Innovation And The Modern Day Business Environment

1547 WordsMay 12, 20177 Pages
Innovation is an essential component in the modern day business environment to further satisfy needs and expectations of potential customers. It is a major factor of productivity growth and is important to organizations of all sizes (Edmiston, 2007). Main factor in this study would be size of firm where we discuss innovation in Small Enterprises (SE) and Large Enterprises (LE) based in New Zealand in respect to their business contexts with regards to factors that contributes to SE’s being more innovative. As defined by the Oslo Manual, innovation is the implementation of a new or improved good, service or process, a new marketing method, a new organizational method in business practice, work place organization or external relations…show more content…
Instead it involves a complex interaction of elements from within and outside the firm. Researches has identified some major elements of innovation that do appear to be in common, namely that innovations start as an idea, evaluations of the merits of each idea occurs from a number of different perspectives and that ideas undergo a transformative process to a state of usefulness before they are considered to have completed the innovation journey. These three elements appear to be common across industry and firm size settings and are a robust place to begin to fill in the gaps in the literature surrounding innovation inside SE (Brophey & Brown, 2009). GoodFor is a packaging-free small health oriented super market with 5 employees. The inspiration behind this was the packaging waste created in NZ which has arisen during the past years. It is clear that to come up with this innovative idea lot of thoughts and research has gone in to it and the process is complex (Dunn, 2017). Another SE is Louvelle that innovated the shower turban. Over one year was spent on designing, prototyping and sourcing manufacturers for the product and the design was patent internationally which took another year (Mitchell, 2017). To be successful, innovating firms need not only to be able to generate ideas and turn them into products via internal R&D, but also to absorb ideas and knowledge from their external environment and to connect the products they generate with the needs of
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