From serendipity to sustainable competitive advantage: insights from Houston's Farm and their journey of co‐innovation

Abstract

Purpose -The purpose of this article is to demonstrate the importance of a strategic approach to collaborative innovation and the use of a value chain research methodology for identifying opportunities for co-innovation. Design/methodology/approach -Value chain analysis is used to map three flows in the Houston Farms value chain; material flow, information flow and relationships. Having diagnosed the current level of co-innovation we then identify improvement projects and opportunities for co-innovation to reduce cost and add value, for the benefit of the value chain as a whole. Findings -The application of the value chain analysis methodology to the Houston Farms value chain revealed the importance of strategy and robust processes in key areas for co-innovation -R&D and new product development. It also revealed that small businesses can enjoy a degree of success as a result of comparative advantage in certain areas but that sustainable competitive advantage cannot occur by chance -identifying the potential for coinnovation is an important first step in the right direction.Research limitations/implications -The value chain innovation roadmap represents a useful framework for exploring the current state and future capability for co-innovation in a value chain. The value chain analysis methodology is an effective diagnostic tool as it focuses on what happens at the interface between stakeholders and how this relates to what final consumers regard as value adding, rather than traditional financial and functional KPIs which make it difficult to explore the competitiveness of the value chain as a whole. Originality/value -The explicit and objective measurement of what consumers value is an important addition to the value chain analysis methodology and the co-innovation roadmap is an original attempt to illustrate the core drivers and capabilities for achieving co-innovation in a value chain. The insights from the case demonstrate the value of this approach to companies who are open to innovation and recognise the need to focus the use of scarce value-adding resources on specific value chains and the needs and wants of final consumers therein.

From Value Chain Analysis to Global Value Chain Analysis: Fresh Orange Export Sector in Mediterranean Partner Countries

“…VCA borrows from this but with the added dimension of relationships between chain members which relates to the organisation, management and control of the chain (Taylor 2005) and has a significant impact on supply chain outcomes (Christopher and Juttner 2000;Cousins and Menguc 2006;Li et al 2006). In line with Porter's (1990) notion of value addition and based on the idea that consumers have the final say on what constitutes value (Slater and Narver 1992), a number of studies have incorporated consumer research into the methodology (Adhikari et al 2012;Bonney et al 2007Bonney et al , 2008Soosay et al 2012).…”

“…Bonney et al (2007) use VCA to identify the processes and key factors for co-innovation between value chain stakeholders. Expanding the scope of VCA to environmental sustainability, Soosay et al (2012) modify the methodology into Sustainable Value Chain Analysis (SVCA) by quantifying the environmental impacts of activities in the value chain.…”

Evaluating the effectiveness of a ‘whole of chain’ approach in rural industry development in developing countries: a case study of Pakistan mango industry

“…The evidence provided by the core growers who were working with these smaller wholesalers and exporters indicated that they could be compatible chain partners who shared a common vision, had a cooperative culture, had the capacity to create customer value and were willing to share the rewards resulting from their collaboration (Cann 1998;Spekman et al 1998;Whipple & Frankel 1998;Spekman et al 2002;Bonney et al 2007;Dunne 2007a). …”

“…The literature indicates that the key success factor associated with a supply chain management initiative is finding compatible chain partners who share a common vision, have a cooperative culture, have the capacity to create customer value and are willing to share the rewards resulting from their collaboration (Cann 1998;Spekman et al 1998;Whipple & Frankel 1998;Spekman et al 2002;Bonney et al 2007;Dunne 2007a). Schein (1992) provides a simple definition of business culture as the way things are done in a business -its business behaviours and practices or its "theories-in-action".…”

Collaborative innovation in the Pakistan’s dairy industry: effectiveness of managerial leadership and organizational readiness

“…Secondly, supply chain relationships becomes strategically important in the food industry if firms adopt innovation as a business strategy, thereby enhancing profitability and industry competitiveness in the long run (Bonney et al 2007;Soosay et al 2008). …”