Firm's typology and strategic innovation among Chinese cosmetic industry - a strategic transformation tool

Strategic transformation occurs via innovative technologies. This paper presents the challenges faced by the Chinese cosmetics industry in achieving strategic transformation by exploring how firms innovate strategically to compete based on their typology. The constituents of strategic innovation were analysed by 19 types of strategic innovation. Miles and Snow business–level strategy typology was extended to analyse the choices among defenders, analysers, and prospectors. MANOVA was used to analyse data. Results indicated that different types of firms focus on different types of strategic innovations. Prospectors focus on strategic innovation that improves new market creation, defenders on the improvement of product and service value, and analysers on competitive disruption. This research improves the understanding of strategic innovation in the Chinese cosmetics industry based on the typology of firms as a tool of strategic transformation.

[1]  E. Nijssen,et al.  Exploring product and service innovation similarities and differences , 2006 .

[2]  Rogelio Oliva,et al.  Managing the transition from products to services , 2003, International Journal of Service Industry Management.

[3]  E. Segev.  A systematic comparative analysis and synthesis of two business-level strategic typologies , 1989 .

[4]  J. B. Quinn,et al.  Strategic Change: "Logical Incrementalism.". , 1978 .

[5]  A. Tukker.  Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet , 2004 .

[6]  Vikram Nanda,et al.  Client Discretion, Switching Costs, and Financial Innovation , 2000 .

[7]  Mei-Ping Huang,et al.  The Strategic Transformation of Automobile Industry in China , 2012 .

[8]  J. Holbrook,et al.  Innovation and the Management of Human Resources , 2000 .

[9]  C. Markides.  Strategic Innovation in Established Companies , 1998 .

[10]  Jay R. Galbraith,et al.  The problem of solutions: Balancing clients and capabilities , 2002 .

[11]  V. Pucik,et al.  Relationship between innovativeness, quality, growth, profitability, and market value , 2005 .

[12]  S. Zahra,et al.  Middle managers' perception of the internal environment for corporate entrepreneurship: assessing a measurement scale , 2002 .

[13]  D. Dougherty.  Interpretive Barriers to Successful Product Innovation in Large Firms , 1992 .

[14]  S. Jayashree,et al.  Ideal Types of Strategic Innovation An Exploratory Study of Chinese Cosmetic Industry , 2012 .

[15]  G. Hamel.  Strategy Innovation and the Quest for Value , 1998 .

[16]  R. Johnston.  The determinants of service quality: satisfiers and dissatisfiers , 1995 .

[17]  S. Shortell,et al.  Perceptual and archival measures of Miles and Snow's strategic types: a comprehensive assessment of reliability and validity. , 1990, Academy of Management journal. Academy of Management.

[18]  Wen-Hong Chiu,et al.  Applying cluster analysis to build a patient-centric healthcare service strategy for elderly patients , 2009, Int. J. Technol. Manag..

[19]  J. Hair.  Multivariate data analysis , 1972 .

[20]  Philip Cooke,et al.  The new wave of regional innovation networks: Analysis, characteristics and strategy , 1996 .

[21]  W. Kim,et al.  Creating new market space. , 1999, Harvard business review.

[22]  Veronica Martinez,et al.  Challenges in transforming manufacturing organisations into product‐service providers , 2010 .

[23]  Peter F. Drucker.  The Theory of the Business , 2017 .

[24]  Haiyang Li,et al.  Product Innovation Strategy and the Performance of New Technology Ventures in China , 2001 .

[25]  S. Jackson.  Channel innovation for the rest of us , 2010 .

[26]  Michael J. C. Martin.  Managing technological innovation and entrepreneurship , 1984 .

[27]  Andrew Davies,et al.  Integrated Solutions: the Changing Business of Systems Integration , 2003 .

[28]  M. Mohamed.  Innovation implementations in Malaysian firms: Process, problems, critical success factors and working climate , 1995 .

[29]  Bruce Boardman,et al.  Middle managers , 2003 .

[30]  R. P. McDonald,et al.  Goodness-of-fit indexes in confirmatory factor analysis : The effect of sample size , 1988 .

[31]  S. Albers,et al.  Crisis Construction and Organizational Learning: Capability Building in Catching-Up at Hyundai Motor , 1998 .

[32]  G. Stockport,et al.  Developing skills in strategic transformation , 2000 .

[33]  Yan Feng-qi.  Some Considerations about Enterprise's Core Competitive Power , 2004 .

[34]  Sameer Kumar,et al.  Comparative innovative business strategies of major players in cosmetic industry , 2006, Ind. Manag. Data Syst..

[35]  R. Gehani.  Innovative Strategic Leader Transforming From a Low-Cost Strategy to Product Differentiation Strategy , 2013 .

[36]  Robert E. Hoskisson,et al.  Strategic Management: Competitiveness and Globalization , 1994 .

[37]  Walter J. Ferrier,et al.  Enhancing Performance with Product-Market Innovation: The Influence of the Top Management Team , 2002 .

[38]  M. Morris,et al.  Innovation Communication in Multicultural Networks: Deficits in Inter-Cultural Capability and Affect-Based Trust as Barriers to New Idea Sharing in Inter-Cultural Relationships , 2009 .

[39]  Tim Kotnour,et al.  Strategic management of a transformation in a multi-program technology program involving convergence and divergence of programs: observations from NASA , 2011, Int. J. Technol. Manag..

[40]  L. J. Bourgeois,et al.  Strategy and Environment: A Conceptual Integration , 1980 .

[41]  D. A. Parker.  Material innovation and its impact on the development of components for reciprocating engines , 2014 .

[42]  Christopher A. Voss,et al.  Alternative paradigms for manufacturing strategy , 1995 .

[43]  Gaylen N. Chandler,et al.  Unraveling the Determinants and Consequences of an Innovation-Supportive Organizational Culture , 2000 .

[44]  W. Danis,et al.  Business Strategy Types and Innovative Practices , 2006 .