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Innovation-Based Competition and the Dynamics of Design in Upstream Suppliers

Author

Listed:
  • Sylvain Lenfle

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • Christophe Midler

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

Abstract

Although the evolution of the design process in car manufacturers and their first-tier suppliers has been studied extensively, the situation is different for upstream industries, usually chemical and steel firms. This article focuses on such upstream suppliers situation based on an interactive research with a major european steel-maker group, Usinor. In its first part, it demonstrate that innovation-based competition is a significant issue for companies situated upstream from end-product manufacturers. The accelerating pace of the (re)design of end products downstream is increasing opportunities for the substitution of raw materials. The importance of this issue is obscured, however, by considerable inertia in the spread of innovations through the sector. Then the article characterises the specificities of implementing an innovative design strategy due to the activity and position of the firm in the industrial chain. The conclusions will make it clear that design models developed for car-manufacturers and first tear suppliers are in many ways unsuitable for this different context. We finally propose 5 principles to evaluate and define a innovation management system in upstream suppliers.

Suggested Citation

  • Sylvain Lenfle & Christophe Midler, 2001. "Innovation-Based Competition and the Dynamics of Design in Upstream Suppliers," Post-Print hal-00262522, HAL.
    • Handle: RePEc:hal:journl:hal-00262522
    Note: View the original document on HAL open archive server: https://hal.science/hal-00262522
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    Citations

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    Cited by:

    1. Lenfle, Sylvain & Midler, Christophe, 2009. "The launch of innovative product-related services: Lessons from automotive telematics," Research Policy, Elsevier, vol. 38(1), pages 156-169, February.
    2. Sylvain Lenfle & Christophe Midler, 2003. "Innovation in Automative Telematics Services: Characteristics of the Field and Management Priciples," Post-Print hal-00262930, HAL.
    3. Rémi Maniak & Christophe Midler & Sylvain Lenfle, 2007. "Tracking the route of innovation across projects: insights from two case studies," Post-Print hal-00263136, HAL.
    4. Sylvain Lenfle & Christophe Midler, 2009. "The Launch of Innovative Product-Related Services: Lessons from automotive telematics," Post-Print halshs-00401124, HAL.

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