Managing innovation for sustainability

‘Sustainability’ is a major and growing driver of business change. Its implications for innovation are clear – living and working in a world of up to 9 billion people with rising expectations, providing energy, food and resource security, dealing with climate change, ecosystem degradation, a widening economic divide and a host of other interdependent issues will require massive change in products, services, processes, marketing approaches and the underlying business models which frame them. The focus of this paper is to develop an understanding of new approaches to innovation management required to take account of the growing pressures and emerging opportunities in the ‘sustainability’ agenda. In particular, it draws on case studies of a variety of organisations to help answer the question of what practical actions might be taken beyond the rhetoric of moving towards greater sustainability or ‘greening’ of business.     

Practical application of a parallel research–business innovation process to accelerate the deployment of research results

Both society and customers pose many new challenges for public research and technology organisations. Making the right long‐term technological choices, generating and maintaining an appropriate research portfolio, speeding‐up innovation processes and integrating customer and market needs into science‐based research are among the major expectations. We describe how a multidisciplinary research organisation has implemented new processes and practises to rise to these challenges. The paper points out the benefits of using a parallel research approach to the business innovation process, where the different phases – the development of new technology, applications and business models – are carried out interactively and concurrently. Furthermore, we show how foresighting acitivities, research portfolio management and use of business plans for long‐term research programmes contribute to the parallel research process.     

Role of big data and social media analytics for business to business sustainability: A participatory web context

The digital transformation is an accumulation of various digital advancements, such as the transformation of the web phenomenon. The participatory web that allows for active user engagement and gather intelligence has been widely recognised as a value add tool by organisations of all shapes and sizes to improve business productivity and efficiency. However, its ability to facilitate sustainable business-to-business (B2B) activities has lacked focus in the business and management literature to date. This qualitative research is exploratory in nature and fills this gap through findings arising from interviews of managers and by developing taxonomies that highlight the capability of participatory web over passive web to enable different firms to engage in business operations. For this purpose, two important interrelated functions of business i.e. operations and marketing have been mapped against three dimensions of sustainability. Consequently, this research demonstrates the ability of big data and social media analytics within a participatory web environment to enable B2B organisations to become profitable and remain sustainable through strategic operations and marketing related business activities. The research findings will be useful for both academics and managers who are interested in understanding and further developing the business use of participatory web tools to achieve business sustainability. Hence, this may be considered as a distinct way of attaining sustainability.     

Why should managers be thinking about technology policy?

Courses on the management of innovation and technology seldom treat government technology policies, and the issues they pose for business management. This is unfortunate. In many fields business has a big stake in government technology policies. They can help business, be a waste of money, or actually hurt business. This essay considers three broad issues in contemporary technology policy, that are of significant consequence to business: government support of applied research, the question of how to deal with the decline in business-funded basic research, and the complex questions about intellectual property rights.     

The rise of consortia in the information and communication technology industries: emerging implications for policy

Over the past decade, consortia have become a structural feature of technology and market co-ordination in the information and communication technology industries. This paper examines some of the policy issues raised by the consortia phenomenon by examining its origins and structures critically and reviewing consortia interactions with standardisation processes. The findings are that consortia fulfil a complex role in today’s market structure that is aimed at creating technologically integrated business communities, that ‘efficiency’ rationales may not be the prime rationale for participation in consortia technical committees, and that consortia now operate as a global system. Policy implications are drawn in terms of access asymmetries, industrial policy, user participation, and the future role of the officially recognised standards organisations.     

Business travellers' connections to home: ICTs supporting work‐life balance

This paper examines the role of information communication technology in enabling connections to home for work‐related travellers. Although digital connectivity for work‐related tasks are well researched, the use of digital technology for home communication is under‐researched. The study draws on a qualitative study of UK‐based organisations and business travellers to explore how these travellers use ICTs for personal use while ‘on the move’. The findings reveal that organisations are supportive of work‐life balance for employees, but fail to consider specific needs of those whose work takes them away from home. For business travellers, insights are gained into practices around connecting to home and the value of this virtual presence for relationships with family while absent and work‐life balance. The study identifies and discusses practice occurring around three activities; checking in, maintaining relationships with home and sharing experiences.     

Not Featherbedding,but Feathering the Nest: Human Resource Management and Investments in Information Technology

This study draws on employment relations and management theory, claiming that certain innovative employment practices and work structures pave the way for organizational innovation, namely investments in information technology (IT). It then finds support for the theory in a cross‐section of UK workplaces. The findings suggest that firms slow to adopt IT realize that their conventional employment model hinders their ability to make optimal use of new technologies. Therefore, the paper advances the literature beyond studies of unionization's impact on business investment to a broader set of issues on the employment relations features that make organizations ripe for innovation.     

Coopetition and COVID-19: Collaborative business-to-business marketing strategies in a pandemic crisis

Although coopetition (simultaneous cooperation and competition) should positively affect company performance, it is unclear how implementation of these business-to-business marketing strategies can take place during large-scale emergencies. Therefore, guided by resource-based theory and the relational view, this investigation examines how organisations have used coopetition to cope with the novel Coronavirus (COVID-19) pandemic. Key examples include retailers sharing information about stock levels, pharmaceutical organisations working together to develop a vaccine, technological giants collaborating for the greater good, and charities forming alliances for a joint cause. This paper strengthens the extant literature by highlighting the heterogeneity of coopetition strategies that firms can use within a global crisis. Practitioners must balance the risks and rewards of coopetition activities. In turn, they should decide whether to continue to cooperate with their competitors once the pandemic has ended, or resume operating under individualistic business models. This article ends with some future research directions.     

Segmenting a business market for a professional service

This article uses benefit segmentation to analyze the structure of an industrial market for professional services— the market for CPA services among business firms. Data were collected from a random sample of U.S. business firms, stratified to include a broad cross section of the market for CPA services. Benefit segments were described by linking CPA selection criteria importance ratings with client firm characteristics such as business firm size. Examples of ways in which information about market structure can be used in marketing professional services are presented. The results provide evidence about the applicability of prior industrial marketing research and multilevel industrial market segmentation models to a professional services market.     

Sustainable Design: Beyond the Innovation‐Driven Business Model

This essay discusses an evolving business model, the sustainability‐driven business model, that designers are especially well suited to implement and promote. Designers have a responsibility to connect and coordinate human needs and dreams with new opportunities and inspirations from science, technology, and business in order for products and their usage to be culturally relevant, economically productive, politically beneficial, and ecologically sustainable.     

The importance of internal and external R&D network linkages for R&D organisations: evidence from Singapore

This paper examines the importance of internal and external R&D networks for R&D organisations of multinational firms (MNCs) in Singapore and investigates corresponding R&D management requirements in this context, namely a late-industrialising country in Asia. A unique feature of Singapore is its ability to attract 'high quality' foreign direct investment, involving activities of higher value added and more complex technology without having developed full-fledged R&D activities among its business organisations, thus creating a challenging situation for subsidiary R&D managers, both in the internal R&D organisation as well as in the external research environment. This paper analyses these issues.
Based on in-depth interviews with 53 R&D subsidiaries of MNCs operating in Singapore, this paper identifies internal and external R&D management needs. Through our analysis of data gleaned from these interviews, we found that subsidiary R&D managers need to increase and/or maintain the strategic importance of their R&D site internally within their global corporate R&D organisation. This requires constant upgrading of the technological level at the R&D subsidiary and intense communication with headquarters as well as other R&D subsidiaries. Furthermore, our findings indicate that in the external research environment, subsidiary R&D managers need to create an efficient local network of external players. If these internal and external issues are properly addressed, the R&D subsidiary can effectively contribute to the corporate R&D organisation and be a critical partner in the local research network. Lessons learned from the Singapore experience include the need to develop sufficient local expertise as well as to change the mindset of managers to focus on creativity rather than precise execution.     

Cognitive computing,Big Data Analytics and data driven industrial marketing

The integration of cognitive computing and big data analytics leads to a new paradigm that enables the application of the most sophisticated advances in information and communication technology (ICT) in business, including industry, business to business, and related decision-making process. The same paradigm will lead to several breakthroughs in the subfield of industrial marketing: a field both promising and extremely challenging. This special issue makes a case that cognitive computing and big data are a source of a new competitive advantage that, if properly embraced, will further consolidate industrial marketing management position in the of core the decision-making process of businesses operating locally and globally. In this vein, the value added of this special issue is twofold. On the one hand, this special issue communicates high quality research on big data analytics and data science as it is applied in industrial marketing management; On the other hand, it proposes a multidisciplinary approach to the study of the design, implementation and provision of sophisticated applications and systems necessary for data-driven industrial marketing decisions.     

Managing in complex business networks

For many years, research and management thinking has focused on understanding business relationships and networks. Now, the focus is shifting to managing business relationships and networks. This new approach focus poses two questions. Since networks are loosely coupled systems, to what extent are business networks manageable? Furthermore, how can a firm's ability to manage a network be characterized and measured? This paper addresses these two questions by synthesizing the current state of knowledge on management issues in networks and the contribution to managerial abilities in complex relationships. The discussion leads to a set of propositions describing the abilities firms will need to successfully manage complex business networks.     

The establishment of industrial branding through dyadic logistics partnership success (LPS): The case of the Malaysian automotive and logistics industry

Logistics partnerships across dyadic and triadic relationship networks have been the basis of extensive research in the extant literature. It is well understood that competitive advantage within logistics and distribution and within supply chains are driven by value-adding aspects of not only the core competencies of each tier in the network, but also via tangential supporting factors. It is also well understood that there is a strong relationship between logistics and distribution and marketing functions, particularly in product-based organisations. In addition to deepening our understanding of how successful partnerships throughout the source–make–deliver continuum can be optimised, this research also seeks to identify how a supporting element in terms of industrial branding and marketing can lead to relational sustainability. Hence, this paper outlines the relationship between logistics partnership success (LPS) factors and the inherent link to industrial branding establishment and business sustainability within the Malaysian automotive industry (specifically, car manufacturers). Adopting a multiple case study approach, findings suggest that there is a strong association between logistics service performance (LSP) provided by the third party logistics provider (TPLP) and the development and support of a mutual brand image for both the TPLP and the car manufacturer. We contribute to the extant literature on logistics partnership and industrial branding through linking LSP with the creation and maintenance of an industrial branding strategy for both parties in the context of the Malaysian automotive industry.     

Sustainability agencing: The involvement of stakeholder networks in megaprojects

This article explores the involvement of stakeholders agencing sustainability in the context of megaprojects, which represent an extreme setting with inherent uncertainty and complexity. Through the concept of milieu, project marketing has for many years studied the diversity of actors, their heterogeneous nature and their multiple interactions, but without really tackling the issue of sustainability. As part of a three-year interaction with a rail supplier company, this research is based on three case studies of urban rail projects in France. Actor-network theory was applied as method theory. Findings suggest that agential configurations for sustainability include non-business actants, as well as hybrid and future collectives. We differentiate stakeholders according to the role they play in agencing sustainability: promoters, translators and targets. The study enriches the concept of milieu through a distinction between actors from the territory, milieu and project network. We propose the concept of sustainability agencing to offer (1) a dynamic view of stakeholders in project and industrial marketing and (2) a project-centered perspective of sustainability in business markets. Implications for theory and practice are given to foster future research in this area.     

Barriers to Matching New Technologies and Market Opportunities in Established Firms

In industries that produce high‐technology products or are reliant on technology for administrative or manufacturing processes, it is essential appropriately to link technologies to markets in order to increase shareholder value and to build future cash flows. Research and development (R&D) allocations in such industries are greatly dependent on forecasts of the R&D project's estimated potential contribution to future cash flows, which is related to the project's ability to satisfy current or future customer needs. The resource allocation decisions are difficult, however, since both markets and technology are likely to be highly uncertain. Although the innovation literature ably has addressed specific relationships between certain factors and new product development outcomes, less attention has been given to obstacles faced in linking technology to markets. Grounded in a literature‐based discussion of technology and market opportunity, the authors develop a conceptual framework for identifying and understanding the barriers facing managers in the process of matching technologies to market opportunities. Technology and market barriers include technology‐market linkage, technology availability, technology and market capabilities of competitors, and business model feasibility. Strategy and structure barriers include competition for limited resources, technology capabilities, technology portfolio goals, current market strategies, and competition for control of market charters. Social and cultural barriers include interpretive and communication barriers between functional units and language and cultural barriers within the technology workforce. The article concludes with implications for researchers and managers. The conceptual framework presented here can encourage the development of a stream of research in the area of technology strategy and planning processes, allowing researchers to improve our understanding of the process of technology innovation. Managers can use the framework as a guide for addressing a wide range of issues related to the process of matching technologies to market opportunities. For example, rather than relying strictly on cash flow projections for estimating the value of a new technology, managers also should consider how the technology could create new market opportunities or could reshape existing ones.     

Changing Patterns in Industrial R&D Management

A successful R&D manager is, in many ways, an agent of change. R&D managers must respond effectively to changes in domestic and global competition, product and process technologies, customer requirements, regulatory matters, and senior management's perception of the role R&D plays in a firm. The responses to these changes flow downstream from R&D to other parts of the organization, in the form of new materials, methods, processes, and products. To help us understand the changes facing R&D management, Ashok K. Gupta and David Wilemon present the results of a study that examines the ideas and experiences of 120 R&D directors from technology-based companies. The study explores the major changes that R&D management has undergone in recent years, the changes R&D managers expect to encounter during the next few years, and the causes of those changes. The respondents also identify the skills and knowledge they view as necessary for effective R&D management, and they assess their organizations' capabilities in those areas. According to the respondents, major changes that R&D has encountered include increased emphasis on such issues as cross-functional teamwork, R&D's contribution to both short- and long-term business results, R&D's capability to quickly bring to market new products that customers value, efficient use of R&D resources, and R&D alliances. Other changes noted by respondents include greater pressure to find new markets, increased attention on the effective management of technical personnel, and increased regulations and sensitivity to environmental issues. The knowledge domains that the respondents highlighted as having the greatest effect on R&D performance include such capabilities as understanding customer needs, monitoring market developments, commercializing new technologies, building cross-functional teams, managing multiple R&D projects, and accelerating new product development. According to the respondents, the largest gaps between required and current capabilities exist in several of the areas listed as being most important to effective R&D management, including monitoring market developments that can affect R&D activities and overall business performance, maintaining a spirit of inquiry while ensuring that R&D contributes to overall corporate performance, developing technology commercialization capabilities, fostering mutually profitable strategic alliances, and accelerating the development and commercialization of new products.     

Project Management Characteristics and New Product Survival

We develop a conceptual model of new product development (NPD) based on seminal and review articles in order to answer the question, “What project management characteristics will foster the development of new products that are more likely to survive in the marketplace?” Our model adopts Ruekert and Walker's theoretical framework of situational dimensions, structural/process dimensions, and outcome dimensions as an underlying structure. We conceptualize their situational dimensions more narrowly as project management dimensions, allowing us to examine more specifically how project management practices affect the NPD process. In our model, project management dimensions include project manager style, project manager skills, and senior management support. Structural/process dimensions include cross‐functional integration and planning proficiency. Outcome dimensions include process proficiency and new product survival. Our empirical analysis finds support for 20 hypotheses, a reversal of one hypothesis, and nonsignificant results for one hypothesis. These results show that projects are best led by managers with strong technical, marketing, and management skills, using a participative style and enjoying early and continuous support from senior management. These project management dimensions promote cross‐functional integration and planning, which are important to process proficiency and new product survival. Our study suggests two broad conclusions. First, it confirms the links in the extant literature between situational (project management) dimensions, structural/process dimensions, and outcome dimensions in NPD. Second, firms can improve cross‐functional integration and planning through various project management practices. Generally, we find that firms interested in improving both proficiency in their development process and the survival rate of new products should take steps to promote cross‐functional integration and to improve their planning processes. While the linkage between cross‐functional integration and NPD outcomes is well established in the literature, the impact of the planning process on NPD outcomes is a research area ripe with opportunity. Our study highlights three aspects of planning that contribute to NPD outcomes. Plans should be detailed, team members should participate actively in the planning process, and teams should be given flexibility and autonomy to respond to unanticipated issues as they appear.     

Occupational roles and expectations of research scientists and research managers in scientific research institutions†

Publicly funded research institutes in most countries have been pressed by economic and political pressures through the 1990s to become more financially independent, to be more accountable and to adopt more businesslike principles and practices. In this context the occupational roles and career options for scientists and research managers in these organisations have undergone considerable change. As the research cultures of these institutions take on a more commercial perspective, new and critical career path choices for both researchers and the organisations themselves have emerged. This article focuses on the changing occupational roles of research scientists and research managers in the Australian CSIRO (Commonwealth Scientific and Industrial Research Organisation), one of the world's largest multidisciplinary research organisations. Two critical occupational pathways are discussed: one between science and science management and another between science management and commercial management. Key points where the pathways diverge are identified and linked to broader issues of organisational culture and human resource management. The authors argue that research institutes such as the Australian CSIRO require a ‘multicultural’ management approach that horizontally integrates the industrial, scientific and commercial domains of the organisations’ research cultures.     

Dark Fiber Valuation

Valuation of dark fiber has recently generated controversy, sparked particularly by the large sums booked for swaps of dark fiber between companies. One of the issues raised is valuation: i.e., what is the value of an asset that generates no revenue now and may do so at some unknown point in the future but only after investment, in an uncertain business climate, and where prices are dropping? The picture is further complicated because the result of investing to bring the asset to market (i.e. lighting the fiber) changes the supply and demand conditions of the market itself and hence invalidates price predictions. A realistic and consistent valuation methodology is necessary for increasingly cautious companies, auditors, and investors. In this paper we describe such a valuation methodology for dark fibre based on real options. Publicly available bandwidth price services start to make this practical by providing market price information. For dark fibre valuation the real option to be valued are the lighting decisions. We specifically include the effect on the market of adding new capacity by using the price-elasticity of demand within the stochastic price process itself, conditional on lighting decisions. Prices are generally volatile and decreasing with time. The evolution of lighting costs and maintenance are included in the valuation. The real options technique used here is novel in that it combines economic and market factors explicitly with mathematical finance to arrive at a valuation and optimal decisions. We found that the optimal lighting riming and capacity decisions to depend on many of the factors included in the analysis with no simple triggers: the details really matter.