Premium
Dynamic contexts for innovation strategy: Utilizing customer knowledge
Author(s) -
Reinmoeller Patrick
Publication year - 2002
Publication title -
academic review
Language(s) - English
Resource type - Journals
eISSN - 1948-7177
pISSN - 1554-1142
DOI - 10.1111/j.1948-7177.2002.tb00010.x
Subject(s) - exploit , knowledge management , key (lock) , dynamic capabilities , business , dynamics (music) , computer science , process management , sociology , pedagogy , computer security
Knowledge and knowledge processes are fundamental for innovation. Innovation strategies have to use the complex and rapidly evolving environment. Planning with static contexts risks locking companies into past experiences and established practices—that is, existing technologies, products, and routines. Augmenting the dynamics of contexts is a key to creating new knowledge. This paper develops a framework for creating and utilizing dynamic contexts for design and innovation management. Five dimensions of dynamic contexts are illustrated: processes, people, relationships, technology, and leadership. Utilizing the dynamics enables companies to co‐create with markets—that is, create, shape, sustain, and exploit synchronic and diachronic knowledge processes for innovation. Two case studies of Seven‐Eleven and Muji illustrate how two internationally operating Japanese retailers implement innovation and design strategies through interaction with markets. The differences and family resemblance of the cases are analyzed. Conclusions and implications show how the business model of designing with markets can be adapted to individual companies.