Firms are facing increased competition and have to be innovative to beat competition and gain market share (Hana, P.82). Tushman and Nadler as cited by Hana observes that the only way organizations can gain a durable competitive advantage is by managing for today while simultaneously innovating for tomorrow (P.82). This means that managers must be well acquainted with not just the ability to solve today’s problems, but also the ability to identify future opportunities and develop appropriate strategies to profitably exploit those opportunities.
A key problem facing today’s managers is the sustained management of innovation. Most managers are always trying to improve their products or process in what is commonly known as “continuous improvement” but without a clear understanding of what factors drive innovation, innovation will be a serendipity activity. For managers to develop the capabilities of sustained management of innovation in their businesses they will need to understand: what are the sources of innovation? Why are some firms more innovative than others?
Objectives of the study
The study will aim at fulfilling the following objectives:
Identify the sources of innovation both within and outside the organization
Identify the factors that make some firms more innovative than others
Significance of the study
The study will bridge the existing knowledge gap as to what are the sources of innovation and what factors make some firms more innovative than others. The new knowledge will help managers to plan and manage for innovation and create a competitive advantage for their firms.
Hana, U. "Competitive Advantage Achievement through Innovation and Knowledge." Journal of Competitiveness 5.1 (2013): 82-96. Print.