Building Innovation Capability in Organizations

Global competition, shorter product lifecycles and increasingly demanding customers are creating significant pressures for the creation of innovative organizations. By examining eight case studies in various industry sectors in Europe, Australia, Japan and Thailand, this book provides a qualitative explanation of the complex relationships between innovation capability, e-commerce, sustainable development and new product development. The book explores how organizations develop innovation capability through the application of e-commerce, sustainable development-orientation, and new product development in order to gain competitive advantage. This knowledge will help managers, academics and policy-makers understand "what works, and why and how it works" in creating innovation-driven organizations from an international perspective, thereby providing an integrated approach to innovation management.

Preface	p. vii
Acknowledgments	p. ix
About the Author	p. xi
Introduction	p. 1
Definitions of Innovation	p. 1
Evolution of Innovation	p. 3
Innovation Capability	p. 4
Enablers of Innovation Capability	p. 6
Collaboration and Knowledge Transfer	p. 10
Development of the Case Studies	p. 12
Overview of Book Chapters	p. 14
Development of an Integrated Innovation Capability Model	p. 19
Introduction	p. 19
Objectives	p. 20
Literature Review	p. 21
External Factors That Influence Innovation	p. 22
Internal Factors That Influence Innovation	p. 25
Integrating e-Commerce, Sustainable Development, NPD and Innovation Capability	p. 37
Sustainable Development (SD)	p. 40
Future Research Agenda	p. 43
Synthesis of the Discussion	p. 46
Conclusion	p. 48
Strategic Shift from Product Orientation to Innovative Solutions Capability in the German Biotechnology Industry: Sartorius AG	p. 51
Introduction	p. 51
Company Background	p. 52
Business Strategy	p. 54
Mission Statement	p. 54
Core Competencies	p. 55
Innovation Strategy	p. 56
Resource Availability	p. 57
Collaboration with External Partners and Absorptive Capacity	p. 58
Complementary Assets	p. 59
Innovation Capability	p. 60
Knowledge Management	p. 61
Sustainable Development	p. 62
e-Commerce	p. 64
New Product Development	p. 65
Organizational Performance	p. 66
Human Resource Management	p. 68
Customer Orientation	p. 69
Stakeholder Management	p. 69
Conclusion	p. 70
Managing Strategic Change Through Mainstream and Newstream Innovation at Eurocopter, France	p. 73
Introduction	p. 73
Case Study Interview	p. 74
Company Background	p. 75
Core Competencies	p. 75
Innovation Approach	p. 76
Resource Availability	p. 77
Mainstream and Newstream Capabilities	p. 77
Stage 1: Innovation of the Blade Repair Process	p. 79
The Role of Strategic Alliances	p. 81
Interaction of Mainstream and Newstream	p. 82
Human Resource Management	p. 83
Conclusion	p. 84
Implications for Managers	p. 85
Leveraging Innovation Capabilities at Caterpillar Underground Mining (UGM) Pty Ltd	p. 87
Introduction	p. 87
Company Background	p. 88
Perception and Definition of Innovation	p. 90
Innovation Strategy	p. 90
Core Competencies/Innovation Capability Development at UGM	p. 91
Resource Availability	p. 94
The Role of Sustainable Development in Building Innovation Capability	p. 95
The Role of e-Commerce in Building Innovation Capability	p. 97
The Role of New Product Development (NPD) in Building Innovation Capability	p. 99
Organizational Performance	p. 100
Leadership and Culture	p. 101
Lessons Learned and Opportunities for Improvement	p. 103
Conclusion	p. 103
Drivers of Innovation Capability at Sun Microsystems (SMS)	p. 105
Introduction	p. 105
Company Background	p. 106
Corporate Strategy	p. 107
Mission Statement	p. 108
Core Competencies	p. 109
Innovation Strategy	p. 109
Resource Availability and Absorptive Capacity	p. 111
Innovation Capability	p. 112
The Role of e-Commerce in Building Innovation Capability	p. 114
The Role of New Product Development (NPD) in Building Innovation Capability	p. 115
Organizational Performance	p. 117
Opportunities for Improvement	p. 117
Conclusion	p. 118
Development and Exploitation of Innovation Capability at a Defence Project Engineering Company (DPEC)	p. 121
Introduction	p. 121
Company and Industry Background	p. 121
Company Characteristics	p. 122
Perception and Definition of Innovation	p. 123
R&D Department	p. 123
Corporate Strategy	p. 124
Organizational Innovation Capability	p. 124
Manufacturing and Services	p. 128
Sustainable Development (SD)	p. 129
e-Commerce (e-Communication)	p. 130
New Product Development (Through Project Management)	p. 131
Self-Assessment and Continuous Improvement	p. 132
Key Lessons Learnt	p. 133
Organizational Performance	p. 135
Opportunities for Improvement	p. 136
Conclusion	p. 138
Drivers of Innovation Capability for Effective Sustainable Development: Best Practice at Vaisala	p. 141
Introduction	p. 141
Company Background	p. 142
Core Competencies	p. 144
Mission Statement	p. 145
Resource Availability	p. 145
Innovation Strategy	p. 145
Innovation Capability Model	p. 147
Drivers of Innovation Capabilities at Vaisala	p. 147
Integration of Innovation Capabilities	p. 152
Supporting Capabilities	p. 153
Conclusion	p. 154
Developing Innovation Capability Through Intellectual Property Strategy in the Australian Biotechnology Industry: Starpharma	p. 157
Introduction	p. 157
Innovation Capability and Commercialization Success	p. 158
Biotechnology in Australia	p. 158
Background to Starpharma	p. 160
Corporate Structure and Business Strategy	p. 160
Workforce and Culture	p. 162
Core Activities, Products and Services	p. 163
Intellectual Property Strategy	p. 164
Alignment with Business Strategy	p. 164
Protection and Management	p. 165
Networks and Collaborations	p. 167
Resource Allocation	p. 168
Innovation Capability	p. 169
Implementation of Protection and Management	p. 170
Systems and Information Technology	p. 172
Conclusion	p. 173
Implications for Managers	p. 174
Development of Innovation Capability at Invincible Company in Thailand	p. 177
Introduction	p. 177
Company Background	p. 179
Company Strategy	p. 180
Current Level of Performance	p. 181
Invincible Customers	p. 181
Product Innovation	p. 182
Product Innovation Process	p. 185
Conclusion	p. 188
Multiple Cross-Case Analysis: Conclusions and Implications	p. 191
Introduction	p. 191
Vision and Strategy	p. 192
Harnessing the Competence Base	p. 195
Leveraging Information and Organizational Intelligence - Absorptive Capacity	p. 200
Possessing a Market and Customer Orientation	p. 204
Creativity and Idea and Knowledge Management	p. 207
Organizational Structures and Systems	p. 210
Culture and Climate	p. 213
Management of Technology and Its Use	p. 216
New Product Development (NPD)	p. 219
Sustainability	p. 222
e-Commerce	p. 225
Characteristics of an Innovative Organization	p. 227
Innovation-Driven Organizations: The Role of NPD, SDO and e-Commerce	p. 232
Conclusion	p. 233
Implications for Managers	p. 234
References	p. 237
Index	p. 249
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Building Innovation Capability in Organizations

An International Cross-Case Perspective

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