Innovation speed and radicalness

Approximate reading time: 2-3 min. This post discuss innovation speed and radicalness. The intensity of competition has increased among all companies, but especially among companies operating in the high-tech industry. Fast outdated products, increased customer demands, and pressure to deliver products at lower prices intensify competition. Companies are being pushed to quickly deliver innovative products to the market, while controlling their costs of remaining competitive and surviving on the market. This requires companies to quickly deliver radical innovations while focusing on radical process innovations.

The objective in one study was therefore to examine the relationship between innovation speed, and radical product and process innovations.  A survey of firms in the high‐tech (semiconductor, audio video equipment and computer hardware) industries was conducted. Hypotheses were tested using a hierarchical multiple regression analysis. This study is one of the few to examine inter‐innovation relationships at the firm level.

 

Innovation speed and radicalness

Findings

Response rate was relatively low to the survey, however, control variables were included to ensure accuracy of results. This study empirically tested inter‐innovation relationships within the high‐tech industry.

The results revealed a significant positive relationship between innovation speed and both radical product and radical process innovations. Radical product and process innovations were highly correlated in the sample.

 

Innovation speed and radicalness – do not feel fear

The study has important implications for managers in the high‐tech industry. The researchers suggest that managers should not be hesitant to develop and implement radical process innovations with the fear of being late to market.

 

Product and process innovation are collapsed

They may be able to enhance innovation speed and deliver radically new products and processes at the same time. The study supports previous research, which suggests that product and process innovations are inextricably linked. The high correlations observed in the study between radical product and process innovations go a step further and suggest that radical product and radical process innovations are inextricably linked.

 

References:

Banu Goktan, A., Miles, G., 2011. Innovation speed and radicalness: are they inversely related?, Management Decision 49 (4), 533 – 547.

Available at: http://www.emeraldinsight.com/doi/abs/10.1108/00251741111126477?journalCode=md

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