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Strategic renewal in creative industries

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Title Strategic renewal in creative industries
Period 01 / 2010 - 01 / 2014
Status Current
Dissertation Yes
Research number OND1342184
Data Supplier Website ERIM

Abstract

The innovation process for firms is driven both by internal R&D activities and by cooperation with external organizations from different sectors at the same time (Von Hippel, 1994; Cooper and Edgett, 2007). The study of the variety of sources for innovation has been widely developed in past literature and several forms of cooperation among actors have been analyzed (Cooper and Edgett 2007). When external relationships assume primary importance, several kinds of competences are needed to manage exchange mechanisms among the diverse actors cooperating together (Allen, Tushman and Lee, 1979; Malerba, 2000; Tortoriello and Krakhardt, 2010). These mechanisms are important for the management of the creative process, that is the base for innovation and presents multifaceted criticalities that need to be combined (e.g. Woodman, Sawyer and Griffin, 1993; Amabile et al., 2005). The context in which firms operate plays an important role on these criticalities (Kimberly and Evanisko, 1981; Amabile et al., 1993); indeed in some contexts there is a strict dependence on creative effort and management of creativity and innovation entails specific strategic competences, in contexts where innovation does not represent such a crucial element, less strategic focus is required (Gilson et al. 2005). Moreover some contexts are characterized by continuous changes and the need for adaptation to these changes makes the management of innovation even more crucial (Doz and Kosones, 2010). This process becomes extremely crucial when the innovative process entails not only product, processes and distribution channels innovation, but also the re shaping of exchange mechanisms with diverse actors; in this case the entire business model is influentially affected and its renovation can represent the primary driver to speed innovation and enhance strategic renewal (Chesebourg, 2007). Business model renovation can therefore be considered a central element in the analysis of innovation, especially when there is the need to understand how value is created from different forms of cooperation and how elements are combined in the enhancement of strategic renewal (Amit and Zott, 2001). This approach is poorly analysed in past literature (Amit and Zott, 2001) and in general little is known on the elements that lead to success in business models innovation (Morris et al. 2005). A systematic understanding of the different elements and variables influencing the success of business models innovation can be enhanced through the analysis of the rationale used by firms to pursue the innovation process. Analyzing the rationale means focusing on the reasons that led firms to set certain kinds of cooperation and also analyzing how these choices affected different organizational levels and which practices have been more effective in the synthesis of different innovative inputs. This kind of study can allow to advance theory on innovation by providing a more systematic perspective and can also be relevant to provide firms with guidelines for the re orientation of their business models in order to cope with changing and turbulent environments. This kind of analysis assumes particular significance in contexts where creativity and the need for innovation are central, since the steps to arrive to the final configuration are carefully planned (Gilson et al. 2005) and the possibility of having cooperation resulting from chance are reduced. In these contexts innovation is also characterized by the presence of numerous external links (Allen and Cohen, 1969; Cohen and Levinthal, 1990) and, as above said, this element allows a better consideration of business models changes. Considering all the above mentioned elements, the sector of creative industries can be a suitable setting of analysis for advancing theory on innovation in the direction explained in previous paragraphs. Firstly the sector is highly dependent on creativity and continuous innovation (Hirsch, 2000), secondly it has experienced a lot of changes in the recent years and it is interesting to see how these changes (Hartley, 2005) have been accepted and how they have affected business models of firms. One of the most evident changes is the redefinition of boundaries that are nowadays extremely blurred (Hirsch, 2000). This condition makes it necessary for firms to put a different kind of effort to manage creativity and innovation respect to the past, when the value chain, competition boundaries and processes were more defined. Business models have been influenced by these changes and a systematic analysis is required in order to understand how strategic renewal has been pursued (Chesbrough, 2007). Therefore the aim of this PhD project is to pursue this systematic analysis and derive conclusions on the processes that lead to successful implementations of business models for strategic renewal of firms in the creative sector. Mechanisms of coordination and synthesis both at the individual and the firm level - will be analyzed in order to derive the most successful combination for innovation efficiency and performance. The setting of analysis will be that of creative industries in the Netherlands with the possibility of extending the studies to other countries. The Netherlands represent an interesting context, considering the increasing growth of the sector of creative industries ( Ministry of Economic Affairs, Agriculture and Innovation, NL, 2010). Different methodologies will be used in the research. Qualitative work will be done to analyze the composition of the sector and several sources have already been considered for the composition of a representative sample: data from CBS (Statistics Netherlands), Federation of Dutch Creative Industries and CIS (Community Innovation Survey) will be used. After the qualitative phase a survey will be administered.

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Related people

Supervisor Prof.dr. J.J.P. Jansen
Project leader Dr. L. Berchicci
Doctoral/PhD student M.R. Micheli (MSc)

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