IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v11y2016i8p44.html
   My bibliography  Save this article

Innovation on Wheels in Emerging Economies: Lessons from Auto MNC’s Experience

Author

Listed:
  • Rifat Sharmelly

Abstract

Emerging economies (EEs) are increasingly being considered as new sources of growth and innovation opportunities for global auto multinational companies. Many multinational companies from developed countries are eager to prosper in these economies. However, the crucial challenge that companies face today is to identify what precisely are the approaches required to serve mass market customers in EEs. In this research, the case study of a foreign auto multinational operating in India has been utilized. Focusing on the product innovation for the Indian masses with the creation of the most affordable car ‘Figo’ from the reputed auto multinational Ford, this analysis reveal the importance of engaging same set of suppliers in trust based, recurrent collaborative linkages to enhance the innovative performance. In addition, ensuring an effective value-for-money proposition is needed to achieve innovations with required affordability and acceptability criteria. Furthermore, experimenting with modules and resultant learning about markets are needed to enhance the innovative performance. With the suggested testable propositions, this study has significant theoretical contributions as well as implications for managers of aspiring companies intending to serve EEs.

Suggested Citation

  • Rifat Sharmelly, 2016. "Innovation on Wheels in Emerging Economies: Lessons from Auto MNC’s Experience," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(8), pages 1-44, July.
    • Handle: RePEc:ibn:ijbmjn:v:11:y:2016:i:8:p:44
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/59535/32992
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/59535
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rifat Sharmelly, 2016. "Innovation for Emerging Markets Confronting Institutional Environment Challenges: Perspectives from Visionary Leadership and Institutional Entrepreneurship," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(6), pages 108-108, May.
    2. Manoj Mishra & A. Sahay, 2010. "Assessing innovation quotient (InQ) of Indian auto component manufacturers," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 6(1/2), pages 113-124.
    3. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    4. Melissa A. Schilling & Corey C. Phelps, 2007. "Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovation," Management Science, INFORMS, vol. 53(7), pages 1113-1126, July.
    5. Ranjay Gulati, 1999. "Network location and learning: the influence of network resources and firm capabilities on alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 397-420, May.
    6. Rao, Balkrishna C., 2013. "How disruptive is frugal?," Technology in Society, Elsevier, vol. 35(1), pages 65-73.
    7. Clayton M. Christensen & Matt Verlinden & George Westerman, 2002. "Disruption, disintegration and the dissipation of differentiability," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(5), pages 955-993, November.
    8. Hyun-Sook Lee & Beverlee B. Anderson, 2006. "Automobile industry of China: past, present and future," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 2(1/2), pages 144-160.
    9. Jeffrey H. Dyer & Kentaro Nobeoka, 2000. "Creating and managing a high‐performance knowledge‐sharing network: the Toyota case," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 345-367, March.
    10. Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 350-370, September.
    11. Corey C. Phelps, 2010. "A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation," Post-Print hal-00528392, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gupeng Zhang & Xiao Wang & Hongbo Duan, 2020. "Obscure but important: examining the indirect effects of alliance networks in exploratory and exploitative innovation paradigms," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(3), pages 1745-1764, September.
    2. Jiancheng Guan & Yan Yan & Jingjing Zhang, 2015. "How do collaborative features affect scientific output? Evidences from wind power field," Scientometrics, Springer;Akadémiai Kiadó, vol. 102(1), pages 333-355, January.
    3. Lee, Cheng-Yu & Wang, Ming-Chao & Huang, Yen-Chih, 2015. "The double-edged sword of technological diversity in R&D alliances: Network position and learning speed as moderators," European Management Journal, Elsevier, vol. 33(6), pages 450-461.
    4. Yu Zhou & Guangjian Liu & Xiaoxi Chang & Ying Hong, 2021. "Top-down, bottom-up or outside-in? An examination of triadic mechanisms on firm innovation in Chinese firms," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 131-162, February.
    5. van Rijnsoever, Frank J. & van den Berg, Jesse & Koch, Joost & Hekkert, Marko P., 2015. "Smart innovation policy: How network position and project composition affect the diversity of an emerging technology," Research Policy, Elsevier, vol. 44(5), pages 1094-1107.
    6. Mao, Chongfeng & Yu, Xianyun & Zhou, Qing & Harms, Rainer & Fang, Gang, 2020. "Knowledge growth in university-industry innovation networks – Results from a simulation study," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    7. Sheng, Margaret L. & Hartmann, Nathaniel N., 2019. "Impact of subsidiaries' cross-border knowledge tacitness shared and social capital on MNCs' explorative and exploitative innovation capability," Journal of International Management, Elsevier, vol. 25(4).
    8. Weizhen Yu & Shuanping Dai & Feng Liu & Yi Yang, 2023. "Matching disruptive innovation paths with entrepreneurial networks: a new perspective on startups’ growth with Chinese evidence," Asian Business & Management, Palgrave Macmillan, vol. 22(3), pages 878-902, July.
    9. Mazzola, Erica & Perrone, Giovanni & Kamuriwo, Dzidziso Samuel, 2016. "The interaction between inter-firm and interlocking directorate networks on firm's new product development outcomes," Journal of Business Research, Elsevier, vol. 69(2), pages 672-682.
    10. Gilsing, Victor A. & Cloodt, Myriam & Bertrand–Cloodt, Danielle, 2016. "What makes you more central? Antecedents of changes in betweenness-centrality in technology-based alliance networks," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 209-221.
    11. Ali Tafti & Sunil Mithas & M. S. Krishnan, 2013. "The Effect of Information Technology-Enabled Flexibility on Formation and Market Value of Alliances," Management Science, INFORMS, vol. 59(1), pages 207-225, June.
    12. Mingyu Tian & Yiwei Su & Zhong Yang, 2022. "University–industry collaboration and firm innovation: an empirical study of the biopharmaceutical industry," The Journal of Technology Transfer, Springer, vol. 47(5), pages 1488-1505, October.
    13. Yina Zhang & Jiancheng Long & Wu Zhao, 2021. "Relational Embeddedness and BOP-Oriented Dynamic Capability—A Multi-Case Study," Sustainability, MDPI, vol. 13(11), pages 1-26, May.
    14. Irène Kilubi & Hans-Dietrich Haasis, 2016. "26 Years of Strategic Technology Partnering: Investigating Trends, Patterns and Future Prospects in Research Through Frequency Analysis," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 1-44, April.
    15. Avimanyu Datta, 2016. "Antecedents To Radical Innovations: A Longitudinal Look At Firms In The Information Technology Industry By Aggregation Of Patents," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-31, October.
    16. von den Driesch, Till & Eva Susanne da Costa, Maika & Christina Flatten, Tessa & Brettel, Malte, 2015. "How CEO experience, personality, and network affect firms' dynamic capabilities," European Management Journal, Elsevier, vol. 33(4), pages 245-256.
    17. Kazadi, Kande & Lievens, Annouk & Mahr, Dominik, 2016. "Stakeholder co-creation during the innovation process: Identifying capabilities for knowledge creation among multiple stakeholders," Journal of Business Research, Elsevier, vol. 69(2), pages 525-540.
    18. Mario Pansera & Fabien Martinez, 2017. "Innovation for development and poverty reduction: an integrative literature review," Post-Print hal-02887777, HAL.
    19. María José Ruiz-Ortega & Gloria Parra-Requena & Pedro Manuel García-Villaverde, 2016. "Do Territorial Agglomerations Still Provide Competitive Advantages? A Study of Social Capital, Innovation, and Knowledge," International Regional Science Review, , vol. 39(3), pages 259-290, July.
    20. Erika Raquel Badillo & Rosina Moreno, 2016. "Are Collaborative Agreements in Innovation Activities Persistent at the Firm Level? Empirical Evidence for the Spanish Case," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 49(1), pages 71-101, August.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijbmjn:v:11:y:2016:i:8:p:44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.