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The Concept of Dichotomy of the Innovation Process in an Enterprise

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Smart Tourism as a Driver for Culture and Sustainability

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Abstract

The article presents selected, more important definitions of innovation in an enterprise, paying attention to those of them which emphasize its immaterial character. It describes models of the innovation process, concepts of the innovativeness system and models of the innovative activity of a firm. It was found out that the elements of these objects are a coherent entirety. The principle of the presented research approach is the paradigm assigned to Schumpeter of merging various activities within the innovation process. It turned out, however, that an attempt to implement such a broad programme, namely the invention and the imitation of innovation, often ends in failure. The reason is that we cannot recognize the tools of analysis and define the determinants of the innovation process in the comprehensive Schumpeterian approach, however, we can resolve these issues by studying each fragment of this processes of innovative character. The aim of the article is to present the concept of the dichotomy of the innovation process in an enterprise and indicate the way of using it in practice. Two autonomous processes, crucial for the development of innovativeness, are distinguished in this concept, namely the process of innovation invention in its immaterial form and the process of innovation implementation which has got material and immaterial character. In the strategy of an organization it is necessary to define the object and the scope of analysis, at the same time considering the level of innovation ability of an enterprise; in a creative industry they may specialize in creating ideas, designing novelties and offering innovative projects to an appropriately selected target group. Traditional firms should develop and implement these projects in practice to the benefit of customers. It should be emphasized that the choice of the subject of innovative activity determines the innovation ability of the organization, the ability to manage innovative projects and the use of modern (agile) management methods, as well as management pragmatics. The article is of theoretical and empirical character. To achieve the aim and verify the theses, following research methods were used: literature analysis, impact factor analysis, professional conversations with experts.

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Notes

  1. 1.

    For example, Jeffrey Baumgartner believes that innovation is the ‘implementation of creative ideas in order to generate value, usually through increased revenues, reduced costs or both’. On the other hand, Mike Shipulski claims that it is a ‘work that delivers new goodness to new customers in new markets, and does it in a way that radically improves the profitability equation’. Kevin Mc Farthing defines innovation as the ‘introduction of new products and services that add value to the organization’. Gijsvan Wulfen defines innovation as a ‘feasible relevant offering such as product, service, process or experience with a viable business model that is perceived as new and is adopted by customers’ (all definitions see: Skillicorn 2016).

  2. 2.

    According to J. Schumpeter, innovation is the establishment of new products, new methods or semi-finished goods (Schumpeter 1939, p. 84). P.F. Drucker regards innovation a special tool in entrepreneurs’ hands, which is interpreted as an ability to launch new business activity or to offer a different package of services to customers (Drucker 1992, pp. 40–45). In M. E. Porter’s view, innovation is a technological improvement related to more effective and efficient fulfilment of goals (with the use of marketing and management knowledge) (Porter 1990, p. 45). On the other hand, R. W. Griffin claims that it is every organizational effort whose aim is to launch new goods to the market (Griffin 2004, p. 424). In Oslo Manual it is assumed that innovation means the invention and then the implementation of a new method, process, product, instrument, or other business activity of a market character, organization of work or a relation with external environment (Oslo Manual, 2008). In P. Kotler’s opinion, an innovative project—whether it will be new products, services, processes or business models—upon implementation will give specific, both positive and negative results (Trias de Bes and Kotler 2013, p. XVI).

  3. 3.

    S. Kuznets believes that innovation is the application of new knowledge towards an invention (Kuznets 1959, p. 30). According to P. Whitfield, innovation is knowledge and creativity building a new element (Whitfield 1979, pp. 14–15). R. Lucas ascertains that innovation is the accumulation of human capital translated into economic growth (Lucas 1988, pp. 5–7). In E. M. Rogers’s view, innovation includes all areas which through subjective feelings are recorded and assessed as a novelty, regardless of a real level of novelty of the said object or thought (Rogers 2003, p. 12).

  4. 4.

    A significant element of the analysis is the use of project management idea in innovative activity―constituting a value for an enterprise. The notion differs from traditional ventures in terms of the dynamics of progression and the rate of the benefits achieved. According to some researchers, an innovative project is not precisely defined in literature, it can be defined as invention of innovation, an idea, a draft of something. A project is also an intended plan of action, a concept, an initial schedule, a programme. Its uniqueness concerns not only the way of implementation, but also products or benefits which may arise in its effect (Duncan, 1995, p. 4).

  5. 5.

    A helpful tool for evaluating an innovative project is the NASA (National Aeronautics and Space Administration) preparedness method. With this method, you can define and evaluate an idea from the conceptualization phase of a solution to the stage of its maturity, in which the idea takes the form of a solution that can be applied in practice (Mankins 1995, p. 5).

  6. 6.

    The effectiveness of an enterprise with regard to creating innovation is determined by resources developed in the past (innovative potential), as well as appropriate skills and capabilities of their current use. Innovation, which should be emphasized, must be coherent with the strategy of the organization and originate from it. In this way the organization expresses its readiness to introduce innovation and defines the methods of implementing innovation. In other words, innovation ability is the ability to apply the act of creativity of new ideas, inventions, which results in innovation whose diffusion brings benefits to the enterprise (Koziol et al. 2017).

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Correspondence to Leszek Koziol .

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Koziol, L., Koziol, M. (2019). The Concept of Dichotomy of the Innovation Process in an Enterprise. In: Katsoni, V., Segarra-Oña, M. (eds) Smart Tourism as a Driver for Culture and Sustainability. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-03910-3_7

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