ESSAY: ASSESSMENT 1
Introduction
Innovation is the most important factor that can help in not only enhancing the efficiency level but also saving time. As per the statement of Robinson and Ginder (2020), innovation can result in enhancing the performance level and effectiveness of the working system, hence gaining a competitive edge quite effectively.
Explanation of the fundamentalism of innovation with respect to start-ups and businesses in competitive business markets
As far as start-up businesses are concerned, innovative and creative ideas have to play a very crucial role in making the same achieve its success. In the opinion of Chesbrough (2019), innovative and creative approaches in start-up businesses can certainly prove to be effective in terms of increasing the overall efficiency to a great extent. In this context, the management of the business organisations is always able to analyse the possible risks and threats in an efficient way and frame proper solutions for the same. On the contrary, the arguments of Spieth et al. (2021) state that innovative approaches in business can also help in proper time management, hence being able to maintain the deadlines quite effectively. In other words, it can also be stated that innovation within the working system can increase the skills of time management among the team members by a significant margin. Hence, it can also be stated that the productivity of a start-up business is highly dependent on the innovative and creative approaches initiated by the entrepreneur. Therefore, it can also be stated that innovation and creativity can play a crucial role in gaining a competitive edge in the concerned market.
Application of theories
Across several industries, innovation theory is used to drive business progress towards an efficiency centred future (Brand and Blok, 2019). SMEs often used these theories to imply innovation with the intention of gaining a competitive advantage within their respective industry.
According to Christensen et al. (2018), Disruptive innovation refers to the innovative implementation process practised by smaller or relatively new companies. Within this theory utilisation companies with fewer resources and finance can enter their respective market in the bottom position and then move upwards. The intention behind this sustaining approach is to challenge the market leaders and disrupt their market share or establishment. Netflix has implied disruptive innovation by introducing a new content perspective, HD quality, TV shows, and cheap prices (linkedin.com, 2021).
As stated by Min et al. (2019), Diffusion Innovation theory is vital in the contemporary business environment, as it can help in engaging the global population. These practices are based on the speed or frequency of the product or service spread within the population. It is also privy to incorporate with "Technology Acceptance Model (TAM)". This theory is also useful for identifying the innovation characteristics, and their specific impacts. Effective HIV treatment is an example of diffusion innovation (Krakow, 2016). In a global context, the treatment is diffused within years of trial as antiretroviral treatment (ART) by several pharmaceutical companies.
Importance of innovation in business in determining its success and failure
Innovation in business has an extremely crucial role to play in determining the success and failure of the same in the competitive market. In the words of Kuncoro and Suriani (2018), innovative thinking skills can make an entrepreneur able to find ways of gaining a competitive advantage and drive the market quite effectively. Hence, taking the importance of this particular statement, it can also be mentioned that for a start-up business, innovation can be the driving force in securing an advantageous position in the market. On the other hand, it is also observed that in terms of analysing the risks and framing mitigation steps, innovation has played a crucial role. As per the arguments of Ge et al. (2018), innovation and creativity prove to be quite effective in determining conclusive ways of addressing the risks and threats in business. Therefore, it can also be noticed that innovative and creative ideas can help in developing the skills of problem-solving which further results in enhancing the efficiency level to a great extent. In that case, gaining a competitive edge over rival companies and building a strong brand image among the customers can get quite easier for the start-up business.
Conclusion
It can be concluded from the above discussion that innovation has a very important part in determining the success and failure of a start-up business. It is also observed that proper application of diffusion and disruptive theories of innovation can also help a start-up business to grow on a consistent basis and gain a competitive edge over the competitors in the concerned market.
Reference List
Brand, T. and Blok, V., 2019. Responsible innovation in business: A critical reflection on deliberative engagement as a central governance mechanism. Journal of responsible innovation, 6(1), pp.4-24.
Chesbrough, H., 2019. Open innovation results: Going beyond the hype and getting down to business. Oxford University Press.
Christensen, C.M., McDonald, R., Altman, E.J. and Palmer, J.E., 2018. Disruptive innovation: An intellectual history and directions for future research. Journal of Management Studies, 55(7), pp.1043-1078.
Ge, B., Yang, Y., Jiang, D., Gao, Y., Du, X. and Zhou, T., 2018. An empirical study on green innovation strategy and sustainable competitive advantages: Path and boundary. Sustainability, 10(10), p.3631.
Krakow, S.D. et al. 2016. Diffusion of Newer HIV Prevention Innovations: Variable Practices of Frontline Infectious Diseases Physicians [Online] Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4678105/ [Accessed 7 March 2022]
Kuncoro, W. and Suriani, W.O., 2018. Achieving sustainable competitive advantage through product innovation and market driving. Asia pacific management review, 23(3), pp.186-192.
linkedin.com, 2021, Netflix Disruptive Innovation [Online] Available at: https://www.linkedin.com/pulse/netflix-disruptive-innovation-mohamed-ebeid/ [Accessed 7 March 2022]
Min, S., So, K.K.F. and Jeong, M., 2019. Consumer adoption of the Uber mobile application: Insights from diffusion of innovation theory and technology acceptance model. Journal of Travel & Tourism Marketing, 36(7), pp.770-783.
Robinson, C.J. and Ginder, A.P., 2020. Implementing TPM: The North American Experience. Productivity press.
Spieth, P., Laudien, S.M. and Meissner, S., 2021. Business model innovation in strategic alliances: a multi?layer perspective. R&D Management, 51(1), pp.24-39.
