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Design-led innovation as a generative source of competitive advantage

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  • Ward, Mark
  • Osiyevskyy, Oleksiy

Abstract

Firms need to reliably identify new sources of competitive advantage ex ante to mitigate the risk of obsolescence in response to changing environments. One approach to addressing this issue is design-led innovation (DLI), which integrates design thinking with strategic management. DLI offers a flexible framework to identify and exploit new opportunities for competitive differentiation. Identifying, formulating, and framing strategic problems drives the DLI process by acting as the catalyst to create knowledge and awareness of value-creation opportunities. This study offers a strategic-problem classification matrix based on a portfolio approach to identifying value-creation opportunities. Two practices are presented: (1) engaging in progressive problem-solving, and (2) employing DLI catalysts. These practices could potentially strengthen DLI’s application and transform it into a generative source of competitive advantage.

Suggested Citation

  • Ward, Mark & Osiyevskyy, Oleksiy, 2025. "Design-led innovation as a generative source of competitive advantage," Business Horizons, Elsevier, vol. 68(5), pages 687-698.
    • Handle: RePEc:eee:bushor:v:68:y:2025:i:5:p:687-698
    DOI: 10.1016/j.bushor.2024.10.003
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    References listed on IDEAS

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    1. Markus Baer & Kurt T. Dirks & Jackson A. Nickerson, 2013. "Microfoundations of strategic problem formulation†," Strategic Management Journal, Wiley Blackwell, vol. 34(2), pages 197-214, February.
    2. Jack A. Nickerson & Todd R. Zenger, 2004. "A Knowledge-Based Theory of the Firm—The Problem-Solving Perspective," Organization Science, INFORMS, vol. 15(6), pages 617-632, December.
    3. Marcel E. A. Weber & Mathieu C. D. P. Weggeman & Joan E. Van Aken, 2012. "Developing What Customers Really Need: Involving Customers In Innovations," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-15.
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