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Innovativeness & Interaction: Conceptual Research Approach. Maria M. Smirnova Sergey P. Kouchtch GSOM Saint Petersburg. Structure of presentation. Aims of the study Main drivers of innovations & interactions research Conceptual model considerations Some empirical evidence

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Innovativeness interaction conceptual research approach

Innovativeness & Interaction: Conceptual Research Approach

Maria M. Smirnova

Sergey P. Kouchtch

GSOM

Saint Petersburg


Structure of presentation
Structure of presentation

  • Aims of the study

  • Main drivers of innovations & interactions research

  • Conceptual model considerations

  • Some empirical evidence

  • Propositions for future research

  • Conclusion


Research motivation
Research motivation

  • Main aim – development of a conceptual model for an empirical qualitative study on innovativeness in buyer-supplier interaction and value creation networks

  • Theoretic motivation – searching for integration of overall marketing and interaction frameworks to study innovation processes

  • Empirical motivation – contradictions in Russian business practice


Overall marketing perspective
Overall marketing perspective

Inputs

  • Environmental challenges (technological turbulence, market turbulence)

  • Competitive pressure

  • Superior resources & capabilities

  • Customer needs

    Outcomes

  • SCA-perspective and positional advantage creation

  • Performance outcomes


Positional advantage creation model adaptation day wensley 1988
Positional advantage creation model adaptation (Day, Wensley, 1988)

Sources

of advantage

Positional

advantage

Performance

outcomes

Marketing

capabilities

Superior value

for customer

Lower costs

Differentiation

Advantage

Speed of reaction

Optimized quality

of interaction

Profit

Sales

Customer

Satisfaction

New product

success

Adaptability

Innovation

capabilities

SCM

capabilities

Networking

capabilities


Internal advantages
Internal advantages Wensley, 1988)

  • creating market orientation in firm-supplier interaction

  • creation of relational norms and frames for relationships governance

  • providing internal marketing mechanisms and interfunctional coordination

  • evaluation techniques and feedback from customers

  • NPD process coordination

  • network effects


Interaction perspective
Interaction perspective Wensley, 1988)

  • “No business is an island” (Håkansson,Snehota, 1989)

  • Complementary assets & capabilities

  • ARA framework

  • From value chain to value network & value system creation

  • Preconditions for cooperative innovation

    • Relationship history

    • Relationship quality

    • Shared values and goals alignment


Imp research innovation perspective
IMP research: innovation perspective Wensley, 1988)

  • Main IMP papers topics overview:

    • Collaborative innovations

    • Innovations in networks

    • Transparency of value creation

    • Value innovation

    • Innovation networks/Strategic networks/Commercialization networks

    • Supply chain innovation

    • Organizational innovation capability

    • Customer perceived value


Conceptual scheme of analysis
Conceptual scheme of analysis Wensley, 1988)

  • Type of interaction

    • Trust, commitment created

    • Social embeddedness, reputation

    • Existing relational capital or network effects

  • Resources & Capabilities

    • Value creation potential

    • Knowledge sharing

    • Actors-resources–activities framework

  • Matching potential

    • Aims alignment

    • Access to resources, markets,

    • Lots vs short term


Conceptual scheme of analysis1
Conceptual scheme of analysis Wensley, 1988)

Potential

outcomes

Type of innovation

Potential sources

of advantage

Type of interaction


Creation Wensley, 1988)

of competitive

advantage

Commercialization

Network

Better adaptation

& flexibility

Innovations

Network

Better use

of resources

Strategic

Network

product

innovation

Reduced

uncertainty

Dyadic

interaction

process

innovation

Customer

New markets

entrance

Supplier

Value chain

advantage

Business model

advantage

Preconditions

Resources

& capabilities

Matching

potential


Research context some empirical findings from scm study 2006
Research context: some empirical findings from SCM study 2006

  • Results of a round table on Purchasing Strategy & SCM in Russia (June 2007)

    • Innovations – main sources of competitive advantage

    • Innovative collaboration with suppliers – key aims in supplier relationships development

    • High emphasis on innovativeness of strategy

  • Results of an empirical study 2006

    • Very low emphasis on innovations

    • Innovations as part of supplier interaction process

    • Assessment of R&D department involvement in SCM


Preconditions
Preconditions 2006

  • Type of interaction (research context):

    • Dyadic

      • Key supplier relationship

  • Type of product (5-point Likert scale)

    • Unique product – 2,82 (out of 5)

    • Innovative product – 2,69

  • New products success

    • Number of new products (3,60)

    • Time-to-market (3,38)

    • New products success (3,58)

  • Readiness for R&D outsourcing

    • Current (1,85), future (1,97)


  • Preconditions cont
    Preconditions (cont.) 2006

    Technology turbulence

    Mean = 3.3 (5-point Likert scale)

    • Technology-based market opportunities (3,61) Speed of technology changes (3,28)

    • Probability of new product development in industry (3,26)

    • Technology trend forecast-ability (3,14)


    Potential sources of advantage
    Potential sources of advantage 2006

    • Potential sources of advantage

      • Integration potential – similar motivation, interest in joint efforts

      • Knowledge creation & knowledge sharing

    • Main aims of the companies in the field of supply and strategic purchasing:

      • Joint R&D:

        • 11th position in priorities, relevant for 11,8% if firms in a sample

        • #1 – cost reduction

        • #2 – creation of long-term supplier relationships

        • #3 – delivery time reduction


    R d involvement in purchasing process

    Top management 2006

    Finance

    4.05

    3.90

    Production

    3.70

    Accounting

    3.62

    Purchasing process involvement

    Marketing

    3.39

    3.33

    Legal consulting

    3.03

    Product planning

    2.39

    End user

    2.11

    Security dept

    1.82

    1.40

    R&D

    Customs dept

    R&D involvement in purchasing process



    Sources of advantage matching potential
    Sources of advantage: 2006matching potential


    Sources of advantage matching potential1
    Sources of advantage: 2006matching potential

    • Top priorities in supplier relationships development:

      #1 Quality of products & services (4,78 out of 5)

      #2 Profit as relationship outcome (4,54)

      #3 Cost reduction (4,51)

      #4 Trust (4,35)

      • #10 Strategic perspectives of interaction (4,06)

        #15 Innovation potential of supplier (3,40)


    Sources of advantage additional value and innovation sources
    Sources of advantage: 2006additional value and innovation sources


    Sources of advantage resources capabilities
    Sources of advantage: 2006resources & capabilities


    Type of innovation potential outcomes
    Type of innovation & potential outcomes 2006

    • Type of innovation:

      • Process innovation – in research context of supplier relationships

        • Emphasis on improvement of operational effectiveness

          • Time management

          • Reduction of delivery time

    • Potential advantages addressed in the study

      • Strategic

      • Customer-oriented



    Joint functions execution outcome relationship
    Joint functions execution-outcome relationship 2006

    • New product success – n.s.

    • Differentiation – n.s.

    • Performance:

      • Joint problem solution – performance

      • Joint R&D – performance

        Maybe problem because of the single item measurement of function’s involvement.


    Conclusions
    Conclusions 2006

    • Two perspectives can be integrated to study innovation processes

      • Overall creation of SCA: link between marketing and purchasing to enhance innovations

      • Innovations as result of previous relationships experience and matching potential

    • Integration of both approaches can provide a basis for a longitudinal study

    • Presented empirical results are taken from a study not developed to measure innovativeness, nevertheless the results show:

      • Contradiction between qualitative and quantitative study results (round table and survey);

      • Some attempts to build an innovative collaboration;

      • Potential for further research using SEM methodology.


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