100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Innovation Management Summary (very extensive) $6.85
Add to cart

Summary

Innovation Management Summary (very extensive)

 32 views  1 purchase
  • Course
  • Institution

Innovation Management Summary (very extensive)

Preview 4 out of 62  pages

  • October 23, 2023
  • 62
  • 2021/2022
  • Summary
avatar-seller
LECTURE 1
TRANSACTION COSTS
A transaction occurs whenever a good or service is transferred across a
technologically separable interface. The transaction cost approach to the study of
economic organization regards the transaction as the basic unit of analysis and holds
that an understanding of transaction cost economizing is central to the study of
organizations. Transactions costs is a loss of efficiency or energy - Firms exist to
reduce transaction costs. The lower the transaction costs, the higher the economic
activity.

BEHAVIOURAL ASSUMPTIONS
Firms are economic agents and within firms there are also individual actors. Two
assumptions:

- Bounded rationality = Transactors are constrained by cognitive limits on their
capacities to process information efficiently (incomplete contracting). Limits to
what firms know, they don’t know everything. Agents engage with this, but
they don’t know what can happen.
- Opportunism = “Self-interest with guile” could induce strategic behaviour by
transactors to lie to, cheat, confuse, mislead their exchange partners. Agents
are self-interested and could engage into strategic behaviour. We care about
our self-interest most.

GOVERNANCE FORMS
1. Hierarchy (Make) internal governance. Flexibility is reduced.
2. Market (Buy) exchange with parties, delegate the market for it
3. Hybrid (All)y establish alliances, you choose a partner, and you engage in
transactions. If a transaction occurs often, it might be more useful to establish
an alliance

The type of strategy that can be used is depending on the decision tree

,Depending on the transaction cost, type and inter governance that you can have.
You can have full reliance on the market on the left which is outsourcing everything.
In the middle there is a hybrid model with partnerships. On the other extreme there
is a hierarchy with only integration.

CRITICISM TO TRANSACTION COSTS ECONOMICS (TCE)
● Too much emphasis on opportunism and too little on trust.
● Learning curves and path dependence, if you repeat the same transaction with
the same partners, you find some path and a learning cave.
● Firms are considered heterogeneity. TCE neglects of differential capabilities
and dynamics



BUSINESS INNOVATION
The creation of substantial new value for customers and the firm by creatively
changing one or more dimensions of the business system

Example: Starbucks and third place

, INNOVATION RADAR




four key dimensions that serve as business anchors: (1) the offerings a company
creates, (2) the customers it serves, (3) the processes it employs and (4) the points
of presence it uses to take its offerings to market.




VENTURES

, Start-up entity developed with the intent of profiting financially. Many ventures will
be invested in by one or more individuals or groups with the expectation of the
business bringing in a financial gain for all backers. Most business ventures are
created based on demand of the market or a lack of supply in the market.

Types of ventures




INCUMBENT CURSE
The faith of companies, the moment they become large, established, or leaders they
are unable to come up with the next big thing. An incumbent is a firm that preceded
the radical product innovation.

Disruptive innovation = “Disruption” describes a process whereby a smaller
company with fewer resources can successfully challenge established incumbent
businesses.

S-CURVE


A radical product innovation is a new product that incorporates a substantially
different core technology and provides substantially higher customer benefits
relative to previous products in the industry. A radical product innovator is the firm
that first commercializes a radical product innovation

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller noavh. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $6.85. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52510 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$6.85  1x  sold
  • (0)
Add to cart
Added