Radical Product Innovation Capability: Literature Review, Synthesis, and Illustrative Research Propositions

Abstract

Product innovation is a key to organizational renewal and success. Relative to other forms of innovation, radical product innovations offer unprecedented customer benefits, substantial cost reductions, or the ability to create new businesses, any of which should lead to superior organizational performance. In other words, a radical product innovation capability is a dynamic capability, one that enables the organization to maintain alignment with rapidly evolving customer needs in high‐velocity environments. Extensive research has been conducted on the antecedents to an incremental/general product innovation capability, and meta‐analyses have been conducted to integrate the results from the various studies. However, whether and how a radical product innovation capability differs from an incremental product innovation capability is also critical. The purpose of this work is to develop a testable model of the antecedents to radical product innovation success. Based on an extensive literature review, a comprehensive set of organizational components that comprise a firm's radical product innovation capability is identified. These organizational components include senior leadership, organizational culture, organizational architecture, the radical product innovation development process, and the product launch strategy. Of course, each of these components has subcomponents that provide even more texture. This review highlights how the components of a radical innovation capability function differently from those for an incremental capability. In addition, this review strongly suggests that the direct effects models that dominate this literature underestimate the complexity of the interplay of components that comprise a radical product innovation capability. Thus, a model to demonstrate this interplay of these organizational components is provided. Illustrative research propositions are offered to provide guidance to researchers. Suggestions for executives and managers who are involved in the product development process and for scholars who seek to advance the state of knowledge in this area are offered in the conclusion.

Paths and Challenges of New Technologies: The Case of Nanotechnology-Based Cosmetics Development in Brazil

“…Content can be obtained in three ways: of information and knowledge from a theory [theory-driven]; of a set of data that can be analyzed [data-driven]; or by using a new analytical method [method-driven] (Stefik and Stefik 2004). This type of firm has the ability to acquire substantial technological knowledge by regularly seeking information on technological opportunities and threats, as well as internally exploiting this knowledge in their development activities by considering technology as their main strategic input (Slater et al 2014). They are constantly updating their technological content.…”

“…Firms can seek novelties in the market in three ways (Slater et al 2014): by self-learning, by focusing on the market learning, and by focusing on the customer. Learning itself creates values that include a commitment to learning, open-mindedness and the sharing of market principles, ideals, and beliefs (Baker and Sinkula 2002).…”

“…The market and client approach can be responsive [competitor driven], proactive [company driven] or both (Baker and Sinkula 2002;Slater et al 2014). Responsive firms specifically focus on meeting existing customer needs with current technologies.…”

“…The generation of anticipated intelligence allows the firm to proactively seek the market for opportunities that are not evident to competitors. Latent needs are real needs that are not yet in a customer's consciousness, so they cannot articulate them (Baker and Sinkula 2002;Slater et al 2014).…”

“…It is often considered the most expensive and risky stage, and the least well managed part of the NPD process. It includes the planning of the marketing activities (identifying the target markets; establishing a marketing mix; predicting financial results; establishing a control and adjustment system) and the services offered to the customers (Slater et al 2014). The role of the launch stage is to maximize the chances of profitability reached by the acceptance of the target market through innovativeness (Baker and Sinkula 2007;Molina-Castillo et al 2011).…”