How can design methodologies build strategic renewal in SMEs?

Many firms develop successful businesses around competencies and over time these competencies can become core rigidities and barriers to new ways of working. This paper investigates how firms respond to a design innovation program apply design methodologies to their business. Early findings from a study of companies engaged in a design innovation program indicate that applying design principles to multiple aspects of their business provides a new strategic focus, tools for a better understanding of their business and the marketplace, new economic activity, awareness of the need for an innovative culture and strategic renewal.

Resisting innovation talk in higher education teaching and learning

The exhortation to innovate is a pervasive one that occupies a central position across university mission statements, strategic plans, marketing literature and job titles. This paper locates a discourse of innovation within a history of Australian federal higher education policy, a history that may bear similarity with other national contexts. This paper names this discourse as an innovation talk that influences our teaching and learning practices, a discourse that can be reconfigured in a way that opens up the possibility for change. As such, this paper presents an analytical process used to resist taken-for-granted views of what constitutes valuable teaching practices. Suggestions for re-conceptualising how universities govern and support teaching and learning innovation are drawn from analysis of key federal policies that have influenced university practices in recent years.

Challenges and opportunities in the journey of the design-led innovation champions

The purpose of this study is to deepen our knowledge and understanding of the challenges faced by design champions in proposing and applying design methods and insights in existing firms. This study investigates the early stages of the journey of the design champions as they incorporate design into operational and strategic conversations and practices, and their progress in mastering these challenges as opportunities in a firm context. Little research on this topic has been reported, yet it is of growing interest as more firms turn to design-led innovation to shape their strategies and practices. Interviews with design champions were used to investigate first hand the experience and reflections the many challenges provide. Findings from the study provide some early insights that can be extended through further research.

Unpacking the opportunities for change within a family owned manufacturing SME : a design led innovation case study

The following paper presents insights found during an ongoing industry engagement with a family-owned manufacturing SME in Australia. The initial findings presented as a case study look at the opportunities available to the firm engaging in a design led approach to innovation. Over the period of one year, the first author’s immersion within the firm seeks to unpack the cultural, strategic, product opportunities and challenges when adopting design led innovation. This can provide a better understanding of how a firm can more effectively assess their value proposition in the market and what factors of the business are imperative in stimulating competitive difference. The core insight identified from this paper is that design led innovation cannot be seen and treated as a discrete event, nor a series of steps or stages; rather the whole business model needs to be in focus to achieve holistic, sustainable innovation. Initial insights were found through qualitative interviews with internal employees including: overcoming silos; moving from reactive to proactive design; empowerment; vision for growth and the framing of innovation.

Gaps in organizational leadership : linking strategic and operational activities through design-led propositions

The relationship between design process and business systems has been of interest to both practitioners and researchers exploring the numerous opportunities and challenges of this unlikely relationship. Often the relationship is presented as building design thinking capability within an organization, which can be broadly described as the union of design and strategy. Brown (2008) notes that design thinking is ‘‘a discipline that uses the designer’s sensibility and methods to match people’s needs with what is technically feasible and what business strategy can convert into customer value and market opportunities’’ (p. 1). The value that design thinking brings to an organization is a different way of framing situations and possibilities, doing things, and tackling problems: essentially a cultural transformation of the way it undertakes its business. The work of Martin (2009) has clearly shown the generalized differences between design thinking and business thinking, highlighting many instances in which these differences have been overcome, but also noting the many obstacles of trying to unify both approaches within an organization. Liedtka (2010) encourages firms to try and persist in overcoming these barriers, as she has noted that ‘‘business strategy desperately needs design ... because design is all about action and business strategy too often turns out to be only about talk ... fewer than 10 percent of new strategies are ever fully executed’’ (p. 9).

Boards' contribution to strategy and innovation

Among the most disputed issues within the business arena and among academic scholars are which role boards of directors are expected to fulfill, and how they contribute to a company’s success and survival (Monks & Minow, 2008). Recent failures of large corporations worldwide has led corporate governance and strategic management scholars to call for increased board involvement in decision-making (Tricker, 2009) that has paralleled regulators’ requests for higher monitoring and punishments in the case of frauds and misbehaviors (Coffee, 2005)

Influencing innovation in SME’s : from designer to transitional engineer

The following paper presents insights found during an ongoing industry engagement with a family-owned manufacturing SME in Australia. The study seeks to unpack cultural, strategic, product opportunities and challenges available to the firm engaging in a design led approach to innovation. Design led innovation finds new market opportunities to innovate through a holistic perspective of both the internal business operations, focusing on the customer experience and external stakeholders. The action research based methodology consisted of 25 semi-structured interviews, a reflective journal and focus group, all of which were analysed thematically. This paper focuses on the resultant themes of the focus group data constituting a discussion around the best strategies to try and integrate design thinking as a fundamental skill across the company. The main thematic results included the participant’s limited views of themselves (in current roles) as being to create ‘buy-in’ to change initiatives, a preference to act as a group to gain traction in the firm, importance of better defining the problem before reaching a design solution and lastly the time required to implement versus the need for change. These findings are valuable in assisting other family owned firms in managing core growth activities with design and innovation initiatives, particularly in the area of new product development.

The strategic importance of tacit knowledge management activities in construction

Purpose: Tacit knowledge is perceived as the most strategically important resource of the construction organisation, and the only renewable and sustainable base for its activities and competitiveness. Knowledge management (KM) activities that deal with tacit knowledge are essential in helping an organisation to achieve its long-term organisational objectives. The purpose of this paper is to provide empirical evidence for the stronger strategic role of tacit KM in comparison to explicit KM. Design/methodology/approach: A questionnaire survey was administered in 2005 to a sample of construction contractors operating in Hong Kong to elicit opinions on the internal business environment, intensity of KM activities as executed by targeted organisations, and contribution of these activities to business performance (BP). A total of 149 usable responses were received from 99 organisations representing about 38 per cent of the sampling frame. The statistical analyses helped to map the reported KM activities into two groups that, respectively, deal with tacit and explicit knowledge. The sensitivity to variations of organisational policies and strength of association with BP in relation to the two groups of KM activities were also compared empirically. A total of 15 interviews with the managerial and professional staff of leading contractors was undertaken to provide insightful narratives of KM implementations. Findings: The effective implementation of organisational policies, such as encouraging innovations and strengthening strategic guidance for KM, would facilitate human interactions of tacit KM. Higher intensity of activities in managing tacit knowledge would ultimately help the organisations to achieve economic gain in the long run. Originality/value: The stronger strategic role of tacit KM is empirically investigated and established within the context of construction organisations.

Improving opportunity recognition and business performance in small and medium manufacturing enterprises through design innovation programs

Increasing awareness of the benefits of stimulating entrepreneurial behaviour in small and medium enterprises has fostered strong interest in innovation programs. Recently many western countries have invested in design innovation for better firm performance. This research presents some early findings from a study of companies that participated in a holistic approach to design innovation, where the outcomes include better business performance and better market positioning in global markets. Preliminary findings from in-depth semi-structured interviews indicate the importance of firm openness to new ways of working and to developing new processes of strategic entrepreneurship. Implications for theory and practice are discussed.

Organisational innovativeness : the role of strategic orientation and environmental scanning

This study examined the effects of strategic orientation and environmental scanning on a firm’s propensity to innovate (organisational innovativeness). Previous research has mostly proposed descriptive and theoretical relationships between strategic orientation, environmental scanning and organisational innovation adoption (Beal, 2000; Jennings & Lumpkin, 1992; Raymond, Julien, & Ramangalahy, 2001). However, strategic orientation and environmental scanning, as distinct constructs, have not been empirically examined directly before in relation to organisational innovativeness. Furthermore the directionality of the relationship between strategic orientation and environmental scanning on organisational innovation adoption is still unclear (Hagen, Haile, & Maghrabi, 2003). For example, does scanning the environment result in certain types of organisational strategies, and these strategies in turn influence levels of organisational innovativeness? Or do certain types of strategic orientations pre-determine the levels of environmental scanning, and then this environmental scanning influences an organisation’s propensity to innovate? Therefore, this study using a more nuanced measure of strategic orientation; the Venkatraman’s (1989) STROBE framework of analysis, defensiveness, futurity, proactiveness, aggressiveness and riskiness, examined the directional effects of strategy and environmental scanning on organisational innovativeness Specifically, two competing models of directionality between strategic orientation and environmental scanning in relation to organisational innovativeness were proposed. Model 1 (Behavioural View) proposed that certain strategic orientation dimensions affect levels of environmental scanning, which in turn influences organisational innovativeness. In contrast, Model 2 (Open Systems view) proposed that environmental scanning affects the emphasis on certain strategic orientation dimensions, which in turn influences organisational innovativeness. Data was collected from 117 industrial firms and path analyses were used to test the two competing models. The results supported both models, suggesting a bi-directional relationship, as both models had adequate fit indices and significant paths with the data. However, overall Model 2 – the Open Systems Model had the stronger fit indices and stronger indirect effect compared to Model 1 – the Behavioural Model, suggesting that overall environmental scanning does not exert a strong direct effect on innovativeness but has more of a stronger indirect effect through the analysis and proactiveness strategic orientation dimensions. In sum, the thesis results suggest that firms’ that emphasise environmental scanning – that is continually seeking information from the environment about customers, markets, industry and new technology - are more likely to emphasise strategic orientations such as proactiveness – being innovative - and also analysis – being analytical and comprehensive in decision making - and both these strategic orientations in turn greatly influence these firms’ propensity to innovate. Discussion is given to these findings and implications are drawn for organisations and future research.

Integrating specialised knowledge for innovation in small technology firms

Knowledge Integration (KI) is one of the major aspects driving innovation within an organisation. In this paper, we attempt to develop a better understanding of the challenges of knowledge integration within the innovation process in technology-based firms. Using four technology-based Australian firms, we investigated how knowledge integration may be managed within the context of innovation in technology firms. The literature highlights the role of four KI tasks that affect the innovation capability within technology-oriented firms, namely team building capability, capturing tacit knowledge, role of KM systems and technological systemic integration. Our findings indicate that in addition to the four tasks, a strategic approach to integrating knowledge for innovation as well as leadership and management are essential to achieving effective KI across multiple levels of engagement. Our findings also offer practical insights of how knowledge can be integrated within innovation process.

A design led innovation approach to gathering deep customer insights in the aviation industry

Research has long documented the value that design brings to the innovation of products and services. The research landscape has transformed in the last decade and now reflects the value of design as a different way thinking that can be applied to the innovation of business models and catalyst for strategic growth. This paper presents a case study of gathering deep customer insights through a design led innovation approach and reveals industry perspectives and attitudes towards the value of deep customer insights within the context of a leading Australian airport corporation. The findings highlight that the process of gathering deep customer insights encourages a design led approach to testing assumptions and developing stronger customer engagement. The richness of the deep customer insights also provided a bridge to future thought by provoking possible product, service and business innovations which aligned to the airport corporation’s vision. The implications of the study reveal how quantitative market data, which reveals broad sociocultural trends into ‘how’ and ‘what’ customers interact with within an airport, can be strongly validated and built upon through qualitative deep customer insights that explore ‘why’ those choices to interact are made. Future research is then presented which aims to widely disseminate a design led approach to innovation within internal stakeholders of the airport corporation through the development of a digital strategy.

From strategic design to design integration

Within a growing awareness of design as central to the strategic success and the sustained competitive advantage of firms, this paper examines how companies pursue design driven innovation (Verganti, 2008, 2009) and respond to design led innovation initiatives (Matthews & Bucolo 2013). Specifically, this paper reports the findings of a collaborative research project where CEO sponsored senior managers from five multi-national organisations, met regularly over a twelve-month period, to discuss their progress on applying a design led approach in their firms. This longitudinal research project traced the process and progress of change instigated by the senior management representatives, as well as the deeper investigation of the barriers and challenges to re-frame design more strategically in their organisation. Data were collected through workshops and interviews throughout the twelve-month period, regarding the firms’ journeys and also the barriers and challenges firms faced in order to become design led. The findings present a novel set of implications for both designers and management scholars. This paper seeks to contribute to research and practice by investigating the processes and outcomes of a design led innovation program and to propose implications for practice for designers and management.

A micro perspective analysis of capability renewal through knowledge integration within product innovation projects

The aim of this paper is examine how firms renew their organisational capabilities based on micro organisational processes. Organisational capability development literature points to firms’ failure in capability renewal process. To overcome this inefficiency, it is proposed to integrate dynamic capability and ambidexterity perspectives by studying knowledge integration within product innovation. In this relation, applying micro perspective in studying technology diffusion within Iranian Auto industry revealed micro co-evolutionary relationships between knowledge integration within product innovation and capability development. Furthermore, based on near decomposability principals, the analysis suggested relationships among modularity of product architecture, modularity of organisational modularity and modularity of industry architecture in downstream and upstream value chain. Based on these micro-macro co evolutionary effects, capability development process underlying successful corporate entrepreneurship may be verified.