Innovation strategy Product development

LICENTIATETHESISLuleåUniversityofTechnologyDepartmentofBusinessAdministrationandSocialSciencesIndustrialMarketingande-CommerceResearchGroup2007:44|:402-757|:-c--07⁄44--2007:44AssessingtheInnovationProcessofSMEsAndersBerglundConceptdevelopmentProductdevelopmentCommerc-ializationSustain-abilityInnovationstrategyTechnologyacquisition&FormalizationmaturityIdeagenerationAndersBerglundSeptember2007AssessingtheInnovationProcessofSMEsConcept-generationProduct-developmentSustain-abilityInnovationstrategyTechnologyacquisition&FormalizationmaturityIdea-generationCCommerce-ializationiiiABSTRACTInnovationhaslongbeenacknowledgedasamajordrivertobusinesseconomy.Dedicatedtoinnovationprosperouscompaniesaretackletheactionsandproceduresinvolvedinthecreationandcommercializationofideas.Duetoitsrichtypologyinnovationliteraturecoversavastsetofresearchdescriptions.Amajorityoftheacademiafavorinnovationtobebestcharacterizedasaprocess,acontinuum.Yet,theinnovationprocesscomprisesdifferentlydependingonnatureofthecompany.AsaresultbothacademiaandbusinessstressthattheinnovationprocessofSMEsrequiresintensifiedresearchefforts.Thus,thisthesisproposesatheoreticalintegrationbetweeninnovationprocessesandorganizationalcontextsofSMEs.Withthisinmindtheresearchproblemforthisstudywasformulizedas‘assessingtheinnovationprocessofSMEs’.Adoptingaqualitativeapproachmultiplecasestudieswereappliedontwoindustrialclusters:manufacturingandIT/Telecom.Thefindingsindicatethattheinnovationprocessremainsanareaofconcernfortheinvestigatedcompanies.Althoughcasesindicatedifferentmaturitylevelsinperceivinginnovationactivitiesthefindingssupporttheproposedframework,whichwascategorizedinfivedistinctivephases(ideageneration,conceptdevelopment,productdevelopment,commercializationandsustainability).Basedonpersonalpreferencesandskillssetstheresultsshowvariationinindividual’sinnovativeorientations.Whereasmorepracticallyorientationsdistinguishmanufacturing,asomewhatopposingsynthesizingcharacteristicwerefoundintheIT/Telecomcases.Inaddition,thecoherencebetweenpeoples’innovativeorientationweremoreapparentwithincasesthanbetweencases.Finally,formalizationofactionsandproceduresrelevanttotheinnovationprocesswasconsideredamajorconcerninallcases.ivvACKNOWLEDGEMENTSComposingthisthesishasbeenavaluablelessonthatlifeisnevereasy,youhavetodiginandstruggletogetthrough.Sincetheworkisnowwrappedincoversheets,itiswithgratitudethatIwouldliketostateafewwordsofappreciation.FirstthereasontowhyIwasevendrawnbacktotheuniversity,followingmyfather’spath,isthankstotheopportunitythatwasgivenbytheResearchSchoolArenaInnovativeTechnologyandEnterprise(AITF).Itwasanenrichingjourneythatgavemeseveralmemorablemoments,friends,andalsoopenedupfinanciallyformetobegivenanopportunitybyProfessorEsmailSalehi-Sangaritopursuepostgraduateresearch.ThankyouprofessorformakingmeunderstandwhatresearchisallaboutandforyoursupervisionandadvicestogetherwithAssistantprofessorÅsaWallström’sguidance.SupportedwithateamofsupervisorsIhavealsohadtheopportunitytoreceiveenrichingfeedbackfromdearcolleaguesatnumerousoccasions.Thankyouall.ThankyoutoProfessorArthurMoneyforyourcontributionatthePieseminarandProfessorHåkanYlinenpääforyourimportantIPremarks.ThankyoutoProfessorTobiasLarssonwhohasprovidedwithencouragementandappreciatedcomments.IamalsothankfultoAssistantprofessorTimFosterforyourhelpadministratingpre-testsandtoTatianaandCarolaforyourmuchappreciatedadministrativesupport.Finally,mywarmestaffectiontoMagdalenaandEvelinaforjustbeingyourself,andmakinghomethemostwonderfulplacetobeat.viviiBecauselifegavethisopportunity…lovebelly,weawaits…viiiixTABLEOFCONTENTS1.Introduction...............................................................................................................................11.1Background..........................................................................................................................11.2Innovation............................................................................................................................31.2.1TheInnovationProcess.................................................................................................51.2.2People...........................................................................................................................61.2.3CriticalSuccessFactors..................................................................................................61.3SMEs....................................................................................................................................71.4ResearchProblem................................................................................................................81.5ExpectedContributions......................................................................................................101.6DispositionoftheThesis.....................................................................................................102.LiteratureReview.......................................................