Value chain innovation processes and the influence of co-innovation

W.W.A. Beelaerts van Blokland · Sicco C. Santema

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Service and Product Innovation Innovation and Knowledge Management Quality and Supply Management

Abstract

Today’s leading enterprises are surrounded with business partners in their value chain. Next to traditional outsourcing processes, partners can be involved in co-investing in innovation. While several examples of co-innovation have shown a remarkable performance, the mechanism through which it occurs is still poorly understood. Previous research only limitedly explains the drivers. In this research paper, the basics of value chain theory and the foundations of the value chain processes are explored. Six theoretical perspectives are used to develop an analytical framework. This framework consists of three foundational dimensions: continuation, conception and configuration. These dimensions are used to analyse case studies of successful value chain driven innovations on one hand and product innovation on the other hand. The case studies show support for the relation between value chain innovation and product innovation. Co-innovation is one of the drivers within configuration and of influence to the product innovation process. In particular, a concept of an innovation investment multiplier (IMP) emerged as salient driver of co-innovation. The IMP factor expressed the effect of co-innovation in the sense of co-investing in innovation reducing the investments in innovation and multiplying these over the chain / partners As a result of co-innovator partnerships, sharing of intellectual property, investments, and production emerged. These effects of sharing are expressed by multipliers for reasons of quantification. Investments and production are multiplied throughout the supply chain contributing to make enterprises more lean. The outcome of the research gives insight in the drivers of co-innovation. Enterprises can use this insight to improve innovation performance in respect to their value chain.

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References

1985Competitive Advantage: Creating and Sustaining Superior Performance 1998Competitive advantage: creating and sustaining superior performance 1995The Discipline of Market Leaders 2000Radical Innovation: How Mature Companies Can Outsmart Upstarts 2008The Next Global Stage-Challenges and Opportunities in our Borderless World

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2019On-line Crowdsourcing: Motives of Customers to Participate in Online Collaborative Innovation Processes

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