464 2,156TFinan ,154 ,047 ,153 3,244 ,001 ,061 ,246 ,460 ,142 ,114 ,562 1,779TCrea ,154 ,051 ,143 3,000 ,003 ,053 ,255 ,475 ,132 ,106 ,550 1,818TProp ,143 ,053 ,134 2,702 ,007 ,039 ,248 ,483 ,119 ,095 ,504 1,985TIntel ,137 ,053 ,132 2,565 ,011 ,032 ,242 ,494 ,113 ,091 ,474 2,111
a. Dependant Variable: InnoRadical
Radical Innovation: Model Summaryf Model R R2 Adj.
R2 Std.Err. of Estimate
Change Statistics R Square
Change F
Change df1 df2 Sig. F.
Change 5 ,606e ,368 ,361 ,75135 ,008 6,581 1 508 ,011 e. Predictors: (Constant), TRed, TFinan, TCrea, TProp, TIntel f. Dependent variable: InnoRadical
The impact of innovation management techniques on radical innovation: An empirical study 18
Multiple Linear Regression: IMTs & Radical-Incremental innovation
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Incremental Innovation
Coeficientsa
Model Unstand. Coef.
StandCoef.
t Sig. 95% Confidence
Interval for B
Correlations Collinearity Statistics
B Error. Beta Lower Upper Zero-Order
Partial
Semipartial
Toleran. VIF
6 (Constant) ,526 ,106 4,978 ,000 ,318 ,733TEmpr ,145 ,059 ,131 2,469 ,014 ,030 ,261 ,541 ,109 ,084 ,409 2,447TLNP ,150 ,048 ,146 3,145 ,002 ,056 ,244 ,505 ,139 ,107 ,537 1,862TTec ,128 ,052 ,118 2,479 ,014 ,027 ,230 ,506 ,110 ,084 ,508 1,970TProy ,133 ,041 ,145 3,274 ,001 ,053 ,213 ,479 ,144 ,111 ,589 1,699TProp ,162 ,056 ,140 2,910 ,004 ,053 ,271 ,513 ,129 ,099 ,499 2,003TRed ,153 ,057 ,137 2,688 ,007 ,041 ,265 ,532 ,119 ,091 ,447 2,235
a. Dependant Variable: InnoIncremental
Incremental Innovation: Model Summaryf Model R R2 Adj.
R2 Std.Err. of Estimate
Change Statistics R Square
Change F
Change df1 df2 Sig. F.
Change 6 ,647f ,418 ,411 ,77402 ,008 7,226 1 504 ,007 f. Predictors: (Constant), TEmpr, TLNP, TTec, TProy, TProp, TRed g. Dependent variable: InnoIncremental
The impact of innovation management techniques on radical innovation: An empirical study 19
Discussion & Conclusions Innovation performance in companies is related to the use of
IMTs.
The use of 16 of the 17 groups of IMTs is higher in companies
that booth innovate in product-service and processes at the same
time, than other existing combinations.
However, the use of Production management techniques is
higher in companies that focus only on process innovationBusiness Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions Production management (TFabr) • Lean Management, Just in Time
• ERP
The impact of innovation management techniques on radical innovation: An empirical study 20
Discussion & Conclusions
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
Networking (open innovation and collaboration), as well as
financing, creativity techniques, IPR management and business
intelligence (technology watch) seem to be techniques that are
important for the development of RADICAL INNOVATIONS
While new business development techniques, new product
development techniques, technology management and project
management techniques seem to influence INCREMENTAL
INNOVATION of product and services.
The impact of innovation management techniques on radical innovation: An empirical study 21
Limitations
The limitations of this investigation arise from the research
model and the variables used.
The IMTs understanding and the tools associated is constantly
evolving.
Further research and analysis would provide more detailed
relationships.
This research has been developed in a regional context
Business Innovation & Management Systems
Introduction
Research Methodology
Empirical Results
Discussion and Conclusions
The impact of innovation management techniques on radical
innovation: An empirical study
7th International Conference on Industrial Engineering and Industrial Management, Valladolid, 10-12 Julio 2013
Juan Ignacio Igartua, PhD, PMP1 ; Nekane Errasti , PhD, PMP2; Jaione Ganzarain, PhD3
1,2,3 Departamento de Mecánica y Producción [email protected]@mondragon.edu
The impact of innovation management techniques on radical innovation: An empirical study 23
References AAGAARD, A. 2012. The Contribution of Innovation Strategy Development and Implementation in Active Facilitation of Pharmaceutical Front End
Innovation. Systemic Practice and Action Research, 25, 457-477.
ADAMS, R., BESSANT, J. & PHELPS, R. 2006. Innovation management measurement: A re-view. International Journal of Management Reviews,
8, 21-47.
ARUNDEL, A. & HOLLANDERS, H. 2006. Searching the forest for the trees: “Missing” indi-cators of innovation. 2006 Trend Chart Methodology
Report. MERIT - Maastricht Economic Research Institute on Innovation and Technology.
BARGE-GIL, A., NIETO, M. J. & SANTAMARIA, L. 2011. Hidden innovators: the role of non-RD activities. Technology Analysis & Strategic
Management, 23, 415-432.
BRADY, T., RUSH, H., HOBDAY, M., DAVIES, A., PROBERT, D., BANERJEE, S. 1997. Tools for technology management: An academic
perspective. Technovation, 17, 417-426.
BROWN, D. 1997. Innovation Management Tools: A review of selected methodologies, Lux-embourg, EUROPEAN COMMISSION: Directorate-
General XIII Telecommunications, In-formation Market and Exploitation of Research.
CORDIS. 2008. Community Innovation Survey [Online]. Available: http://cordis.europa.eu/innovation-smes/src/cis.htm.
CHAI, S. N. C., SUN, H. Y. & LAU, A. K. W. The impact of innovation management tech-niques on product innovation performance: An empirical
study. 2010 Singapore. 432-437.
CHIESA, V. & MASELLA, C. 1996. Searching for an effective measure of R&D performance. Management Decision, 34, 49 - 57.
D'ALVANO, L. & HIDALGO, A. 2012. Innovation management techniques and development degree of innovation process in service organizations.
R and D Management, 42, 60-70.
EUROPEAN COMMISSION 2000. Promoting innovation management techniques in Europe.
GALANAKIS, K. 2006. Innovation process. Make sense using systems thinking. Technovation, 26, 1222-1232.
GRANER, M. & MIßLER-BEHR, M. 2012. The use of methods in new product development-A review of empirical literature. International Journal
of Product Development, 16, 158-184.
HIDALGO, A. & ALBORS, J. 2008. Innovation management techniques and tools: a review from theory and practice. R&D Management, 38, 113-
127.
The impact of innovation management techniques on radical innovation: An empirical study 24
References HUANG, F. & RICE, J. 2012. Openness in product and process innovation. International Journal of Innovation Management, 16.
IGARTUA, J. I., GARRIGÓS, J. A. & HERVAS-OLIVER, J. L. 2010. How innovation man-agement techniques support an open innovation
strategy. Research Technology Management, 53, 41-52.
LICHTENTHALER, U. 2011. Implementation Steps For Successful Out-Licensing. Research-Technology Management, 54, 47-53.
MANCEBO FERNÁNDEZ, N. R. & VALLS PASOLA, J. 2005. El comportamiento innovador de la empresa industrial. Un modelo de análisis a
partir de la encuesta del INE.
MCDERMOTT, C. M. & O'CONNOR, G. C. 2002. Managing radical innovation: An overview of emergent strategy issues. Journal of Product
Innovation Management, 19, 424-438.
O'REGAN, N., GHOBADIAN, A. & SIMS, M. 2006. Fast tracking innovation in manufacturing SMEs. Technovation, 26, 251-261.
PADILLA-MELÉNDEZ, A. & GARRIDO-MORENO, A. 2012. Open innovation in universi-ties: What motivates researchers to engage in
knowledge transfer exchanges? International Journal of Entrepreneurial Behaviour and Research, 18, 417-439.
PHAAL, R., FARRUKH, C. & PROBERT, D. 2006a. Technology management tools: generali-zation, integration and configuration. International
Journal of Innovation & Technology Management, 3, 321-339.
PHAAL, R., FARRUKH, C. J. P. & PROBERT, D. R. 2006b. Technology management tools: concept, development and application. Technovation,
26, 336-344.
PRAJOGO, D. I. & AHMED, P. K. 2006. Relationships between innovation stimulus, innovation capacity, and innovation performance. R&D
Management, 36, 499-515.
RAYMOND, L. & ST-PIERRE, J. 2010. R&D as a determinant of innovation in manufacturing SMEs: An attempt at empirical clarification.
Technovation, 30, 48-56.
RIGBY, D. & BILODEAU, B. 2007. Management Tools and Trends 2007. Bain & Company.
TIPU, S. A. A. 2012. Open innovation process in developing-country manufacturing organisa-tions: Extending the Stage-Gate model. International
Journal of Business Innovation and Research, 6, 355-378.