The innovation Domain: A new organizational entity to enhance breakthrough innovation at a first tier supplier

Sihem Ben Mahmoud-Jouini, Florence Charue-Duboc and François Fourcade
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Sihem Ben Mahmoud-Jouini: CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique
Florence Charue-Duboc: CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique

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Abstract: Innovation management among first-tier suppliers in the automotive industry has become more important and more difficult. Manufacturers expect them to take the initiative and offer innovative solutions. But in the same time, introducing innovations in new vehicles has become more difficult in development processes with shorter timeframes. Several research work have also highlighted obstacles to innovation in large firms. Our contribution is based on the analysis of an organizational entity structured by a first-tier supplier in an effort to promote its growth through innovation. We formulate the challenge facing the first tier suppliers in terms of the traditional opposition between incremental innovation and radical innovation and component innovation versus architectural innovation. We discuss the concept of ambidextrous organization, (Duncan 1976, Tushman & O'Reilly 1997) that stresses the importance of developing separate structures so that these various innovations can coexist. We further characterize the ambidextrous organizational model, in focusing on how integration between these separate entity is managed. Our thesis is that this integration takes place at the level of cross-division processes which are of high strategic importance and in which managers of units dedicated at breakthrough innovation play a key role.

Keywords: Domain; organizational entity; breakthrough; innovation; first tier supplier (search for similar items in EconPapers)
Date: 2006-06-06
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Published in Proceedings, Research Conference de l'IMVP, MIT, Jun 2006, Boston, United States

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00663035

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