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Market Innovation: Renewal of Traditional Industrial Networks

  • Suvi Nenonen
  • Kristian Möller
  • Kaj Storbacka
Chapter

Abstract

The study adopts a constructionist approach to markets, positing that markets are socially constructed human artifacts resulting from the actions and cognitive framing of the involved actors. The present research had three objectives: to develop a conceptual framework for categorizing managerial market definitions, to investigate empirically how practitioners frame novel markets, and to identify challenges associated with creating innovative market definitions in traditional industrial networks. The chapter draws on data collected within an extensive research program, carried out between March 2009 and December 2010. The program consisted of six academic research projects covering a wide range of theoretical backgrounds as well as interactions with 112 senior managers from ten major firms in a series of 52 workshops. The proposed conceptual framework supplements the current dominant product-based view of market definitions by positing that managers in industrial networks can also choose to define their markets based on (1) the firm’s resources and capabilities, (2) the network’s resources and capabilities, (3) the customers’ processes, and (4) the end-consumers’ practices. The results of the study additionally showed that current product-based theories of markets also influence managerial judgment: practitioners framed the vast majority of new market opportunities (73 %) around the product or service being sold.

Keywords

Business Model Growth Opportunity Market Definition Market Relationship Dominant Logic 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer International Publishing Switzerland 2017

Authors and Affiliations

  1. 1.University of Auckland Business SchoolAucklandNew Zealand
  2. 2.Aalto University School of BusinessHelsingforsFinland

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