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Article

Heleen De Goey, Per Hilletofth and David Eriksson

This study aims to explore the enablers and barriers to design-driven innovation, defined as the innovation of product meanings, in the product-development process…

Abstract

Purpose

This study aims to explore the enablers and barriers to design-driven innovation, defined as the innovation of product meanings, in the product-development process. Previous research provides some insights into what enables and hinders design-driven innovation; however a detailed understanding of these factors is missing.

Design/methodology/approach

A long-term case study was conducted at a furniture company between 2009 and 2016. Interviews were conducted with respondents within the company, as well as with partners such as retailers and designers.

Findings

This paper presents an overview of the identified enablers and barriers. The results demonstrate that enablers and barriers occur in all phases of the product-development process. Second, the connections between enablers and barriers are presented. These are found both within and across different phases, and extend beyond the company’s influence.

Research limitations/implications

This study demonstrates how the innovation of product meanings is influenced throughout all phases of the product-development process. Therefore, there is a need to go beyond the mere identification of enablers and barriers. More is gained from generating a thorough understanding of the causes and connections of these factors, including the changes over time.

Practical implications

This study demonstrates the need for companies to be able to map what enables and hinders design-driven innovation in their product-development process, where a distinction needs to be made between internal and external factors, to enhance value creation.

Originality/value

This study presents a rare long-term case study on design-driven innovation. This study provides new knowledge on the enablers and barriers a company faces while adapting its product-development process to accommodate design-driven innovation.

Details

European Business Review, vol. 31 no. 5
Type: Research Article
ISSN: 0955-534X

Keywords

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Article

Hannu Hannila, Joni Koskinen, Janne Harkonen and Harri Haapasalo

The purpose of this paper is to analyse current challenges and to articulate the preconditions for data-driven, fact-based product portfolio management (PPM) based on…

Abstract

Purpose

The purpose of this paper is to analyse current challenges and to articulate the preconditions for data-driven, fact-based product portfolio management (PPM) based on commercial and technical product structures, critical business processes, corporate business IT and company data assets. Here, data assets were classified from a PPM perspective in terms of (product/customer/supplier) master data, transaction data and Internet of Things data. The study also addresses the supporting role of corporate-level data governance.

Design/methodology/approach

The study combines a literature review and qualitative analysis of empirical data collected from eight international companies of varying size.

Findings

Companies’ current inability to analyse products effectively based on existing data is surprising. The present findings identify a number of preconditions for data-driven, fact-based PPM, including mutual understanding of company products (to establish a consistent commercial and technical product structure), product classification as strategic, supportive or non-strategic (to link commercial and technical product structures with product strategy) and a holistic, corporate-level data model for adjusting the company’s business IT (to support product portfolio visualisation).

Practical implications

The findings provide a logical and empirical basis for fact-based, product-level analysis of product profitability and analysis of the product portfolio over the product life cycle, supporting a data-driven approach to the optimisation of commercial and technical product structure, business IT systems and company product strategy. As a virtual representation of reality, the company data model facilitates product visualisation. The findings are of great practical value, as they demonstrate the significance of corporate-level data assets, data governance and business-critical data for managing a company’s products and portfolio.

Originality/value

The study contributes to the existing literature by specifying the preconditions for data-driven, fact-based PPM as a basis for product-level analysis and decision making, emphasising the role of company data assets and clarifying the links between business processes, information systems and data assets for PPM.

Details

Journal of Enterprise Information Management, vol. 33 no. 1
Type: Research Article
ISSN: 1741-0398

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Article

Heleen De Goey, Per Hilletofth and Lars Eriksson

The concept design-driven innovation focuses on innovating product meanings. It has been studied from a variety of perspectives and contexts since the early 2000s…

Abstract

Purpose

The concept design-driven innovation focuses on innovating product meanings. It has been studied from a variety of perspectives and contexts since the early 2000s. However, a complete overview of the literature published in this area is currently missing. The purpose of this study is to provide a comprehensive understanding of how design-driven innovation contributes to value creation in product development.

Design/methodology/approach

In this systematic literature review, 57 papers and book chapters that cover design-driven innovation were identified and analyzed. An iterative coding process was followed to derive five facets of design-driven innovation that contribute to value creation.

Findings

Design-driven innovation creates value by focusing on the intangible values of products. The following five facets of design-driven innovation that contribute to value creation were identified: development of new product meanings, knowledge generation, actors and collaborations, capabilities and process. These facets and their interrelations are presented in a theoretical framework.

Practical implications

The main practical implication of this study is that it is now clear that the five facets of design-driven innovation are interrelated and reinforce each other. Therefore, companies need to approach design-driven innovation from a holistic perspective.

Originality/value

This paper contributes to theory by presenting the theoretical framework that provides an overview of available knowledge and that creates a context for future research.

Details

European Business Review, vol. 31 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

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Article

Bradley Z. Hull

The supply chain literature highlights chains that are activated by actual or forecasted demand, and has largely overlooked those that are activated by the supply source…

Abstract

Purpose

The supply chain literature highlights chains that are activated by actual or forecasted demand, and has largely overlooked those that are activated by the supply source. This paper aims to position supply driven chains as a distinct class and to develop their properties.

Design/methodology/approach

Supply driven examples are given and their structural and behavioral properties are developed. Their properties are compared with those of demand driven chains using Fisher's classification scheme. The paper is conceptual in nature.

Findings

Four properties of supply driven chains are advanced. They show that supply driven chains differ significantly from their demand driven counterparts. As example, supply driven chains are prone to a reverse form of the standard bullwhip effect that is associated with demand driven chains.

Research limitations/implications

Investigating supply driven chains opens several research avenues. Further properties and examples can be developed, along with methods to mitigate the reverse bullwhip effect. Research into synergies and boundary issues between supply and demand driven chains will likely yield operational efficiencies overall.

Practical implications

Differentiating between supply and demand driven phenomena helps practitioners design more efficient supply chains. For example, superimposing a demand driven operational structure on a supply driven phenomenon can be disruptive. Also, an efficiently operated supply driven chain may enhance the operations of related demand driven chains.

Originality/value

This paper highlights and develops supply driven supply chains. It extends supply chain theory and practice by providing additional structural characteristics that can be incorporated into supply chain designs.

Details

The International Journal of Logistics Management, vol. 16 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

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Article

Tiger Li, J.A.F. Nicholls and Sydney Roslow

Although the impact of market‐driven learning on new product success in export markets is assumed in the literature, its role is not yet empirically tested due to an…

Abstract

Although the impact of market‐driven learning on new product success in export markets is assumed in the literature, its role is not yet empirically tested due to an absence of the concept operationalization. Develops a conceptual framework of market‐driven learning and new product success in export markets to address these issues. The authors further test the model using data collected from US software companies. The findings indicate that both customer and competitor learning processes exert positive impacts on new product success in foreign markets. The results regarding market environmental factors offer some evidence suggesting correlations between these factors and behavioral activities of market learning. Concludes with a discussion of managerial implications and directions for future research.

Details

International Marketing Review, vol. 16 no. 6
Type: Research Article
ISSN: 0265-1335

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Article

Huda Khan, Susan Freeman and Richard Lee

Ambidexterity’s effects on exploration and exploitation have been widely studied in the innovation literature. However, to date, no studies have determined how combining…

Abstract

Purpose

Ambidexterity’s effects on exploration and exploitation have been widely studied in the innovation literature. However, to date, no studies have determined how combining or balancing the two strategic marketing foci may improve new product performance outcomes. This is an important issue in emerging markets, which have considerable potential to introduce new products, given the rising affordability and intense competition between Western and local firms. These challenges compel managers to offer new products and solutions in these markets. However, firms may adopt different strategic marketing foci for new product development. Using Pakistan as an emerging-market context, this paper aims to provide novel insights into how managers can choose the right balance of a customer-driving versus customer-driven strategy to optimise new-product performance.

Design/methodology/approach

A multi-industry approach surveyed senior strategy managers (N = 106) of Pakistani businesses.

Findings

Using polynomial regression and surface test analyses, the findings showed that balancing the two strategies influenced new-product performance more than either strategy alone. Surprisingly, the imbalance of greater customer-driving over customer-driven strategy or vice versa did not improve new-product performance. Moreover, new-product performance was greater when the level of balance was higher compared to when it was lower.

Originality/value

Grounded in behavioural and strategic adaptation theory, this study extends ambidexterity’s theoretical foundations in marketing by empirically determining the optimal balance of an orientation and performance implication model. The findings can assist emerging market managers in choosing the right balance and combination of the two strategies for better performance of new products.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 3
Type: Research Article
ISSN: 0885-8624

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Article

R.C. Coles and B. Beharrell

Develops and exemplifies the proposition that the key factorsdetermining the success of packaging innovation can be unified byconsidering them as consumer driven

Abstract

Develops and exemplifies the proposition that the key factors determining the success of packaging innovation can be unified by considering them as consumer driven, technology driven, and distribution driven. The concept of the packaging and distribution mix is developed to show how organisations can respond, through marketing variables under their control, to attempt to gain a competitive advantage over rivals. A packaging optimisation strategy is described, based on a total systems approach, which proposes a balance between the complex mix of external influences.

Details

British Food Journal, vol. 92 no. 9
Type: Research Article
ISSN: 0007-070X

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Article

Louise Bildsten, Anders Björnfot and Erik Sandberg

The purpose of this paper is to hypothesize that value‐driven purchasing of customized kitchen cabinets is more profitable than market‐driven purchasing in industrialised…

Abstract

Purpose

The purpose of this paper is to hypothesize that value‐driven purchasing of customized kitchen cabinets is more profitable than market‐driven purchasing in industrialised housing construction. The hypothesis is examined through a case study of kitchen carpentry at one of the Sweden's largest producers of industrialised prefabricated multi‐storey housing. By comparing characteristics of market‐ vs value‐driven purchasing, this paper aims to further clarify the benefits and drawbacks of these two strategies.

Design/methodology/approach

By comparing characteristics of market‐ vs value‐driven purchasing, a theoretical framework is proposed that clarifies the benefits and drawbacks of the two strategies. An explorative case study of kitchen carpentry at a house manufacturer illustrates purchasing of kitchen cabinets in the industrialised housing industry in relation to the proposed framework.

Findings

The case study results indicate that, from a value perspective, a long‐term relationship with a dedicated local smaller supplier is a preferable choice over a short‐term relationship with a low‐price mass producer.

Research limitations/implications

This is a single case study that should be verified by further empirical work of a test delivery from the local sub‐system manufacturer. Such a study would provide more insights into this area of work and make it possible to thoroughly evaluate potential risks. The indicative results in this paper can be made conclusive through quantification of the proposed lean purchasing characteristics.

Originality/value

A comparison of value‐ and market‐driven purchasing is carried out in theory and applied to a real case study that brings new perspectives to purchasing. In this way, the paper proposes alternative purchasing strategies to the construction industry.

Details

Journal of Financial Management of Property and Construction, vol. 16 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

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Book part

Raji Srinivasan and Gary L. Lilien

The products of some firms emerge neither from new technology developments nor from attempting to address articulated consumers’ needs, but from a company-internal design…

Abstract

Purpose

The products of some firms emerge neither from new technology developments nor from attempting to address articulated consumers’ needs, but from a company-internal design-driven approach. To explore this design-driven approach, we propose a construct, design orientation, as a firm’s ability to integrate functionality, aesthetics, and meaning in its new products. We hypothesize relationships between a firm’s design orientation, customer orientation, technological orientation, and willingness to cannibalize on its new product performance.

Methodology/approach

We use data from surveys of senior marketing executives entrusted with design in 252 US firms, we validate the construct of design orientation and establish its distinctiveness from related constructs of creativity, technological orientation, and customer orientation. Using a structural equation modeling approach, we test the hypotheses and find support for them.

Findings

Individually, design orientation, technological orientation, and customer orientation improve new product performance. In addition, customer orientation decreases the positive effect of design orientation while willingness to cannibalize increases the positive effect of design orientation on new product performance.

Implications for theory and/or practice

More than two-thirds of respondents (69%) perceive that their firm can improve its new product performance by increasing its design orientation, an overlooked organizational capability.

Originality/value

Although practitioners have acknowledged the importance of design as a strategic marketing issue, there is little in the literature on how firms can benefit from building capabilities in the design domain, the issue we focus on in this research.

Details

Innovation and Strategy
Type: Book
ISBN: 978-1-78754-828-2

Keywords

Content available
Article

Emanuela Conti, Massimiliano Vesci, Chiara Crudele and Tonino Pencarelli

The purpose of this paper is to present an empirical study which examines the relationships among design-driven innovation, quality and customer value in manufacturing companies.

Abstract

Purpose

The purpose of this paper is to present an empirical study which examines the relationships among design-driven innovation, quality and customer value in manufacturing companies.

Design/methodology/approach

A research project was carried out in 193 Italian manufacturing companies, using the questionnaire method. An exploratory research study was conducted with hierarchical cluster analysis and regression analysis.

Findings

The analysis shows the existence of four clusters of manufacturing companies which differ by firm size, expenditure in innovation and type of innovation. Furthermore, the elements of a quality product and a design product have a significant impact on customer value, and the importance of these elements changes within the different cluster.

Research limitations/implications

The small size of the sample and the geographic origin of companies imply limited generalizability and further research on the topic is recommended.

Practical implications

The study suggests that companies should simultaneously pursue quality and innovation to increase customer value. To achieve high levels of innovation, and thus increase their quality standards, manufacturing companies should consider the importance of the elements related to design which have impact on customer value.

Originality/value

Focusing on the relationship between design-driven innovation and quality which has not yet been investigated, the present study reveals many common elements of product design and quality product and their positive influence on the perception of customer value.

Details

The TQM Journal, vol. 31 no. 6
Type: Research Article
ISSN: 1754-2731

Keywords

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