The Digitization of European business: the Digital Innovation Hubs, what is next?
Abstract
It is a fact that firms that are operating in emerging economies should choose appropriate strategies to overcome the idiosyncratic challenges of competition and achieve competitive advantage. The objective of this paper is provide a model of product innovation strategy in various circumstances. According to the contemporary marketing strategies, it seems some important models related to product innovation like as Ansoff’s grid requires a modern theoretical update. As such, an updated version of prior product-market growth strategic grids was provided, with sixteen distinct options. In this paper, we explore the effects of the market types in terms of homogeneous or heterogeneous in two situations, low and high competitiveness level together with firm types, market leader or market follower that the firm type is considered in both types in terms of innovation capacity level, low or high innovation capability. However, a theoretical framework is identifying the relationships amid product innovations and firm types together with market types. The paper is conceptual and exploratory in nature and builds on existing literature and the author’s experience with developing conceptual framework. Data and examples for illustration our proposed strategies, were obtained from companies in the foods and beverages industry located in Iran. The article deepens the theoretical understanding of previous models on product innovation strategies and provides an enriched dynamic classification of product innovation based on 16 strategies. It provides the decision makers of these firms with a guide for determining the blend of product innovation strategies to adopt in order to gain competitive advantage.
References
Birkel, H.S., Veile, J. W., Müller, J.M., Hartmann, E. and Voigt, K. (2019). Development of a Risk Framework for Industry 4.0 in the Context of Sustainability for Established Manufacturers. Sustainability, 11, 384. doi: 10.3390/su11020384
Buchi, G., Cugno, M. and Castagnoli, R. (2020). Smart factory performance and Industry 4.0. Technological Forecasting and Social Change, 150, 19790. doi: 10.1016/j.techfore.2019.119790
Chesbourg, H. (2003). Open Innovation: The new imperative for creating and profiting from technology. Harvard business school press.
Dalenogare, L.S., Benitez, G.B., Ayala, N.F. and Frank, A.G. (2018). The expected contribution of Industry 4.0 technologies for industrial performance. International Journal of Production Economics, 204, 383-394. doi: 10.1016/j.ijpe.2018.08.019
European Commission. (2020a). Digital Economy and Society Index Report 2020. https://ec.europa.eu/digital-single-market/en/integration-digital-technology (June, 11th, 2020)
European Commission. (2020b). Digital Europe Programme. July 10, 2021, from https://ec.europa.eu/digital-single-market/en/news/digital-europe-programme-proposed-eu82-billion-funding-2021-2027
European Commission (2020c). Horizon Europe- the next research and innovation framework programme. July 10, 2021, from https://ec.europa.eu/info/designing-next-research-and-innovation-framework-programme/what-shapes-next-framework-programme_en
European Commission (2020d). Horizon 2020 programme. Retrieved July 9, 2021, from https://ec.europa.eu/programmes/horizon2020/
European Commission. (2020e). New Cohesion Policy. July 9, 2021, from https://ec.europa.eu/regional_policy/en/2021_2027/
European Commission (2018). The Digitising European Industry initiative in a nutshell. July 9, 2021 from https://ec.europa.eu/digital-single-market/en/news/digitising-european-industry-initiative-nutshell
European Commission. (2017). Digital Innovation Hubs: Mainstreaming Digital Innovation Across All Sectors. July 9, 2021, from https://s3platform.jrc.ec.europa.eu/-/digital-innovation-hubs-mainstreaming-digital-innovation-across-all-sectors?inheritRedirect=true
Frank, A.G., Dalenogare, L. S. and Ayalac, N.F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International Journal of Production Economics, 210, 15-26. doi: 10.1016/j.ijpe.2019.01.004
Ghobakhloo, M. (2020). Industry 4.0, digitization, and opportunities for sustainability. Journal of cleaner production, 252, 119869.
Herčko, J., Slamková, E. and J. Hnát. (2015). Industry 4.0—New era of manufacturing. Proceedings of InvEnt 2015: Industrial Engineering–From Integration to Innovation, 1:80–83.
Hervás-Oliver, J. L., Gonzalez-Alcaide, G., Rojas-Alvarado, R., & Monto-Mompo, S. (2021a). Emerging regional innovation policies for industry 4.0: Analyzing the digital innovation hub program in European regions. Competitiveness Review: An International Business Journal.
Hervás-Oliver, J. L., Parrilli, M. D., Rodríguez-Pose, A., & Sempere-Ripoll, F. (2021b). The drivers of SME innovation in the regions of the EU. Research Policy, 50(9), 104316.
Kosacka-Olejnik, M., & Pitakaso, R. (2019). Industry 4.0: state of the art and research implications. LogForum, 15(4).
Lasi, H., Fettke, P., Kemper, H. G., Feld, T. and Hoffmann, M. (2014). Industry 4.0. Business & Information Systems Engineering, 6, 239-242. doi: 10.1007/s12599-014-0334-4
Laursen, K. and Salter, A. (2006). Open for Innovation: The Role of Openness in Explaining Innovation Performance Among U.K. Manufacturing Firms. Strategic Management Journal, 27 (2), 131-150. doi: 10.1002/smj.507
Pelayo, E. (2017). Digital innovation hubs @H2020. Centro para el Desarrollo Tecnológico Industrial. Industria Conectada 4.0. https://www.industriaconectada40.gob.es/SiteCollectionDocuments/Grupos-Trabajo/GT-DIH/DIH-GT4-CDTI.pdf
Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are transforming companies. Harvard Business Review, 93(10), 96-114.
Rejikumar, G., Arunprasad, P., Persis, J., & Sreeraj, K. M. (2019). Industry 4.0: key findings and analysis from the literature arena. Benchmarking: An International Journal.
Sony, M., & Naik, S. (2019). Key ingredients for evaluating Industry 4.0 readiness for organizations: a literature review. Benchmarking: An International Journal.
Taiminen, H. M.; Karjaluoto, H. (2015). The usage of digital marketing channels in SMEs. Journal of Small Business and Enterprise Development.