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Machado - Innovation Management: In Research and Industry

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Machado Innovation Management: In Research and Industry
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www.degruyter.com

Adrian Mder, Christian Kunz, Andreas Ninck, Dominic Hurni, and Kim Oliver Tokarski*

1 The Link between Technological Focus and Innovative Capacities

innovation is colored by the mental image of high-tech laboratory facilities whose emphasis on cutting-edge technology is understood as proof of their ability to innovate. Does this perception reflect actual reality? This study uses expert interviews to operationalize the terms technological focus and innovative capacities, whose presumed link is investigated in a series of qualitative interviews at companies in the service sector. The interviews reveal no immediate correlation between either variables.

1.1 Introduction

It seems a truism that the evolution of technology is important for innovation. The European Commission considers information and communication technology (ICT) in particular to be an important motor for growth and a source of innovation in the development of new products and processes .

A strategic confrontation with the issue of technology demands a more thorough investigation of aspects such as innovation and technology, without neglecting more traditional commercial concerns such as markets, personnel, or finances. In essence, a new means of measuring technology and innovation has to be found to understand whether there is indeed a link between the two. The following chapter considers the challenging proposition of operationalizing the two terms in the context of the service sector.

1.1.1 Purpose

This study explores the link between the intensity of the focus on technology and the ability of service sector organizations to innovate.

*Corresponding Author: Kim Oliver Tokarski: Bern University of Applied Sciences/Haute cole spcialise bernoise, Faculty of Business, Institute for Corporate Development. Head of Institute for Corporate Development. Professor of Business Management and Entrepreneurship. Email: kim.tokarski@bfh.ch

The inquiry covers service providers covering a diverse range of businesses. In terms of technology, the study is limited to information and communication technology (ICT). Its objective covers three distinct research questions:

  • Which criteria can be employed to establish the degree of technology focus ata company, and how can these be integrated into a technology focus rating scale?
  • Which elements determine the innovativeness of a company, and how can these be translated into an innovative capacity rating scale?
  • What correlation is there between a companys technology focus and its innovative capacities?
1.1.2 Study Design

Critiquing the assumption that a technological focus correlates directly with a companys ability to innovate requires the terms technology focus and innovative capacities to be meaningfully operationalized.

A survey of current literature was used to develop the tools explained in the following, that is, the technology focus gauge and the innovative capacities maturity model. Additional expert interviews were conducted to contribute to the technology focus gauge.

The technology focus gauge was used for the purpose of making a heterogeneous selection of research objects: service sector companies displaying different degrees of technology focus. Expert interviews were conducted at these organizations with the innovative capacities maturity model providing the basis for the interview guidelines and evaluation matrix. The data was analyzed by a comparison of the independent variable technology focus with the dependent variable innovative capacity to elicit any potential correlation between the two.

1.2 Theory

Technology and innovation in the context of the service sector needs to be defined in detail to allow the correct operationalization of the terms. A possible means of distinction can be found in treating technology focus as an independent variable and its effect on innovative capacities as a dependent variable.

1.2.1 Services

A study of current literature on the concept of services results in the following definition used in this study .

Services are activities,

  • that are based on potential capabilities which entail the ability and readiness to perform a service;
  • in whose provision certain external factors are involved for whom or with whom the service is provided; and
  • whose results represent certain material or immaterial effects on the external factors.
1.2.2 Technology

:

Technology is the systematic, deliberate, and effective application of technological means to support or enable the provision of a service.

In terms of this definition, every company employs technology. The distinction lies in the strategic choice to make intensive use of modern technology or to develop such technology, which leads to the term technology focus.

1.2.3 Technology Focus

Current literature tends to use the terms technologically focused and technology-intensive interchangeably [10. However, the similarities are only skin deep, as a closer investigation reveals distinct differences:

  • A technology-intensive business is characterized by the strategic readiness and ability to take in and develop new and novel production processes and products and thus achieve greater growth .
  • Technology focus [refers to] the dominant place of technology in the business and all of its organizational units that wish to provide that technology. The dominant feature is therefore the presence of technological problem-solving skills, which are primarily found in research and development and in production .
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