Abstract
This study explores how firms manage the entire life cycle of innovation projects based on the framework of harvesting and planting innovation. While harvesting innovation seeks new products in the expectation of financial performance in the short term, planting innovation pursues creating value over a long time period. Without proper management of the process of planting and harvesting innovation, firms with limited resources may not be successful in launching innovative new products to seize a momentum in high tech industries. To examine this issue, the case of Samsung Electronics (SE), now an electronics giant originated from a former developing country, is analyzed. SE has shown to effectively utilize co-innovation to maintain numerous planting and harvesting innovation projects. Both researchers and practitioners would be interested in learning about how SE shared risks of innovation investment with external partners at the early stage of innovation cycles.
Highlights
Globalization and advances in technologies have made the global market extremely dynamic and competitive
We focus on Samsung Electronics (SE) which has become the world’s largest electronics firm through successful planting and harvesting of innovation
The study results provide insights to practitioners through the case study of SE which struggled initially to save the cost of innovation by collaborating with external partners for planting and harvesting innovation
Summary
Globalization and advances in technologies have made the global market extremely dynamic and competitive. Space shuttle can be considered as an example of radical innovation as the realization of reusable spacecraft but it is generally considered as a product for immediate use rather than a long-term growth momentum Such discrepancy leads researchers to develop a new categorization of innovation based on the expected timing of financial outcome. While planting innovation can result in potential resources for long-term value creation, harvesting innovation is intended to generate continuous cash flows to those engaged in the current market. The Mission 2020 of Samsung (http://www.samsung.com) states that it will “inspire the world, create the world” through creative and innovative solutions This implies that the firm intends to pursue innovation over time beyond the development of commercial products for short-term returns. SE has steadily expanded its business after it introduced harvesting and planting innovation despite the hostile macro-economic environment and recent ownership succession
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