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Dimensión Empresarial

versión impresa ISSN 1692-8563

Dimens.empres. vol.15 no.2 Barranquilla jul./dic. 2017

https://doi.org/10.15665/rde.v15i2.1023 

Artículos

INNOVATION AND COMPETITIVENESS: ORGANIZATIONAL CULTURE AND BUSINESS MODEL*

INNOVACIÓN COMPETITIVIDAD: CULTURA ORGANIZACIONAL Y MODELO DE NEGOCIO

INOVAÇÃO E COMPETITIVIDADE: CULTURA ORGANIZACIONAL E MODELO DE NEGÓCIO

Sergio Andres Pulgarín-Molina1 

Natalia Alejandra Guerrero2 

1Doctor(c) Ciencias de la Dirección, profesor principal de carrera, Escuela de Negocios Universidad del Rosario. Correo: sergio.pulgarin@urosario.edu.co

2Asistente de Investigación, Escuela de Negocios Universidad del Rosario- Correo: nataliaa.guerrero@urosario.edu.co


ABSTRACT

This article has as its starting point a review of the literature on innovation and competitive advantage published in some of the most important Colombian Journals, given the strong relationship between these terms and the growing importance and interest that have been gaining in Latin American business and academia. As a search results and review of the state of art of the last 10 years, it can identify insights about the important role assigned to the Business Model (MN) and Organizational Culture (CO) concept. They stand out and are often identified as common elements in the implementation of innovation and development of competitive advantages in organizations that exposed to a dynamic of change seek to understand and adjust to pro-environment to ensure their permanence in the market.

Keywords: Innovation; competitive advantages; organizational culture; business model; processes; knowledge

RESUMEN

El presente artículo tiene como punto de partida la revisión de la literatura en innovación y ventaja competitiva publicada en algunos de los principales Journals en Colombia, teniendo en cuenta la fuerte relación entre estos términos y la creciente importancia e interés que han venido ganando en el ámbito empresarial y académico latinoamericano. Como resultado de la búsqueda y revisión del estado del arte de los últimos 10 años, se logra identificar el importante papel asignado a la noción de Modelo de Negocio (MN) y Cultura Organizacional (CO), los cuales se destacan y son frecuentemente señalados como elementos comunes en la implementación de innovación y el desarrollo de ventajas competitivas en organizaciones, que expuestas a una dinámica de cambio buscan entender y ajustarse a su entorno en pro de garantizar su permanencia en el mercado.

Palabras clave: Innovación; ventajas competitivas; cultura organizacional; modelo de negocio; procesos; conocimiento

RESUMO

Este artigo tem como ponto de partida uma revisão da literatura sobre inovação e vantagem competitiva publicada em alguns dos mais importantes periódicos colombianos, dada a forte relação entre estes termos ea crescente importância e interesse que vêm ganhando nos negócios e no meio acadêmico da América Latina. Como resultados de busca e revisão do estado da arte dos últimos 10 anos, pode identificar insights sobre o papel importante atribuído ao conceito de Modelo de Negócio (MN) e Conceito de Cultura Organizacional (CO), que se destacam e são frequentemente identificados como comuns Elementos na implementação de inovação e desenvolvimento de vantagens competitivas em organizações que se expõem a uma dinâmica de mudança buscam entender e ajustar a pro-ambiente para garantir sua permanência no mercado.

Palavras-chave: Inovação; vantagens competitivas; cultura organizacional; modelo de negócio; procesos; conhecimento

INTRODUCTION

In recent decades, organizations have been faced with a world in constant change and transformation which demands the development of entrepreneurial skills to ensure their adaptation to change and permanence in global markets (Bekmezc, 2013; Cantwell, 2006; Castellacci, 2008; M. Porter, 2001). By doing its review of literature, the interests of authors and institutions cite a number of skills and organizational practices aimed at adaptation and survival, where the importance is stressed that some authors have given the use and implementation is evident innovation given their impact on the development of sustainable competitive advantages (Afuah, 1999, 2009; M. Porter, 2001; Tushman & Anderson, 2004), which are based exploring opportunities not perceived by competition (Naranjo-Valencia, Jiménez, & Sanz-Valle, 2012).

Following a general review of the state of the art in innovation and competitive advantage, we must affirm the existence of many definitions given from academia looking to synthesize the concept and facilitate understanding by the reader. However, it is evident that the concepts presented may differ from each other as the focus of analysis and the relationship with the organization's characteristics. Despite the different existing definitions, several authors have tried to give a unique to the concept of innovation definition, proposing that it be understood as a process of incorporating an idea or a new behavior in the organization (Naranjo-Valencia & others, 2012). His relationship with the generation of competitive advantage is based on the ability of the company to which these innovative ideas are implemented addressing the immediate and actual market needs and become sustainable over time without being imitated by competitors (Dustin, Bharat & Jitendra, 2014).

Given the interest of industry and academia to understand the relationship between innovation and competitive advantage, authors and institutions have developed additional studies which seek to delve into the characteristics and factors that determine the success or failure after the implementation of innovation process (Christensen, 1997; Cozijnsen, Vrakking, & IJzerloo, 2000; Myers & Marquis, 1969) in companies and the subsequent achievement of competitive advantages (Mejía-Trejo & Sánchez-Gutiérrez, 2014). Because of these investigations, different elements have been identified within organizational dynamics, such as the development of new knowledge, generating a better working environment, more flexible organizational structure, consolidating an organizational culture and the model definition dynamic business; the latter two repetitive elements throughout the literature review.

This article presents a literature review of the innovation and competitive advantage topics published in some of the most important Colombian Journals, Followed, in section 3 and 4 as result of review, is discussed a certain tendency on researches to focusing on organizational culture (CO) and Business Model (MN) approaches showing both approaches, Finally, section 5 present some conclusions and some insights about reviewing process introducing possible ways to continue developing both fields.

REVIEW METHODOLOGY

This article retains an analytical character linked to the process of literature review (Chris, 2003) regarding in innovation and competitive advantage. Through the exploration of information in databases, search engines magazines and institutional repositories, search criteria associated with innovation and competitive advantage as pillars of systematic research contents defined. When making the request in the Integrated System searches of the Universidad del Rosario publications disciplines under the Economy, Trade and Administration were selected, which together threw 7,814 resources. With the aim of reducing the number of publications found it was determined as initial criteria, select those documents that related to innovation from a business context without limiting the geographical area or economic sector on which has carried out the study.

For purposes of carrying out this article and ensure that the revised information will be related to academia and industry, they considered documents published through journals in Business Administration and Business Management in Colombia leaving out the review information published on reports, books and newspaper articles. As innovation revised for decade’s subject where they have been clear progress and demonstrations about, finding information was like parameter selection documents published between 2005 and 2015 thus ensuring review of the state of art in a panorama according to current social reality.

Innovation as a pillar of research does necessary to clarify that the documents analysed from a technical and administrative nature in companies to expand the knowledge the application of innovations in products, services and processes considered; and the involvement of integrating innovation within the organizational structure.

Being aware of the volume of work that has emerged around the study of innovation, the terms competitiveness and competitive advantage as key to minimizing the volume of documents to review added. Once filtered information with the above parameters, 50 articles for the content of their information conform to the characteristics and needs of the review selected. By having items subject of study, a review of evaluating the context of the document contents, the problem or situation assessed, the objective of the realization of this document and the methodology used by the authors to be initiated prove his hypothesis or thesis about it, leading to the construction of reading cards that serve as a guide in the preparation of this work.

INNOVATION AND COMPETITIVE ADVANTAGE

Innovation

There are several definitions associated with the term "Innovation" which made by both authors as institutions in recent years, who departed to propose innovation as an activity strictly linked to technological developments, which are implemented in industries. However, with the passage of time has come to find that innovation within companies, regardless of the type of organization in which it is implemented, is not exclusive subject of technology issues (Pomar, 2012).

Innovation can be seen and understood as a process of commercialization of something new (Alegre, 2013; Carayannis, Samara, & Bakouros, 2015; Christensen, 1997; Drucker, 1985; Myers & Marquis, 1969), a process of integrating a new idea for the development of a product or service accepted in target markets (Escorsa & Valls, 2003; Gee, 1982; Maillard, 2014; OCDE, 2002; Padgett & Powell, 2012; Piatier, 1987), or the introduction of goods and production methods that lead to the development of a new organization (Cruz & Puente, 2012; Freeman, 1982; Kell & Lurie-Luke, 2015; O’Sullivan & Dooley, 2009). Although there is no single definition of innovation, it is necessary to clarify that the term can then be associated with products, services or processes where the "new" element is in most definitions found (Naranjo-Valencia & others, 2012). Given that this work frames the use of innovations in relation to different organizational factors which function as stimulus is taken as the basis for demonstrating the hypothesis the definition given by the OECD in the Oslo Manual (OECD & EUROSTAT, 2005) which it refers to innovation as:

"[...] The introduction of a new or significantly improved product (good or service), a process, a new marketing method or a new organizational method in the internal practices of the company, the organization of the place work or external relations [...] "(OECD & EUROSTAT, 2005: 146).

It is important to clarify the concept of innovation so that it is not confused with the invention process carried out within an organization. While both terms relate to the creation of a new idea, it is through innovation that this new idea is implemented and put into practice according to the level of knowledge, skills and resources available in the company to achieve to this end, while the invention only refers to the process of creating a new idea products, processes or business organization models. (Dereli, 2015) In making this distinction between innovation and invention, it is worth noting the work done by (Casadesus-Masanell & Zhu, 2013) about the classification of innovation, in which the identification of five different types of innovation is achieved catalogued given the object on which it is carried out the implementation of innovations: products, production methods, supply sources, markets and organizational structures.

In addition, when making a literature review differences found in the definitions for innovations which respond to the nature in which it is analysed, leading to the existence of two types of innovation are evident: A technical and other administrative (Naranjo-Valencia & others, 2012). Within technical innovation all activities carried out on products, services or production processes involving the implementation of a new idea for improving them, are grouped while in administrative innovation all changes made on contemplated organizational, administrative and management for holistic transformation of the organization structure.

Regardless of the type or classification of innovation which is spoken, academia and industry have pointed out that innovation is one of the key elements for companies to achieve the development of sustainable competitive advantages in the market, thus enabling be considered competitive companies (Bernal, Fracica, Salomón & González, 2012). Before this point is valid indicate that innovation is necessary but not sufficient for the survival and sustenance of an organization, considering that a company must not only be able to generate new ideas but it must know how to apply and achieve them generation an additional value to the organization (Horta, Silveira & Camacho, 2015)

It then through the use and implementation of innovation that a company can transform the way they carry out their activities, perceives in between needs and resources available in advance to competition (Pomar, Rangel & Franco, 2014). Innovative companies tend to be competitive to the extent that they develop a better ability to adapt to the environment, have a flexible character and improve its ability to exploit opportunities (Naranjo-Valencia & others, 2012).

Competitive advantage

A competitive advantage comes from the good performance that the company may develop depending on the use of resources and the potential for developing new skills (Porter, 1985), with which they manage to guarantee its permanence in the middle even though competition also carry out activities to maintain their status in the market (Horta & others, 2015).

The success of a company in the process of developing competitive advantage lies not only in generating value through valuable resources that are difficult to imitate and replace, but is linked to additional work carried out by the company to make the competitive advantages become sustainable over time (Alegre, 2013; McGrath, Tsai, Venkataraman & MacMillan, 1996). A competitive advantage is sustainable if the company manages to keep developments provided they comply with the condition inimitable and irreplaceable, supported by what some authors is innovation itself, to understand it as a sustainable competitive advantage for companies working in function to integrate something new I no longer used by the competition (Gálvez & García, 2012).

Once it understood what innovation identified in the framework of this work, and their involvement in the development of competitive advantages, it is important to mention the existence of different elements that can promote or retract the level of implementation of innovation in organizations. As mentioned above, we have chosen to analyse the relationship and the impact it manages to have the organizational culture and business model in the implementation of innovations that facilitate the development of competitive advantage in business.

Starting from the premise that innovation is not just a matter of technological developments, it decided to analyse the implication of the use of innovations within an organization considering that these are used in activities aimed at developing products and services and in restructuring strategies and tactics that guide the organization.

BUSINESS MODEL, INNOVATION AND COMPETITIVE ADVANTAGE

By doing a literature review found a number of definitions given to the term business model, where some authors propose different concepts which are intended to give the reader a greater understanding of the term, however it is common to find definitions in simple terms indicate a Model of business as an economic and conceptual notion that allows to know how a company works and generates revenue through the creation of a value proposition for the consumer (Chesbrough & Rosenbloom, 2002; Slávik & Bednár, 2014).

It is impossible to talk about a business model without having clear that this must include a value proposition for the customer for whom the company allocates resources and key processes ensuring income generation (Bekmezc, 2013; Chesbrough & Rosenbloom, 2002). The business model thus involves activities aimed at generating value for both the customer and the company, where further activities envisaged in relation to resources and transfer processes that value, which one could conclude that the Business model considers harmoniously all parties involved in the development of business of an organization.

For some authors the business model gives companies a roadmap to define the decisions which move in the market which are will part, this being the basis for building strategies and tactics towards generating value (Mejía-Trejo & Sánchez-Gutiérrez, 2014; Navarrete, Montoya & Montoya, 2009). Understanding that the value proposition due to the customer is the basis for building a business model, which includes the combination of resources and processes, it is important to mention that innovation at this point is given to the extent that the company manages to give the customer an offer differentiated value against its competition where the use of innovations is not only linked to the improvement of the marketing process for goods and services (Bekmezc, 2013).

The inclusion of the use of innovations in the process of building a business model allows companies to guide their map of activities in response to the dynamics of transformation and present in the market change, leading to develop an element of competitive advantage over companies that only guide the use of innovation to develop products and services which over time often imitated and replaced (Mejia and Sanchez, 2014). Additionally, a business model that contains within it the implementation and promotion of business innovations, enables the organization to reinvent itself with resources and own processes, mitigating the additional financial expense that could mean the acquisition of new resources to respond to needs of the environment.

Given that the organizations are part of a constantly changing environment, should not be foreign to any analysis capacity that companies should develop to respond to the dynamic transformation agile through exploration and recognition of new opportunities with which it can ensure the achievement of competitive advantages (Mejía-Trejo & Sánchez-Gutiérrez, 2014). The transformation of the environment and responsiveness that organizations develop to this involves an additional entrepreneurial ability to change the business model where the use of innovations gets great importance given the generated implications for new products and processes (Slávik Štefan & Bednár, 2014).

The inclusion of innovations in the business model has a major impact on the activities of the company considering that manages to go beyond the application of a new idea about a product or service, allowing to modify a series of activities around the building the value proposition to the customer, defining the distribution channels, customer segmentation, choice of key resources and customer relationship where the innovative impulse starts from the restructuring actions within the organization (Slávik Štefan & Bednár, 2014).

ORGANIZATIONAL CULTURE, INNOVATION AND COMPETITIVE ADVANTAGE

Organizational culture is understood as the set of behaviours, habits, values and beliefs that determine the way we think, feel and act in a group of people who share a common space, who through individual or joint experiences approve and promote acceptance what previously they defined as correct (Naranjo-Valencia & Calderón- Hernández, 2015). It is worth noting the importance given to the organizational culture as a determinant of employee behaviour, which allows companies to obtain an easier way collaboration of its employees for compliance aimed at competitiveness strategic objectives (González, Coliñanco, Caro & Romero, 2014)

Being aware of the relevance of culture in the development of organizations, several authors have identified as the key element which should include the management of innovation in enterprises, leading to the creation of a culture of innovation under which creativity, the development of new ideas and consequently the construction of new knowledge (Acosta, Longo-Somoza, & Fischer, 2013; Contreras, Gálvez, & González-Campo, 2012; García- Fernández, 2016; Pomar, 2012) is encouraged. After application of changes in the traditional organizational structure is expected that will result in the change in the behaviour of individuals to the company, generating innovations in treasury stock of human resource management (Madero & Barboza, 2015).

The ability to develop an organizational culture in which all employees follow parameters focused behaviour on innovation depends on the style of leadership that have managers and administrators of the organization, where both the initiative is valued as the commitment of employees to the development of new ideas that contribute to the fulfilment of the objectives set by the company (Gálvez & García, 2012; Wu & Lin, 2011).

As part of an organizational culture based on innovation employees they have support in the process of building new ideas while being aware that not every new idea triggers something good for the company, which does not mitigate their momentum as they have the assurance that the occurrence of an error or failure in the innovation process will not be punished or judged it is understood as part of the risk of innovation. The employee confidence lies in the motivation given by managers who understand that achieving competitive advantages can only be achieved through increased innovation (Dustin & others, 2014)

By linking organizational culture in managing innovation authors emphasize that is based on the will of the employees since there is no regulation whatsoever with which to fulfill specific aimed at developing competitive advantages activities requiring the use management approach or development of innovations. Being a principle based on volunteerism, it is key enterprises to ensure spaces for communication, motivation and creativity (González & others, 2014).

Understanding that the consolidation of an organizational culture of innovation facilitates the process of knowledge creation through the promotion of creativity and exploration of intellectual skills in employees, we must mention the importance that several authors have given generation, integration and dissemination of knowledge as a key asset in companies with which they reach the development of competitive advantages (Bernal & others, 2012).

Generating competitive advantages through innovative part of an organizational culture based on enterprise resource where it pays great attention to human resources as a source of sustainability and corporate profitability approach. From an analysis cascading it demonstrated that employees as a resource of the company, have a number of capabilities which can be managed and developed as a means of responding to the dynamics of this change in the environment, once the company achieves the management of these capabilities becomes a responsible entity for the generation, integration and distribution of knowledge (Vivas-López, 2013).

It is then through an innovative organizational culture that organizations achieve the empowerment of its human resources for the generation of knowledge within the company, which constitutes the raw material for obtaining competitive advantages that can be sustainable and inimitable in the market as long as it is a difficult complex specific knowledge and decipher competition (Alegre, 2013), in this sense possible to relate the inclusion and use of innovation in companies with activities aimed at creating new knowledge and learning that occurs around it.

In literature is that knowledge can be generated within the company through their own learning experiences which is then implemented for the development of advantages, however some authors claim that organizations achieve also boost their skills aimed competitiveness to the extent that manage to absorb and apply the knowledge generated by its competitors with the aim of delivering value to the market (Horta & others, 2015). Knowledge, as a result of the learning process within an organization, takes great importance and becomes defined as a fundamental element for the strategic development of companies seeking to improve their competitiveness and their ability to respond to a changing and increasingly globalized environment (Heitor, Horta, Castañon, Sbragia, & Jimenez, 2014; Murillo, 2009; Wolfe, 1994).

DISCUSSION AND CONCLUSIONS

Through literature review the strong relationship that both authors and organizations have shown that between innovation and competitive advantage is evident. The use and implementation of innovation in enterprises serves as a mechanism to respond to a dynamic environment where development of sustainable competitive advantages ensures survival and positioning the company in the market. It can show that innovation does not imply only the development of technologies, finding that its definition falls implementation, creation or development of "new" elements that have application on processes, products, methods, channels, and other characteristics of an organization features.

The analysis of the management of innovation through business model and organizational culture provides a holistic view of the company to see many variables that are involved and have an impact on the development of the company. Both the business model and organizational culture that have been built by implementing elements of innovation, enable companies to a total transformation of their processes, activities, relationships and business strategies.

An innovative business model allows all activities related to the business object of an organization, not only to achieve the creation of a value proposition for the end customer, but to ensure revenue generation for the company considering both the needs of market as investors, managers and administrators. The inclusion of innovation can increase the competitiveness of the company through reinvention and development of skills that is achieved meet consumer requirements without incurring additional costs. The success of an innovative business model is then in the reinvention of business and the minimum cost involved including innovations in the organization as a source of competitive advantage.

Organizational Culture as a mechanism to encourage and promote the development of innovative ideas in the company of a change in the relationship between employees and management thereof. Innovation applied to human relationships and work schedule within an organization allows for joint work for the development of sustainable competitive advantages, where success based on human resource management knowledge as a key element for business competitiveness. The inclusion of innovation in organizational culture allows companies, which through the development of knowledge strengthen its capacities to face an increasingly globalized environment and demanding where corporate survival linked to the development of competitive advantages.

With the analysis, we can conclude that indeed an innovative business model and innovative organizational culture allow the company to develop competitive advantages through the development and use of innovations within the organization. Both elements based on a total transformation of the company by understanding the relationship of each of the parties and their involvement in achieving business competitiveness.

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*Artículo de revisión de literatura, vinculado al proyecto “Hacia un modelo explicativo del proceso innovador en centros de emprendimiento universitario”, Universidad del Rosario, Bogotá, www.urosario.edu.co , grupo de investigación en Dirección y Gerencia de la Escuela de Administración, http://www.urosario.edu.co/Escuela-de-Administracion/Inicio/.

CITATION: Pulgarín-Molina, Sergio A. & Natalia A. Guerrero (2017). Innovation and competitiveness: organizational culture and business model. Dimensión Empresarial, 15(1 ESP), 15-25. DOI: http://dx.doi.org/10.15665/rde.v15i2.1023 JEL: O31, O32, M14

Received: November 12, 2016; Accepted: February 02, 2017

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