Abstract
Understanding the key elements of the drivers of strategic innovation remains elusive. Limited research has been conducted on the drivers, namely strategy processes, people, culture, and resources, in a South African context. In this study, semi-structured interviews were conducted with innovation specialists of five participating banks to explore the key elements that constitute the drivers of strategic innovation in South African banks. The findings indicate that the elements of the drivers of strategic innovation, as outlined in the literature, were evident in the participating banks and that the exploration of these elements provides a good starting point for South African financial service companies to build innovation capacity.
Highlights
Strategic innovation is often regarded as an unfortunate collision of two management disciplines: strategic planning, on the one hand, and innovation and creativity, on the other (Schlegelmilch, Diamantopoulos & Kreuz, 2003, Aasen & Johannesen, 2005)
There has been little empirical research in the South African context that explores the drivers of strategic innovation, namely strategy processes, people, culture, and resources
Given the lack of context-specific research on the drivers of strategic innovation in South Africa, the purpose of this study is to explore the elements that constitute the drivers of strategic innovation in selected banks in the South African financial sector
Summary
Strategic innovation is often regarded as an unfortunate collision of two management disciplines: strategic planning, on the one hand, and innovation and creativity, on the other (Schlegelmilch, Diamantopoulos & Kreuz, 2003, Aasen & Johannesen, 2005). Strategic innovation yields substantial value creation, for both the customer and the company, by means of growth and increased profits (Adner & Kapoor, 2010; Teece, 2010; Schlegelmilch et al, 2003; Kim & Mauborgne, 1999a, 1999b) Against this background, this study adopts the following definition of strategic innovation: ‘the process of innovating a company’s business model for either the company as a whole, or for a specific offering, in an attempt to reconceive existing markets so as to alter the competitive formula for an industry’ (Berghman, 2006; Schlegelmilch et al, 2003; Kim & Mauborgne, 1999a; 1999b; 1997; Markides, 1999a; 1999b; 1998; 1997; Pitt & Clarke, 1999; Hamel, 1998a; 1998b; Tushman & Anderson, 1997; Hamel & Prahalad, 1994a; 1994b; 1993). The authors aver that these jointly foster strategic innovation in a company
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