Innovation engineering : the power of intangible networks

Intangible Capital

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As we seek to measure the internal product success in its development pro- cess, we must refer to the general objectives sought for a product at the New Product Development NDP.

In a survey conducted in , the measurement of performance in the Finnish industrial sector, Suomala P. The purpose of the study was mainly to describe what the main product development objectives are. In the same survey, performance measures have been identified as indicators most widely used by businesses. It appeared that For the costs of measures, it was shown that For example:.

A kind of measure of customer satisfaction within the extent of product development was practiced by The category profitability included typical profitability measures such as return on investments and the net profit of a company. The costs of the supply chain included measures which have focused on the cost of the different parts of the supply chain:. Innovation measures, on the other hand, were mostly connected with the number of patents and patent applications. In line with the identified objectives, performance measures have been identified, namely:.

With these objectives, we will try to measure the product performance within each of the three phases of our process see Figure 2. For these goals are achieved, the company will need to release some resources. In our case and since we are talking about product innovation, we will present how innovation activities can contribute to achieving these objectives through hypothesis.

Figure 2. Measurement indicators according to the objectives sought by the company in the 3 phases of development of a new product. In this regard, enterprises should first decide to innovate or not, and if so, how. This is the innovation strategy.

Location, location, location

Obviously various factors influence this decision. This strategy of innovation itself influenced each other stages of the innovation process. Once the decision to innovate is made, the company must provide resources.

Large companies compared with small companies, have relatively more resources available to conduct innovation activities. In a study highlighting the effects of the basic factors of innovation on the innovation capacity of manufacturing companies in Malaysia, Suradi N. These generally represent the eco-system of the organization and are required for effective implementation of innovation activities, namely:.

In what follows, we present how innovation activity could influence the goals of a new product in the innovation process.

For this article, we will content ourselves with the last two innovation resources mentioned, namely the number of human resources and tangible and intangible expenditure. Two aspects of the characteristics of the team exist; namely the staff and structure influencing the process of NPD. Power, expertise, and dedication of the team leaders are among the characteristics of staff [11].

Team leaders and members are the people who transform value of ideas, concepts and specifications of new products; thus, they have a central role to facilitate or hinder the process performance, including speed [12]. So we can consider that the team leaders such as engineers, quality responsible and production managers play the largest role in the early stages see Figure 3 , i.

Moreover, the structural characteristics reflect how the NPD teams are organized. Differentiation and integration within and between project teams, diversity and functional coordination of balancing teams are among the main factors influencing the performance of NDP [13].

Hypothesis 1: The inputs in Team leaders are significantly and positively related to the performance of the new concept and prototype. Figure 3.

Innovation Engineering The Power Of Intangible Networks

The impact of team leaders on the concept and the prototype development effectiveness. A study in Moroccan agribusiness, it was found that during the process product development, the respondents highlighted the importance of the availability of a laboratory in the company to put ideas into practice and perform development testing [15].

Jefferson G. The outputs are represented here by improved prototypes or finished products. Figure 4. These investments cover a range of different business spending in order to generate innovations. In this context, national food enterprises seeking to achieve several objectives, such as increasing production capacity, reducing production time, the extension of the product range, improving product quality and well others. In addition, and given the obstacles plaguing Moroccan IAA in terms of high transportation costs and price volatility of raw materials, the Moroccan food industry now faces a major challenge: how to modernize production methods and distribution of the various sectors and how to value agricultural or fish resources for export diversification?

The company wishing to innovate must also devote some of its revenue to invest in technology and infrastructure [18]. According to a study on the seafood sector with major global fishery countries Norway, Iceland, Denmark, Sweden and Japan , the main factors promoting the development of valuation for the seafood sector were presented. Among them, there was the level of industrialization and enhancement of the sector resulting from commercial dynamism, technological level, and advanced industrialization.

From the nature of these investments, we find that they mainly concern the stages of development and production see Figure 5. Figure 5.

Nestle Corporation

The impact of tangible investments on the prototype development and the final product effectiveness. Besides this, the company will need technical skills to implement specific and complex machines and systems required for production [18]. Hypothesis 3a: The importance given to material investment is positively associated with the performance of prototype and final product. Previous research suggests that the implementation phase of the original idea generation and screening are of great importance for the success of the new product [19]. The basic assumption behind the knowledge production function KPF , Romer [20] suggests that the generation of ideas do not fall from heaven, but from a stock of accumulated knowledge and available.

On the other hand, according to a study measuring the output of innovation in the innovation process; among the inputs from the initial idea, we find the stock of accumulated patents used as a knowledge capital as is the case for the stock of ideas emanating from a previous research and development activity.

This information on previous patents can be traced in each patent application because it is necessary that each patent cited earlier patents having fairly similar or related technical claims. The number of patent citations for a particular patent indicates its importance or impact. In one of their first small studies, Narin et al. Figure 6. The impact of intangible investments on the concept and the prototype development effectiveness. This clearly demonstrates the significant effect of the accumulation of existing technological innovation to attract technological innovation inputs [17].

With these assumptions, we propose the following model Figure 7. During our investigation, we encountered several difficulties caused by the extreme confidentiality required by business leaders on the majority of information we wanted. Figure 7. A model offering potential contributions of innovation activities inputs in achieving the objectives of the new product development.

The first step that we have done is to ask the delegation of industry and commerce of the city of Agadir for the list of food companies present in the Souss Massa region. Therefore, we have chosen that our main sample will be based solely on companies operating in the processing of seafood products; since they are more apt to innovate than the manufacturers of frozen products. We subsequently contacted by telephone all the undertakings concerned by the processing of sea products one by one. This step allowed us first to know the company's location for our future visit and to be able to fix an appointment with one of the managers of product development.

During this first contact, we discarded those of 19 companies that didn't want to meet us or no longer existed. We also discovered that taking appointments by phone was not working with some companies that responded. It is sometimes found that those responsible are absent or busy. Therefore, we chose to go introduce ourselves to the factory of the company directly without prior appointment. This direct contact has taken us to know which companies are willing to give their time to conduct the first interview and the companies that are not.

Once the company accepts to deliver some information on its activity, the first question we ask is if it was developing its products or not. If it has already developed or currently developing its product, we give him the interview guide that we will discuss later in this article. During conducting the interview guide with the company, the manager manager or head of the quality department explains the context in which the product was developed within the company by presenting us the various phases through which the new product was developed from the receipt of raw materials to the production or marketing.

In total we were able to contact 3 large companies doing almost the same thing at the fish cannery, which generally represent the same aspects of production that can exist among 16 other companies in our sample. In this sample, we calculated the percentage of companies for each type of product, namely: canned goods and semi-preserved products.

Of the 19 fish processing companies, we calculated 13 companies producing canned goods and 6 companies producing semi-preserved. In Table 1 , we present the descriptive data of the 19 enterprises according to the nature of their activity. From these data, we performed a chi-square adjustment test by which we number canning companies by 1 and the semi-preserved by 2.

The statistics is as follows:. After completing our questionnaire from the field data, we began administering it to the 19 companies in our sample. Table 1. Descriptive statistics.

Description

Table 2. A chi-square adjustment test. Table 3. The characteristics of companies that responded to our questionnaire. The cause of this refusal was due largely to a purely stable activity over time with the same product. Others, on the other hand, simply refuse to welcome us on their premises. Having passed through all these steps, we ended up with five large companies in total which were able to correctly answer our questionnaire. We see from Table 3 , that the most common reason for innovation between the 5 companies is the response to the customer's need. As previously announced, the method we have pursued for data collection included three main steps:.

An interview guide was sent to the Quality Managers of some companies to which we sent the questionnaire thereafter;. This step was flown between April and May of ;. It began in June and ended with 5 companies in total end of December of the same year. The key success factors, or the most important determinants of the respective competencies needed for future performance, were identified. Specific indicators that were considered reliable measures for the critical success factors were than determined based on analysis of historical data as well as the analysis of the results of brainstorming sessions and interviews.

The study found the vision of Israel has the substantiation of its position as a developed, modern, democratic and pluralistic nation attractive to world Jewry, investors, tourists and its citizens.

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