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An investigation into the practices and underlying factors during the fuzzy front end of radical innovation
Date
2014
Abstract
A familiar theme in innovation studies revolves around the issue of exploitive and explorative behaviour. Exploitive behaviour is using existing capabilities to improve present returns; incrementally improving current innovations. In contrast explorative behaviour requires that firms explore and develop new capabilities, that they seek radical innovation. Overall the performance of Ireland, with regard to radical innovation, compares poorly with the EU27 average. Patent applications are relatively low and company turnover attributed to ‘new to firm’ or ‘new to market’ is below the EU27 average. Small to medium enterprises are collaborating less and introducing fewer new products and their general innovation involvement lags behind that of larger companies. These statistics make the study of radical innovation in Ireland interesting and appropriate. Using an established model of the radical innovation process developed by Tidd and Bessant (2009) as a starting point, this thesis explores the fuzzy front end (FFE) of the radical innovation development process by examining search and selection practices in innovating companies. The overarching aim of the thesis is to establish the underlying factors characterising the FFE of the radical innovation process, and assess what their effect is on innovation success. To this end, three surveys were developed from a literature review that explored search and selection practice and these surveys applied to a group of innovating companies in Ireland. Subsequent analysis indicated that there are 5 underlying search factors and 4 underlying selection factors characterising radical search and selection. The 5 underlying factors characterising radical innovation search practice are: 1) Market awareness 2) Engaging with customers 3) Internet enabled search 4) Open environment 5) Internal networking. The four underlying factors characterising radical innovation selection practice are: 1) Fostering and supporting radical selection, 2) Prototyping as a selection tool, 3) Strategic and operational flexibility and 4) Differentiating between radical and incremental innovation. The identified practices and underlying structure represents a practical way for an organisation to focus on the dimensions and practices that are required for a company to enhance its capability in the search and selection phases of radical innovation. Moreover the search and selection practices/factors that are linked with success offer tools practitioners can utilise in their radical innovation endeavors. This study highlights the gap that exists between the practices of firms who have a record of successfully introducing radical innovations and those that do not. In particular, the usage of the selection practices and selection factors have a strong impact on company performance. If innovation managers want to develop radical new products and prepare their companies for the inevitable radical shifts that occur within markets then they need to consider the search and selection practices that they use in order to build a long-term radical innovation capability.
Supervisor
Ledwith, Ann
Description
peer-reviewed