Innovation In Emerging Markets Research Articles

Do MNEs Benefit More from Foreign or Local Competition for their Emerging Market Innovation?

How do the innovation-related benefits of competition vary across foreign and local competition? Inspired by a blend of perspectives and arguments from the competition, innovation and strategic change literature, we explore which type of competition benefits advanced economy MNEs (AEMNEs) emerging market (EM) innovation performance most, when and in what pace and rhythm. We predict that local competition contributes more to AEMNEs EM innovation performance and this positive effect is strengthened by increased competition from foreign peers and at a faster pace. We also expect that competition irregularity reinforces the innovation performance-enhancing effect of local competition but diminishes that of foreign competition. We test these predictions using a sample of AEMNEs operating in the Chinese high-tech industries. Results from our multi-level analysis provide strong support for our arguments. Our findings have important implications for research on AEMNE EM innovation performance variations resulting from the heterogeneity in the sources of competitive forces and their temporal structure.

Winning the innovation game in emerging markets

PurposeThis paper aims to provide advanced market managers in Europe, the USA or Japan with a long-term framework to prepare for and seize emerging market innovation opportunities.Design/methodology/approachThis paper is based on eight years of studying emerging market innovation opportunities, how to prepare for them and how to seize them. This study mainly draws on experiential learning in the automotive sector, particularly in China.FindingsThe framework details the strategic co-evolution of advanced market firms, emerging market governments, customers and competitors through four stages of innovation. Emerging markets such as China and India at different stages, depending on the national context of development as well as the particular market context.Research limitations/implicationsThis research is primarily based on cases in the automotive sector. Challenging the ongoing assumption of superior advanced market innovation, this paper contributes to insights on the new innovation world order and how to invest in emerging market innovation opportunities.Practical implicationsThe framework helps advanced market managers identify the strategic stage they are in, depending on the emerging market context. It provides them with long-term strategic insights, helping them anticipate moves and countermoves by emerging market governments and competitors, as well as anticipate the rapidly shifting needs of emerging market customers.Originality/valueThe four-stage framework brings together advanced market firms, emerging market governments, customers and competitors in a clear big picture. It conditions emerging market success in the even bigger picture of advanced market firms drawing on their learning in emerging markets in stages 3 and 4 to accelerate the renewal of their core business.

How Does Cross-national Knowledge Distance Influence Host Innovation?

How do advanced economy multinational enterprises (AEMNEs) leverage cross-national knowledge distance for their emerging market innovation? Drawing on an embeddedness perspective, we examine and extend the ‘learning-by-hiring’ and ‘learning-by-exporting’ logics for a better understanding of AEMNEs’ innovation activities in a dissimilar knowledge context where strong cross-national differences persist. We predict that the recruitment of local talents and third-country exporting as two mediators that shape and filter AEMNEs’ access and integration of geographically distant knowledge for their emerging market innovation. We further predict an inverted U-shaped effect of third-country exporting on AEMNEs’ innovativeness and a crowding-out effect of the recruitment of local talents on third-country exporting as an innovation mechanism. Our analysis of 534 AEMNEs operating in China offers support for our conjectures. Our study offers important implications on how to manage multiple embeddedness across AEMNEs’ global networks for their innovation to flourish in emerging economies.

Mapping product and service innovation: A bibliometric analysis and a typology

Research conducted in the innovation field lags behind organizations’ general technological development and innovativeness. Literature that previously depicted innovation types in developed markets is markedly different from progressively publicized emerging market innovation types. While capital-abundant firms tend to engage in respective pioneering and incremental innovation loops, resource-constrained firms and firms in emerging countries may partially free-ride on existing products and services through innovations such as copycat and frugal. To date, there have been no attempts to holistically consolidate product and service innovation types into one overarching typology. Using novel methods of text mining and co-citation analysis, this study systematically maps three decades of product and service innovation scholarship to provide a typology of eight major product and service innovation types. This is further supported by case study analysis to demonstrate how these innovation types fit into the cost vs market novelty matrix. This study is unique in its methodological proposition to systematically review the innovation scholarship of more than 1,400 articles through comprehensive, quantified, and objective methods that offer transparent and reproducible results. The study provides some clarity regarding the classifications and characteristics of the innovation typology.

Emerging market innovations: unique and differential drivers, practitioner implications, and research agenda

Growth in emerging markets is critical as it leads global economic growth. Emerging market innovations, which we define as innovations created in an emerging market for use by consumers or customers in that market and possibly other markets, form the engine for such growth and continue to rise in importance for various stakeholders. These innovations fundamentally differ from developed market innovations, and impact consumers, firms, governments, and the society at large. Conceptual research on emerging market innovation has not focused on the differential drivers of emerging and developed market innovations. Most empirical studies have also focused on only one emerging market, not offering generalizable conclusions across emerging markets. Thus, while prior research offers a limited understanding of factors specific to emerging market innovations, not much is known about the unique and differential drivers of emerging market innovations relative to developed market innovations. Our study offers a broader framework highlighting the unique aspects of emerging market innovations, their unique and differential (relative to developed market innovations) drivers, and related practitioner takeaways. Our framework and propositions suggest that different drivers impact the demand and supply for innovations, and, in turn, the number of innovations differently in emerging and developed markets. We outline an agenda for future research.

DEVELOPING DATA DRIVEN PRODUCTS IN THE EMERGING MARKETS

The expansion of the digital economy and the rapid developments of technology induced the creation of new products and industries and drove a significant increase in data resources. The information products industry, including products based on data, information and knowledge, is intensely dynamic in terms of growth and the pace of new product introduction. The complexity in the variety of product offerings and the number of firms offering those products in this industry is increasing exponentially every day. Data-driven innovation forms a key pillar in the 21 century sources of growth. Large data sets are becoming a core asset in the economy, fostering new industries, processes, and products and creating significant competitive advantages (OECD, 2015). The past two decades have brought several reconfigurations of the information and knowledge economy. The recent technological breakthroughs have driven the emergence and the exponential growth of a digital economy with vast data assets. The changes have been accompanied by ongoing attempts to make sense of all the data through the use of analytics. Analytics add substantial value to intangible assets by making them easier to understand and apply. In a world in which information alone has become ubiquitous and somewhat commoditized, analytics provide a means of making information more useful and valuable. In this paper, we focus on new analytical capabilities and data assets that together form value-added information product offerings and new possibilities for emerging markets. These offerings are often called data products. In general, a data product is digital information that can be purchased. Data products incorporate data science into the operation of a product or service, using data in smart ways to provide value. In research, a data product is a large data set in a format that requires little or no processing or programming. Typical data products are predictive, descriptive or prescriptive models, as well as insights. The future of new product development reflects both developing new innovative products and data driven products typical for emerging markets that are large economies. For any organization, there is not only revenue, but competitive advantage to be gained in developing data products and new innovative products. Creating an effective development process for data products requires following well-established steps and data analytics helps adding a few new ones, which are explained in the paper. Further, this paper will focus on three important decisions for innovative process: decision 1- key enablers of emerging market innovation (R&D capability, market opportunity and executive champions), decision 2 - what product to develop (market need, portfolio fit, and product-capability fit) and decision 3 - how to develop the product (the decision matrix and bootstrapping). Organizations can follow several approaches to monetize their data like improving internal business processes and decisions, focusing information around core products and services, and selling information offerings to emerging and existing markets. Few remarks for our country will be made as further paths of development.

Towards a higher socio-economic impact through shared understanding of product requirements in emerging markets: The case of the Indian healthcare innovations

Emerging markets are considered to have huge economic potential, both for entrepreneurs and established firms. To foster innovation in these markets, it is important that customers and companies use the same terminology, with the same understanding of key terms. But is this really the case? Based on eight product requirements, this research empirically analyzes the perception of emerging market innovation terminologies. For this, we use the case of the Indian healthcare sector. On the one hand Voice of Customer method was used to gather the product requirements from the customers. On the other hand, Analytic Hierarchy Process technique was employed to identify the preferences for both product managers and customers. Our results confirm the high level of importance of ‘affordable value innovations’ and ‘ease of use functionality’ for new products introduced in emerging markets. Interestingly, the category ‘products with low or no maintenance or consumables’ comes high on the preference map for the customers but seems to be a blind spot from the manufacturers' perspective. This result opens opportunities for entrepreneurs focusing on new customer bases in emerging markets and also for various corporate entrepreneurship activities.

HUMAN RESOURCE DEVELOPMENT IN THE CIVETS COUNTRIES: IMPLICATIONS FOR LEADERSHIP AND INNOVATION IN EMERGING MARKETS

HUMAN RESOURCE DEVELOPMENT IN THE CIVETS COUNTRIES: IMPLICATIONS FOR LEADERSHIP AND INNOVATION IN EMERGING MARKETS

Innovation for Emerging Markets Confronting Institutional Environment Challenges: Perspectives from Visionary Leadership and Institutional Entrepreneurship

<p>Emerging markets are considered to be the largest untapped markets on earth with substantial business opportunities. However, emerging markets are characterised by weak institutional context. For entrepreneurs, how to achieve innovations in emerging markets confronting the challenge of institutional environment remains largely unexplored in the literature. This research study adopted a qualitative method using case study approach. Ten (10) top level and middle level managers were sampled, contacted and interviewed from an emerging market firm (EMF). Data was analysed using qualitative content analysis. Focusing on the product innovation for India’s masses with the creation of indigenous digital telecom switches by Centre for development of Telematics (C-DoT), our analysis reveal that entrepreneurs with visionary leadership can envision emerging market prospective and thereby have greater possibility of acting as institutional entrepreneurs to avoid uncertainty for emerging market innovations. Our proposed conceptual framework can be secured as a reference point by potential entrepreneurs to innovate targeting the emerging markets, and the study also contributes significantly to the theoretical literature on emerging market innovation formulating a set of propositions to advance research in this subject.</p>

How Emerging Markets are Reshaping the Innovation Architecture of Global Firms

Purpose – The purpose of the paper is to advance knowledge on how firms should rethink and develop their innovation architecture by leveraging emerging market opportunities.Design/methodology/approach – The paper provides a conceptual framework comprising the drivers and consequences of innovation architecture across emerging and developed markets. It also highlights emerging market innovation characteristics using detailed examples.Findings/conclusions – Most of the future growth in the global economy will come from emerging markets. Successful global firms will have to rethink and develop their innovation architecture by leveraging innovations developed for emerging markets. By balancing the long-term costs and benefits of innovations in both developed and emerging markets, global firms can successfully reshape their innovation architecture.Practical implications – From a practical perspective, the paper provides guidelines to executives for managing innovation architecture across emerging and developed markets. Innovations appropriately developed and launched in emerging markets have the potential to expand global consumer base and increase shareholder value.Social implications – From a societal standpoint, the paper helps improve consumer welfare in emerging markets by offering a roadmap to develop safe, relevant, and affordable products for mainstream customers. Reverse innovations, developed primarily for emerging markets also benefit consumers in developed markets and enhance their social welfare.Value/originality – The paper provides an original theoretical contribution in an important and underexplored research area – emerging market innovation. It is the first to develop an in-depth analysis of innovation architecture, advance a conceptual framework of the role of emerging markets in the development and consequences of innovation architecture, and offer a roadmap for strategic management of innovation architecture. Academic researchers, practitioners, and policy makers will benefit from this paper.

Emerging markets and innovation: A partnership for global progress

The purpose of this paper is to briefly discuss the role innovation plays in global competition and discuss how companies from some of the emerging markets are using innovation to compete with global companies from the developed world. Innovation is linked to the marketing concept as a driver for developing new products, services, and/or delivery systems. As global borders disappear, and training and education along with trade freedom increase, the opportunity for innovation increases. This writing offers a forward look into the global possibilities of emerging market innovation.