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What does
product innovation mean to you?
Much has been written and said about triggers of product innovation. Often changes in technologies demand, or regulatory rules trigger, the development of new products. But how exactly do these changes lead to innovation? As so often, the answer is simple but multidimensional.
THE
answer is centred on the mind of companies’ leaders. The agenda of top managers in the same industry very often looks relatively similar. For much of the time the same strategic issues, issues of great importance for the companies, are on that agenda. While the issues that receive top managers’ attention might be similar, companies’ responses to the issues at hand vary to a large extent. In the early 2000s, for example, many German automobile supplier companies were confronted with similar issues: new customers’ requests, new safety regulations, and the aftermath of a recent recession in Europe and the US, two key markets for the automobile industry. Responding to these issues, many automobile supplier companies introduced new products to the
6 8 Qatar Today
MARCH 2013
market. Yet my research has shown that this is the point where the similarity stops. Reacting upon the same issue, the novelty of the products developed differed tremendously. Some firms came up with the most novel products while other firms just slightly changed their existing products. How can we explain these differences? As expressed, the mind of top managers and their cognitive processes are essential for explaining the differences in innovativeness of new products. In a more general discussion, people will easily agree that not everyone shares the same view of the world. But it is exactly this simple thought that helps address the questions raised. Facing the same strategic issue, top managers of different firms will evaluate the issue dif-