Category: Innovation

Executive Summary

Mobile apps and other modern computing methods have led to a rapid shift toward the digital-driven economy. Smartphones are specifically important in this paradigm shift, and the Android platform is a critical player in the smartphone sector. This report explores the Android platform using Rogers Diffusion of Innovation Theory to demonstrate its success and possible drawbacks. Android platform success is mainly attributed to the open-source approach and free license adopted by Google to promote innovation and mass adoption. Android platform is most likely to continue to grow, but Google must carefully evaluate threats from its fragmented nature. Nevertheless, it remains one of the most important pieces of innovation that is driving the digital economy while disrupting traditional practices in entrepreneurship.

Introduction

Digital Economies are dynamic and, thus, invention and innovations are crucial for their sustained success. Further, the concepts of digital humanities and digital research infrastructures are exceedingly growing. This report applies the Rogers Diffusion of Innovation Theory on Googles Android platform to explain its success. Android platform is a customarily used digital product that has gained popularity over a short period. Therefore, its relevance in the study of business innovation in digital economies is apparent.

The fact that android is globally used with colossal success rationalizes its selection as the subject of study in business innovation in digital economies. Since its inception in 2003 and the subsequent purchase by Google in 2006, the Android platform has made a substantive impact in the mobile device operating system industry. Before the innovation, mobile devices had basic functionality. Building applications was difficult and extremely involving. To fill this market niche, Android came with the free open-source operating system. This allows turbocharged innovation and further enhances specialization since manufactures and developers can now focus on their areas of specialty (Lockheimer 2015 ).

In writing, this report, a rigorous research procedure was carried out with a thoughtful selection of literature materials. Dependable literature materials such as journals with reputable authors, reliable texts, and reports were used.

Conceptual Framework

The use of smart mobile devices is becoming progressively prevalent and universal. Consequently, users need the best inventions and innovations that augment the functionality of smartphones and tablets among other mobile devices. Presently, Android is among the most prominently used operating systems in the world. It reaches out to touch peaks of diffusion, in some countries, with a significant percentage of the total smartphone market. Consequently, the Android platform has allowed users to keep in touch with new applications that stood unavailable in the recent past.

Some theories are used in investigating the adoption of innovations in organizational and social settings. The most prolific among the theories is the Rodgers Diffusion of Innovation Theory. The theory has four major elements associated with the diffusion of new ideas. They include detailed innovation aspects, communication channels, time and social context. Additionally, Rogers Diffusion of Innovation Theory gives definitions of crucial terms about innovation and technology while seeking to explain why, how, and at what degree inventions and innovations spread through business and social environment (Sahin 2006).

Notably, Rogers Diffusion of Innovation Theory puts substantial emphasis on innovation while explaining why some innovations spread faster than others. Relative advantage, compatibility to modern and imminent trends, and perceived complexity of an innovation are some of the aspects that propel adaption and diffusion rate of innovations. Thus, Rodgers Diffusion Theory is pertinent in the discussion of Android as an innovation that is disrupting traditional practices while advancing the digital economy. Some of the aspects of the theory were carefully selected to support this report due to their relevance and applicability in business innovation and digital economies dynamism. The most prominent elements of the theory pertinent to this study are discussed below.

Relative advantage of Android

The mobile operating system industry was revolutionized by the inception of Apple iOS and Google Android. The two control a considerable percentage of the global mobile devices market. However, Android has a relative advantage despite its late entry relative to iOS.

First, Android is a more open ecosystem source. Making improvements, adding features and adaptation of Android can be done by anyone. This is unlike most mobile operating systems, which can only be developed from a centralized authorized source.

Second, Apps are relatively cheaper on Android than most mobile operating systems. For instance, Apple devices are priced relatively exorbitantly. Therefore, affordability and use of iOS is hampered by leveraging cheaper Android.

Third, Android is not restrictive in cross-platform interactions. Mobile devices users would prefer hustle free cross-platform interactions. With iOS, formal applications followed by rigorous vetting are done before software is absorbed.

Fourth, Google partners with other electronic companies in building devices around its operating system. The collaboration leverages Android users with a wide range of devices. These, among others, leveraging aspects have increasingly enhanced the diffusion of Android in the digital economy globally.

Android compatibility

The rapid diffusion of Android can be linked to its aptitude to be consistent with the existing and emergent trends in mobile devices innovations. With the Android open system, varied devices can use the Android platform and, therefore, many aspects of architecture and compatibility requirements have been optimized. Android open system aims at embracing the widest possible range of mobile devices. Key Android compatible devices include handheld devices, Android television devices, Android watches, and Android automotive implementation.

Time

The ability of Android to fill a niche in the global mobile device market informed the decision-making process explaining why the idea was immensely acceptable. Further, Android attributes have amplified the rate at which it is adapted. Lastly, Android has realized a significantly fast influence on the five categories of social classification as illustrated by the theory.

Findings and Analysis

The shift toward mobile-driven apps and computing is taking place so rapidly and in several ways. For instance, over two billion people now own smartphones, and the number is expected to reach six billion by the year 2020 (Pon 2015). Android, Symbian, Windows, iOS platforms and others have created the value that many users derive from their platforms based on their abilities to gain access to the Internet and use most applications. As billions of consumers continue to gain access to smartphones, the digital economy will continue to thrive and become a critical source of revenue for developers and the global economy.

The smartphone sector is now largely controlled by the Android platform (Spreeuwenberg & Poell 2012). Android platform, as it is today, can be considered as a collection of multiple standardized technologies, individual developers, and even firms coordinated through Google to develop versions that create value to users through economies of scale and scope.

The growth of the Android platform reflects the elements captured in Rogers Diffusion of Innovation Theory. Through innovation and entrepreneurship, the Android platform has grown specifically in the smartphone sector as most developers and users recognize the core role it plays in the digital economy. One can observe how Google has harnessed the power of developers to launch multiple versions of Android that can now support various makes and models of smartphones. Much of the interest generated by the Android platform can be attributed to specific economic characteristics specifically the availability of externalities or the network effect that emanates from various developers. In this regard, Google has focused on providing Google Play Services (GPS) to encourage open contribution and control the emerging fragmentation.

Developers notice the value of joining the Android contributing network as its usage spread rapidly globally. That is, the more users use the Android app, the more valuable the app becomes because it can support multiple devices, run the most popular Web tools and connect with millions of users due to compatibility. In this case, innovation and entrepreneurship shown in the Android platform have led to a positive reinforcement of network effects in which companies rely on the platform to increase their returns and dominate the market with their products (Pon 2015). Today, the Android platform has created a model that other companies such as Facebook, Dropbox, and Line among others have used to develop more specialized apps through open approaches to innovation.

As the Android platform depicts, the dominance nature of the platform leads to the user lock-in and consequently creating a barrier for other apps to thrive. Innovations, communication, time from the rate of adoption perspective, and the social system of Diffusion have led to the spread and development of new ideas to support new versions of Android.

In the open-source, free license environment that Android platform is developed, it would be difficult for any organization to identify the scope of innovations and developments that the new approaches will bring, but it is clear that firms involved with Android platform must review their strategy (Hatt et al. 2014). Today, the Android platform is considered the most successful one, particularly in the smartphone market globally where it accounts for more than half of all the phones sold (Mulligan et al. n.d).

One can observe that through diffusion, the Android platform has become the largest incumbent, which is now forced to develop but must guard against further fragmentation. As the Android platform continues to grow in both developed and emerging markets globally, specifically in the last two-three years, it presents challenges because of numerous devices by versions currently available for users.

Nevertheless, it is imperative to comprehend the Android platform within the context of Googles approach. Google generally generates more value when several users are on the Internet, as well as data generated by those users. Consequently, Google can grow its search advertising business. Based on this observation, Google has ensured that Android is adopted widely through a free license. As such, it can be widely used by various handset manufacturers globally. Android, therefore, leaves other OEMs such as Apple, Microsoft, to scramble for a small market share. Today, Samsung, the handset maker, has driven the adoption of the Android platform significantly, and it now strives to revamp Android UI.

Although Google still attains its core objective, the company must continuously focus on how to contain the increasing fragmentation of the Android platform. One must, however, recognize that Samsung relies on a certified Android platform as opposed to the Android Open Source Project (AOSP) version. Users can freely gain access to the AOSP version. On the other hand, device manufacturers must involve Google to get the full functionality of the Android platform, which requires registration for the Android Compatibility Programme (Hatt et al. 2014). A registration would ensure that manufacturers can get other Google services, including Google+, Gmail, Google Maps, and Google Play among others. In addition, manufactures must also meet some hardware requirements and contract conditions. That is, they should not launch another device based on the AOSP version.

On the other hand, some original equipment manufacturers mainly based in China, such as Xiaomi, have been successful using the AOSP version. Xiaomi, for instance, now claims about 2 percent of the global smartphone sales. The company relies on customized user interfaces while riding on Android to develop strong, relatively cheap smartphones for the global market. This is a direct threat to Google. That is, AOSP is growing rapidly while excluding Googles core services and, therefore, affecting Googles revenues from mobile advertisement.

The open-source and free license are responsible for fragmentation and multiple versions of Android run by Google at any given moment. It is imperative to recognize that most versions have a short life expectancy of about one to two years. Inconsistency in user experiences could affect the Android platform. Customized versions could be responsible for such inconsistency, but the company might be forced to provide updates for multiple versions to protect its core services delivered through the Android platform.

Google and its competitors must continue to define their strategies for apps for smartphone markets. These platforms are meant to drive digital commerce for developers. As such, Google is striving to develop AOSP to transcend various national borders and gain wider adoption while minimizing barriers. Various stakeholders understand the benefits and relevance of digital economies that enhance inclusion and participation by different segments of society. By opening the Android platform to many developers, Google aims to acquire more loyal users and grow its market share. However, the digital economy driven by various platforms such as Android requires seamless platforms that allow integration and can meet user needs. Consequently, collaborative development processes could deliver interoperability for different platforms and devices. While Android and iOS platforms tend to lock users to specific devices by different manufacturers, the gains may not be long-lasting because interoperability leads to more robust platforms deployed in multiple devices.

In the next few years, several high-level scenarios are possible for the Android platform as a dominant player in the digital economy. First, Android is most likely to grow further, introduce new versions and claim more market share, but with even more fragmentation in versions adopted by various smartphone manufacturers. Second, Google may decide to increase the market share but focus on more consolidated Android platform to counter the threat from AOSP. Finally, it is also possible that the Android platform may lose market share to its competitors such as iOS, Windows, Symbian, Blackberry, and another smartphone OS.

Conclusion and Recommendation

This report presented the Android platform as the most successful platform in the digital economy. By relying on Rogers Diffusion of Innovation Theory, the report shows the success of the Android platform as well as potential challenges it may encounter because of fragmentation. With the dominant market share globally, which can be attributed to open and free license approaches adopted by Google, the Android platform continues to enhance the growth of the digital economy in which developers can sell their apps.

Google continues to harness the power of developers spread across the world to revamp its Android platform. Consequently, it has realized unprecedented success since its launch, and Android now commands a significant global market share relative to competitors like iOS, Symbian and Windows among others. Nevertheless, the fragmented nature of the Android platform could also present a threat to Google as it fails to consolidate its revenues from freely exploited versions exploited by firms such as Xiaomi operating in China.

• It is recommended that Google should strive to grow the market share of the Android platform. This strategy is critical because of the fierce competition it faces from other platforms such as iOS, Windows, and Blackberry among others.
• The fragmented nature of the Android platform is a source of concern for the company. While it encourages sourcing and contribution, Google must dedicate multiple resources to evaluate various versions and only pick the best.
• Other firms specifically those operating in China where Google is banned, have been able to exploit the AOSP version to their own advantage. In this context, Xiaomi denies Googles potential revenues from mobile advertisements. Hence, the Android platform should not be exploited by companies that strive for a global market share.

Reference List

Hatt, T, Lucini, BA., Gardner, C & Pon, B 2014, Analysis: Mobile platform wars. Web.

Lockheimer, H 2015, Android has helped create more choice and innovation on mobile than ever before. Web.

Mulligan, CE, Mortier, R, Houghton, R, Rahemtulla, H, Flintham, M & Nord, C n.d, Standardisation Strategies for the Android Platform: The Politics of the Stack. Web.

Pon, B 2015, Locating digital production: How platforms shape participation in the global app economy. Web.

Sahin, I 2006, Detailed Review of Rogers Diffusion of Innovations Theory and Educational Technology-related Studies Based on Rogers, The Turkish Online Journal of Educational Technology, vol. 5, no. 2, pp. 14-23.

Spreeuwenberg, K & Poell, T 2012, Android and the political economy of the mobile Internet: A renewal of open source critique, First Monday, vol. 17, no. 7. Web.

Summary

The article focuses on how innovation is beneficial during the financial crisis. Mary Sullivan asserts that smaller financial organizations stand to benefit from larger financial organizations in such crisis (Sullivan 2009, p. 30). During such occurrences, banks are required to implement innovative ideas to maintain future earnings growth. For instance, they should look beyond capitalizing on customer attrition from weakened competitors (Sullivan 2009, p. 31). Because innovation is paramount, banks should move with haste to embrace it. The author asserts that organizations with conservative management histories will find it hard to adopt innovation. As such, the article alleges that the measures and processes put in place by banks to enhance safety suppress innovation processes. To overcome this challenge, banks should acknowledge the significance of innovation and come up with a means of synchronizing it with controls in a banks culture (Sullivan 2009, p. 30). Organizations stand to benefit if they analyze how successful companies make innovation possible.

In the last part of the article, the author focuses on the most innovative organizations in the world. The organizations are Team Obama, Google, Hulu, Apple, and Cisco Systems. For instance, the author asserts that Team Obama made tremendous achievements during the year 2009 (Sullivan 2009, p. 31). The article attributes this success with the teams ability to integrate social media into their campaigns. In this regard, the author advises bank managers to adopt social media as a marketing tool.

Key learning points

I agree with a number of key messages presented in the article. Based on the messages, it is apparent that the success of the top successful organizations is attributed to their innovations (Sullivan 2009, p. 30). During a financial crisis, organizations must implement several changes to cushion them from its adverse effects. Because changes have always affected the manner in which organizations offer their services or products, innovation will be evidenced by how they will use their knowledge to tackle the challenges. During such times, the affected companies should either choose to augment their competencies using the existing knowledge or adopt radical technologies that make the existing knowledge outdated.

By adopting innovation, organizations may acquire new market shares, come up with new services and products, gain a competitive advantage over their rivals, and gain more profits. In the article, the author has highlighted the top five innovative companies during the year 2009 (Sullivan 2009, p. 30). Notably, during the same year, the global economy was undergoing a financial crisis. The five companies managed to succeed, unlike their rivals, because they embrace innovation. The author points out that Google has been successful in the past few years due to its innovative abilities. The article alleges that the companys lab has over 60 innovative ideas at a time (Sullivan 2009, p. 31). The other company that has thrived due to innovation is Apple. With its innovative products, the company has been able to dominate the American mobile phone market for several years.

Relevant statements to the session

I feel that the points made in the article are relevant to the Middle East and in particular the UAE. For the last few decades, socioeconomic and political developments in the UAE have made the country to be one of the most successful nations in the Gulf region (Khondker 2009, p. 45). The developments have been made possible by the boom in the oil industry. Expansion in the oil and service industries has resulted in huge infrastructure developments and attracted multinational companies in the region. Given that the countrys economy is largely depended on oil, the country will face enormous financial challenges once the resource is depleted in the near future.

Therefore, the government and the companies operating within the region must be innovative to thwart such possible challenges. The government is informed of the impending challenges and has put in place innovative measures to overcome them. As such, the UAEs government has heavily invested the returns from the oil industry in the hospitality industry (Khondker 2009, p. 45). Once the oil resources are depleted, the tourism industry will take over to be the leading source of revenue for the country. Equally, corporations operating within the region must be ready for such times. For instance, companies that have invested in the oil industry should be innovative and invest in renewable sources of energy. Through this, they will be able to secure their future.

Just like Qatar and Oman, the country is currently faced with numerous human resource challenges (Khondker 2009, p. 45). To secure its futures stability and solve the ever-increasing human resource challenges, I believe the country must embrace innovation. Through this, the country must enhance the skills of its citizens, promote their employment opportunities, and retain its expatriates. To ensure that the country increases its job opportunities and at the same time, retain its expatriates, innovative ideas must be put in place. Based on these illustrations, it is apparent that the points illustrated in the article have many benefits to the UAE and the Middle East.

Critical analysis

The lessons of the article are relevant in my organization. In this regard, they should be adopted. If adopted, my organization will lessen its operation cost, enhance new ideas leading to improved services, reward employees with outstanding achievements, and provide continuous training and development to staff.

Despite its effectiveness, the implementation of the lessons will experience numerous challenges. More often, innovation initiatives in my organization are viewed with suspicion. Notably, the adoption and use of new technologies without appropriate evidence to support the technologies are viewed as a problem rather than a solution. Unlike in other organizations, innovation in our organization is not fully supported. Therefore, my organization must tackle these challenges to spur innovation. As such, its stakeholders should develop a culture of innovation, focus on the culture, provide incentives, and let the managers guide innovation. The organization must advocate for innovation starting from its top positions. Department leaders must put in place appropriate and effective structures to encourage innovation among their staff members.

Practical implications

I would recommend new firms to adopt the lessons because they will be of benefit to them. When recruiting their employees, firms should give priority to innovative applicants. Equally, firms should appoint innovative leaders. Thereafter, the leaders should be provided with suitable training for them to manage their fellow employees and ensure that suitable leadership styles are implemented. Similarly, the firms should appoint chief innovation officers to supervise day-to-day tasks. By doing so, the firms will be in a position to prompt and integrate innovation (Gault 2010, p. 67).

While new firms can spur innovation through innovative leadership, they should also ensure that they develop a favourable environment for innovation to thrive. It is a fact that most people resist change, so every organization should strive to create an environment that promotes change. Contrary to the past organizational cultures that allowed workers to work under minimum supervision, the developed environment should allow employees to uphold the culture of innovation.

In addition, new firms can resort to the use of financial incentives to encourage innovation among their employees. Contrary to the common belief, these approaches will eventually encourage innovation, reduce costs, and improve on the quality of services (Roessl & Kessler 2010, p. 203). Therefore, managers should use incentives to alter the organizational environment. According to human resource experts, innovations are triggered through rewards (Barge-Gil 2013, pp. 590). Through incentives, people can be encouraged to think and come up with solutions to complex challenges in their daily tasks. In this essence, new firms and established firms should come up with appropriate compensation methods. For instance, innovative employees can be rewarded through bonuses and job promotions. Above all, all firms should acknowledge the significance of innovation.

Learning reflections

By a great extent, this exercise has been very useful. The exercise has taught me how the ability to innovate is paramount in all organizations. Through the article, I have learned how organizations can manage to be successful in times of crisis. Based on the exercise, I noted that no financial institution made it to the top 50 list of successful organizations in the year 2009. By adopting innovation, banks may acquire new market shares, come up with new services and products, gain a competitive advantage over their rivals, and gain more profits.

References

Barge-Gil, A 2013, Open Strategies and Innovation Performance. Industry & Innovation, vol. 20. No. 7. pp. 585-610.

Gault, F 2010, Innovation strategies for a global economy: development, implementation, measurement and management, Edward Elgar, Cheltenham, UK.

Khondker, H 2009. Social change in the United Arab Emirates challenges of migration and Emiratisation. Middle East Institute. Singapore.

Roessl, D., & Kessler, A 2010, The role of research and technology organizations in innovation processes of small and medium-sized enterprises. The International Journal of Entrepreneurship and Innovation, vol. 11. no. 3, pp. 199-207.

Sullivan, M 2009, Post Crisis Innovation Will Rule. ABA Banking Journal, vol.101. no. 4. pp. 30-31.

The two videos locate the centrality of innovation and creativity in facilitating the economic growth and development of the Arab world. The speakers in the videos not only underscore innovation as a vehicle for achieving sustainable economic and social development in the region, but also acknowledge that innovation remains the single most important path towards growth, progress, and a better tomorrow for individuals, business enterprises, healthcare organizations, learning institutions, and government agencies.

This paper analyzes the two videos with the view to discussing some of the most important trends for the UAE that may appear in the next five years and how these trends will provide opportunities and threats for large and small companies in the country.

Most Important Trends

From the videos, it is clear that the UAE is likely to achieve significant growth in core areas of business, education, health and environment, as well as Islamic Banking and Finance if the various proposals discussed by the speakers are implemented. In business, we are likely to see the growth of organizations that are driven by quality concerns and innovative business practices for optimal growth and competitiveness.

In the next five years, businesses are more likely to do away with traditional management approaches and adopt innovative approaches such as quality management in e-Services, intelligent quality management, and green marketing. The business agenda may change from a focus on profit realization to investing in manpower resources, developing the right skills mix, and investing in intangible organizational assets. Such innovative investments will ensure that businesses benefit in the long-term and are able to attain sustainability in the pursuit of profits.

Another important area discussed in the videos is that of public management. If the proposals are implemented, we are likely to see a shift from government bureaucracy and wastage to a focus on national competitiveness, public service excellence, and increased collaboration between the government and the private sector to drive the innovation agenda forward. The government will become the engine of innovation, playing significant part in changing the beliefs and values of its citizens toward achieving a more innovative environment.

The components of Islamic economics, finance, and banking are likely to achieve phenomenal growth in the next five years if innovative management approaches are adopted to control risk and develop new products. In health and environment, it will be possible to integrate the rapid growth of knowledge and innovative technologies to come up with world-class health facilities and ensure that the UAE leverages its position as a global healthcare provider. Lastly, the UAE will become a global hub for education excellence and research with the capacity to personalize learning experiences and provide superior quality education.

How Trends will Provide Opportunities and Threats for Large and Small Companies

The discussed trends will provide opportunities for large and small companies in terms of

1. ensuring government support in efforts aimed at expanding the economy,
2. ensuring the availability of qualified human resources to run businesses,
3. marketing the UAE as a global destination and hence increasing the profitability and competitiveness of large and small companies,
4. satisfying customer needs and expectations through the use of innovative approaches, and
5. developing new markets for products and services.

The threats include stiff competition, high investments that may be required for organizations to fit in the trends, loss of customer segments to other innovative brands, significant price reductions for products and services, and highly knowledgeable markets that may refuse to accept certain products and services. Small companies face the threat of being driven out of business by large corporations if they fail to make the investments needed to be effective in the new business environment.

Summary

The International Journal of Hospitality Management is a quarterly scientific journal that discusses significant issues and developments in various disciplines in the hospitality industry. The journal has been ranked as a Q1 journal by Schimago Journal & Country Rank (SJR) (SJR, n.d.). In 2019, the journal had an impact factor of 6.701, making it one of the most impactful journals in the hospitality industry (SJR, n.d.). The journal was published in the United Kingdom by Elsevier Ltd. This paper critically reviews Breier et al.s (2020) article titled The role of business model innovation in the hospitality industry during the COVID-19 crisis. It analyzes the selected aspects and identifies relevant themes, theories, and study limitations.

Context

Breier et al. (2020) aimed to discover why hospitality firms can successfully recover from a crisis through business model innovations (BMI). The authors claimed that many hospitality industry firms were adversely affected during the COVID-19 crisis. They suggest that BMI can bring new opportunities to increase firm performance and help firms recover from a predicament. The researchers provide little but quality evidence to support BMI, possibly solving the hospitality industrys current problem.

Literature Review

The articles literature review is relevant to the study, and it allows the reader to understand its relevance and compatibility with previous research. The authors use recent studies to support the position that BMI can solve the hospitality industrys current crisis. I agree with the literature review because the surveys are credible (most were peer-reviewed) and focus on the reviews central theme. The literature also supports and justifies the need for the research. The study was justified because the pandemic has affected many hospitality firms worldwide, and BMI is also empirically relevant in the industry. Moreover, the authors claim that research on BMI in the industry is scarce, further justifying the study.

The authors sought to answer two research questions; first, can hospitality firms use BMI to overcome the COVID-19 crisis? Second, what are the drivers of BMI, and what role do stammgasts play in the industry? The survey discussed the relationship between BMI, market turbulence, and firm performance. They postulate that BMI mediates the relationship between market turbulence (COVID-19) and an enterprises performance. The researchers hope to contribute to BMIs antecedent current by highlighting its drivers by conducting this study. The study also contributes to the literature on stammgasts role in the industry.

Conceptual Framework

The researchers used a conceptual framework, which provided dictionary meaning and empirical findings to define the identified conceptualizations. The studys main conceptions were crisis management, innovation, open innovation, and business model innovations (BMI). BMI is described as the insignificant changes in a firms operating business model (BM). Arguably, the studys BMI definition is inadequate, considering that BMI is its central concept. The authors should have expounded on insignificant changes and the business model element to help the reader fully understand the concepts scope. A BM was defined as a firms structure or configuration that creates and captures value through innovative ideas and technologies, which on their own do not provide any value. Innovations were described as anything that differs from the status-quo or usual business practices that can bring value to the company. I agree with this frameworks contributions; this conceptual framework highlights the relevant datas scope limit by emphasizing specific variables. It further delineates the definite viewpoint adopted by the researchers in evaluating and interpreting the gathered information. There was no need for a theory because the conceptual framework was comprehensive.

Methodology

Research Design and Sample Setting

The researchers conducted a case study, particularly a multi-case research. I agree with the methodology used in the study because it is appropriate for the survey. A multi-case review is suitable for real-life situations where theoretical knowledge is limited. The authors indicated that theoretical cognizance of the issue was scarce due to little research. The ontological and epistemological assumptions have not been explicitly stated in the study. The researchers purposefully selected six hospitality firms that were adversely affected by the pandemic but showed recovery signs. The sample included one hotel, two bars, and three restaurants that depend on guests for income. This approach helped the authors draw similarities and differences among the selected cases. The chosen subjects had different ages (time between a firms creation and the present time in years). The authors conducted two interviews for each selected case: one with the business owner and the other with the stammgast. The interviews were semi-structured, which allow the interviewers to adjust the interview based on the respondents answers. The authors recorded the interviews with the respondents consent, and the data were triangulated with information from other publicly available data.

Although the study is well-designed, the survey is subject to a few limitations. First, the findings heavily relied on participants responses, making them subjective. A study conducted by Tempelaar et al. (2020) showed that self-reported research pieces are subject to bias and can cast doubts on the validity of measured constructs. This survey is particularly subject to such prejudice given that the interviews were semi-structured, which are considered self-reported instruments. Coupled with the fact that there was no randomization or control variable, this studys findings can be ranked as level IV evidence. Apart from the possibility of bias resulting from the studys design, the sampling technique is also a drawback. Purposive sampling is vulnerable to bias and is considered to have low reliability. According to Etikan et al. (2016), findings from a purposive sampling study cannot be generalized. Because purposive sampling is based on a researchers judgment, it is difficult to determine the samples representativeness objectively.

Analytical Methods

The study results were analyzed through a within-case analysis and cross-case analysis. The participants responses were first transcribed, and then each author independently read the transcripts and coded the interviews and archival data. The authors then iterated between data and theory in the coding process. The cross-case analysis was done to identify the similarities and differences in the selected cases and find common themes verified by interactive loops.

The analytical tests used were appropriate for the studys design. Coding was utilized to analyze qualitative data by tagging and categorizing it and distinguishing common themes and relationships. The analytical method is relevant because the data was qualitative, and the authors also sought to identify common themes. The identified common themes were verified by interactive loops, a systematic technique that can decode qualitative data. The loop analysis is methodologically and conceptually problematic, but it offers a practical approach to analyzing qualitative data (Dhirasasna & Sahin, 2019). Although subject to limitations, this studys statistical methods are useful and justify and validate the authors interpretation of their findings.

Reliability and Validity

The study addressed the reliability and validity of their findings. According to the researchers, the surveys reliability and validity were assured by the fact that they used a multiple-case study and the iterative joint data consolidation and independent coding. The authors argue that because the research was a multiple-case study and used independent coding, their findings are reliable and valid. However, as previously mentioned, the selected research design and sample selection already invalidate its credibility.

Determining this studys validity and reliability is critical in determining its quality and credibility. Since the measures and tests used to assess reliability and validity in quantitative studies cannot be applied to qualitative surveys, the researchers can use the criteria developed by Forero et al. (2018) to ascertain the qualitative surveys credibility. According to Forero et al. (2018), a qualitative studys validity and reliability can be determined through data triangulation, accounting for personal and sampling biases, and validating the participants and their responses (demonstrate participants thought processes clarity). Of these measures, Breier et al. (2020) triangulated their data with publicly available information. Also, the cross-case analysis added weight to the authors findings. Therefore, it can be argued that the studys findings are valid and reliable due to the data triangulation employed by the authors. I would have used a comparative case study rather than a multi-case cross-study. A comparative case study integrates quantitative and qualitative data and generates better evidence than a case study (Etikan et al., 2016). I would also improve on my sample selection technique to reduce error bias.

Results and Discussion

The studys results showed that BMI could help hospitality firms to recover from the crisis. BMI drivers are under pressure to change to survive the crisis, time availability, and the role of stammgasts to facilitate BMI initiation. However, time availability is not sufficient enough to initiate BMI on its own. The BMI inhibitors include government support and high liquidity, making the firm want to maintain the status quo rather than change it. The second research question was negated: stammgasts are not BMI drivers. Instead, they can facilitate a firms decision to innovate by providing firm owners with the psychological safety needed to initiate BMI.

The researchers integrated these results into the literature review by explaining how these findings align with and support existing literature. The authors use the literature review to point out the agreements and disagreements between their conclusions and past studies. The study confirmed that government support could help firms overcome crises. However, they also identify BMI as a new strategy for overcoming a problem, which is their main practical contribution. BMI can generate firm revenue and help firms to prepare for future crises sustainably. Based on these findings, the authors recommend that hospitality firms adjust their business models continuously. They contribute to the existing theoretical knowledge by proposing a model to help firms survive crises. I agree with this theoretical conceptualization because it is evidence-based; other studies have supported this stance (Schomaker & Bauer, 2020). The researchers argue that a crisis can create a breeding ground for innovation. The need to survive the crisis will pressure a firm to innovate, which will trigger BMI.

Conclusive Critical Reflection

Although this study has methodological limitations, the evidence is convincing and justified. The findings contribute to the practice and research of business model innovation that can influence firm performance during a crisis. It is well-designed, and the conceptual framework is logical and adequately described. I agree with the authors that firms need to innovate to make it through a crisis. This stance is not only because of the evidence supporting it but because innovation is becoming a critical survival tool for business, with or without a problem (Schomaker & Bauer, 2020). However, I would use a different research design and select a different sampling technique to increase its credibility. I would use convenience sampling because the sampling error can be quantified. Alternatively, if purposive sampling is mandated due to circumstances, I would use the expert sampling technique as it has a lower error probability than other purposive sampling techniques (Purposive sampling, n.d.). Expert purposive sampling involves using a team of experts to select samples.

Table 1: Summary of the analysiss concept.

References

Dhirasasna, N. & Sahin, O. (2019). A multi-methodology approach to creating a causal loop diagram.Systems, 7(3), 136.

Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling.American Journal of Theoretical and Applied Statistics, 5(1), 14.

Forero, R., Nahidi, S., De Costa, J., Mohsin, M., Fitzgerald, G., Gibson, N., McCarthy, S., & Aboagye-Sarfo, P. (2018). Application of four-dimension criteria to assess rigour of qualitative research in emergency medicine.BMC Health Services Research, 18, 111.

Purposive sampling. (n.d.). Laerd Dissertation.

Schomaker, R. M., & Bauer, M. W. (2020). What drives successful administrative performance during crises? lessons from refugee migration and the Covid19 pandemic. Public Administration Review, 80(5), 845850.

SJR  scimago journal and country rank (n.d.). Scimago Institutions Ranking.

Tempelaar, D., Rienties, B., & Nguyen, Q. (2020). Subjective data, objective data and the role of bias in predictive modeling: Lessons from a dispositional learning analytics application. PLOS ONE, 15(6), 129.

Smart City: Future Urbanism

The smart city concept is becoming increasingly widespread in both scientific literature and social media and covers a broad range of urban phenomena. This topic is particularly relevant because of increasing urbanisation. Kitchin (2014) provides two basic approaches to the vision of the smart city. One of them implies the use of information and communication technologies (ICT) along with entrepreneurship and creativity to promote an urban economy. The second approach assumes an extensive introduction of technologies into the fabric of cities to improve the efficiency of urban management. Other researchers also emphasise the close relationship between the idea of a smart city and the use of ICT. Nonetheless, the content and potential of this concept are not limited to technological development exclusively. This paper explores and analyses the innovative aspects of a smart city, including both technological advantages and peculiarities of social, environmental and economic spheres.

Smart Technologies: Internet of Things, Smart Buildings and Mobility

Digital and information technologies are already beginning to play a crucial role in the social, administrative and public processes of modern megalopolises and cities. These include but are not limited to social media, artificial intelligence, web commerce, online education and digital government. According to numerous estimates, the integration of technological innovations into the daily routine of urban systems will continue to increase (Albino, Berardi & Dangelico 2015; Plageras et al. 2018; Silva, Khan & Han 2018). This is particularly relevant to the Internet of Things (IoT), which has resulted from the evolution of conventional networks that connect zillions of connected devices (Silva, Khan & Han 2018, p. 697). According to Mehmood et al. (2017), IoT is a modern communication paradigm that is designed to create an Internet environment for connecting multiple digital devices online. The application of this development is intended to stimulate a series of innovative shifts in the urban setting.

This is primarily concerned with smart infrastructure and buildings, which imply an inseparable connection with ICT. Researchers state that the future infrastructure will consist of two layers: physical and digital, which is supposed to make it smart. (Mohanty, Choppali & Kougianos 2016). The ICT will enable the simultaneous data collection and management of multiple urban systems, ranging from water and energy supply and transport hubs to hospitals, government departments, business centers and educational institutions. A substantial part of the infrastructure components of the urban environment will be represented in the digital space, and thus the city will have its digital duplicate.

The IoT will enable this duplicate to be used for practical purposes. Mehmood et al. (2017) categorise IoT-based smart city applications into personal and home, utilities, mobile, and enterprises (p. 16). The first group refers to the management of smart home devices, electronic health care, through which physicians will be able to monitor the patients condition remotely, citizen interaction with urban facilities using a digital device. Utilities and enterprises IoT applications provide more efficient monitoring, data collection and management of household maintenance processes and facilities within the working environment, respectively. Mobile applications are aimed at implementing smart logistics and transportation by accounting for all traffic objects connected to the network.

It stands to mention that mobility in smart cities will acquire special features. According to Benevolo, Dameri, and DAuria (2016), the following corresponding priority challenges have been noted in the literature: reducing pollution, reducing traffic congestion, increasing people safety, reducing noise pollution, improving transfer speed, reducing transfer costs (p. 15). These issues will be addressed not only through technologies and data analysis that improve logistics management but also through innovative environmental solutions that include pollution reduction and transport facility modification. Alternative types of public transport, car-sharing, bicycle lanes are already being implemented in developed cities.

Building as a fundamental element of urban infrastructure is also subject to a range of innovative improvements. There are already attempts in the literature to design and simulate a smart building. Plageras et al. (2018) propose a topological architecture scheme of a smart building, based on comparative analysis of relevant literature (p. 352). The proposed smart building design includes multiple sensors that analyse temperature, motion, light and moisture information, as well as a cloud server that stores that information. Potentially, based on these data, artificial intelligence can manage specific building characteristics independently. In this way, the building can eventually become a self-governing system.

As ICT will consolidate and manage a variety of information, both personal and public, to improve the wealth and functionality of smart cities, the issue of data security and privacy will become particularly acute. Researchers propose to use the blockchain technology to address this problem. According to Biswas and Muthukkumarasamy (2016), the application of blockchain to smart city devices will create a unified framework within which all connected devices will be able to communicate safely in a distributed environment. A blockchain is a distributed database where information is stored as a sequence of interconnected units on different devices, which makes it very complicated to modify and access it. Thus, technological advances offer not only innovative improvements, but also provide intelligent solutions to potential problems.

Green Spaces and Environment

The environment in urban space is already becoming a major concern. Researchers note that the urban ecological system is one of the essential elements for human survival in cities (Anguluri & Narayanan 2017, p. 59). It bears mentioning that there is scientific evidence that the natural environment in cities helps people cope with various psychological problems, such as anxiety and stress, and improves their sense of wellbeing (Anguluri & Narayanan 2017, p. 59). Thus, the reduction of pollution and the improvement of the environment in smart cities appear in the foreground.

Smart cities greening measures are divided into conserving existing urban green spaces and creating new ones. The urban ecosystem in a smart city is intended to be an interconnected network of green and blue spaces, which is extended to the entire city. It may include urban parks and reservoirs, urban woodlands and reservations, street trees, flowerbeds and shrubs, rooftop gardens, domestic gardens. In many respects, the responsibility for the citys landscaping is shared between the state authorities and the personal commitment of citizens. Also, maintaining the welfare of urban nature requires both governmental and community involvement. Smart legislation will have to deal with air pollution and urban littering. Currently, many advanced citizens, primarily from western cities, are switching to separate garbage collection, electric transport and environmentally friendly products. Smart cities will support such initiatives with specially designed infrastructure.

Moreover, the environmental policies of smart cities should also address global environmental challenges. It is generally believed that they should be managed at the federal and international levels. Trindade et al. (2017) state that the spread of interest in smart cities and adjacent concepts is directly related to such factors as climate change and scarcity of natural resources (p. 4). Smart city residents should have environmental awareness, and global ecological problems should become personal and urban concerns.

Smart Citizenship and Lifestyle

Despite the widespread introduction of ICT and innovative solutions regarding infrastructure and environmental conditions, the underlying meaning of the citys existence is the wellbeing of its citizens. According to Albino, Berardi and Dangelico (2015), smarter cities start from the human capital side, rather than blindly believing that ICT can automatically create a smart city (p. 11). Modern approaches to education, politics, entrepreneurship and other social areas of urban life will be a key indicator of the citys smartness.

It is assumed that a more participatory culture will characterise the citizenship of smart cities. At present, urban people are more educated, informed and enthusiastic about expressing their position. According to Angelidou (2015), the knowledge now circulates and is produced collectively, and citys people successfully create new ideas, products, strategies and theories, either individually, or in collaboration within social networks (p. 101). The application of the competence and initiative of the new generation of urban residents will require the creation of new forms of direct participation and decision making.

A particular problem of the present time is that, despite the vast consumer-oriented choice of products and services in the market, there are rather few forms of citizen participation in political processes. Cardullo and Kitchin (2019) note that along with technocratic and market-oriented governance, there is a lack of comprehension of possible options for effective civil cooperation and regulation (p. 820). The emergence of forms of direct democracy may involve a particular transformation of the lifestyle and characteristics of communication between people, including their increased digitalisation and fellowship. Researchers note that the neighbourhoods can be considered an urban sphere of relations and mutual assistance, where the private coincides with the public space (Rassia & Pardalos 2015, p. 29). Thus, it is possible that in the future smart cities will consist of smart neighbourhoods with their particular autonomy.

Conclusion

Objectively, the development of smart cities is significantly influenced by ICT, including the IoT, and by the innovative shifts, they bring. Nevertheless, the evolution of the urban environment of the future depends to a large extent on the solutions to environmental problems and on civic awareness of citizens and their efforts. The smart city concept, therefore, includes both the implementation of technological innovations and a more conscious approach to urban life.

Reference List

Albino, V., Berardi, U. and Dangelico, R.M. (2015) Smart cities: Definitions, dimensions, performance, and initiatives, Journal of Urban Technology, 2(1), pp. 3-21.

Angelidou, M. (2015) Smart cities: A conjuncture of four forces, Cities, 47, pp. 95-106.

Anguluri, R. and Narayanan, P. (2017) Role of green space in urban planning: Outlook towards smart cities, Urban Forestry & Urban Greening, 25, pp. 58-65.

Benevolo, C., Dameri, R.P. and DAuria, B. (2016) Smart mobility in smart city, in Torre, T., Braccini, A.M. and Spinelli, R. (eds.) Empowering Organizations. Switzerland: Springer, Cham, pp. 13-28.

Biswas, K. and Muthukkumarasamy, V. (2016) Securing smart cities using blockchain technology, 2016 IEEE 18th international conference on high performance computing and communications; IEEE 14th international conference on smart city; IEEE 2nd international conference on data science and systems (HPCC/SmartCity/DSS). The Institute of Electrical and Electronics Engineers, New York, pp. 1392-1393.

Cardullo, P. and Kitchin, R. (2019) Smart urbanism and smart citizenship: The neoliberal logic of citizen-focused smart cities in Europe, Environment and Planning C: Politics and Space, 37(5), pp. 813-830.

Kitchin, R. (2014) Making sense of smart cities: addressing present shortcomings, Cambridge Journal of Regions, Economy and Society, 8(1), pp. 131-136.

Mehmood, Y., Ahmad, F., Yaqoob, I., Adnane, A., Imran, M. and Guizani, S. (2017) Internet-of-things-based smart cities: Recent advances and challenges, IEEE Communications Magazine, 55(9), pp. 16-24.

Mohanty, S.P., Choppali, U. and Kougianos, E. (2016) Everything you wanted to know about smart cities: The internet of things is the backbone, IEEE Consumer Electronics Magazine, 5(3), pp. 60-70.

Plageras, A.P., Psannis, K.E., Stergiou, C., Wang, H. and Gupta, B.B. (2018) Efficient IoT-based sensor BIG Data collectionprocessing and analysis in smart buildings, Future Generation Computer Systems, 82, pp. 349-357.

Rassia, S.T. and Pardalos, P.M. (ed.) (2015) Future city architecture for optimal living. Switzerland: Springer, Cham.

Silva, B.N., Khan, M. and Han, K. (2018) Towards sustainable smart cities: A review of trends, architectures, components, and open challenges in smart cities, Sustainable Cities and Society, 38, pp. 697-713.

Trindade, E.P., Hinnig, M.P.F., Moreira da Costa, E., Marques, J., Bastos, R. and Yigitcanlar, T. (2017) Sustainable development of smart cities: A systematic review of the literature, Journal of Open Innovation: Technology, Market, and Complexity, 3(3), pp. 1-14.

Introduction

The article selected for this critique is titled, Market Orientation, Product Innovation and Market Performance: the Case of Small Independent Companies. The 23-page article has been authored by Frans Verhees. By writing this article, the author intends to provide a brief review of the available literature on market orientation.

Further, the author also intends to propose a market orientation measure that can find application in small independent firms. In order to achieve this, the author has deemed it necessary to develop a conceptual framework that will facilitate the assessment of how innovation among the small independent firms has been impacted on by the issue of market orientation.

There are two identifiable contributions of the study in question: to start with, the author has in his study endeavored to extend the concept of market orientation theory to the small independent firms. In addition, the author also attempts to investigate how the levels of innovations among the small independent firms have been impacted on by market orientation.

The rest of the article has been structure in the following manner. Section two of the article is concerned with the review of mainstream research with respect to the issue of market orientation.

Still in this section, the author has also endeavored to provide a proposal for assessing a measure of the issue of market orientation, as it impacts on the small independent firms.

In the third section of the article, an analysis model and a conceptual framework for the association between product innovation and market orientation with respect to the small independent firms has been provided.

Further, the article has also sought to explore a number of hypotheses regarding this relationship. Between sections 4 and 7, the author seeks to put to the test the proposed model, along with the associated hypotheses, with the specialized growers of roses in the Netherlands.

The managerial implication associated with the results of testing the hypothesis and the proposed model has been provided in section 8 of the article. Finally, the author provides recommendations for further research into the topic in future studies in section 9.

Literature Review

In this section, the author has examined how the incorporation of the concept of market orientation to the small independent firms could benefit enormously from the already established body of knowledge on this particular concept, along with its general application.

The article provides concrete definition of such important concepts as market orientation. In this case, the author has used the definition provided by the works of Kohli and Joworski and Narver and Slater. The article has also further provided a discussion on the market orientation measures and provided these measures for a number of purposes.

Prior to utilizing items from diverse measures of the concept of market orientation with a view to developing novel market orientation measures, the author of this article has deemed it appropriate to first ensure that these items so chosen cover similar constructs.

In this regard, the intention of the authors was to decide on the most appropriate items from a list of classic market orientation measures in order to facilitate in the identification of marketing orientation measurers that would be suitable for application in small independent firms.

In a bid to achieve this purpose, the author deems it necessary to categorize the classic review items on market orientation measures. To start with, the author has provided a review of the market orientation elements as recognized in the classic market orientation measures.

In addition, the author has also proposed an ideal categorization scheme that could be adopted for this particular study. Secondly, the author has then attempted to match the identified classes with the classic market orientation measures.

The definition of market orientation as provided by Narver and Slater in 1990, and which has been used by this particular study, recognizes the following market orientation elements: competitor orientation, customer orientation, long-term focus, interfunctional co-ordination, and profitability.

Regarding the issue of the market orientation classic measures, the author opines that these elements refer to either a process or an object that is very vital for market orientation.

By referring to the classic market orientation measures as provided by Jaworski and Kohli, Narver and Slater, and Ruekert during the early 1990s, and which the author of this article has deemed it necessary to cite, the article has in effect recognized two objects that are quite vital in as far as the issue of market orientation is concerned: the customer, and the competitor.

Further, the author also recognizes there categorize of associated process that are quite significant in market orientation: processes that are aimed at enhancing the amount of available market know within a given firm, that is the generation of intelligence; those processes aimed at efforts co-ordination within a firm, that is, the dissemination of intelligence, strategy development, and interfunctional co-ordination; and process with a demonstratable market impact, that is, market-oriented strategy implementation, and responsiveness.

The author has also further made reference to a number of influential authors in as far as the theory of market orientation is concerned for purposes of providing additional knowledge to those individuals who may wish to gain additional knowledge on the impact of market orientation on a business.

The article has also provided a literature review on the market orientation characteristics that defines small independent firms. In this regard, the author reveals how these characteristics could in fact make a number of the items or elements in the classic market orientation measures less applicable or relevant.

In line with this, the article starts by first comparing the medium-sized or large firms with the small independent firms in as far as the issue of market orientation is concerned.

In order to facilitate in a proper structuring of the discussion, the author of this article has also deemed it appropriate to make use of the processes and objects that are quiet significant in market orientation.

Thereafter, the article seeks to discuss the implications of the identifiable differences for purposes of facilitating an assessment of the elements of market orientation that may find a useful application in the small independent firms.

Further, the literature review by this particular article has also endeavored to provide a proposal for an assessment of those components of market orientation that if applied, could best fit the small independent firms.

At this point, the author reminds us that one of the aims of the study is to facilitate in the development of measures that can be applied to the small independent firms.

Towards this end, the authors confide that he is only aware of an article by Pelham and Wilson that was published in 1996, as the only study that they could identify as having applied in its methodology the issue of market orientation with respect to the small firms.

These authors made use of a market orientation measures that relied on the measures of what actually constitutes a small company as revealed by Narver and Salter, in 1990. In this case, a firm that has an average workforce of 21.5 employees is often regarded as a small firm.

On the other hand, the author is quick to note that the elements that Narver and Slaters used in their measure failed to match the sample of the small independent firms that have been used in this particular article as a sample.

Another area of the literature review that the author of this article has sought to examine is the impact that market orientation has had on the innovation of products. At this section of the literature review, the author also endeavors to examine the model and conceptual framework that the study shall be based on.

The author argues that upon a successful identification of market orientation measures, this in effect allows a researchers to assess the existing relationship between on the one hand, product innovations in small firms and on the other hand, market orientation.

The available literature has also provided an argument to the effect that when we endeavor to emphasizes more on changing the markets, this in effect leads to a sensitization of organizations, and a generation of ideas, so that they can now realize the need to come up with innovative solutions.

The author has also provided an opposing argument to this issue by suggesting that when we attempt to emphasize more on our competitors and customers, this in fact acts as a way of inflicting on ourselves mental blinks, thereby discouraging the development of frame-breaking innovations. The author is also quick to recognize that the available literature on this particular issue is quite limited.

The model for this particular study emphasizes on product innovation since the term marketing, as defined from the conventional marketing point of view, is largely related to the product. Besides, the author argues that there is still the need to undertake further research into this area seeing that we now have a low rate of success in as far as the innovation of new products is concerned, further pointing out the low rates of improvements in the innovation of products, in the last two decades.

Prior to proposing a model needed to aid in the exploration of the relationship between on the one hand, market orientation and on the other hand, innovation, the author has firms seen it fit to first discuses a number of the specific concepts of this particular relationship as experienced in organizations.

To start with, the author has explored the available tools to a manager to enable him/her shape the companys desirable final product. Afterwards, the author examines a managers decision process within the setting of a small independent firm. On the basis of this lien of reasoning, the author has arrived at the following study hypotheses:

• H1: There exists a positive correlation between product innovation and a market orientations behavioral component
• H2: A positive relationship exist between the performance of the market and product innovation
• H3: The performance of the market and a market orientations behavioral component are both positively related
• H4: A market orientations behavioral component is related positively to the size of a firm
• H5: There exists a positive relationship between on the one hand, a market orientations behavioral component and on the other hand, its attitudinal competent
• H6: The existence of a positive relationship between a market orientations attitudinal and behavioral components leads to a positive impact on a market orientations attitudinal component, as it relates to product innovation.
• H7: The existence of a positive interaction between market orientations behavioral and attitudinal components results in a positive impact on a firms market performance.

Methods

Growers of roses within the Netherlands were identified by this study as the sample with which to test the hypotheses. The reason behind the choice was that in the Netherlands, all growers of roses happen to be small independent firms.

During the development process of the market orientation measure with respect to the small independent companies under study, the researcher conducted a pre-test by utilizing the market orientation scale with a view to removing difficult to answer or ambiguous questions.

The administration of the market orientation items to company executives took place in person, and the modification their comments formed the basis for the modification or deletion of items that had raised concerns with the respondents. Eventually, only 44 items remained.

In terms of the operationalization of the model, the researchers made use of the average annual prices for the different varieties of the roses, along with their exact dates of introduction for cultivation in the Netherlands from various databases.

The operationalization of company size was on the basis of the size of the land under the cultivation of roses, by a single rose grower.

On the other hand, the operationalization of market performance, company size, and product innovation utilize different methods of measurement from those utilized by market orientation. As such, variance in shared method has little or no impact on the implications of overestimating market orientation.

The researchers also deemed it necessary to conduct separate regression assessment for individual classes of the roses (that is, small head roses and big head roses). In order to facilitate in hypotheses testing, the OLS regression analyses found use in conducting a path analysis.

This was necessary, in order to assess the indirect and direct implications of market orientations attitudinal component on market performance and product innovation.

Analysis

Items with increasing knowledge of the market by the company and those that were mainly interested in the customer impacted greatly on the market orientations behavioral component.

On the other hand, those items that had a customer and end-user orientation as the central focal points, and those that recorded an enhanced knowledge of the market appeared to impact greatly on the attitudinal component, as it impacted on the market orientation factor.

As a result, an assessment of the most important elements of each factor revealed that neither the behavioral element of market orientation, nor its attitudinal component could have been regarded as a uni-dimensional construct.

When a confirmatory factor analysis was carried out, it revealed that the classes of the items that shared similar object of interest or process enjoyed enhanced positive standardized residuals on the one hand and on the other hand, they possessed enhanced negative standardized residuals when compared with other items, a further indication that this was a separate factor that distinguished the two items.

Although there was a clear resemblance of the market orientations attitudinal component for all the items with those identified by Narver and Slaters measure, nevertheless, it is important to note that in this particular study, all the items identified had been newly generated.

Items contained within this particular construct also bore a much closer resemblance with the market orientations elements, in comparison with those from the behavioral component.

Items were also seen as a reflection of the held attitudes towards the market orientation elements, such as customer orientation, end-user orientation, and intelligence generation.

On the other hand, the researchers opted to preserves both the responsiveness and competitor orientation as inconsequential components, in a single item of the attitudinal component measures of market orientation.

When a confirmatory factor analysis had been conducted, it helped to reveal the uni-dimensional state of the final measures. In addition, the study also yielded construct reliabilities for the market orientations attitudinal and behavioral components of 0.94 and 0.82, respectively.

To achieve this, the researchers made use of the formulas that Hail and colleagues had suggested in 1992. Further, the researchers also calculated factor scores, and these found application in subsequent analyses.

A conduction of separate regression analyses for firms with small flowers and firms with small flowers, to facilitate in testing the study hypotheses.

Conclusions

The study revealed that the small independent firms can also successful apply the concept of market orientation and that product innovation is often stimulated by a market orientations behavioral component.

On the other hand, product innovation can only be stimulated by a market orientations attitudinal component by the impact that the latter (attitudinal component) has on the behavioral component.

Besides, the positive impact that market-oriented behavior has on the performance of the market is only partially impacted on by innovation. Although there is also an additional reason why the market performance could be impacted on positively by the market-oriented behavior, however, these have not been addressed by the model for the current study.

Critique

The topic of the article is a case study on how market orientation, market performance and product innovation interact in the small independent firms. The topic in question suits the definition of strategic marketing and the advancement of organizational effectiveness in the UAE.

This is because as a developing economy, there is a higher likelihood for the establishment of an increased number of small independent firms. Accordingly, a sound assessment and comprehension of the issue of market orientation, market performance and product innovation with respect to the small firms in Netherlands would also enable their counterparts in the UAE to overcome the pitfalls that they could have been faced with.

In addition, by definition, strategic management is the recognition by a firm of one or more of its sustainable competitive advantage that such a firm possesses in its market of operation, along with the allocation of the necessary resources to facilitate an exploitation of such competitive advantage (s).

In this case, product innovation and market orientation are perfect examples of the sustainable competitive advantages of a firm. As such, the topic of the article gives the reader a further insight into the practical application of the concept of strategic marketing at a firm level.

With regard to the issue of market orientation, the article has provided sufficient definitions of this term. In addition, the author has also proposed market orientation measures for adoption by the small independent firms.

At this point, the article fails to define the term product innovation, even as it constitutes a vital component of the topic in question. Moreover the article lacks a clear definition of the term market performance.

On the other hand, the authors of the present study have provided a clear and detailed model and conceptual framework to facilitate the examination of the relationship between on the one hand, product innovation and on the other hand, market orientation in the small companies.

Although the entire sources used y the author of the article are credible, nonetheless, the author could; have attempted to use more-up-to-date references.

For example, although the article was published in 2004, however, none of the sources used had been published between 2000 and 2004, and the most current source cited by the article was published in 1999.

Considering the high rate of dynamism in the field of academic research, perhaps the use of more up-to-date sources would have helped to provide useful insights into the research questions under study.

One of the strengths of the article is a clear definition of the problem. The various sections of the article have also been categorized into individual chapters and this makes it easier for the reader to transit into the successive section of the article.

On the other hand, the article has failed to identify the possible limitations that the researchers could have been faced with while undertaking the study. The study was also limited in scope in terms of the dimensions of market orientation. In this case, only two dimensions namely, behavioral and attitudinal components were utilized.

An adoption of additional components of market orientation to the current study could have perhaps helped to shed morel light on the study objectives.

The questionnaire used by the researchers has also failed to capture information on how the adoption of novel innovations in additional fields related to the current studs could have had an impact on the desired final product. Examples here include quality revolutions on the basis of process innovations and innovations in packaging.

The present article is plays a vital role in contributing to the wider body of knowledge in the area of strategic management. This is because it has helped to reveal how the application of the concepts of product innovation and market orientation could impact on the market performance of small independent firms.

In addition, the research findings are not generally known because not many similar studies have previously been carried out. Most of the previous studies have targeted the large firms and as such, the research findings of the present study are quite valuable in providing the much-needed information.

The article is written in a coherent and understandable language. The author has also endeavored to define terms such as market orientation. The use of logical explanations and practical examples that a reader can identify with also helps to alleviate any prior perception regarding its difficulty.

To those in the academic world, the article provides useful insights as a point of reference while undertaking future related studies. To the practitioners, the article offers practical ideas for adoption and replication into different economic and geographic settings.

Works Cited

Narver, John and Slater, Stanley. The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(1990): 20-35

Kohli, Ajay and Jaworski, Bernard. Market Orientation: The Construct, Research Proposition, and Managerial Implications. Journal of Marketing, 54(1990: 1-18.

Verhees, Frans. Market Orientation, Product Innovation and Market Performance: the Case of Small Independent Companies. Journal of Small Business Management, 42. 2(2004):1-23

Global competition and continuous innovation

Globalisation leads to immense competition among businesses in the same industry. They now have to reduce business cycles in order to accommodate these changes. Companies that succeed in the global market are innovators. They are able to operate in some of the most dynamic and demanding markets in the world (Nierenberg 1982).

Examples of such industries include fashion and electronics. Global competitiveness has caused firms to adopt a long-term approach to innovation. Introduction of new products is no longer enough; great emphasis has to be given to process innovations, as well.

Most of these international competitors now reach out to suppliers and other members of the supply chain as sources of innovation. It is not sufficient to rely on customer feedback alone (Shapley & Rustum 1985).

GlaxoSmithKline is a Pharmaceutical organisation that embraces the concept of continuous innovation for global competiveness. The firm has a two-stage process in which it first discovers and tests new products, ideas, or processes. Here, most efforts appear theoretical and ideal. In the second phase, the organisation then refines and implements the concept practically.

At this stage, only those concepts that have been tested will go through to the next phase. Glaxo follows a rigorous and repeatable process that ensures valuable products are created in the company. The organisations policies exist in various parts of the world; therefore, in order to stay competitive, all branches need to follow this rigorous innovative procedure (Van de Ven 1990).

The firm had to employ such a mechanism in order to amalgamate all the various ideas that stem from its branches. Glaxo ensures that continuous innovation occurs in an organised and sustainable manner.

Relevance of innovation and creativity in business

Businesses need to stay creative and innovate in order to curb obsolescence. If an organisation only dwells on old ideas, then present work can easily become redundant. Although old ideas may have yielded satisfactory results in the past, they often get surpassed by time.

For instance, Xerox underestimated the usefulness of the fresh idea of a personal copier and banked on its older formats; these types were overtaken by peers (Sternberg 1999). Similarly, Kodak was on the verge of obsolescence by insisting on the old idea of analogue cameras.

It was only through continuous innovation that the company stayed relevant; it patented the right to install cameras on mobile phones. This ability to embrace and implement new ideas is what prevents obsolescence in various companies.

In situations where a business is not under immediate threat of extinction, it still needs to increase shareholder value by staying profitable. One way of achieving this is increasing worker output. Professionals in most industries rarely tap into their full potential, yet most of them have the same capabilities (Waterman & Peters 1982).

Consequently, companies will get greater value for money if their professionals are more productive. Creativity is the platform that boosts workers productivity if professionals are involved. Conversely, if blue collar staff or minimum-wage workers are involved, then businesses need to embrace innovation in their processes so as to enhance worker performance.

Why businesses foster innovation and creativity

Businesses embrace innovation and creativity in order to grow. Many products or industries are maturing. Therefore, innovation is the platform that will enable continuous satisfaction of market needs (Nelson & Tushman 1990). Innovation causes new businesses to come up and also causes others to grow.

A case in point was IBM; the company used creativity and innovation in order to provide personal computers at an affordable rate to members of the public.

It found a creative way of building the personal computer (PC) and provided it to the public at a ground-breaking low price. It continued to innovate and improve its PCs even when the PC market had matured. Innovation, therefore, created a new company and caused it to grow even after maturing.

Innovation and creativity ensures that companies are competitive enough. Those organisations that act on creative ideas through innovation tend to become market leaders. They stand out from the crowd because they are not drawn to security alone. Most of these companies may defy predictable corporate perceptions and upset the industry scene dramatically (Perkins 1981).

A case in point was the introduction of ATMs by Citibank. Other financial institutions, including the countrys market leaders had not embraced the idea of automated money dispensation and thus lost most of their consumers to this innovator.

The ATM machine revolutionised banking by providing teller services 24-hours a day. Citibank increased its market share dramatically and caused other organisations to frantically follow in their steps.

Companies need to boost their business revenues even though conventional methods, such as cost cutting, are not sufficient. Therefore, this is an important motive for creativity. Several western companies are notorious for squeezing their businesses too dry.

By trying to minimise operational costs excessively, these companies stifle employees and other members of the organisation (Schein 1992). Innovation is a safe way for boosting profitability by increasing business revenues; it provides more of what a company can sell and thus a new revenue stream.

For instance, Samsung tapped into a relatively new market and added more revenues by creating its own tablet. The company continued to churn out mobile phones and other electronic devices, but the tablet expanded it sales.

Sometimes companies foster innovation in order to survive in dynamic environment. Businesses may need to redefine who or what they fundamentally do in order to survive (Ginsburg & Guth 1990). Opportunities present themselves at unexpected times. If a company does not have an open attitude towards creativity and innovation, then it may miss out on an opportunity that occurs at an unexpected time.

The firms external circumstances may make business untenable and thus cause extinction. For instance, several oil companies ceased being exclusive oil firms after crude became more and more scarce.

Those who did not redefine themselves through innovation became phased out. Those that stayed in the market became oil and gas firms. They seized the opportunity inherent in excessive quantities of gas and thus survived.

Organisational culture, creativity and innovation

Anabile et al. (1996) explain that organisational culture can foster innovation and creativity through creation of a climate that favours these two qualities. First, they can encourage individuals to be creative; this should be manifested by top executives. Supervisors and junior level managers should also foster creativity.

Companies need to allocate sufficient resources towards innovation and should give employees the freedom they require to be creative (Martin 2002). The same authors also found that an organisational culture in which autonomy exists can foster creativity and hence innovation (Anabile 1988).

Kanter (1988) found that organisational cultures in which few hierarchical structures exist tend to have greater innovation. If the structures in a company are multiple and integrated, then chances are that greater creativity will occur (McLean 2005). Additionally, it was found that organisational cultures with more teamwork and collaborative activities tended to develop more innovative solutions than those that did not.

Companies that control employees decisions and actions tend to stifle creativity. Lastly, the organisations needed to show pride in their workers capabilities as this would translate into encouragement and innovation.

Angle (1989) explained that companies with organic organisational cultures tended to be more innovative than those without them. These institutions ensured that communication and information sharing occurred seamlessly. The parties sharing information need to be individuals who have different frames of reference so that the mixing and generation of new ideas can occur.

Change as the only constant

Innovation may be regarded as a response to the dynamic and ever-changing business environment. Unless companies embrace change, then the long-term viability of their organisations will be questionable (Bird & Drazin 1996). Some of the occurrences may be external or internal, and either of them can lead to positive or negative consequences.

Internal factors are those triggers that can be controlled by an organisation directly. They include product development, administrative structures, employee commitment, and use of technology in company operations. A case in point was the development of Six Sigma quality management.

Toyota embraced this change in management and operations thus leading to cost effective and high quality vehicles (Cummings & Oldham 1996). If the company had not embraced the change, its competitors would probably have eliminated it.

External drivers of change are those factors that a company cannot control, such as, political turmoil, high tariffs or taxes, dwindling economic performance (GDP) in their chosen market, changes in customer tastes, excessive competition and changes in technology within the industry.

A case in point was the 2007 US economic. Many fast food consumers stopped buying food from costlier organisations like Wendys and took their business to McDonalds. McDonalds competitors had to close a number of their restaurant franchises because external circumstances (the economic downturn) altered market characteristics.

Biggest challenges when remaining competitive

One of the biggest challenges in staying competitive is having sufficient resources to foster innovation (Teshik et al. 1997). If top management is not committed to innovation, then lower or mid-level staff will not have the financial backing to innovate.

This will cause the company to lag behind its competitors and thus perform poorly. Change leaders need to convince investors to support them in this process of boosting the companys competiveness.

Organisations that operate in highly dynamic industries also find it difficult to stay ahead of others because sometimes their products have very short life cycles. This means that the input placed into the development of the product, service or process may not match the revenues obtained from the innovation.

Therefore, the product may not stay in the market long enough to break even (Van de Ven 1986). One such industry is software development; the sector has numerous players who keep creating new products in short amounts of time. If a company takes too long to release its new software, then market needs may change and render the innovation irrelevant which can be quite frustrating.

Maintaining a competitive edge is also difficult owing to the challenges of change resistance (Andrews 1996). Companies that stay ahead often alter their structures, strategies and ways of doing business. Employees or other stakeholders in the organisation may stifle these change efforts by resisting them. If resistance is improperly handled, then a company may loose its competitive edge.

References

Anabile, T 1988, A model of creativity and innovation in organisations, Greenwich, CT.

Anabile, T, Coon, H, Lazenby, J, Herron, M & Coon, H. 1996, Assessing the work environment for creativity, Academy of Management Journal, vol. 39 no. 5, pp. 1154-1185.

Andrews, F 1996, Social and psychological factors which influence the creative process, McMillan, London.

Angle, H 1989, Psychology and organisational innovation, Harper and Row, New York.

Bird, S & Drazin, R 1996, Community, population, and organisation effects on innovation, Academy of Management Journal, vol. 29 no. 3, pp 1065-1084.

Cummings, A & Oldham, G 1996, Employee creativity; personal and contextual factors at work, Academy of Management Journal, vol. 8 no. 3, pp. 607-655.

Ginsburg, A & Guth, W 1990, Corporate entrepreneurship, Strategic Management Journal, vol. 11, pp. 5-16.

Kanter, R 1988, Structural, collective and social conditions for innovation in organisations, Research in Organisational Behaviour, vol. 10, pp. 123-167.

Martin, J 2002, Organisational culture: mapping the terrain, Sage, Thousand Oaks.

McLean, L 2005, Organisational cultures influence on creativity and innovation: a review of the literature and implications for Human Resource Development, Advances in Developing Human Resource, vol. 7 no. 2, pp. 226-246.

Nelson, R & Tushman, M 1990, Introduction: Technology, organizations, and innovation, Administrative Science Quarterly, vol. 15, pp. 1-8.

Nierenberg, G 1982, The art of creative thinking, Simon and Schuster, New York.

Perkins, D 1981, The minds best work, Harvard University Press, Cambridge.

Schein, E 1992, Organisational culture and leadership, Jossey Bass, San Fransisco.

Shapley, D & Rustum, R 1985, Lost at the frontier, ISI Press, Philadelphia.

Sternberg, R 1999, Handbook of creativity, Cambridge University Press, Cambridge, UK.

Teshik, P, Farr, J & Klein, S 1997, Influence of organisational culture and climate on individual creativity, Journal of Creative Behaviour, vol. 31 no. 1, pp. 27-41.

Van de Ven, A 1990, Research on the management of innovation, Harper and Row, New York.

Van de Ven, A 1986, Central problems in the management of innovation, Management Science, vol. 32, pp. 590-607.

Waterman, R & Peters, T 1982, In search of excellence, Harper and Row, New York.

Introduction

Irizar is a luxury coach developer and a division of big limited company with share investments in other nations. Irizar experienced problem in the early 1990s due to alterations in the intrinsic and extrinsic settings. To survive in the problem and reclaim competitiveness in the industry, Saratxaga was hired as the new manager of the organization.

Saratxaga made innovative alterations (i.e. alteration in key values and enterprise framework via participatory administration) and was capable of achieving increasing growth level in turnover and extension into other markets (Forcadell & Guadamillas, 2002).

This paper describes how the knowledge management model utilized by the company resulted in innovation and, finally, in competitive edge. In addition, the paper stresses the significance of knowledge management and the leveraging of organizational abilities in developing a culture of novelty.

Knowledge management model

The interaction of the aspects in the enterprise strategy results in collective learning procedure, competence creating and thus development of knowledge managing as a novelty model at Irizar. The function of novelty is summarized in the elements of the enterprise strategy that brings actual value to the clients and the entire team of stakeholders in the model.

Innovation creates a better culture via collective decision procedures and that it changes personal or group implied knowledge into open knowledge that can be retained and utilized in the entire company as an incessant coaching procedure within the company. Innovation provides competencies and capabilities (i.e. key abilities) on which value suggestion is delivered. It also transfers organized information resulting in capable procedures and products based on client expectation.

Innovation also ensures that the awareness generated within the company landed at the right individuals, at the right time, with a view of improving the running of the company. Innovation also establishes capabilities through joint headship, collective knowledge and group participation with a view of applying the knowledge as effectively as possible. This jointly form what is known as the knowledge management (KM) phase by Forcadell and Guadamillas (2002), in their work on the execution of knowledge management model at Irizar.

Culture of innovation

Regarding knowledge management and the balancing of organizational abilities, the company confines value through bringing in resources produced within the organization. Such resources comprise workers, management, novelty and joint venture. The financial resource or outcome is the value generated from the way the management strategy is implemented (Mills & Smith, 2011).

The elements of the knowledge management strategy are interlinked to one another in an association style, capable of converting them into result. The result or outcome as well gives suggestion of modification to management strategy and then generates fresh requirement of resources (Kumar & Ganesh, 2009).

From the model utilized in Irizar, it can be seen that the elements relate to one another with a view of making this knowledge management framework to work. The joint vision of the company promotes dedication to the shared organization culture, goals and group participation. This enables a setting of implied information exchange between the workers enabling ability generating and innovation development.

The client relationship with the company team enables Irizar to venture into exclusive marketplace information. The knowledge management strategy allows important link between workers, groups and associates (i.e. suppliers and clients). This will enhance fairness and esteem, hence increasing the inspiration among the workers.

The workers operate across the company with a view of creating authentic, high quality products (Forcadell & Guadamillas, 2002). In conclusion, making the shared results transparent in the company and building the motivation on knowledge management will push workers towards a culture of innovation.

References

Forcadell, F. & Guadamillas, F. (2002). A case study on the implementation of a knowledge management strategy oriented to innovation. Knowledge and Process Management, 9(3), 162-171.

Kumar, J. & Ganesh, L. (2009). Research on knowledge transfer in organisations: A morphology. Journal of Knowledge Management, 13 (4), 161-174.

Mills, A. & Smith, T. (2011). Knowledge management and organisational performance: A decomposed view. Journal of Knowledge Management, 15(1), 156-171.

Introduction

Change and innovation are crucial aspects of management in any organization. Worley Parsons management seeks to create improvements in its operations to allow change and innovation to have a positive impact. The firms management seeks to include all stakeholders in this vision to ensure that the companys work systems improve.

Therefore, it is necessary for the management to consult workers and make them prepared of changes which they will face while working in the organization (Thomke 2003, p. 45).

They need to encourage workers to be more open to changes in operations to make their work environments conducive for various innovative practices. This will make them resilient and open minded to different situation at the work place. This paper will make recommendations on how Worley Parsons Company needs to initiate change management and innovative practices.

Worley Parsons management needs to make all employees understand that change and innovation have a positive role to play in the organization. There are various external and internal factors which drive an organization to change its processes to make it more competitive in the market.

The firms managers need to take an active role in preparing their organizations for change to create a culture of continuous learning in the organization (Thomke 2003, p. 49). They need to act as change agents to encourage employees to improve internal work procedures which have a direct contribution to performance and growth.

Worley Parsons managers need to understand external and internal forces, which require the organization to change and innovate its operations. These forces determine the direction which the firm moves and the manner it is likely to operate in the market.

External Forces

External forces such as changes in customer needs and expectations, increase in competition, availability of new technology and changes in industry outlook, influence change and innovation. Worley Parsons needs to make its employees aware of these external forces to ensure they learn how to deal with them when they occur.

Changes in customer needs and expectations require the organization to improve the quality of its products to make them satisfy customers preferences and needs (Mosey 2005, p. 115). The introduction of innovative processes will enable the company to improve the design and quality of its products to strengthen their reputation in the market.

Worley Parsons needs to encourage constant learning in the organization to make employees have better attitudes to work. It is necessary for the firm to create a conducive work environment which encourages employees to use their creative instincts to achieve positive work outcomes.

Technology has a crucial effect on the organization. Therefore, Worley Parsons needs to implement changes in its policies to make various organizational processes benefit from technological improvements. Effective training needs to be done to all employees to make them acquire strong technological skills to make them more effective in their duties.

Worley Parsons needs to have a strong team of employees who constantly assess technology needs in the organization and how these needs can be addressed. In essence, technologies chosen need to be appropriate for functions which are performed in the firm to ensure they contribute positively to the process of innovation.

Any increase in competition in the market compels a firm to initiate appropriate changes in its operations to strengthen its market position (Mosey 2005, p. 119). Therefore, managers of Worley Parsons need to make their employees more skilled to enable them contribute new ideas to help the organization maintain its competitive edge in the market.

Internal Forces

There are several internal forces which require a firm to change the way it operates to enable it move effectively into a new direction. A strategic shift in Worley Parsons business objectives may create appropriate conditions for the introduction of changes the firms operations.

Workers need to be informed on the importance of this change in strategy and how this affects their relationship to the organization. Workers need to be assured that a strategic shift in organizational objectives will not threaten their status to make them more committed (Mosey 2005, p.122).

This will make them improve their contribution to various work processes, which will help the firm to benefit from innovative practices. Worley Parsons workers need to be assured that the firm takes their interests seriously to enable them share its vision. This will motivate them to work harder to achieve positive results.

Other internal forces which may compel an organization to introduce change include workers attitudes, introduction of new equipment and changes in work processes. Worley Parsons management needs to implement effective strategies that encourage workers to embrace organizational changes, which are caused by these factors.

Workers may have negative attitudes towards work due to poor job design or weak relationships with their superiors. This in turn impacts negatively on their ability to perform (Davila, Epstein Shelton 2006, p. 78). Therefore, workers should be made aware of any changes in equipment and work processes to make them perform their roles more effectively. This approach stimulates their creativity to come up with new concepts, which makes it possible for the organization to develop new products and services.

Streamlining Operations

The firm needs to have a clear policy which addresses the way change and innovation concepts are related to its overall objectives. Worley Parsons management needs to manage expectations of their employees effectively to ensure change initiatives which are introduced have the desired impact.

All costs which are associated with the change proposed need to be evaluated to estimate returns which the organization stands to gain. Worley Parsons needs to put in place appropriate mechanisms which measure how changes and innovations in the firm add value to its operations.

The management needs to evaluate how innovations in the firms internal and external functions will contribute positively to its growth in the market (Davila, Epstein Shelton 2006, p. 82). This evaluation will help managers to allocate resources to satisfy priority needs in the organization.

Worley Parsons managers need to assess ideas which are generated by creative thinking processes in the organization. All innovative processes which are proposed in the organization need to be evaluated for their value proposition and competitive advantage before they are effected. Worley Parsons also needs to encourage employees to collaborate to develop plans on how concepts, which are developed internally can be applied to the market.

This will make it easy for the organization to develop products which add value to customers in the market (Davila, Epstein Shelton 2006, p. 87). This approach will enable the business firm to invest in development of products which are viable in the market to ensure efficient utilization of resources.

References

Davila, T, Epstein, MJ & Shelton, R 2006, Making innovation work: how to manage it, measure it, and profit from it, Pearson, Upper Saddle River.

Mosey, S 2005, Understanding new-to-market product development in SMEs, International Journal of Operations and Production Management, vol. 25, no. 2, pp. 114-130.

Thomke, S 2003, Experimentation matters: unlocking the potential of new technologies for innovation, Harvard Business School Publishing, Boston.

Executive Summary

Marketing design and innovation has gained massive relevance in the electronic industry where competition has reached the cut-throat levels. The Smart TV industry is one of the most affected industries where firms are fighting to retain their competitiveness. Samsung Smart TV is one of the products that have found themselves in this competitive environment.

The marketing team of Samsung has been coordinating closely with the production unit to ensure that the design, colour, shape, and functionality of the product meet the needs of the market. The marketing approach taken by the firm must be innovative enough to appeal to the emotions of the customers in order to influence the buying decision. Strong brands are very helpful in such competitive environments.

Introduction

The field of marketing has undergone a massive transition over the years as various changes take place in the global market. According to Trott (2005, p. 89), firms have come to realize that they no longer hold the power of deciding what to deliver in the market. In the past when there were few players in various industries, firms had massive powers, and consumers had to accept what was presented to them.

However, this changed as the market started getting competitive. It was clear that firms had to go beyond offering the normal products to the market. They had to be unique in their product offerings in order to gain competitive advantage over others. They realized that before producing any product, they had to get the opinion of the consumers in order to present to them what will offer them maximum satisfaction.

Marketing changed from an inward-out approach to an outward-in strategy. Only the best could survive the intensity of the competition and firms in different industries struggled to outsmart their competitors. The electronic industry has experienced a stiff competition, not only because it is at the heart of the emerging technologies, but also because of the nature of the customers.

Firms in this industry have been struggling to come up with new products that can help them attract the attention of the market. This has given rise to the marketing design and innovation. According to Von (2003, p. 56), firms have embraced innovation as a way of developing unique products in the market that can meet the demands of customers.

This scholar also says that customers have become so sensitive of the product design when making their purchases. The shape, colour, design, imagination, relevance, usefulness of the product will define the possibility that a customer will purchase a given product.

The recent introduction of the Smart TV by various electronic companies is a clear indication that firms have come to appreciate the relevance of the marketing design and innovation in their production strategies. This research will focus on analyzing the marketing design and innovativeness of Samsung Smart TV.

Critique of Television Sets Features, Benefits and Values

Samsung is one of the most successful electronic companies that have been able to retain its attraction both in the developed and developing economies. It is one of the top brands in the electronic industry, always coming up with new products in different designs that go beyond customers expectations.

The company plunged itself into the field of Smart TV as a way of asserting its position as a leading company in this industry. This product has been considered unique because of its features. Below is a diagram of Samsung Smart TV.

Samsung Smart TV

As shown in the diagram above, this is more than a television set. It is a whole system of entertainment brought together. The second diagram below is the best graphical presentation of the features of this digital entertainment machine.

Features of a Samsung Smart TV

In defining features of a Smart TV, Rosellina, Amna and Matherly (2013, p. 67) says, It has a higher focus on the online interactive media, Internet TV, over-the-top content, on-demand streaming media, and home networking access. Basic feature of this product is that it is a television set that has all the features of a conventional television set.

However, it has other integrated features that make it unique from a television set. It supports the interactive media. This means that one can use it to access the social media such as Facebook, Tweeter, and YouTube. Its ability to support the streaming media means that the user can easily watch any online entertainment by streaming it live. It offers numerous benefits to the user.

One can easily download a video and store it within the system for future viewing. It is also multifunctional, meaning that as a person watches news on BBC, he or she can record events taking place at CNN so that he or she can watch it at a later time. This high value makes it a unique product in the market.

Critical success factors, phases of innovation, and timeline

Development of the Smart TV can be traced to way back in 1994 when the first patent was registered by a group of electronic engineers in the United States. However, its real impact started taking shape in 2010 when major companies started commercializing the product after successfully testing the models. It is also important to analyze phases of innovation and critical success factors in this industry.

The path towards Smart TV has been long and bumpy as firms struggle to develop unique products. According to Baxter (1999, p. 46), the path taken by the leading electronic firms to arrive at Smart TV is closely connected to the path that was taken to come up with the Smartphone.

From traditional television sets, most companies realized that it was necessary to develop more superior products for their customers. The initial issue about the design that had to be addressed at the early stages was about the shape.

The cathode-ray tube television sets were occupying a huge space in an environment where space was an issue. The development of plasma screen television sets was a critical success factor when addressing the issue of space. Then the companies realized that customers needed more in their television sets other than the TV and AV functions. They came up with radios.

However, this did not receive massive acceptance as it did when the radio was introduced on phones. The invention of LCD was another critical success factor in this development process. It had superior features than the plasma TV. LED was the second last stage. Finally, there was the Smart TV with superior functionality as those that have been described above.

Samsung has been very active in the various stages described above, and it is currently one of the major manufacturers of Smart TVs. Although this product is not available in most homes, it is an indication of a major success that has been made in this industry.

Analysis

Comparison of Leading Brands of Television Sets and Their Design Factors

Some of the top electronic brands have been keen to develop Smart TVs as a way of tapping into this rich field that has received positive reception from customers.

According to Bidault, Despres and Butler (1998, p. 478), most of the electronic companies that have ventured into the manufacture of this product have their own unique designs that they have embraced, with some having higher performance features that others.

Samsung is one of the leading companies that have been very successful in this industry. Although the functionality of its Smart TVs is slightly different from that of other brands, the physical designs of these Smart TVs are almost the same. They have embraced the ultra-thin model using LED technology.

Samsung Smart TV has a diamond colour, with a touch-screen and qwerty-keyed remote control that enables the user to easily type, when looking for information on the internet. According to Cimpu (2013, p. 45), the 75-inch Samsungs Samsung D9500 remains the largest Smart TV in the market. At this stage, it would be necessary to analyse the top six brands of Smart TVs in the global market.

LG Smart TV has been viewed by many critics as the best Smart TV in the market in terms of the functionality and the value it offers.

Its heavy downloading capacity makes it one of the most favourite Smart TVs among the internet savvy individuals. It can also identify and inform the user about specific sites where data being downloaded is obtained. The following diagram shows the physical design of an LG Smart TV.

LG Smart TV

As can be seen from the above image, it is clear that this Smart TV has more functionalities than a conventional television set. Besides offering basic television channels, this television allows users to access interactive media such as Facebook, Tweeter, and YouTube. Other online services such as e-market can also be accessed through this website.

The Panasonic Smart TV brand shown has been one of the most successful Smart TV brands in the market. The Panasonic Smart Viera seeks to offer its users a unique ability to use various functions at the same time.

As shown in the figure below, the screen can be partitioned by the user so that different functions are allowed to run simultaneously. It means that when using this electronic, it is possible to watch live football while charting with a friend on Facebook and downloading movies from the YouTube.

Panasonic Smart Viera

Sony Smart TV, also known as Sony Entertainment Network, is one of the best Smart TV brands in the market. The figure below shows a picture of a Sony Entertainment Network.

Sony Entertainment Network

As the name suggests, this television seeks to offer maximum entertainment to the users.

When describing functionality of Sony Entertainment Network, Roedy and Fisher (2011, p.) say, The product is built around impressive video unlimited and music unlimited services, BBC iPlayer, Demand 5, Lovefilm, Netflix, BBC News, library, BBC Sport, a Sony-branded channel of 3D content, Sky News, YouTube, Twitter, Facebook, Picasa and Skype.

It means that this product offers much more to the users. The marketing unit of this company and the production department worked very closely to come up with a product that goes beyond the expectations of the customers.

According to Trott (2005, p. 82), in the current market, the only way of staying ahead of market competition is to be able to provide quality services that goes beyond the expectations of the customers. This is what Sonys Smart TV sought to achieve in this new product.

The Toshiba Smart TV, also known as Toshiba Cloud TV, is another successful Smart TV brand that has achieved massive success in the market. The television is ultra thin because of the issue with the spacing. Besides allowing users to use the social media, it also has the functionalities of Live Sport TV, i-Concerts, Daily motion and much more functions.

It has a calendar that can be displayed on the screen whenever the user finds this necessary. For the iOS users, the Toshiba Cloud TV app can be a functionality that can be used to improve the experience of using the product.

However, it is important to note that users of this product have criticized it for messy accounts and a problem with pairing the codes or password. For this reason, this product is poorly rated as compared to other products in the market such as LG and Samsung. The figure below shows Toshiba Cloud TV.

Toshiba Cloud TV

Another leading Smart TV brand is Phillips. Its functionality varies a little from that of Samsung and LG. Although it has the capacity to download information from the internet, it lacks the capacity to inform the user about the details of the site from which the information is obtained.

However, it shares other functionalities such as allowing users to browse the internet, use the interactive media, download music from the internet and store them for future use. The figure below shows an image of a Phillips Smart TV.

Phillips Smart TV

When analyzing the design of the six top brands of Smart TVs, one thing that comes out clearly is that all of them have embraced the need for this product to be ultra-slim. The main difference in design that comes out, as shown in the diagrams above, includes the shape of the stand and their color. However, other features are pretty much the same.

Design and Innovation of Smart TV

According to Norzalita and Norjaya (2010, 181), the design and innovation would always define the competitiveness of the product in the market. As customers find themselves presented with products with nearly similar functionality features, they are now focusing on the design of the products as a way of determining their superiority.

They look at issues such as products shape, colour, and style when choosing the product. Samsung has been very sensitive in defining the design of its products. According to Keller, Sternthal and Tybou (2002, p. 9), there is always a general assumption among the consumers that the superiority of the products design has a close relationship with the service it renders.

This means that a product with a superior design will always be assumed to have a superior value than others with simpler designs. Given the similarity of these products in terms of their functionality, most companies are currently using the differentiation strategy as a way of making their products unique in the market.

Firms have to realize that consumers use these designs to rate these products. For this reason, while designing the unique functionality of the products, these firms must remain very innovative on issues such as shape, colour and other attributes of the product.

Product and service process

The analysis above clearly shows that when designing a product, it is very crucial to pay attention to some of the external features that some companies may be tempted to ignore. This is so because in marketing, these physical attributes play an important role. These factors are critically discussed below.

Shape, colour, design, imagination, relevance, and usefulness

It is now clear that the shape and colour of a product plays a pivotal role in determining the ease with which it can be marketed among different classes of consumers. Customers pay attention to the finishing touches of a product. Samsung has been keen in defining these factors in their product.

The image below is of Samsung Smart TV demonstrating the shape, colour, and design used on the finished product. The Colour Theory of Design holds that different colours evoke different emotions among the customers.

The Shape, Colour and Design of Samsung Smart TV

In its design, the firm was keen on developing an ultra-thin product as shown in the first diagram. It shows that it is space conscious. The second diagram shows the diamond colour and the shape of the screen. It demonstrates imagination of the developers, and relevance of the product in a world where space is increasingly becoming scarce in many homes.

It demonstrates the usefulness of the product, not just because of its functionality, but also because of the consumption of the space. The product design is always an output of an imagination. The invention of a Smart TV and its design was an imaginative work that was based on the premise that the final product should address the issue of space, and functionality of the product.

This explains why the product has integrated functions of so many electronic gadgets into its system. The relevance of the applications found on this television and its usefulness will depend on the individual user. For instance, this product eliminates the need for a personal computer.

However, for it to be relevant to the consumer, then the person must be a user of the personal computer. For an old man who only needs to watch BBC news and other simple forms of entertainment, this sophisticated product may be of little benefit to them. However, the youths who are heavy users of social media, live sporting events, and heavy data storage, this product is very relevant and highly useful.

Style, form, reparability, conformance, performance

The style, form, reparability, conformance, and performance are other attributes that customers will be looking for in the products they purchase in the market. Samsung has been very keen on the style, form, and functionality of their products. The figure below is an image of Samsung Smart TV being launched in the market.

Style and Functionality of Samsung Smart TV

The presence of a lady in this advert is just to emphasise on the sheer size of this television. It shows that the lady could fit perfectly well in the screen if this were possible. In essence, it is telling the consumers that they will be watching images in their real sizes.

The screen also informs the consumers of the variety of the functions that they can perform with this product. The qwerty-enabled remote control held by the lady in the advertisement is an indication that this Smart TV has the features of a personal computer. However, it is important to note that most of the Smart TVs have had issues with their reparability.

According to the market research by Rosellina, Amna and Matherly (2013, p. 54), Samsung Smart TV has been regarded by most of the users as a high performance product. It is easy to use with very simple manuals to enable the user to understand the sophistication of the product.

The product can also be repaired easily in the approved Samsung outlets in the global market. However, there have been limited cases of customers seeking repair for this product, and this means that the current data may not be substantial enough to form a basis of a conclusion.

Gestalt Ratio Theory

In marketing, it is always necessary to use the underpinning theories to explain some of the phenomena in the market that would define consumer behaviour. In design, Gestalt Theory of Perception is one of the widely used theories that helps explain how designers always seek to achieve visual satisfaction out of their products.

Gestalt Theory of perception defines ground-object relationship and various principles about product design (Kelley 2001, p. 89). One of the most important principles of Gestalt ratio is the Golden Ration System. It involves coming up with symmetrical shapes out of a product. This would be a clear indication that the products design is based on some definite shape.

This is specifically meant to be appealing to the eye when one looks at the product. The symmetrical shape should be achieved by dividing the product into two equal shapes by dividing it into two equal parts from whichever angle. Other smaller symmetrical shapes can also be achieved out of the product as demonstrated in the product below.

The figure above shows that Samsung Smart TV has various symmetrical shapes from various angles. This is an important factor in defining the beauty of a product from the perspective of customers.

Market Penetration and Segmentation

In order to be successful in the market, Samsung must define a clear market penetration strategy. This must start with a clear definition of the market segment that is targeted. This will help avoid cases of making general promotions that may fail to reach the intended audience. It is important to use some theories when defining the market segment.

One of the underpinning theories that can be used at this stage is Maslows Hierarchy of Needs. The marketing unit of Samsung must realize that the market is very competitive, and that marketing programs must be very specific. Samsung Smart TV cannot be a product targeted for the individuals who are struggling to meet psychological or security needs as defined in the Maslows Hierarchy of Needs.

This is the best product in the market currently with features meant to offer more than what a conventional television offers. This means that it is a product for people who have achieved self-actualization or approaching it. For this reason, the targeted segments of this product are the upper class and the upper middle class members of the society.

After defining the market segment, the marketing unit must define the positioning strategy (Jolly 2005, p. 45). The Consumer Buying Decision Process Theory will be very useful at this stage. This theory will help the marketing unit of Samsung understand the decision making process of the buyer. This involves understanding some of the basic facts that defines the decision that the consumer will make in the process.

The positioning strategy should be developed only after understanding some of these factors valued by the consumer that will make him or her make decisions on the products to buy and those that should be avoided. It is important to note that some consumers are largely attracted to a product simply because of its physical design. Others would want more than just the physical attractiveness of the product.

Such customers may ignore the physical appearance and pay more attention to the functionality of the product. Samsung Smart TV must be an all rounded product that would offer an appeal to the customers with varying needs. This product should be positioned in terms of its functionality, space consciousness, and the physical attraction.

The marketing management unit should then define the most appropriate communication strategy that would help reach the target audience. Social media platforms such as Facebook, Tweeter and YouTube can be very useful.

The mass media such as television adverts and newspaper adverts should not be ignored. It is important to note that Samsungs performance in the market is impressive. The product positioning was done successfully, and the firm has maintained a massive campaign for this product using both the mass and social media.

Brand Appeal in Relation To Competitors

In a highly competitive market, firms are always under massive pressure to come up with ways of making their product unique from other existing products. The best way of differentiating product is to use brand. Samsung Smart TV is operating in a highly competitive environment where the products share so many features.

The level of competition in this industry has gotten so stiff that firms are relying on the strength of their brand to gain competitive advantage over competitors. The products are also so similar that customers are using the brands as one of the ways of differentiating them. Below are the images of some of the top brands in this industry.

Haier Smart TV (Haier Brand)

Apple Smart TV (Apple Brand)

Samsung Smart TV (Samsung Brand)

Roku Smart TV

Net-Range Smart TV

Branding is one of the best ways of gaining competitive edge in the market over market rivals. As shown in the six images above, different brands use different innovative features to attract the appeal from the customer. It is clear that there are numerous brands of Smart Television in the market. Customers pay a lot of attention to the brand that is presented to them.

They always base their buying decisions on the brands that are known to offer quality products. For instance, the brand Net-Range is very new to many of the consumers in the market. It does not have a history, which means that customers cannot attest to its quality. Consumers are always weary of such products. They prefer brands that are known to them.

However, it is Samsung brand is one of the highly valued brands in the electronic industry. This has given its Smart TV an edge over most of the market competitors. It means that in the above identified brands, Samsung should only be weary of the Apple Brand. Apple is one of the brands known for its focus on quality of its products.

Brand meaning, brand equity, brand awareness, image, and relationship

According to Rust, Zeithaml and Lemon (2004, p. 10), brand is one of the most important components of the product that should be given emphasis when developing marketing programs. The brand name and brand image helps in the identification of the firms product in the market. The brand name Samsung and its logo are very popular in the market.

The firm has also been keen on developing brand awareness in order to popularize the product in the market (Dussauge and Garette 1999, p. 176). The brand strategy helps a firm develop a firm grip on its customers in order to gain a competitive edge over its competitors. According to Rosellina, Amna and Matherly (2013, p. 89), brand awareness refers to the level at which a given brand is known in the market.

Some of the top brands like Samsung are widely known in the market for various other electronic gadgets. However, Rust, Zeithaml and Lemon (2004, p. 89) warns against ignoring the need for constant awareness creation. At no point should a firm cease maintaining awareness campaign in the market, especially when there is a new product in the market.

Quality, cost, status, performance, differentiation

The cost of the product is always closely determined by its quality and performance. Samsung Smart TV is fairly priced as compared to its competitors, but it has some of the best features in the market. The firm has also tried to bring differentiation on the product using the logo, design, colour, and functionality. The quality of the product should be used to define the cost of the product in the market.

The brands of Smart TVs mentioned above have varying costs based on the brands and the functionality of the product. This means that a 51-inch Samsung Smart Hub will cost differently from a 51-inch LG television.

When defining the cost of a product, it is important to pay close attention to the capacity of the buyers and their view of the product. When the buyers have a higher purchasing power, they tend to assume that expensive products are of higher quality than cheaper products. This factor should be taken into consideration when developing the price.

Innovation Centred-First to Market

The marketplace has changed so much that traditional forms of marketing may not offer the desired solution to firms operating in a competitive industry as Samsung. Innovation-centred approach is the best approach that can be used by Samsung in order to gain competitive approach.

This means that the firm must develop marketing ideas that would be emotionally appealing to the customers (Jerrard, Hands and Ingham 2002, p. 121). The ability to appeal to the emotions of the customer can make the much needed difference when customers are making their purchases.

Kotlers Six Meaning, Brand Pyramid, Brand Resonance

According to Roedy and Fisher (2011, p. 81), The most distinctive skill of professional marketers is their ability to create, maintain, protect, and enhance brands. In order to achieve this, a firm must be able to be able to understand six meanings of a brand as defined by Kotler.

They include brand attributes, values, benefits, culture, personality, and user. Each of the six brand meanings has been given emphasis by Samsung in its new Smart TV model. The brand resonance pyramid can best be explained using the image below.

Source (Jordan 2000, p. 79)

In the first layer, the concern of Samsung Company would be to establish brand identity. In the second layer, would involve giving meaning to the brand. The third level involves consumer response to the brand, while in the last tier the focus will be on developing customer relationship.

Patents and Trademarks Registered for Protection

In the field of design, patent and trademarks are very important. It takes massive efforts, resources and time to come up with a new design in the market. The process of coming up with Smart TV took several processes for different companies and that is why different brands of Smart TVs have some sense of uniqueness.

Protecting these new designs using patent rights enables a firm to protect its intellectual property. Brands also need to be patented to protect them from piracy or any form of misuse. Below is the brand name and logo of Samsung.

The name and logo are patented and no firm can use the above brand unless it is done under mutual agreement with Samsung. All the products of this firm, including Samsung Smart TV use this logo in the market.

Conclusion

Smart TV has been seen as a revolution in the field of innovation technology. Many companies have entered this field, making it one of the most competitive market segments. Samsung is the leading player in this industry, with products specifically designed to meet the customers needs.

The design of the product plays a pivotal role in determining whether or not customers may make the purchase of the product. When faced with similar products in the market, customers base their buying decision on the shape, colour, size, design, price, and the brand of a product. These features must be closely monitored by the marketing team of Samsung to help the firm remain competitive.

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