IDEAS home Printed from https://ideas.repec.org/a/spr/joinma/v30y2019i7d10.1007_s10845-016-1293-z.html
   My bibliography  Save this article

Transformative innovation: turning commoditised products into radically high-valued products

Author

Listed:
  • H. H. J. K. Li

    (University of Cambridge)

  • K. H. Tan

    (Nottingham University Business School)

Abstract

New product innovation is vital in technology-driven enterprises of all sizes. Literature on breakthrough innovation is characterised as unpredictable and riskiest R&D investments. Ineffectiveness of existing innovation models to facilitate in-house innovation leads large corporations to externalise innovation risks through costly acquisition of fast-growing startups and SMEs to sustain growth. This emerging phenomena has received little attention in innovation and manufacturing management literature. This paper unveils the emergence of aggressive fast-growing enterprises, equipped with radically innovative products, credibly threaten the existence of incumbent large enterprises and in occasions pushing governments to amend outdated business regulatory practises. A proposed transformative innovation model is presented, demonstrating how prolong-neglected commoditised products of having enduring needs can be selectively identified and transformed into high-valued, radically innovative new products by leveraging on new technologies as enablers. These new products are then deliberately targeted to displace their conventional counterparts and intermediaries in both upstream manufacturing supply chain and downstream distribution channels.

Suggested Citation

  • H. H. J. K. Li & K. H. Tan, 2019. "Transformative innovation: turning commoditised products into radically high-valued products," Journal of Intelligent Manufacturing, Springer, vol. 30(7), pages 2645-2658, October.
  • Handle: RePEc:spr:joinma:v:30:y:2019:i:7:d:10.1007_s10845-016-1293-z
    DOI: 10.1007/s10845-016-1293-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10845-016-1293-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10845-016-1293-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ryan, Chuck & Riggs, Walter E., 1996. "Redefining the product life cycle: The five-element product wave," Business Horizons, Elsevier, vol. 39(5), pages 33-40.
    2. Zhai, Endong & Shi, Yongjiang & Gregory, Mike, 2007. "The growth and capability development of electronics manufacturing service (EMS) companies," International Journal of Production Economics, Elsevier, vol. 107(1), pages 1-19, May.
    3. Hui-Hong JK Li & Kim Hua Tan, 2004. "SMEs' business growth model: a medium to big effort," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 1(3), pages 195-207.
    4. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    5. Tan, Kim Hua & Zhan, YuanZhu & Ji, Guojun & Ye, Fei & Chang, Chingter, 2015. "Harvesting big data to enhance supply chain innovation capabilities: An analytic infrastructure based on deduction graph," International Journal of Production Economics, Elsevier, vol. 165(C), pages 223-233.
    6. Richard A. Bettis & Constance E. Helfat & J. Myles Shaver & Heather Berry & Aseem Kaul, 2016. "Replicating the multinationality-performance relationship: Is there an S-curve?," Strategic Management Journal, Wiley Blackwell, vol. 37(11), pages 2275-2290, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luo, Xingwu & Cao, Dongmei & Tjahjono, Benny & Adegbile, Abiodun, 2022. "Business model innovation themes of emerging market enterprises: Evidence in China," Journal of Business Research, Elsevier, vol. 139(C), pages 1619-1630.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lai, Kee-hung & Feng, Yunting & Zhu, Qinghua, 2023. "Digital transformation for green supply chain innovation in manufacturing operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    2. Tan, Kim Hua, 2023. "Building Supply Chain Resilience with Digitalization," ADBI Working Papers 1389, Asian Development Bank Institute.
    3. Lidong Wang & Cheryl Ann Alexander, 2015. "Big Data Driven Supply Chain Management and Business Administration," American Journal of Economics and Business Administration, Science Publications, vol. 7(2), pages 60-67, June.
    4. Constanza Fosco, 2012. "Spatial Difusion and Commuting Flows," Documentos de Trabajo en Economia y Ciencia Regional 30, Universidad Catolica del Norte, Chile, Department of Economics, revised Sep 2012.
    5. Edouard Civel & Marc Baudry, 2018. "The Fate of Inventions. What can we learn from Bayesian learning in strategic options model of adoption ?," EconomiX Working Papers 2018-47, University of Paris Nanterre, EconomiX.
    6. Langley, David J. & Hoeve, Maarten C. & Ortt, J. Roland & Pals, Nico & van der Vecht, Bob, 2014. "Patterns of Herding and their Occurrence in an Online Setting," Journal of Interactive Marketing, Elsevier, vol. 28(1), pages 16-25.
    7. Yang, Yong & Driffield, Nigel, 2022. "Leveraging the benefits of location decisions into performance: A global view from matched MNEs," Journal of Business Research, Elsevier, vol. 139(C), pages 468-483.
    8. Georgios Giotis & Evangelia Papadionysiou, 2022. "The Role of Managerial and Technological Innovations in the Tourism Industry: A Review of the Empirical Literature," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    9. Yujuico, Emmanuel, 2015. "Considerations in the diffusion of a public traffic app for Metro Manila," Journal of Transport Geography, Elsevier, vol. 42(C), pages 48-56.
    10. Fuxia Gao & Chuan Lin & Haomiao Zhai, 2022. "Digital Transformation, Corporate Innovation, and International Strategy: Empirical Evidence from Listed Companies in China," Sustainability, MDPI, vol. 14(13), pages 1-19, July.
    11. Alina Sorescu & Sorin M. Sorescu & Will J. Armstrong & Bart Devoldere, 2018. "Two Centuries of Innovations and Stock Market Bubbles," Marketing Science, INFORMS, vol. 37(4), pages 507-529, August.
    12. Aleksandar Bradic, 2012. "The Role of Social Feedback in Financing of Technology Ventures," Papers 1301.2196, arXiv.org.
    13. Najmeh Madadi & Azanizawati Ma’aram & Kuan Yew Wong, 2017. "A simulation-based product diffusion forecasting method using geometric Brownian motion and spline interpolation," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1300992-130, January.
    14. Ray Qing Cao & Dara G. Schniederjans & Vicky Ching Gu, 2021. "Stakeholder sentiment in service supply chains: big data meets agenda-setting theory," Service Business, Springer;Pan-Pacific Business Association, vol. 15(1), pages 151-175, March.
    15. Bhukya, Ramulu & Paul, Justin, 2023. "Social influence research in consumer behavior: What we learned and what we need to learn? – A hybrid systematic literature review," Journal of Business Research, Elsevier, vol. 162(C).
    16. Katharina Fischer & Reiner Leidl, 2014. "Analysing coverage decision-making: opening Pandora’s box?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(9), pages 899-906, December.
    17. Muhammad Irfan & Mingzheng Wang & Naeem Akhtar, 2019. "Impact of IT capabilities on supply chain capabilities and organizational agility: a dynamic capability view," Operations Management Research, Springer, vol. 12(3), pages 113-128, December.
    18. Akhtar, Pervaiz & Khan, Zaheer & Tarba, Shlomo & Jayawickrama, Uchitha, 2018. "The Internet of Things, dynamic data and information processing capabilities, and operational agility," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 307-316.
    19. Wong, Hiu-Kan & Ellis, Paul D., 2007. "Is market orientation affected by the product life cycle?," Journal of World Business, Elsevier, vol. 42(2), pages 145-156, June.
    20. Pan Liu & Shu-ping Yi, 2018. "Investment decision-making and coordination of a three-stage supply chain considering Data Company in the Big Data era," Annals of Operations Research, Springer, vol. 270(1), pages 255-271, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joinma:v:30:y:2019:i:7:d:10.1007_s10845-016-1293-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.