A Technological Innovativeness Measurement Framework: A Case Study of Technology Based Indonesian Companies

Leo Aldianto, Jann Hidajat Tjakraatmadja, Dwi Larso, Ina Primiana, Grisna Anggadwita
(Submitted 6 February 2018)
(Published 29 April 2021)

Abstract


The measurement of innovation has been developed by various previous studies with a specific focus and goal. However, the existing measurement framework still cannot be applied all that easily by companies in Indonesia for assessing, evaluating, and improving their innovations. This study aims to propose a measurement framework using a multiple case study approach. Cases were selected from companies in the pharmaceutical and information and communications technology (ICT) industries because they contribute substantially to the manufacturing sector and both are vital to Indonesia. The results of this study indicate that the measurement model of innovation consists of technological innovation and the management of technological innovation. There are three phases in the technological innovation process which include the initiation phase (conceiving ideas and acquiring information, then transforming it into knowledge), the development phase (validating knowledge and checking its appropriateness), and the diffusion phase (getting users' feedback and Go & scaling up). Meanwhile, the management of technological innovation consists of having a strategy, the necessary resources, and operation. The analytical generalization of this study is still considered to be limited, so further studies are needed to analyze cases in other industrial sectors. In addition, a quantitative study is required to construct a measuring instrument for the variables proposed in this study.

Keywords


measurement framework, innovativeness, innovation activities, case study, management of innovation, Indonesia

Full Text: PDF

DOI: 10.22146/gamaijb.33105

References


Adams, R., J. Bessant, and R. Phelps. 2006. Innovation Management Measurement: A Review. International Journal of Management Reviews 8(1): 21-47.

Aldianto, L., J.H. Tjakraatmadja, D.Larso, andI. Primiana. 2012, July. A framework to assess technological innovativeness of a company: case studies at Indonesian pharmaceutical industry. In 2012 Proceedings of PICMET'12: Technology Management for Emerging Technologies (pp. 2109-2116). IEEE.

Alegre, J., R. Lapiedra, and R. Chiva. 2006. A Measurement Scale for Product Innovation Performance. European Journal of Innovation Management 9(4): 333-346.

Andrew, J.P., K. Haanaes, D.C. Michael, H.L. Sirkin, and A. Taylor. 2009. Measuring Innovation 2009: The Need for Action. Boston, USA: The Boston Consulting Group.

Arndt, M., and B. Einhorn. 2010. The 50 Most Innovative Companies. Bloomberg Business week, April.

Badea, A., G. Prostean, G. Goncalves, and H. Allaoui. 2014. Assessing risk factors in collaborative supply chain with the analytic hierarchy process (AHP). Procedia-Social and Behavioral Sciences 124: 114-123.

Bature, S.W., R.M. Sallehuddin, N.A. Rosli, and S. Saad, 2018. Proactiveness, innovativeness and firm performance: the mediating role of organizational capability. Academy of Strategic Management Journal 17(5): 1-14.

Becheikh, N., R. Landry, and N. Amara. 2006. Lessons from Innovation Empirical Studies in the Manufacturing Sector: A Systematic Review of the Literature from 1993 – 2003. Technovation 26(5-6): 644-664.

Bell, M., and P.N. Figueiredo. 2012. Building innovative capabilities in latecomer emerging market companies: some key issues. In Innovative Firms in Emerging Market Countries, edited by E.Amann and J. Cantwell. Oxford: Oxford University Press.

Bernard, H. R. 2013. Social research methods: Qualitative and quantitative approaches. Thousand Oaks: Sage Publications.

Brem, A., M. Maier, and C. Wimschneider. 2016. Competitive advantage through innovation: the case of Nespresso. European Journal of Innovation Management 19(1): 133-148.

Brophey, G., and S. Brown. 2009. Innovation Practices within Small to Medium-Sized Mechanically-Based Manufacturers. Innovation: management, policy & practice 11(3): 327-340.

Capaldo, G., L. Iandoli, M. Raffa, and G. Zollo. 2003. The Evaluation of Innovation Capabilities in Small Software Firms: A Methodological Approach. Small Business Economics 21(4): 343-354.

Chiesa, V., P. Coughlan, and C.A. Voss. 1996. Development of a Technical Innovation Audit. Journal of Product Innovation Management 13(2): 105-136.

Choi, S. B., and C. Williams. 2016. Entrepreneurial orientation and performance: Mediating effects of technology and marketing action across industry types. Industry and Innovation 23(8): 673-693.

Chuang, L.M. 2005. An Empirical Study of The Construction of Measuring Model for Organizational Innovation in Taiwanese High-Tech Enterprises. Journal of American Academy of Business 6(1): 299-304.

Cooper, R.G., and S.J. Edgett. 2012. Best Practices in the Idea-to-Launch Process and Its Governance. Research-Technology Management, March - April, 43-54.

Dantas, E., and M. Bell. 2009. Latecomer Firms and the Emergence and Development of Knowledge Networks: the Case of Petrobras in Brazil. Research Policy 38(5): 829–844.

Day, J., and M. Bobeva. 2005. A Generic Toolkit for the Successful Management of Delphi Studies. The Electronic Journal of Business Research Methodology 3(2): 103-116.

Didu, S. 2010. ‘Interview’. Bisnis Indonesia Daily, April 27.

Dutrenit, G. 2000. Learning and Knowledge Management in the Firm. From Knowledge Accumulation to Strategic Capabilities. Cheltenham, UK: Edward Elgar.

Eisenhardt, K.M. 1989. Building Theories from Case Study Research. The Academy of Management Review 14(4): 532-550.

Essmann, H., and N. du Preez. 2009. An Innovation Capability Maturity Model - Development and Initial Application. World Academy of Science, Engineering and Technology 3(5): 398-410.

Ettlie, J.E., W.P. Bridges, and R.D. O’Keefe. 1984. Organization Strategy and Structural Differences for Radical versus Incremental Innovation. Management Science 30(6): 682-695.

Figueiredo, P.N. 2014. Beyond technological catch-up: An empirical investigation of further innovative capability accumulation outcomes in latecomer firms with evidence from Brazil. Journal of Engineering and Technology Management 31(January): 73-102.

Groenland, E. and Dana, L.P. 2019. Qualitative Methodologies and Data Collection Methods: Toward Increased Rigour in Management Research (Vol. 1). World Scientific, Singapore.

Guo, J., J. Pan, J. Guo, F. Gu, and J.Kuusisto. 2019. Measurement framework for assessing disruptive innovations. Technological Forecasting and Social Change 139: 250-265.

Herrera, M. E. B. 2015. Creating competitive advantage by institutionalizing corporate social innovation.  Journal of Business Research 68(7): 1468-1474.

Hinterhuber, A., and S.M. Liozu. 2014. Is innovation in pricing your next source of competitive advantage?  Business Horizons 57(3): 413-423.

Houghton, C., D. Casey, D. Shaw, and K. Murphy. 2013. Rigour in qualitative case-study research. Nurse researcher 20(4).

Humphrey-Murto, S., and M. de Wit. 2019. The Delphi method—more research please. Journal of clinical epidemiology 106: 136-139.

Indrayanto, A., J.T. Pramudito, D. Danudirdjo, and A. Handayani. 2008. Evaluation of The Policy on Implementation of Telecommunication Service Providing in The Transition Era, Unpublished document. [In Bahasa Indonesia]

Jugend, D., T.R.D. Araujo, M.L.Pimenta, J.A. Gobbo Jr, and P. Hilletofth. 2018. The role of cross-functional integration in new product development: differences between incremental and radical innovation projects. Innovation20(1): 42-60.

Kim, D. Y., V. Kumar, and U. Kumar. 2012. Relationship between quality management practices and innovation. Journal of operations management 30(4): 295-315.

Martensen, A., J. Dahlgaard, S.M. Park-Dahlgaard, and L. Gronholdt. 2007. Measuring and Diagnosing Innovation Excellence – Simple Contra Advanced Approaches: A Danish Study. Measuring Business Excellence 11(4): 51-65.

Menguc, B., S. Auh, S., and P.Yannopoulos. 2014. Customer and supplier involvement in design: The moderating role of incremental and radical innovation capability. Journal of Product Innovation Management 31(2): 313-328.

Ministry of Industry. 2013. Assessing the Readiness of National Industry Toward AEC 2015. Media Industri, Jakarta. [In Bahasa Indonesia]

OECD. 2005. Oslo Manual. Paris: European Commission/Eurostat.

Paik, J., and H.J. Chang. 2015.  Post-Catch-Up Strategy for Medium-Sized South Korean Firms: Improving Technological Capabilities by Balancing R&D Intensity and Open Innovation. Engineering Management Journal 27(4): 164-176.

Phan, K. 2013. Innovation Measurement: A Decision Framework to Determine Innovativeness of a Company. Unpublished PhD Dissertation. Portland State University.

Phan, K., and D.F. Kocaoglu. 2014, July. Innovation measurement framework to determine innovativeness of a company: Case of semiconductor industry. In Proceedings of PICMET'14 Conference: Portland International Center for Management of Engineering and Technology; Infrastructure and Service Integration (pp. 747-757). IEEE.

Read, A. 2000. Determinants of Successful Organizational Innovation: A Review of Current Research. Journal of Management Practices 3(1): 95-119.

Rowe, G., and G. Wright. 1999. The Delphi Technique as a Forecasting Tool: Issues and Analysis. International Journal of Forecasting 15(4): 353-375.

Rush, H., J. Bessant, and M. Hobday. 2007. Assessing the Technological Capabilities of Firms: Developing a Policy Tool. R&D Management 37(3): 221-226.

Sampurno. 2007. Technological Capability and R&D Strengthening: A Pharmaceutical Industrial Challenge in Indonesia. MajalahFarmasi Indonesia 18(4): 199-209. [In Bahasa Indonesia]

Saunila, M., and J. Ukko.  2012. A Conceptual Framework for the Measurement of Innovation Capability and Its Effects. Baltic Journal of Management 7(4): 355-375.

Sheng, M. L., & I. Chien. 2016. Rethinking organizational learning orientation on radical and incremental innovation in high-tech firms. Journal of Business Research 69(6): 2302-2308.

Silva, F. S., F.S.F. Soares, A.L. Peres, I.M. de Azevedo, A.P.L. Vasconcelos, F.K. Kamei, and S.R. de LemosMeira. 2015. Using CMMI together with agile software development: A systematic review. Information and Software Technology 58: 20-43.

Smith, K. 2005. Measuring Innovation. In The Oxford Handbook of Innovation, edited by J. Fagerberg, et al. Oxford: Oxford University Press.

Smith, R., and N. Sharif. 2007. Understanding and acquiring technology assets for global competitions. Technovation 27(11): 643-649.

Smith, S., G. Smith, and Y.T. Shen. 2012. Redesign for product innovation. Design Studies 33(2): 160-184.

Sutz, J. 2012. Measuring Innovation in Developing Countries: Some Suggestions to Achieve More Accurate and Useful Indicators. International Journal of Technological Learning, Innovation and Development 5(1/2): 40-57.

Tetnowski, J. 2015. Qualitative case study research design. Perspectives on Fluency and Fluency Disorders 25(1): 39-45.

Tsao, S. M., and G.Z. Chen. 2012. The impact of internationalization on performance and innovation: The moderating effects of ownership concentration. Asia Pacific Journal of Management29(3): 617-642.

Tushman, M.L. and Romanelli, E. 1985. Organizational evolution: A metamorphosis model of convergence and reorientation. Research in organizational behavior.

Tushman, M.L. and Anderson, P. 1986. Technological discontinuities and organizational environments. Administrative science quarterly: 439-465.

World Bank. 2012. Policy Note 1: Why the Manufacturing Sector Still Matters for Growth and Development in Indonesia. Jakarta: The World Bank Office.

World Bank. 2019. Current health expenditure per capita (current US$). [Online] Available at https://data.worldbank.org/indicator/SH.XPD.CHEX.PC.CD, accessed November 2019.

World Economic Forum. 2019. The Global Competitiveness Report 2018 – 2019. Geneva: WEF.

Wu, W., B. Yu, and C. Wu.  2012. How China’s equipment manufacturing firms achieve successful independent innovation: The double helix mode of technological capability and technology management .Chinese Management Studies 6(1): 160-183.

Yin, R.K. 2014. Case Study Research; Design and Methods. Los Angeles, CA: Sage.


Refbacks

  • There are currently no refbacks.




Copyright (c) 2021 Gadjah Mada International Journal of Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.