Thursday, March 14, 2013

Innovation Factors in Brazilian Industries

Innovation is often seen within the vantage point of knowledge sharing networks and technology. However, the decisional process that creates innovation may include other factors that can provide competitive advantages for organizations. There are a range of complementary capabilities that improve upon organizational innovation (Yam, et al., 2011).

According to the neo-Schumpeterian models there are four areas that help to create sustainability (Nelson and Winter, 1982). Technology, account operations, management, and transactions have an influence on the success of the entire business. Each of these concepts interrelates and influences the overall innovation standards. 

The factors that lead to higher levels of market performance are often embedded in other functions within the organization. For example, the personalities of the management team will determine management innovative capabilities. Research helps to improve upon the overall development of appropriate constructs for improving the overall organization. 

A proper research method for understanding and developing new constructs is through the use of case studies. Such phenomenological research allows for in-depth analysis of the main concepts. Quantitative approaches review existing constructs and measure them at a high level. To understand a concept in depth requires keep observation by exploring the associations of various components of the phenomenon. The study discussed below uses the case study approach.

The purpose Zawislak, et. al. (2013) study was to develop a greater understanding of how innovation is fostered within organizations by reviewing case studies. The study included 26 companies from the various sectors of Rio Grande do Sul. The directors and managers from ten total companies agreed to participate in the analysis of the innovation structure. Information was collected through data mining, interviews, and site visits creating triangulation of data and higher levels of validity. Four final cases were used to assess the constructs in the study. 


-The firm’s current capabilities will determine its ability to be innovative and its market strategy.
-Redevelopment of departments based upon input from universities and research centers.
-A company that provides small batch production seeks innovation through efficiency of operational functions.
-Management innovation has led to integration of functions and year-to-year revenue increase of 20% when compared to the industries 5%.
-Transactional efficiencies have led to growth and market expansion in the area. 


Firms have market approaches that allow them to compete within the market. Due to the perception of management most innovations are going to be focused on their competitive strengths. To create wider matrices of improvement requires a change in management that affords new perspectives and insight. Furthermore, pushing particular vantage points may create a phenomenon called “group think” where new ideas are not forthcoming. Through the development of management innovation, transactional improvements, operational efficiencies, and restructuring organizations can further their innovative and market interests.

Nelson, R., Winter, S.(1982) An Evolutionary Theory of Economic Change. The Belknap Press of Harvard University Press, Cambridge, Ma.

Yam, R., Lo, W., Tang, E. & Lau, A. (2011). Analysis of sources of innovation, technological innovation capabilities, and performance: an empirical study of Hong Kong manufacturing industries. Research Policy, 40 (3). 

Zawislak, P., Alves, A., Tell-Gamarra, J., Barbieux, D. & Reichert, F. (2013). Influences of the internal capabilities of firms on their innovation performance: a case study investigation in Brazil. International Journal of Management, 30 (1).
Innovation Factors in Brazilian Industries

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