Reconfiguring the Firm’s Assets for Innovation

Abstract

The innovation process and the generation of sustainable competitive advantage are permanently on the agenda in technology management. According to Teece (2007), one way to achieve a competitive advantage is to develop dynamic capabilities, a process in which the author identifies three moments: i) to perceive and shape opportunities and threats (sensing), ii) to grasp the opportunities (seizing), iii) to increase, to combine, to secure and, when necessary, to reconfigure the tangible and intangible assets. The aim of this paper is to investigate how the strategic internal changes were introduced to influence on developing the innovation capability in order to sustain and expand the competitive advantages of the firm. To do so, a case study was carried out in a firm that work within the furniture sector more than 30 years and took decision to increase its competitive advantage by investing in product design, what created conditions for the development of new capabilities. Interviews were conducted using questions that allowed the respondents to freely express their experiences and perceptions about the changes that have occurred in their sectors as a result of this process and was possible to identify the intensity of reconfigurations in capabilities that resulted from the creation of the Design Center.

Determinant factors of innovation management in the manufacturing industry of Pichincha, Ecuador

“…It follows, therefore, that this category of analysis in the field of study of innovation must focus from a vision that goes beyond the adoption of traditional techniques and tools promoted by technological changes, to another vision based on acquiring, integrating and recombining new organizational routines and learning mechanisms that allow companies to interact with the dynamic environment and develop innovations to be competitive and sustainable in the markets, a criterion that agrees with other authors who have contributed on the essential capacities for innovation (Nakamori, 2020;Schreiber et al, 2020;Singh et al, 2020), and related similar contributions in Latin American economies (Quintero Sepúlveda et al, 2021).…”

Innovation Capability in Manufacturing Firms: A Systematic Literature Review and Research Agenda

“…There are various strategies that the company can adopt. For example, being proactive allows companies to have a more flexible structure that simultaneously enables innovation [21]. Since companies may adopt different strategies, it is necessary to examine further whether specific strategies are better for innovation development capabilities.…”

Determinants of Innovation Capability and Nexus between Innovation Capability and Performance of SMEs

“…The term "transactional capability" refers to an organization's capability to offer its goods and services on the open market while making sizable profits (Mayer & Salomon, 2006). The firm's ability to enable the transaction of its products in a way that reduces marketing, distribution, and negotiation costs is known as its transaction capability (Schreiber, Tometich, Zen, & Engelman, 2020). It is the organization's understanding of its customers, markets, delivery routes, supply chains, and procedures in order to minimize transaction costs and enhance firm utility (Paulo Antônio Zawislak et al, 2012).…”