Analysis of the Key Success Factors for Commercializing Innovation

Pemila Mawaddah, Bang-Ning Huang, Chin-Hsin Chang

Abstract


The development and commercialization of new technologies have inherent uncertainties and associated risks. Many researches conducted by Indonesian R&Ds never reached the diffusion stage, i.e., the commercialization process. Therefore, Indonesia needs a strategy to translate promising technologies into a stream of economic returns for its stakeholders. This study analyzes the critical success factors (KSF) for commercializing innovation. It used new product development literature and TOE (technology–organization– environment) framework and developed a research model to investigate the determinants of commercialization of innovation. In choosing the selected vital success factors, a hierarchy of KSFs was defined. It also used the Analytic hierarchy process to help experts rank the importance of identified KSFs. The KSF hierarchy is constructed with two levels: a critical comprising three dimensions and a detailed level of nine individual factors. The result shows that the experts believe that in the top-level, technology is the most critical dimension followed by environment and organization. Technology is the primary consideration for the company before launching their product to the market. Market demand has the highest rank from the environmental dimension. Lastly, experts suggest that the organization network is the most significant to grasp investors and potential markets for successful commercialization.

Keywords


Author Guidelines; Literature Study; Original Research; Template

Full Text:

Full Text

References


Lee S, Yoon B, Park Y. An Approach to Discovering New Technology Opportunities: Keyword-Based Patent Map Approach. Technovation 2009 jun;29(6-7):481–497.

Ali A. Pioneering Versus Incremental Innovation: Review and Research Propositions. The Journal of Product Innovation Management 1994 jan;11(1):46–61. Mawaddah ET AL. 123

Lynn GS, Morone JG, Paulson AS. Marketing and Discontinuous Innovation: The Probe and Learn Process. California Management Review 1996;38(3):8–37.

Mitchell VW, Greatorex M. Risk Perception and Reduction in the Purchase of Consumer Services. Service Industries Journal 1993 oct;13(4):179–200.

Zahra SA, Nielsen AP. Sources of Capabilities, Integration and Technology Commercialization. Strategic Management Journal 2002 may;23(5):377–398.

Tidd J, Bessant J, Pavitt K. Managing Innovation: Integrating Technological, Market and Organizational Change. 3 ed. Hoboken: John Wiley; 2005.

Gatignon H, Robertson TS, Fein AJ. Incumbent Defense Strategies Against New Product Entry. International Journal of Research in Marketing 1997;14(2):163–176.

Kohli AK, Jaworski BJ, Kumar A. MARKOR: A Measure of Market Orientation. Journal of Marketing Research 1993 nov;30(4):467. https://www.jstor.org/stable/3172691.

Ruekert RW. Developing A Market Orientation: An Organizational Strategy Perspective. International Journal of Research in Marketing 1992 aug;9(3):225–245.

Gadenne D. Critical Success Factors for Small Business: An Inter-Industry Comparison. International Small Business Journal 1998;17(1):36–56.

Simpson M, Padmore J, Newman N. Towards A New Model of Success and Performance in SMEs,. International Journal of Entrepreneurial Behaviour & Research 2012 may;18(3):264–285.

Koschmider A, Song M, Reijers HA. Social Software for Business Process Modeling. Journal of Information Technology 2010 sep;25(3):308–322.

Butler T, Fitzgerald B. Unpacking The Systems development Process: An Empirical Application of The CSF Concept in A Research Context. Journal of Strategic Information Systems 1999 dec;8(4):351–371.

Dobbs M, Hamilton RT. Small Business Growth: Recent Evidence and New Directions. International Journal of Entrepreneurial Behaviour and Research 2007;13(5):296–322.

Tornatzky LG, Fleischer M, Chakrabarti AK. The Process of Technology Innovation. Lexington, Mas: Lexingt. Books; 1990.

Akyildiz B, Kadaifci C, Topcu I. A Decision Framework Proposal for Customer Order Prioritization: A Case Study for A Structural Steel Company. In: International Journal of Production Economics, vol. 169 Elsevier; 2015. p. 21–30.

Van der Panne G, Beers CV, Kleinknech A. Success and Failure of Innovation: A Literature Review. International Journal of Innovation Management 2003 sep;7(3):309–338.

T L Saaty. The Analytic Hierarchy Process, Planning, Piority Setting, Resource Allocation. New York: Mc Graw Hill; 1980.

Teece DJ. Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy. Research Policy 1986 dec;15(6):285–305.

C F, R D. Critical Success Factors for Directors in The Eighties. Business Horizons 1982;25(3):14–18. https://econpapers.repec.org/article/eeebushor/v{_}3a25{_}3ay{_}3a1982{_}3ai{_}3a3{_}3ap{_}3a14-18.htm.

Ohmae K. The Strategic Triangle: A New Perspective on Business Unit Strategy. European Management Journal 1982 jun;1(1):38–48.

Schumpeter JA. Business Cycles: A Theoretical, Historical, and Statistical Analysis of The Capitalist Process. New York: McGraw-Hill; 1939. 124 Mawaddah ET AL.

Montoya-Weiss MM, Calantone R. Determinants of New Product Performance: A Review and Meta-Analysis. Journal of Product Innovation Management: An International Publication Of The Product Development & Management Association 1994 nov;11(5):397–417.

Rothwell R, Freeman C, Horlsey A, Jervis VTP, Robertson AB, Townsend J. SAPPHO Project. Research Policy 1974 nov;3(3):258–291. https://linkinghub.elsevier.com/retrieve/pii/0048733374900109.

Kim CH, Ko CR. Group Dynamics of Success and Failure Factors of Technology Commercialization in Small Technology. Asian Journal of Innovation and Policy 2014 may;3(1):25–49.

Atuahene-Gima K. Market Orientation and Innovation. Journal of Business Research 1996 feb;35(2):93–103.

Benedetto CA. Identifying the Key Success Factors in New Product Launch. Journal of Product Innovation Management 1999 nov;16(6):530–544.

Cooper RG. Third-Generation New Product Processes. Journal of Product Innovation Management: An International Publication of the Product Development & Management Association 1994 jan;11(1):3–14.

Langerak F, Hultink EJ, Robben HSJ. The Impact of Market Orientation, Product Advantage, and Launch Proficiency on New Product Performance and Organizational Performance. Journal of Product Innovation Management 2004 mar;21(2):79–94.

Parry ME, Song XM. Identifying New Product Successes in China. The Journal of Product Innovation Management 1994 jan;11(1):15–30.

Conn RL, Cosh A, Guest PM, Hughes A. The Impact on UK Acquirers of Domestic, Cross-Border, Public and Private Acquisitions. Journal of Business Finance and Accounting 2005 jun;32(5-6):815–870.

Dwivedi YK, Schneberger SL, Wade MR. Information Systems Theory: Explaining and Predicting Our Digital Society. 2 ed. New York: Springer Science+Business Media, LLC, 2012.; 2012.

Hwang BN, Huang CY, Wu CH. A TOE Approach to Establish A Green Supply Chain Adoption Decision Model in The Semiconductor Industry. Sustainability (Switzerland) 2016;8(2):168.

Oliveira T, Martins MF. Literature Review of Information Technology Adoption Models at Firm Level. Electronic Journal of Information Systems Evaluation 2011;14(1):312–322.

Henard DH, Szymanski DM. Why Some New Products are More Successful than Others. Journal of marketing Research 2003;38(3):362–375.

Prais SJ. E .Mansfield. Industrial Research and Technological Innovation: An Econometric Analysis. The Economic Journal 1968;78(311):676–679.

Cusumano MA, Takeishi A. Supplier Relations and Management: A Survey of Japanese, Japanese-Transplant, and U.S. Auto Plants. Strategic Management Journal 1991 nov;12(8):563–588.

Edler J, Georghiou L. Public Procurement and Innovation-Resurrecting The Demand Side. Research Policy 2007 sep;36(7):949–963.

M Rogers E. Diffusion of Preventive Innovations. Addictive behaviors 2002;27(6):989–993.

Sia CL, Teo HH, Tan BCY, Wei KK. Effects of Environmental Uncertainty on Organizational Intention to Adopt Distributed Work Arrangements. IEEE Transactions on Engineering Management 2004 aug;51(3):253–267.

Hauser J, Tellis GJ, Griffin A. Research on Innovation: A Review and Agenda for Marketing Science. Marketing Science 2006 nov;25(6):687–717.

De Brentani U, Ragot E. Developing New Business to-Business Professional Services: What Factors Impact Performance? Industrial Marketing Management 1996 nov;25(6):517–530. Mawaddah ET AL. 125

Storey C, Easingwood CJ. The Augmented Service Offering: A Conceptualization and Study of Its Impact on New Service Success. Journal of Product Innovation Management: An International Publication of The Product Development & Management Association 1998 jul;15(4):335–351.

Berry LL. Relationship Marketing of Services—Growing Interest Emerging Perspectives. Journal of the Academy of Marketing Science 1995;23(4):236–245.

Gummesson E. The New Marketing-Developing Long-Term Interactive Relationships. Long Range Planning 1987 aug;20(4):10–20.

Zeithaml VA. Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence. Journal of Marketing 1988 jul;52(3):2–22.

Liu X, Hodgkinson IR, Chuang FM. Foreign Competition, Domestic Knowledge Base and Innovation Activities: Evidence from Chinese High-Tech Industries. Research Policy 2014 mar;43(2):414–422.

O’Connor GC. Market Learning and Radical Innovation: A Cross Case Comparison of Eight Radical Innovation Projects. Journal of Product Innovation Management: An International Publication of The Product Development & Management Association 1998 mar;15(2):151–166.

Veryzer Jr RW. Discontinuous Innovation and the New Product Development Process. Journal of Product Innovation Management: an international publication of the product development & management association 1998 jul;15(4):304–321.

Von Hippel E. Lead Users: A Source of Novel Product Concepts. Management Science 1986;32(7):791–805.

Khurana A, Rosenthal SR. Towards Holistic Front Ends in NPD In New Product Development. Journal of Product Innovation Management: An International Publication of the Product Development & Management Association 1998 jan;15(1):57–74.

Jaw C, Yu O, Gehrt K. The Roles of User Psychological Perceptions on the Adoption of Web-Based Service Innovations. In Proceedings of 19th International Business Research Conference 2012 nov;.

Meuter ML, Bitner MJ, Ostrom AL, Brown SW. Choosing Among Alternative Service Delivery Modes: An Investigation of Customer Trial of Self-Service Technologies. Journal of marketing 2005 aug;69(2):1861–83.

Thompson DV, Hamilton RW, Rust RT. Feature Fatigue: When Product Capabilities Become Too Much of a Good Thing. Journal of Marketing Research 2005;42(4):431–442. https://www.msi.org/reports/feature-fatigue-when-product-capabilities-become-too-much-of-a-good-thing/.

Luce MF, Payne JW, Bettman JR. Emotional Trade-Off Difficulty and Choice. Journal of Marketing Research 1999;36(2):143–159.

Sivadas E, Dwyer R. An Examination of Organizational Factors Influencing New Product Success in Internal and AllianceBased Processes. Journal of Marketing 2000;64(1):31–49.

Griffin A, Page AL. PDMA Success Measurement Project: Recommended Measures for Product Development Success and Failure. An International Publication of The Product Development & Management Association 1996 nov;13(6):478–496.

Wilemon AKG, L D. Accelerating the Development of Technology-Based New Products. Calif Manage Rev 2015;.

Thwaites D. Organizational Influences on The New Product Development Process in Financial Services. Journal of Product Innovation Management 1992 dec;9(4):303–313. http://doi.wiley.com/10.1111/1540-5885.940303.

Garcia R, Calantone R. A critical Look at Technological Innovation Typology and Innovativeness Terminology: A Literature Review. Journal of Product Innovation Management: An international publication of the product development & management association 2002 mar;19(2):110–132. 126 Mawaddah ET AL.

Lumpkin GT, Dess GG. Clarifying The Entrepreneurial Orientation Construct and Linking it to Performance. Academy of Management Review 1996;21(1):135–172.

Trott P. The Role of Market Research in The Development of Discontinuous New Products. European Journal of Innovation Management 2001 sep;4(3):117–126.

Barney JB. Strategic Factor Markets: Expectations, Luck, and Business Strategy. Management Science 1986 oct;32(10):1231–1241.

Roberts PW, Dowling GR. Corporate Reputation and Sustained Superior Financial Performance. Strategic Management Journal 2002;23(12):1077–1093.

Gadde LE, Huemer L, Hakansson H. Strategizing in Industrial Networks. Industrial Marketing Management 2003 jul;32(5):357–364.

Utterback JM, Allen TJ, Hollomon JH, Sirbu MA. The process of innovation in five industries in Europe and Japan. IEEE Transactions on Engineering Management 1976;EM-23(1):3–9.

Clark KB, Wheelwright SC. Managing New Product and Process Development Text and Cases. 3 ed. New York: Maxwell Macmillan; 1992.

Johne A, Storey C. New Service Development: A Review of the Literature and Annotated Bibliography. Eur J Mark 1998;32(3):184–251.

Gulati R, Zajac EJ. Commentary on’Alliances and Networks’ by R. Gulati. Strategic Management Journal 1998;19:319–321. https://www.jstor.org/stable/3094068.

Fieser JB. Technology and Economic Development: The Dynamics of Local, Regional, and National Change. Economic Geography 1993;69(1):94–96.

Hite JM, Hesterly WS. The Evolution of Firm Networks: from Emergence to Early Growth of the Firm. Strategic Management Journal 2001 mar;22(3):275–286.

Freel MS. Sectoral Patterns of Small Firm Innovation, Networking and Proximity. Research Policy 2003 may;32(5):751– 770.

Ritter T, Gemünden HG. Network Competence: Its Impact on Innovation Success and Its Antecedents. Journal of Business Research 2003 sep;56(9):745–755.

Moller K, Rajala A. Rise of Strategic Nets - New Modes of Value Creation. Industrial Marketing Management 2007 oct;36(7):895–908.

Link AN, Scott JT. Government as Entrepreneur: Evaluating the Commercialization Success of SBIR Projects. Research Policy 2010 jun;39(5):589–601.

Gassmann H. Globalisation and Industrial Competitiveness. OECD Observer 1995;197:38. https://www.researchgate.net/ publication/298609303{_}Globalisation{_}and{_}industrial{_}competitiveness.




DOI: http://dx.doi.org/10.12962/j20882033.v31i2.6330

Refbacks

  • There are currently no refbacks.


Creative Commons License

IPTEK Journal of Science and Technology by Lembaga Penelitian dan Pengabdian kepada Masyarakat, ITS is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at https://iptek.its.ac.id/index.php/jts.