Effective Alignment of Innovation European Manufacturing Survey 2006/7 dr. Paul E.M. Ligthart prof. dr. Ben Dankbaar

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Effective Alignment of InnovationEuropean
Manufacturing Survey 2006/7dr. Paul E.M.
Ligthart prof. dr. Ben Dankbaar dr. Peter
Vaessencorrespondence P.Ligthart_at_fm.ru.nl

• Center for Innovation Studies

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In collaboration with our EMS-partners

• http//www.european-manufacturing-survey.eu
• Germany Fraunhofer Institute System and
  Innovation Research
• Austria Division Technology Policy ARC Systems
  Research
• France BETA, Université Louis Pasteur Strasbourg
  
• Switzerland Institut für Betriebs- und
  Regionalökonomie, Hochschule für Wirtschaft in
  Luzern
• Sabanci University Istanbul, Turkey
• Croatia Economic Faculty, University of Zagreb
• Netherlands Nijmegen School of Management,
  Radboud University Nijmegen
• Slovenia Faculty of Mechanical Engineering,
  University of Maribor
• Spain Department of Business Administration and
  Product Design, University of Girona
• Turkey Competitiveness Center, Sabanci
  University Istanbul
• And sponsor of NL-EMS, Rabobank

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Research Objectives

• Effective Alignment of Innovation
• To gain insight in the interplay of different
  types of innovation and how this affects business
  performance
• best practices that combine technological and
  organizational innovations (optimal
  configuration) leading to better (business)
  performances
• Determinants of these optimal configuration (s)
• The need to overcome the split between
  innovation as driven by supply factors versus
  innovation as driven by demand factors (Freeman
  1997).

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Main Dimensions of Innovation

• Technological innovation Administrative
  innovation
• Daft, 1978 Damanpour, 1991 Cooper, 1998
• Process innovation Product innovation
• Damanpour, 1991 Cooper, 1998 Tidd et. al., 2005
  
• Incremental innovation Radical innovation(i.e.
  new for the business, new for business and
  market)
• Daft, 1978
• Main focus has been on determinants of (the types
  of) innovation (Totterdell, 2002), e.g.
• large, complex, participative firms, more product
  innovation (Scuilli 1998)
• research oriented small firms, more product
  innovations (Rothwells 1983)
• small (banking) firms adopt more process
  innovation (Scuilli 1998)
• organisation size, more innovation activity
  (Anderson King 1993)

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Three dimensional model of Innovation (Cooper,
1998)
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Two dimensional model of Innovation
Product Product / Service combinations Product innovation
Process Innovative organisation Process technology
Non- Technological Technological
Classification of different paths of innovation
(Kinkel, Lay Wengel, 2005)
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Shift from Supply to Demand of Innovation

• Different types of innovation, or innovations
  possessing different characteristics, will have a
  differential impact on the various consequences
  of innovation(Totterdell et al. 2002, p. 345).
• Different types of innovations affected
  stakeholders differently (Totterdell et al.
  2002), e.g.
• administrative innovation gt employee relations
• Product/service combinations gt customers

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Research hypotheses

• Differential effect of types of innovation on
  performances (Differential hypothesis)
• Different types of innovation affect different
  indicators of business performance
• Alignment of types of innovation increases
  performance(Alignment hypothesis)
• Coherence between types of innovation increase
  business performance

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Methodology

• European Manufacturing Survey 2006-7
• Topics utilisation of specific innovations in
  production process, new organisation concepts,
  product/services combinations, performance
  indicators, outsourcing, collaboration, staffing.
• 3344 production plants of Manufacturers
  (Industry NACE 15-37) (focal respondent
  managing director / plant manager)
• Multinational survey in 9 countries(Germany,
  Switzerland, Austria, Spain, France, Croatia,
  Turkey, Slovenia, Netherlands)
• Different branches of the Manufacturing
  Industry(Metal, Food, Textile, Construction,
  Chemical, Machinery, Electronic, Transport)
• Participation incentive on-line benchmarking
  Website http//www.european-manufacturing-survey
  .eu

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Operationalisation Scaling Technological
Process Innovation

• Reliability
• Cronbachs alpha 0.76
• 13 items,
• N3150

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Operationalisation Scaling Organisational
Process Innovation

• Reliability
• Cronbachs alpha 0.73
• 13 items,
• N2708

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Operationalisation Scaling Product\Services
combination

• Reliability
• Cronbachs alpha 0.78
• 8 items,
• N3268

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Operationalisation Product Innovation \ RDinvest

• Product-innovation
• N3344
• RDinvest
• N2354

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Descriptives RDinvest, Types of Innovation
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Descriptives Performance Indicators
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Omnibus Effects on Performance Indicators
(delta_RSQ)
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Differential and Alignment Effects of Types of
Innovationcontrolled for lnSize, Country,
Industry, and RDinvest
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Findings Differential Hypothesis

• Types of Innovation have differential effects on
  the performance indicators
• Product innovation
• (-) DeliveryTime, PEgrowth
• () OnTime
• Technological Process innovation
• (-) DeliveryTime, SetupTime
• Organisational Process innovation
• () DeliveryTime, OnTime, ProdLeadTime
• Product/Services combinations
• (-) DeliveryTime, ScrapRate, ProdLeadTime

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Findings Alignment Hypothesis

• Coherence between Types of innovations increases
  performances
• Innovation Technological and Organisation
  combined
• () DeliveryTime, OnTime, ScrapRate, ProdLeadTime
• Innovation Technological and Product combined
• () PEgrowth
• Innovation Organisation and Product/Services
  combined
• () Scraprate

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Conclusions I

• Innovation is more than investments in RD, i.e.
• Technological Process Innovation
• Organisational Process Innovation
• Product Innovation
• Innovative Product/Service combination
• Alignment of Innovation (policies) suggests best
  practices, i.e.
• Organisational Process Innovation (only positive
  effects)
• Combining Technological Process Innovation and
  Organisational Process Innovation (only positive
  effects)

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Conclusions II

• Limitations
• Cross-sectional survey no causal inferences
• Effects are relatively small, additional insights
  necessary
• Further research
• Search for of specific combinations of concrete
  innovations belonging to these Best Practices
• Impact of Radical versus Incremental Innovation

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Effective Alignment of InnovationEuropean
Manufacturing Survey 2006/7dr. Paul E.M.
Ligthart prof. dr. Ben Dankbaar dr. Peter
Vaessen

• Center for Innovation Studies