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Disruptive Product Innovation Management Mechanism Based On Each Stroke Of The Will Of Study

Posted on:2009-10-29Degree:DoctorType:Dissertation
Country:ChinaCandidate:H YuFull Text:PDF
GTID:1119360272964103Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
The importance of breakthrough product innovations (BTPIs) can hardly be overstated, because they potentially offer great rewards in terms of profitability, market share and the future well-being of organizations. Also, BTPIs may destroy markets and create new ones. Organizations may drastically alter the competitive arena by introducing BTPIs, thus making products of competitors obsolete and dominating the market with a new paradigm.Yet, most Chinese experts would like to define BTPIs as Self-Product-innovations (SPIs) which have been become the one choice of Chinese national strategic orientation. Under the environment of stronger coopetition, Chinese companies should consider how to carry out the higher level of BTPIs in order to acquire the dynamic capabilities and everlasting growth. During the most BTPIs practice, there are some practical dilemma such as large investments, long period of innovation, low innovational performances and troublesome process of BTPIs management, but also there are still little research about the firms how to allocate resources, trade-off competences and adjust routines. Nowadays, many Chinese companies fail to come up with BTPIs. Even in the face of a good idea for a new product, many organizations refuse to take it up and bring it to the market because of lacking their innovative competence/capability or collective cognition/attitude to commercial application.This study tries to seek to enhance understanding of successful BTPIs by developing and testing a new theory framework for explaining the strategic orientation and BTPIs relationship in the context of Biotechnology industry. Drawing on and adapting key concepts "Willingness to cannibalize (W2C)" from theory of planned behavior (TPB), organization learning and particularly in the area of resource-based view (RBV) theory, some pioneering scholars believe that W2C is the key variable explaining why some companies develop more radically new products than others do. The study investigates how firms will to introduce another new product which may cannibalize the market shares of original product. In other words, it refers to the organizational disposition to forego its investments and current competencies.Although the concept of willingness to cannibalize was introduced in western management literature less than a decade ago, it has been the focus of little conceptual development and no empirical research in China. In terms of the theory study about strategic orientation, W2C and BTPIs, using the exploring case study about Apple and Google in ITC industry and the field study about 30 firms in Chinese biotechnology firms of Zhejiang province, we develops an integrated conceptual framework about the mechanism of BTPIs management. In order to test the hypotheses of research, the study includes a major survey of the responses of 198 top manager teams from biotechnology industry of Zhejiang Province in China. Structural equation modeling and reliability tests are used for data analysis which supports the interaction mechanism of strategic orientation and W2C in BTPIs management. The main conclusions are presented as below:First, three dimensions of W2C are identified: (1) resources W2C, (2) capabilities W2C, and (3) routines W2C. All of resources, capabilities and routines W2C have positive association with BTPIs performance.Second, the constructs of strategic orientation are identified: (1) competitor orientation, (2) technology orientation, (3) custom orientation and (4) future orientation. The relationship between Strategic orientation and BTPIs performance is indirect and mediated by W2C. The findings show that competitor orientation positive leads to capabilities, routines W2C; technology orientation is negative to resource, capabilities, routine W2C; custom orientation positive leads to capabilities W2C; future orientation positive leads to capabilities, routines W2C.Strategic orientation has eight paths to influence the performance of BTPIs: competitor orientation→capabilities W2C→BTPIs, competitor orientation→routines W2C→BTPIs, technology orientation→resources W2C→BTPIs, technology orientation→capabilities W2C→BTPIs, technology orientation→routines W2C→BTPIs, custom orientation→capabilities W2C→BTPIs, future orientation→capabilities W2C→BTPIs, future orientation→routines W2C→BTPIs.The last, the total integrated conceptual framework is moderated by product champions. The scale of firm and the strength of R&D are also having positive association with BTPIs performance.Despite the promising results of our study, there are several limitations of our study. First, the Chinese exploring case study is not so typical. Second, the two - dimensions of BTPIs performance is combined with disruptive and radical performance, but we only develop a valid measure of disruptive performance. Third, although we researched the consequences of willingness to cannibalize on BTPIs performance, we only considered the construct of the three-dimensions are independent. More model development should take place, if we include the dependent effect of our three-dimensions. Fourth, more advanced data analyses techniques may be used, particularly when analyzing more complex models incorporating the new construct. Fourth, the leadership of the product champions in BTPIs is needed to advance. In future studies, the direction which discussed above can be put forward.
Keywords/Search Tags:Willingness to cannibalize, Breakthrough product innovations, Strategic orientation, Resources, Capabilities, Routines, Biotechnology industry
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