In progress Creative Industries and Business Model Innovation: Innovation Capabilities Oriented Towards Product and Service Innovation?

Reference:
ERIM PhD 2014 NWO TOP JvdE_HV

Abstract

This proposal examines under which conditions firm innovation capabilities lead to firm performance. Firm innovation capabilities are widely regarded to be critical for firms to increase performance but it is not clear how the application of innovation capabilities translate into higher firm performance. I aim to fill this gap in the literature by proposing that different innovation outcomes (i.e., product and service innovation versus business model innovation) mediate the relationship between firm innovation capabilities and firm performance. I propose that allocation of scarce capabilities for different innovation outcomes is moderated by different orientations (creative and financial). Specifically, I expect that a financial orientation should enhance the effect of innovation capabilities on business model innovation. Conversely, a creative orientation should enhance the effect of innovation capabilities on product and service innovation. The setting for this research is the creative industries’ sector in which tension exists in balancing financial and creative orientations.

Keywords

Business Model Innovation, Firm Innovation Capabilities, Creative Industries, Orientations

Time frame

2015 - 2019

Topic

More than other entrepreneurs, creative entrepreneurs face the classical dilemma between the head and the heart. They are compelled to develop their entrepreneurship in order to survive, but at the same time they are afraid that this will be at the cost of their creativity and authenticity. This research project is one of the 3 sub-projects that together investigate the trade-offs between cultural and business orientations of creative enterprises, and their effects on performance. Performance includes cultural performance (reputation), business performance (profits and growth) and international performance. The current sub-project focuses on the role of innovative capabilities. The other sub-projects will analyse collaboration between creative enterprises and firms from other sectors, and will study business models and cultural and business networks of creative enterprises. By doing so, this project adds to our insight in three important performance dimensions of the creative industry: growth, creative impact on other industries and international development.

This subproject focuses on the effects of innovative capabilities of creative enterprises in the context of their cultural and business orientations. Innovative capabilities refer to internal and external collaborative capabilities (Jansen et al., 2006), idea generation routines (Kijkuit and Van den Ende, 2007), knowledge development routines (Danneels, 2008, Volberda et al., 2010), creative use of new IT (Drnevich and Kriauciunas, 2011), decision procedures, implementation activities (Blindenbach-Driessen and Van den Ende, 2010), leadership styles, and structural arrangements to foster innovation, such as separate innovation units. The question is to which extent the cultural and business orientations of creative enterprises affect these innovative capabilities, and how each of these (cultural orientation, business orientation, other innovative capabilities) separately and in combination contribute to cultural and business performance.

Some authors have pointed to the importance of social innovation (e.g., Vaccaro, Jansen, Van den Bosch and Volberda, 2012). Social innovation consists of changing a firm’s organizational form, its management roles and the organization of work in a way that is new to the firm and/or industry, and results in leveraging the firm’s knowledge base and its performance in terms of innovation, productivity and competitiveness (Vaccaro et al., 2012). It has been argued that this type of innovation is a vital source of competitive advantage (e.g., Hamel, 2006).

Supervisory Team

Jan van den Ende
Professor of Management of Technology and Innovation
  • Promotor
Henk Volberda
Professor of Strategic Management & Business Policy
  • Promotor