A tiny start‐up offers invaluable innovation lessons for large manufacturers

Abstract

Purpose

This case aims to look at a small start‐up car maker called Loremo, Inc. in Marl, Germany, that hopes to thrive by challenging resource constraints with bold innovation.

Design/methodology/approach

The authors found Loremo as part of their five‐year long study looking at how innovation manages to flourish in firms despite resource scarcity.

Findings

The paper finds that Loremo engineers had no other choice but to make virtue of necessity, to develop their car with existing technology and affordable materials, but to reconsider the traditional principles of automobile engineering, which other companies take for granted.

Research limitations/implications

The authors are doing research on companies that achieve bold innovation despite limited resources.

Practical implications

The Loremo engineers overcame the costly process that results from taking a “design stance,” a commitment to design parts to do a particular job.

Originality/value

Manufacturers in all the developed countries that are struggling with the need for radical innovation might take number of lessons from the tiny Loremo car company.

Citation

Hoegl, M., Weiss, M., Gibbert, M. and Välikangas, L. (2009), "A tiny start‐up offers invaluable innovation lessons for large manufacturers", Strategy & Leadership, Vol. 37 No. 5, pp. 40-41. https://doi.org/10.1108/10878570910986470