Abstracts
Abstract
Present concept of reverse innovation urges multinational enterprises from developed countries to innovate for emerging markets, and to subsequently diffuse the outcome back to their home countries. The concept hence appears exclusively reserved for enterprises of particular size or origin, and for specific host countries or levels of development. This paper repositions the concept relatively to any enterprise’s dominant innovation logic, rather than relatively to its geo-economic environment. Reverse innovation thus becomes a template that any enterprise innovating for a new primary market abroad may customise to its specific situation regarding exogenous distances, endogenous distances, and managerial response.
Keywords:
- Dominant innovation logic,
- emerging markets,
- reversal of innovation
Résumé
Le concept actuel de l’innovation inverse incite les entreprises multinationales des pays développés à innover dans les marchés émergents, et à diffuser ensuite les résultats dans leurs pays d’origine. Le concept apparaît donc réservé exclusivement aux entreprises de taille ou d’origine particulières, et aux pays d’accueil ou aux niveaux de développement spécifiques. Cet article repositionne le concept relativement à la logique d’innovation dominante d’une entreprise, plutôt qu’à son environnement géoéconomique. L’innovation inverse devient alors un modèle adaptable à chaque entreprise innovant pour un nouveau marché primaire étranger, en ce qui concerne les distances exogènes, les distances endogènes, et la réponse managériale.
Mots-clés :
- Logique d’innovation dominante,
- marchés émergents,
- inversion de l’innovation
Resumen
El concepto actual de la innovación inversa insta a las empresas multinacionales de los países desarrollados a innovar para los mercados emergentes y a difundir posteriormente el resultado de vuelta a sus países desarrollados originales. Por consiguiente, el concepto parece reservado exclusivamente para empresas de un tamaño u origen en particular y para determinados países receptores o niveles de desarrollo. En este trabajo se reposiciona el concepto con relación a la lógica dominante de innovación de cualquier empresa, en vez de hacerlo con relación a su entorno geoeconómico. La innovación inversa se convierte en una plantilla que, cualquier empresa innovadora para un nuevo mercado primario en el extranjero, puede personalizar conforme a su situación específica en relación con las distancias exógenas, con las distancias endógenas y con la respuesta directiva.
Palabras clave:
- Lógica de innovación dominante,
- mercados emergentes,
- cambio de sentido de la innovación
Appendices
Bibliography
- Asakawa, K.; Som, A. (2008). Internationalization of R&D in China and India: Conventional Wisdom Versus Reality. Asia Pacific Journal of Management, 25(3), 375 – 394.
- Baker, T.; Nelson, R. E. (2005). Creating Something from Nothing: Resource Construction through Entrepreneurial Bricolage. Administrative Science Quarterly, 50(3), 329–366.
- Bartlett, C. A.; Ghoshal, S. (1989). Managing Across Borders: The Transnational Solution. Boston: Harvard Business School Press.
- Birkinshaw, J.; Braunerhjelm, P.; Holm, U.; Terjesen, S. (2006). Why do some multinational corporations relocate their headquarters overseas? Strategic Management Journal, 27(7), 681–700.
- Brown, J. S.; Hagel III, J. (2005). Innovation blowback: Disruptive management practices from Asia. McKinsey Quarterly, (1), 35–45.
- Buckley, P. J.; Ghauri, P. N. (2004). Globalisation, economic geography and the strategy of multinational enterprises. Journal of International Business Studies, 35(2), 81–98.
- Burger-Helmchen, T.; Cohendet, P.; Radojevic, N. (2013). L’innovation inverse: un retournement du principe de diffusion internationale des innovations? In U. Mayrhofer & P. Very (Eds.), Le management international à l’écoute du local. Paris: Gualino.
- Chesbrough, H. (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Cambridge, MA: Harvard Business School Publishing.
- Christensen, C. (1997). The Innovator’s Dilemma. Boston: Harvard Business Review Press.
- Christensen, C.; Raynor, M. (2003). The Innovator’s Solution. Boston: Harvard Business Review Press.
- Corsi, S.; Di Minin, A. (2014). Disruptive Innovation… in Reverse: Adding a Geographical Dimension to Disruptive Innovation Theory. Creativity and Innovation Management, 23(1), 76–90.
- Cunha, M. P. e, Rego, A.; Oliveira, P.; Rosado, P.; Habib, N. (2014). Product Innovation in Resource-Poor Environments: Three Research Streams. Journal of Product Innovation Management, 31(2), 202–210.
- Deloitte (2006). Innovation in Emerging Markets: Strategies for Achieving Commercial Success. Deloitte Touche Tohmatsu.
- Deloitte (2010). Profile of the Canadian Aerospace Industry. Deloitte & Touche LLP and affiliated entities.
- Dow Jones (2014). Dow Jones Total Stock Market Indexes. Accessed June 18, 2014, at http://www.djindexes.com
- Dunning, J.; Lundan, S. M. (2008). Multinational Enterprises and the Global Economy (2nd ed.). Cheltenham, UK: Edward Elgar.
- Eisenhardt, K. M.; Martin, J. A. (2000). Dynamic Capabilities: What Are They? Strategic Management Journal, 21(10/11), 1105–1121.
- Fabrizio, K. R.; Thomas, L. G. (2012). The Impact of Local Demand on Innovation in a Global Industry. Strategic Management Journal, 33(1), 42–64.
- Fry, C. V.; Marjanovic, S.; Yaqub, O.; Chataway, J. (2011). Health Innovation Transfer from South to North. Oxford: RAND Corporation Europe.
- Ghemawat, P. (2007). Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter. Boston: Harvard Business School Press.
- Godin, B. (2006). The Linear Model of Innovation. The Historical Construction of an Analytical Framework. Science, Technology & Human Values, 31(6), 639–667.
- Govindarajan, V.; Ramamurti, R. (2011). Reverse Innovation, Emerging Markets, and Global Strategy. Global Strategy Journal, 1(3-4), 191–205.
- Govindarajan, V.; Trimble, C. (2012). Reverse Innovation: Create Far From Home, Win Everywhere. Boston: Harvard Business Press Books.
- Hang, C.-C.; Chen, J.; Subramian, A. M. (2010). Developing Disruptive Products for Emerging Economies: Lessons from Asian Cases. Research Technology Management, 53(4), 21–26.
- IMF (2014). World Economic Outlook. Washington DC: International Monetary Fund.
- Immelt, J. R.; Govindarajan, V.; Trimble, C. (2009). How GE is Disrupting Itself. Harvard Business Review, 87(10), 56–65.
- Jullien, B.; Lung, Y.; Midler, C. (2012). L’Épopée Logan: Nouvelles trajectoires pour l’innovation. Paris: Dunod.
- Kamp, B. (2012). Reverse Innovation: Inversing the International Product Life Cycle Model and Lead Market Theory. Boletín de Estudios Económicos, 67(207), 481–504.
- Khanna, T.; Palepu, K. (2006). Emerging Giants: Building World-Class Companies in Developing Countries. Harvard Business Review, 84(10), 60–69.
- Kim, W. C.; Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review, 82(10), 76–84.
- Kirby, J. (2010, January 1). The Decade in Management Ideas. Accessed October 23, 2013, at https://hbr.org/2010/01/the-decade-in-management-ideas/
- Knight, G. A.; Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35(2), 124–141.
- Kose, M. A.; Prasad, E. (2010). Emerging Markets: Resilience and Growth Amid Global Turmoil. Washington DC: Brookings Institution Press.
- Kotler, P.; Keller, K. L. (2007). A Framework for Marketing Management (3rd ed.). Upper Saddle River, NJ: Prentice Hall.
- Laperche, B.; Lefebvre, G. (2012). The Globalization of Research & Development in Industrial Corporations: Towards “Reverse Innovation”? Journal of Innovation Economics, 10(2), 53–79.
- Leonard-Barton, D. (1992). Core Capabilities and Core Rigidities: A Paradox in Managing New Product Development. Strategic Management Journal, 13(S1), 111–125.
- Leontief, W. (1953). Domestic Production and Foreign Trade: The American Capital Position Re-Examined. Proceedings of the American Philosophical Society, 97(4), 332–349.
- Lieberman, M. B.; Montgomery, D. B. (1988). First-Mover Advantages. Strategic Management Journal, 9(S1), 41–58.
- Maddison, A. (2001). The World Economy: A Millennial Perspective. Paris: OECD Publications.
- Madsen, T. K.; Servais, P. (1997). The Internationalization of Born Globals: An Evolutionary Process? International Business Review, 6(6), 561–583.
- Maniak, R.; Midler, C. (2014). Multiproject lineage management: Bridging project management and design-based innovation strategy. International Journal of Project Management, 32(7), 1146–1156.
- Morgan Stanley (2014). MSCI Global Equity Indexes. Accessed June 18, 2014, at http://www.msci.com/products/indexes/
- OECD (2005). Oslo Manual. The Measurement of Scientific and Technological Activities. European Commission and Eurostat.
- OECD (2010). The Emerging Middle Class in Developing Countries. OECD Development Centre.
- OECD (2013). Financing SMEs and Entrepreneurs 2013. OECD Publishing.
- Osenton, T. (2004). The Death of Demand: Finding Growth in a Saturated Global Economy. Upper Saddle River, NJ: Financial Times Prentice Hall.
- Osterwalder, A.; Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ: John Wiley & Sons.
- Prahalad, C. K. (2005). The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits (5th ed. 2009). Upper Saddle River, NJ: Prentice Hall.
- Prahalad, C. K.; Bettis, R. A. (1986). The Dominant Logic: A New Linkage between Diversity and Performance. Strategic Management Journal, 7(6), 485–501.
- Prahalad, C. K.; Lieberthal, K. (1998). The End of Corporate Imperialism. Harvard Business Review, 76(4), 109–117.
- Prahalad, C. K.; Mashelkar, R. A. (2010). Innovation’s Holy Grail. Harvard Business Review, 88(7/8), 132–141.
- PWC (2013). World in 2050. The BRICs and Beyond: Prospects, Challenges and Opportunities. PricewaterhouseCoopers LLP.
- Radjou, N.; Prabhu, J. C.; Ahuja, S. (2012). Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth. San Francisco: Jossey-Bass.
- Rugman, A. M.; Verbeke, A. (2004). A Perspective on Regional and Global Strategies of Multinational Enterprises. Journal of International Business Studies, 35(1), 3–18.
- Schmookler, J. (1966). Invention and Economic Growth. Cambridge, MA: Harvard University Press.
- Standard & Poor’s. (2014). Country Classification Consultation Results. Accessed June 18, 2014 at http://www.spindices.com/
- Strauss-Kahn, V.; Vives, X. (2009). Why and where do Headquarters Move? Regional Science and Urban Economics, 39(2), 168–186.
- Teece, D. J. (2007). Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance. Strategic Management Journal, 28(13), 1319–1350.
- Teece, D. J. (2010). Business Models, Business Strategy and Innovation. Long Range Planning, 43(2-3), 172–194.
- The Economist. (2008, September 18). Acronyms BRIC out all over. Accessed June 18, 2014 at http://www.economist.com/node/12080703
- UNCTAD (2005). Globalization of R&D and Developing Countries. Proceedings of the Expert Meeting, Geneva, Switzerland.
- UNO (2013). World Economic Situation and Prospects. New York: UN Publication.
- USITC (2013). United States International Trade Commission DataWeb. Accessed August 2, 2013, at http://dataweb.usitc.gov
- Vernon, R. (1966). International Investment and International Trade in the Product Life Cycle. Quarterly Journal of Economics, 80(2), 190–207.
- Vernon, R. (1979). The Product Cycle Hypothesis in a New International Environment. Oxford Bulletin of Economics and Statistics, 41(4), 255–267.
- Vives, L.; Asakawa, K.; Svejenova, S. (2010). Innovation and the Multinational Enterprise. Advances in International Management, 23, 497–523.
- Von Zedtwitz, M.; Corsi, S.; Søberg, P. V.; Frega, R. (2015). A Typology of Reverse Innovation. Journal of Product Innovation Management, 32(1), 1–17.
- WBDI (2013). World Bank Development Indicators database. Accessed December 11, 2013, at http://data.worldbank.org
- Wilkins, M. (2009). The History of the Multinational Enterprise. In A. Rugman (Ed.), The Oxford Handbook of International Business (2nd ed.). Oxford: Oxford University Press.
- Williamson, P. J. (2010). Cost Innovation: Preparing for a “Value-for-Money” Revolution. Long Range Planning, 43(2-3), 343–353.
- Zaheer, S. (1995). Overcoming the Liability of Foreignness. Academy of Management Journal, 38(2), 341–363.