Profiting from innovation in the aftermath of an economic crisis
Journal of Research in Marketing and Entrepreneurship
ISSN: 1471-5201
Article publication date: 6 September 2021
Issue publication date: 20 October 2021
Abstract
Purpose
The aim of this paper is to present systematically a variety of benefits from innovating in response to an economic crisis.
Design/methodology/approach
This is a conceptual paper that draws on prior conceptual and empirical studies, especially the innovation-based view of firm performance.
Findings
Many firms have cut their innovation expenditures in response to the COVID-19 crisis. However, the financial crisis in 2008/2009 has shown that these short-term cost savings may have severely negative consequences on competitiveness. Several innovation examples from the crisis due to the COVID-19 pandemic further indicate that companies may benefit from a variety of first-order innovations, which go considerably beyond product development. Consequently, researchers and executives need to consider the variety of innovation types beyond product development, and they further need to emphasize second-order innovations, which describe the dynamic transformation of innovation management.
Originality/value
Academics and practitioners need to put specific attention to the transformation of innovation processes at the beginning of a crisis because firms may have to redesign their innovation processes. This dynamic reconfiguration and realignment of innovation processes further is essential again if a crisis continues for a longer period, such as the crisis due to the coronavirus pandemic. For example, if a company currently does not respond to relevant trends, its competitive position will deteriorate because other companies will enter the market. If firms can afford to continue or strengthen the innovation activities, they may profit substantially after the crisis.
Keywords
Citation
Lichtenthaler, U. (2021), "Profiting from innovation in the aftermath of an economic crisis", Journal of Research in Marketing and Entrepreneurship, Vol. 23 No. 2, pp. 282-294. https://doi.org/10.1108/JRME-06-2020-0085
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited