Learning barriers in continuous product innovation

In today's dynamic and turbulent environment companies are required to increase their effectiveness and efficiency, exploit synergy and learn product innovation processes in order to build competitive advantage. To be able to stimulate and facilitate learning in product innovation, it is necessary to gain an insight into factors that hinder learning and to design effective intervention strategies that may help remove barriers to learning. This article reports on learning barriers identified by product innovation managers in over 70 companies in the UK, Ireland, Italy, Netherlands, Sweden and Australia. The results show that the majority of the barriers identified can be labelled as organisational defensive routines leading to a chain of behaviours; lack of resources leads to under-appreciation of the value of valid information, absence of informed choice and lack of personal responsibility. An intervention theory is required which enables individuals and organisations to interrupt defensive patterns in ways that prevents them from recurring.

Continuous product innovation : a comparison of key elements across different contingency sets

This paper discusses results from an international study of continuous improvement in product innovation. The empirical research is based upon a theoretical model of continuous product innovation (CPI) that identifies contingencies, behaviours, levers and performances relevant to improving product innovation processes. As successful knowledge management is widely recognised as a key capability for firms to successfully develop CPI, companies have been classified according to identified contingencies and the impact of these contingencies on key knowledge management criteria. Comparative analysis of the identified groups of companies has demonstrated important differences between the learning behaviours found present in the two groups thus identified, and in the levers used to develop and support these behaviours. The selection of performance measures by the two groups has highlighted further significant differences in the way the two groups understand and measure their CPI processes. Finally, the paper includes a discussion of appropriate mechanisms for firms with similar contingency sets to improve their approaches to organisational learning and product innovation.

Continuous product innovation : learning behaviours and knowledge management

The research reported in this paper considers Product Innovation from a broader perspective than that of the isolated NPD (New Product Development) project commonly discussed in the literature. In this perspective, Product Innovation is a continuous and cross-functional process involving the sharing and transfer of knowledge within the many steps of the innovation process, and the integration of a growing number of different competencies inside and outside the organisational boundaries. This paper examines two in-depth case studies that were carried out to establish if and how learning occurred within companies developing new products. Based on a model developed as part of a joint Euro-Australian research project, the way in which the selected companies share and transfer knowledge and learning experiences during their product innovation processes have been examined and analysed. This model uses a number of interrelated variables including performance, behaviours and levers to stimulate improvement, contingencies, and learning/innovation capabilities to describe the learning and knowledge transfer in product innovation processes within the case studies. This paper discusses some of the skills the research has identified that managers need to enable their companies to gain a competitive advantage through improved product innovation. The ongoing research has developed, tested and disseminated a computer-based methodology to assess organisational knowledge capture and transfer in the new product development process. The research is part of the Euro-Australian co-operation project known as CIMA (Continuous Improvement and Product Innovation Management).

Knowledge management in continuous product innovation : a contingent approach

There is a growing interest in new organisational forms and integrated managerial and technological approaches supporting companies in continuously innovating their products and processes to survive in a turbulent environment. Successful product innovation will more and more depend upon a company's ability to manage knowledge and integrate a growing number of competencies within and outside the organisational boundaries. These abilities require a complex set of interrelated managerial, technological and organisational conditions that must be designed according to the individual firm's characteristics. This paper aims to identify and analyse the relation between individual firms' contingent variables and managerial approaches to foster knowledge management in product innovation. Evidence is based on a survey of 70 companies, including European and Australian firms, developed within the Euro-Australian cooperation project entitled CIMA (Continuous Improvement for global innovation management).

Complexity and learning behaviors in product innovation

Successful product innovation and the ability of companies to continuously improve their innovation processes are rapidly becoming essential requirements for competitive advantage and long-term growth in both manufacturing and service industries. It is now recognized that companies must develop innovation capabilities across all stages of the product development, manufacture, and distribution cycle. These Continuous Product Innovation (CPI) capabilities are closely associated with a company’s knowledge management systems and processes. Companies must develop mechanisms to continuously improve these capabilities over time. Using results of an international survey on CPI practices, sets of companies are identified by similarities in specific contingencies related to their complexity of product, process, technological, and customer interface. Differences between the learning behaviors found present in the company groups and in the levers used to develop and support these behaviors are identified and discussed. This paper also discusses appropriate mechanisms for firms with similar complexities, and some approaches they can use to improve their organizational learning and product innovation.

Complexity and learning behaviours in product innovation

Successful product innovation and the ability of companies to continuously improve their innovation processes are rapidly becoming essential requirements for competitive advantage and long-term growth in both manufacturing and service industries. It is now recognized that companies must develop innovation capabilities across all stages of the product development, manufacture, and distribution cycle. These Continuous Product Innovation (CPI) capabilities are closely associated with a company’s knowledge management systems and processes. Companies must develop mechanisms to continuously improve these capabilities over time.  Using results of an international survey on CPI practices, sets of companies are identified by similarities in specific contingencies related to their complexity of product, process, technological, and customer interface. Differences between the learning behaviors found present in the company groups and in the levers used to develop and support these behaviors are identified and discussed. This paper also discusses appropriate mechanisms for firms with similar complexities, and some approaches they can use to improve their organizational learning and product innovation.

Product innovation and the costs of energy-using product policies

Energy-using Products (EuPs) contribute significantly to the United Kingdom’s CO2 emissions, both in the domestic and non-domestic sectors. Policies that encourage the use of more energy efficient products (such as minimum performance standards, energy labelling, enhanced capital allowances, etc.) can therefore generate significant reductions in overall energy consumption and hence, CO2 emissions. While these policies can impose costs on the producers and consumers of these products in the short run, the process of product innovation may reduce the magnitude of these costs over time. If this is the case, then it is important that the impacts of innovation are taken into account in policy impact assessments. Previous studies have found considerable evidence of experience curve effects for EuP categories (e.g. refrigerators, televisions, etc.), with learning rates of around 20% for both average unit costs and average prices; similar to those found for energy supply technologies. Moreover, the decline in production costs has been accompanied by a significant improvement in the energy efficiency of EuPs. Building on these findings and the results of an empirical analysis of UK sales data for a range of product categories, this paper sets out an analytic framework for assessing the impact of EuP policy interventions on consumers and producers which takes explicit account of the product innovation process. The impact of the product innovation process can be seen in the continuous evolution of the energy class profiles of EuP categories over time; with higher energy classes (e.g. A, A+, etc.) entering the market and increasing their market share, while lower classes (e.g. E, F, etc.) lose share and then leave the market. Furthermore, the average prices of individual energy classes have declined over their respective lives, while new classes have typically entered the market at successively lower “launch prices”. Based on two underlying assumptions regarding the shapes of the “lifecycle profiles” for the relative sales and the relative average mark-ups of individual energy classes, a simple simulation model is developed that can replicate the observed market dynamics in terms of the evolution of market shares and average prices. The model is used to assess the effect of two alternative EuP policy interventions – a minimum energy performance standard and an energy-labelling scheme – on the average unit cost trajectory and the average price trajectory of a typical EuP category, and hence the financial impacts on producers and consumers.

From product innovation to organizational innovation – and what that has to do with Business Process Management

One of the key trends that we currently witness not only in academic circles but also in industry - all throughout Australia at least – is that “Innovation” is becoming an important driver for business projects, for change agendas – and in turn, for Business Process Management initiatives.

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.

Strategic capability development : a multi-level case study of the role of knowledge integration within product innovation

Capability development is at the heart of creating competitive advantage. This thesis intends to conceptualise Strategic Capability Development as a renewal of an organisation's existing capability in line with the requirements of the market. It followed and compared four product innovation projects within Iran Khodro Company (IKCO), an exemplar of capability development within the Iranian Auto industry. Findings show that the maturation of strategic capability at the organisational level has occurred through a sequence of product innovation projects and by dynamically shaping the learning and knowledge integration processes in accordance with emergence of the new structure within the industry. Accordingly, Strategic Capability Development is conceptualised in an interpretive model. Such findings are useful for development of an explanatory model and a practical capability development framework for managing learning and knowledge across different product innovation projects.

The role of intellectual resources, product innovation capability, reputational resources and marketing capability combinations in SME growth

This article examines the extent to which combinations of intellectual resources and product innovation capability, and reputational resources and marketing capability, influence the ability of small and medium-sized enterprises (SME) to meet or exceed performance goals. Empirical results drawn from 171 SMEs suggest that when the combination of intellectual resources and product innovation capability in addition to the combination of reputational resources and marketing capability are high, SME growth is enhanced. However, a high level of intellectual resources combined with a low level of product innovation capability as well as a combination of a high level of reputational resources with a low level of marketing capability (and vice versa) are not significantly related to growth. These results imply that a high level of resources cannot compensate for a low level of capabilities (and vice versa).

A conceptual analysis of strategic capability development within product innovation projects

Strategic capability development refers to the renewal of the organisational capabilities which are sources of competitive advantage. The aim of this paper is to examine how strategic capability and competitive advantage build up over time. Recent literature points to the integration of dynamic capability and ambidexterity perspectives in explaining organisational capability development. Literature analysis reveals the role of knowledge integration and product innovation in integrating dynamic capability and ambidexterity. However, little attention has yet been paid to knowledge integration within innovation projects as a context for capability development. Accordingly, this paper aims to develop a conceptual framework for strategic capability development focusing on the role of knowledge integration within product innovation projects. This framework contributes to identifying and emphasising the role of micro processes in capability renewal which in turn enhances our understanding of strategic capability development.