the impact of innovation management techniques on radical ... entrepreneurship iv... · • six...

The impact of innovation management techniques on radical innovation: An empirical study 1

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

[email protected]

mailto:[email protected]




Index

Introduction and Objectives

Innovation Management Techniques (IMTs)

Research Methodology

Empirical Results

Discussion and Conclusions


Introduction and Objectives

Innovation ManagementTechniques (IMTs)

Introduction


Empirical Results


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.




Introduction


Empirical Results


Shehabuddeen (1999)




Introduction


Empirical Results


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



Introduction


Empirical Results


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)



Introduction


Empirical Results


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



Introduction


Empirical Results


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



Business Innovation & Management Systems

Introduction


Empirical Results


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


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


Empirical Results



Data Analysis Descriptive Data: Radical Innovation Linear Regression: IMTs


Introduction


Empirical Results


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


T-Statistics: IMTs and Innovation


Introduction


Empirical Results


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



Introduction


Empirical Results


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


Linear Regression: IMTs & Radical-Incremental innovation


Introduction


Empirical Results


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).


Multiple Linear Regression: IMTs & Radical-Incremental innovation


Introduction


Empirical Results


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


Multiple Linear Regression: IMTs & Radical-Incremental innovation


Introduction


Empirical Results


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


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


Empirical Results

Discussion and Conclusions Production management (TFabr) • Lean Management, Just in Time

• ERP


Discussion & Conclusions


Introduction


Empirical Results


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.


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


Introduction


Empirical Results


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

[email protected]





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