The Staged Competition Innovation Theory

Abstract

Innovation is critical to technological progress and has many theories to explain its processes. Organised competition has been shown empirically to provide an alternative pathway for innovation within an industry, increasing innovation rates and radicalness. This research introduces and develops the new staged competition innovation theory which builds on the well-understood diffusion of innovation theory and the Technology–Organisation–Environment framework to explain how decision-making and technological, organisational, and environmental characteristics of industry-based competition can drive innovation activity. The new theory comprises three principles that demonstrate how a well-designed staged competition provides: (1) a unique innovation mechanism away from parent industry constraints, (2) a unique agile environment that can increase innovation development, and (3) a return pathway for adoption back to the parent industry. Principle 2 addresses the specific competition environment criteria required to drive innovation, beginning with a co-dependency between organiser and teams in providing team confidence and a mutually beneficial outcome for both parties. Relative advantage drives teams to innovate by generating competitive pressure, while a variable solution space due to competition specific rules and competition brief clarity direct innovation efforts. Finally, competition repetition provides ongoing innovation transfer between teams within the competition and to the parent industry.

Does innovation efficiency affect financial performance? The role of ownership concentration

“…Innovation provides space for companies to seize new opportunities and improve company competitiveness (Lestari et al, 2020). Companies that fail to innovate affect the rejection of the company's products, the reduction of the production cycle and the loss of the company's position in the market environment (Jensen, 2021).…”

“…Innovation drives companies to discover and create new ideas, take risks, and encourage new business approaches (Sanchez-Henriquez & Pavez, 2021). Companies are also required to produce quality products or services at low costs, improvise products with new attributes and produce products that differ from the previous ones from the innovation activities carried out (Jensen, 2021). Therefore, innovation is an important effort that must be carried out by every company in the modern era in order to win the competition, maintain sustainabili-Investment Management and Financial Innovations, Volume 20, Issue 1, 2023 http://dx.doi.org/10.21511/imfi.20 (1).2023.06 ty, and improve company performance.…”

The Stance, Factors, and Composition of Competitiveness of SMEs in Poland

“…Porter [27] (pp. [32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47]. This theory brings together two categories, which are competitiveness and specialization [28].…”

“…In the analysis of competitiveness and specialization, the impact of not only efficiency factors, but also non-efficiency factors [36], including state policy [37] (pp. 362-369), are discernible.…”

“…Moreover, microeconomic competitiveness (the most common area of research) is also multidimensional in character [48] (pp. [35][36][37][38][39][40]44), being divided into competitiveness sensu largo and sensu stricto [49] (p. 20), while the meso-economic level is the least frequently undertaken area of studies.…”