1. Introduction
1.1 Introduction and Significance
Innovation is a topic which needs to be researched out in detail. The companies who have understood the importance of innovation are enjoying great return. For this reason, the topic is selected which is “the impact of innovation in product development on organisational performance: a case of Samsung Galaxy”.
1.2 Rationale
The rationale of the research is twofold. One is that through this research the technological companies can understand the importance of innovation in product development and how the financial performance of the organisation can be increased. Samsung Galaxy case will be selected because this company is continuously innovating and enjoying market leadership. The innovation strategy of this company will be studied out. The research will be helpful for the industry as well as it will add into literature.
1.3 Research Aim
The aim of the research is to unveil the impact of innovation in product development on organisational performance in Samsung.
1.4 Research Objectives
- To investigate the innovation strategies used in the product development.
- To identify the positive and negative effects of innovation in product development on the organisational performance.
- To analyse the impact of innovation in product development on organisational performance in Samsung.
1.5 Research Questions
- What is the impact of innovation in product development on organisational performance in literature?
- How can innovation be integrated in product development to gain financial performance?
- What are the types of innovation in product development?
- What is the impact of innovation in product development on organisational performance in the selected organisation?
- What are the actionable ways through which the organisation can further improve its innovation process and gain profits?
2. Literature Review
With the evolving time, business environment has changed. Now it is not a set of mere activities to manufacture and sell the product. Business scenarios have changed a lot since last two decades. There are no more concepts of regional markets rather business world has shifted to a global market (Iwe, 2010). Global market presents a different scene and has different requirements for the businesses to be fulfilled in order to compete competitively and successfully. Moreover, companies have to attain and retain competitive advantage over competitors in market. To achieve business success companies, have to pursue the processes related to the development of innovative products. Innovation in products and services has become a crucial considerable factor for present business (Drucker, 1997). Employees of companies in particular companies in manufacturing sector are at their toes to adapt and compete effectively in this changing environment (Page, 1993).
According to Robertson & Tu (2001) definition of innovation is any new idea that can be transformed into a product or service; in short, it should be feasible. Innovation is the newly perceived idea and if accordingly, to the individual’s perception idea is new it is called an innovation. Robertson & Tu (2001) stated that innovation is composed of technical knowledge that can be integrated by transforming the way things are currently performed to a new and better way of performing such things. More explicitly, innovation is defined, as a capability of creating, generating a new idea, set of processes, a new product or adding something unique in services convincing other peers to accept the new idea and implementing it.
Innovation is of great significance and brings higher margins of profitability to an organisation. It gears up an organisation to transform its prevailing opportunities into its strengths, pursue growth and expansion of business activities in existing as well as new areas, grab competitive advantage and accumulate a large chunk of capital in terms of profits (Iwe, 2010). Process of innovation cannot run overnight but it requires strong link with happenings around the globe, other business sectors, it demands acquiring new knowledge of major fields that have an impact on all business activities irrespective of the fact these tasks are minor or major, distribution of this knowledge among all members of the organisation. In addition to this it requires approval of all members and an effective implementation across the whole organization (Amabile et al., 1996).
Excellent performance of any business entity links with the product line of an entity, ability of company to search and identify the newly arising or are not catered needs of customers, niche market and most importantly to design and create products and services to cater those needs (Brown & Eisenhardt, 1995). Brown & Eisenhardt (1995) and Iwe (2010) stated that product development acts as lifeline for any business organization. Thus, a strong bonding between innovation, product development and product line of a business entity can be seen. Product development is described by Ulrich & Eppinger (1995) as a cross disciplinary set of activities, it involves equal level of contribution from all functioning departments of the organization however, critical departments and their contribution are research and development, designing, manufacturing and marketing.
Innovation and product development have become the core drivers of organizational success. These two factors act as a catalyst in enabling a business entity to perform better than other business entities in the marketplace (Brown & Eisenhardt, 1995) and show high levels of performance in terms of sales, credibility, building brand associations and positive attitude. Moreover, there is a strong association between acquisition of changing knowledge that leads to innovation and increased organizational performance. It requires a strong alignment of game plan that is a strategy of growth and expansion with technology related innovative policy. Aims and objectives of these policies and strategies should be made explicit in order to involve all workforce in process of innovative product development (Yannele, 2005).
According to many researchers, Amabile et al. (1996) and Page (1993) innovations that are of noteworthy nature provide business entities to create, gain and retain competitive positions among other companies on the marketplace. For new companies entering into a market it acts as a strong pillar to launch a healthy competition in market and acquire an advantage. Innovation consists of many other dimensions like innovation in work practices, in human resource management practices, marketing practices, manufacturing process innovation and product innovation. Product innovation is from a customer perspective while other innovations are associated internally with organization. However, for effective implementation of both perspectives of innovation management has to consider internal as well as external scenarios in market.
Development of a great and unique product is hard; it requires a lot of concentration, deep knowledge, and keen insight of targeted customers. All teams in an organisation but in particular team assigned task of product development faces a huge challenge of success of their product. These challenges include time constraints, cost effectiveness, major and minor details, other dynamics, satisfying societal needs while following all rules and regulations of government, team spirit and diversity among team members. Only few of the companies bear this massive burden and become successful in unique product development (Petrella, 1996).
Numbers of researches have been conducted in order to find the impact of integration between innovation and product development on organizational performance. Research conducted by Roger & Zhao (2002) showed and approved the pattern of product development and innovation on organizational performance. Results of these researches have indicated that there is a healthy positive impact on organizational performance if a company adopts the trend of innovation in product development. Robertson & Tu (2001); Liu et al., (2002); Zirger et al. (1990) and Roger & Zhao (2002) found that high level of quality in innovation and creativity in product line has a definite and positive affect on consumer perceptions leading to the purchase intention, customer satisfaction, loyalty towards a business entity, profitability, volume of capital and ultimately organizational performance.
3. Methodology
3.1 Research Methods
In the literature two types of research methods have been explained namely quantitative and qualitative (Cooper & Schindler, 2001) and the combination of both these methods is known as mixed method. The first research method mentioned is quantitative and in this method the information is collected in the form of numbers through close‑ended questionnaires. There are scales set for each question which are coded. The information is further processed by applying mathematical modelling or statistical tools (Hartley & Barling, 1998). The positive point of this method is that clear information is gathered and then processed to reveal consistent results which can be easily interpreted in computer programs such as Microsoft Excel and SPSS (Whipp, 1998). Large amount of data is gathered in this method which is not easy to handle (Cohen et al., 2000; Saunders et al., 2003).
The second research method mentioned is qualitative and, in this method, descriptive techniques are employed. Through interviews, documents and observations raw data is collected and after that it is analysed by employing techniques such as content analysis and thematic analysis (Whipp, 1998). The positive point of this method is that the research problem can be unveiled in detail with the help of this method but a negative aspect of the method is that raw data is difficult to analyse (Tashakorri & Teddlie, 2010). The themes are highlighted with difficulty because while taking information useless information is also provided (Coe, 2004; Bell, 2010).
In the research for which this proposal is developed, both quantitative and qualitative research methods will be used, making the study a mixed‑methods design. Since the topic is related to innovation in product development, interviews with the product development department will be conducted. Organisational performance is the second variable. To explore this variable, the financial reports will be consulted to review recent innovation outcomes. The results will be presented in tables and charts.
3.2 Approaches
There are two types of research approaches according to Saunders et al. (2009): deductive and inductive. The deductive approach uses the principle of “specific to general”. In this approach the researcher utilises information from previous research, meaning it uses secondary data to build the theoretical base (Trochim, 1999). The inductive approach uses the principle of “general to specific”. In this approach the researcher starts with broad theories, models and prior research and then defines and explores the specific problem (Clark, 2009). For this study, a deductive approach will be employed: the problem is defined, relevant literature is reviewed, and the company case is examined and evaluated.
3.3 Strategies
Various strategies are identified in the literature, including case study, survey, ethnography, experimental research, grounded theory and action research (Gummesson, 2000; Sekaran, 2003). This study adopts a case study strategy focusing on Samsung Galaxy, an organisation characterised by continuous product innovation and readily observable performance indicators.
3.4 Data Collection Method
Two types of data collection are recognised: primary and secondary. Primary data is gathered directly for the specific study—for example, via experiments, questionnaires, interviews or financial reports (Smith, 2008; Creswell, 2009). Secondary data already exists and can be retrieved from books, journal articles, internet sources, and so forth (Sekaran & Bougie, 2009). This study will employ both methods: secondary literature will establish the theoretical foundation; primary data will comprise interviews with product development employees and analysis of Samsung’s financial reports.
3.5 Sampling Method
Random and convenience sampling will be combined so that every employee in the product development department has an equal chance of selection and no specific demographic requirements constrain participation, thereby ensuring accessibility and practicality.
3.6 Accessibility Issues
Interview scheduling may prove difficult as respondents can be hesitant or unavailable. Appointments will therefore be made in advance. Accessing literature can also be challenging; the university’s digital library and a VPN connection will be utilised to secure necessary sources.
3.7 Ethical Considerations
- Names of participants will remain confidential.
- The research is conducted solely for academic purposes and will not be used commercially.
- Informed consent and company permission will be obtained prior to data collection.
- No harm is intended towards any individual or organisation.
4. Methods of Data Analysis
Interview data will be analysed thematically to identify recurring patterns and insights, while financial information will be summarised in tables. The qualitative and quantitative findings will then be compared and contrasted to draw comprehensive conclusions.
5. Time Plan
| Chapter | May-14 | Jun-14 | Jul-14 |
| Introduction | |||
| Literature Review | |||
| Methodology | |||
| Data Analysis | |||
| Conclusion | |||
| Recommendations | |||
| Review and Submission |
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