Managing product innovation in industries producing homogeneous goods: an empirical investigation

Abstract

The purpose of this paper is to increase our understanding of low-tech industries' product innovation performance related activities and the specific capabilities of the firms that influence those. In this paper, we apply the Cormican and O'Sullivan's best practice model product innovation survey to quantify the differences between high-and low-tech firms, in terms of product innovation performance. Using a sample of 46 firms based in the north of the Netherlands, this paper expands the discussion to firms manufacturing homogenous goods for example, paper, agricultural products and energy. This study finds that communication within the firm, and collaboration between firms are of particular importance to low-tech firms, while 'harder factors' such as 'strategy and leadership', 'planning and selection', or 'structure and performance' have an insignificant effect. In this study, we extend the discussion of product innovation management, and demonstrate a number of important differences between high and low-tech firms.