Inclusive Innovation: Product Innovation in Technology Supply Chains

Vish Krishnan · Jung-Hee Lee · Oleksiy Mnyshenko · Hyoduk Shin

46 citations0/0 files storedManufacturing & Service Operations Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Supply Chain and Inventory Management Sustainable Supply Chain Management Product Development and Customization

Abstract

Problem definition: Managers introducing new innovative technological products frequently face the dual task of managing both revenues and profits. This task is made challenging in part because of the tendency of new technologies to traverse a sequentially downward path of gradually lowering costs and prices, which limits their initial availability and affordability, crimping market coverage and revenues. Academic/practical relevance: We focus on the product management challenge of juggling revenues and profits, show how it is amplified in a supply chain, and propose a new degree of freedom in a supply chain, namely innovation investment anchoring, that offers product managers and their firms the ability to expand market coverage and improve both revenues and profits. Methodology: We adopt a sequential game theory approach to analyze the investment anchor decision for various objectives from investments in innovation to market coverage to profit. Results: We find that the investment anchoring approach can lead to greater investments in innovation, revenues, and profits. We also compare the investment anchoring for two types of innovation, product quality improvement and cost reduction, and show that the investment anchoring is more effective for product quality improvement. Managerial implications: Our findings have subtle but important implications for firms launching innovative products and aspiring to expand product sales and profits. Specifically, innovating firms in a supply chain by broadening the quest for an investment anchor and offering them incentives to invest as well as fine tuning the level of innovation investment with the market context can make innovation more inclusive, alleviate supply chain distortions, and streamline revenues and profits. The online appendix is available at https://doi.org/10.1287/msom.2018.0746 . This paper has been accepted for the Manufacturing & Service Operations Management Special Issue on Value Chain Innovations in Developing Economies.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 46 citations exist upstream.

References

1978Monopoly and product quality 2005Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations 1982Relaxing Price Competition Through Product Differentiation 2001Product Development Decisions: A Review of the Literature 1950Vertical Integration and Antitrust Policy 1983Managing Channel Profits 2010Idea Generation and the Quality of the Best Idea 1992Market Segmentation, Cannibalization, and the Timing of Product Introductions

Cited by

2017Business Models for Technology-Intensive Supply Chains 2024Decisions and coordination in low-carbon supply chains with a wholesale price constraint under government subsidies 2022The single‐sourcing versus multisourcing decision in information technology outsourcing 2023Product Recalls and Supply Base Innovation

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.