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Abstract
Since 1971 when concept of corporate strategy was proposed, strategic management has been the most powerful approach for all types of business management and administration. Strategic management has been challenged by many scholar’s fields such as; resource base theory, industrial organization theory, contingency theory, and etc. Supportive strategic management theories also have been developed and created.
In last decade, innovation appears in business battlefield as key weapon that indicate winner or loser. There are many researches explain on innovation, characteristics, typology, effect on business success and etc. All strategists in business have no doubt on innovation and try to create it in their firms. Furthermore, process of innovation has been regarded as the center of interests from many business fields to find out and leading to 2 different models: closed and open innovation, to make innovation done in business firm. After that, numerous innovations were launch to market and make “adverse event”; change value and supply chain, disrupts old version product, change business model and etc., that significantly impact business environment, but no one exactly describe the phenomena as above. This paper is the first to explain the adverse effect in the relation to theory and provide argument with some strongly evidence.
Kinetic, resulting from motion, are used to be the basic approach, and five phases of Inno-Kinetic (Kinetic of Innovation) are proposed to explain the movement of innovation in this paper
After innovation is launched, innovation’s movement will influence many compositions of business. The empirical evidence show that some innovation affects the business before its establishment, The Zero phase, “4As phase”, innovators must diffuse some knowledge for value chain and supply chain creation. Relative businesses within business environment will take responsibility in 4 As; adopt, adjust-adapt, advocate and avoid, that will shape innovation feature. The 1stphase; “All or None phase,” key compositions as rival and customer are dominant role to accept or reject. Acceptation of them will induce support from others to access some specific resources (on not resist to acquire). On the other hand, rejection will induce resistance to operate that some innovation that is destroyed by rejection. The 2ndphase, “Absorption phase,” after first group of potential customers accept innovation, some of them, who act as the influencer will be the key opinion leader (KOL), who will take role as the “Guru” and send messages about advantage of innovation to other change agents. The 3rdphase, “Distribution phase,” the message will be quickly distributed from the change agents both through the formal and informal communication. At this phase, personal bias is the most powerful to drive demand (or inhibit). The 4thphase, “Digestion phase,” all customers will experience innovation by themselves then make a decision whether to repeat or reject. The last phase, “3 Es phase”, response of innovation will reflect the owner to evaluate (1st E) and find solution that will make elongation (2nd E) of innovation life cycle or time to the end (3rd E).
Under the hypothesis, good strategy come from suitable data, the 5 phases of Inno-Kinetic may be innovative approach for strategic management in the future.
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