A Dynamic Innovation Model for Managing Capabilities of Continuous Innovation

Businesses today, under the pressure of fierce market competition, demanding customers, and the advance of technology are required to have the capability to continuously apply new methods and ideas in improving products, internal processes, technologies, and operations in satisfying current and future customers. To be able to capture and construct business opportunities and implement innovative plans, organizations need to dynamically align operational effectiveness with strategic flexibility. This involves a variety of capabilities for organizations to be able to sustain their competitiveness. The primary objective of this study is to investigate the required capabilities for continuous innovation through analysis of the existing literature and examination of empirical cases. A dynamic innovation model (DIM) is proposed with an expectation of accelerating enterprise capabilities in building continuous innovation into the dynamic business environment. The DIM combines the concept of entrepreneurship and resource management and highlights the importance of co-evolving relationships among these capabilities. Findings of a comparison analysis of the DIM for two PC manufacturers, DigiCom and GigaCom, illustrate how the business leaders combined foresight and insight with cyclical processes of resource integration, learning, and transformation in delivering innovations continuously. We argue that DIM offers an interesting and useful analytical framework for the explanation and management of business capabilities for continuous innovation.