Journal of Engineering and Technology Management
An empirical study of the antecedents for radical product innovations and capabilities for transformation
Introduction
Some highly innovative products have created completely new markets, which could not have been conceived prior to the introduction of these products. Other innovations have widely or completely displaced established products within existing markets. This applies, for example, to the semiconductor industry (Tushman and O‘Reilly, 1996) and to the computer industry (Christensen and Bower, 1996). Within the framework of these incisive innovations, a recurring pattern can be identified: very often, the companies that were dominant up to that point are displaced by other companies, which for their part, forfeit their dominance within the framework of the next innovation stage.
Obviously product innovations that could be considered as particularly incisive have the potential to both create new markets and completely change the balance of power within existing markets. The fate of individual companies is naturally always linked to the revolutionary changes described. Successful product innovations of this category henceforth referred to as “radical”, allow companies to establish themselves or to grow substantially. Missed or failed radical product innovations, however, can cause companies to decline or disappear from the market altogether.
Though some companies are completely displaced through missed radical product innovations, others can stake themselves as innovative companies in various markets despite some setbacks throughout the decades. This poses the question: what differentiates these two groups of companies? Why do some companies continue to succeed with highly innovative products, while others can never repeat their initial successes? The question what enables radical innovations is of central importance for companies, as it can be decisive for their long-term success or failure.
Section snippets
On the concept and nature of radical product innovations
When illustrating the potential of radical product innovations, we focused on the possible consequences in the market only, which is not yet sufficient for a definition. Researchers have defined radical product definitions in many different ways (for a review, see: Veryzer, 1998, Garcia and Calantone, 2002). Nevertheless, there are two elements that are used in most definitions: dimension and perspective. The dimensions used very consistently are technology and market (Chandy and Tellis, 1998,
What drives radical product innovation? Literature review and research hypotheses
The literature suggests a wide variety of attempts to provide an explanation to the question which organizational and cultural factors favor radical product innovations in established companies (for summaries, see: Chandy and Tellis, 1998, O’Connor and McDermott, 2004).
Since no unifying framework on this subject exists yet, we would like to use this paper to introduce a concept that might contribute to such a framework. This approach leads us to a hypothesized model, which will permit a
Sample
Our model on radical innovation focuses on intraorganizational forces. However, the industry environment (competitive intensity or environmental turbulence) can also affect innovation (Chandy and Tellis, 1998). Companies from the discrete manufacturing (35%), high-tech (22%), and pharmaceutical industries (40%) were included in the study.3 These industries are characterized by an environment where there is intensive competition, regular and dramatic technological
Evaluation of the measurement model
As described, methods of the first generation were used to check the scales and, if necessary, to purify them. The optimized scales were then checked in the second step with methods of the confirmatory factor analysis. In the result, it could be comprehensively evaluated whether the one-factor and one-dimensional structure presumed for each construct actually existed, and which indicators were suitable for measuring the constructs. Only these indicators were then used in the framework of the
Scholarly implications and directions for future research
We introduce with this paper a framework that provides an insight on how certain organizational and cultural factors can influence the propensity of an established company to introduce radical product innovations mediated by capabilities for transformation.
Due to the empirical support, an explanation model is now available that suggests that capabilities for transformation are crucial for the radical innovation activities of established companies. These capabilities mediate the influence of
References (86)
- et al.
New product processes at leading industrial firms
Industrial Marketing Management
(May, 1991) - et al.
Firm size and product innovation
Journal of Product Innovation Management
(June, 1987) - et al.
The R&D-marketing interface and single informant bias in NPD research: an illustration of a benchmarking case study
Technovation
(1998) Market learning and radical innovation: a cross case comparison of eight radical innovation projects
Journal of Product Innovation Management
(1998)- et al.
The human side of radical innovation
Journal of Engineering and Technology Management
(2004) - et al.
The nature of market visioning for technology-based radical innovation
The Journal of Product Innovation Management
(2001) Discontinuous innovation and the new product development process
Journal of Product Innovation Management
(1998)Critical success factors for radical technological innovation: a five-case study
Creativity and Innovation Management
(2000)- Argyris, C., Schön, D.A., 1978. Organizational Learning: A Theory of Action Perspective. Addison–Wesley,...
- et al.
Der Ressourcenansatz und seine Bedeutung für die Strategische Unternehmensführung
Zeitschrift für betriebswirtschaftliche Forschung
(1996)
To serve or to create? Strategic orientation toward customers and innovation
California Management Review
The dominant logic: retrospective and extension
Strategic Management Journal
Disruptive technologies: catching the wave
Harvard Business Review
Marketing Scales Handbook: A Compilation of Multi-term Measures, vol. II
Marketing Scales Handbook: A Compilation of Multi-term Measures, vol. III
Inside corporate innovation: strategy
Structure and Managerial Skills
Profiles of product innovators among large U.S. manufacturers
Management Science
Organizing for radical product innovation: the overlooked role of willingness to cannibalize
Journal of Marketing Research
The incumbent's curse? Incumbency, size, and radical product innovation
Journal of Marketing
The era of open innovation
Sloan Management Review
Managing open innovation
Research Technology Management
Customer power. Strategic investment and the failure of leading firms
Strategic Management Journal
Meeting the challenge of disruptive change
Harvard Business Review
Explaining the attacker's advantage: technological paradigms, organizational dynamics, and the value network
Research Policy
Product innovativeness from the firm's perspective: its dimensions and their relation with project selection and performance
Journal of Product Innovation Management
Strategic supremacy through disruption and dominance
Sloan Management Review
Corporate culture and commitment: impact on performance of international new product development programs
Journal of Product Innovation Management
Bringing corporate culture to the bottom line
Organizational Dynamics
Corporate culture, customer orientation, and innovativeness in Japanese firms: a quadrad analysis
Journal of Marketing
Management: Tasks, Responsibilities, Practices
Dynamic capabilities: what are they?
Strategic Management Journal
Organization strategy and structural differences for radical versus incremental innovation
Management Science
Working the S-curve: assessing technological threats
Research Management
Spotting the customers for emerging technologies
Research Technology Management
A critical look at technological innovation typology and innovativeness terminology: a literature review
Journal of Product Innovation Management
Building a learning organization
Harvard Business Review
High-risk projekte als erfolgsfaktor in dynamischen industrien
Einbindung der Technologiebeobachtung in Entwicklungsprojekte
Strategic orientation of the firm and new product performance
Journal of Marketing Research
Promotoren—Schlüsselpersonen für Entwicklung und Marketing innovativer Industriegüter
Commitment: The Dynamic of Strategy
Analyse von Strukturgleichungsmodellen mit Hilfe der Partial-Least-Squares (PLS)-methode
Die Betriebswirtschaft
Cited by (147)
Innovative product design based on radical problem solving
2024, Computers and Industrial EngineeringAlliance management capability and SMEs’ international expansion: The role of innovation pathways
2024, Journal of Business ResearchThe digital freight forwarder and the incumbent: A framework to examine disruptive potentials of digital platforms
2023, Transportation Research Part E: Logistics and Transportation ReviewA holistic method for radical concept generation based on technological evolution: A case application of DC charging pile
2023, Computers and Industrial Engineering