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Implications of Reverse Innovation for Socio-Economic Sustainability: A Case Study of Philips China

Author

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  • Juan Shan

    (School of Management, Shanghai University, No. 99 Shangda Road, Shanghai 200444, China
    These authors contributed equally to this work.)

  • Miqdad Ali Khan

    (School of Management, Shanghai University, No. 99 Shangda Road, Shanghai 200444, China
    These authors contributed equally to this work.)

Abstract

The idea of reverse innovation, local innovation happening in emerging markets for the global market, has gained much academic and managerial attention in recent years. The purpose of this study is to understand how reverse innovation has successfully diffused into the product and market development strategies at Philips Inc., a prominent multinational company (MNC) of the modern era. Furthermore, the study presents the success achieved by these innovations at both the domestic and global levels, along with their implications regarding socio-economic sustainability in emerging markets. In order to investigate the research questions, a case study of Philips China was conducted involving three product innovations that were found to be suitable examples of reverse innovation. After the study of extant literature on the topic, drawing from research databases, newspaper articles, and company press releases, five semi-structuredinterviews were conducted with key managers and a market practitioner to gain sufficient understanding for this exploratory study. Subsequent case analysis concludes that these innovations are examples of reverse innovation representing a new paradigm change in innovation flow. This flow of innovation from emerging markets to developed markets as confirmed by Corsi’s framework could potentially disrupt developed markets as well as contribute to ensure healthy living conditions for the population living in developing countries. If so, this represents a sustainable socio-economic change in-line with the United Nations' Sustainable Development Goal (SDG) of “ensuring healthy lives and promoting well-being for all at all ages.” This is relevant as Philips aspires to be a prominent private sector player in achieving the above-stated goal by defeating non-communicable disease and strengthening local healthcare systems.

Suggested Citation

  • Juan Shan & Miqdad Ali Khan, 2016. "Implications of Reverse Innovation for Socio-Economic Sustainability: A Case Study of Philips China," Sustainability, MDPI, vol. 8(6), pages 1-20, June.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:6:p:530-:d:71510
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    References listed on IDEAS

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    1. Eugenia Rosca & Jack Reedy & Julia C. Bendul, 2018. "Does Frugal Innovation Enable Sustainable Development? A Systematic Literature Review," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(1), pages 136-157, January.
    2. Octaviano Rojas Luiz & Enzo Barberio Mariano & Hermes Moretti Ribeiro da Silva, 2021. "Pro-Poor Innovations to Promote Instrumental Freedoms: A Systematic Literature Review," Sustainability, MDPI, vol. 13(24), pages 1-22, December.
    3. Krohn, Malte & Petersen, Finn & Hochmuth, Dustin & Herstatt, Cornelius, 2020. "The Deliberative Frugal Mindset: A model of managerial opportunity recognition for frugal innovation," Working Papers 109, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    4. Chiara Cannavale & Lorenza Claudio & Michele Simoni, 2021. "How social innovations spread globally through the process of reverse innovation: a case-study from the South Korea," Italian Journal of Marketing, Springer, vol. 2021(4), pages 421-440, December.
    5. Stephanie D. Maier & Tabea Beck & Javier Francisco Vallejo & Rafael Horn & Jan-Hendrik Söhlemann & Trung Thanh Nguyen, 2016. "Methodological Approach for the Sustainability Assessment of Development Cooperation Projects for Built Innovations Based on the SDGs and Life Cycle Thinking," Sustainability, MDPI, vol. 8(10), pages 1-26, October.
    6. Andrea Celone & Antonello Cammarano & Mauro Caputo & Francesca Michelino, 2022. "Features of Sustainability-Oriented Innovations: A Content Analysis of Patent Abstracts," Sustainability, MDPI, vol. 14(23), pages 1-16, November.
    7. Maria Federica Cordova & Andrea Celone, 2019. "SDGs and Innovation in the Business Context Literature Review," Sustainability, MDPI, vol. 11(24), pages 1-14, December.

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