Innovation, Globalization, and Development: Detailed Literature Review

This literature review delves into the crucial roles of innovation, globalization, and development in business, emphasizing their interconnectedness and impact on organizational success. It examines how innovation drives competitive advantage through the creation of new products, services, and technologies, while globalization facilitates market expansion and international business. The review explores the benefits and challenges associated with these forces, including the creation of new opportunities and the management of associated risks. It discusses the impact of innovation, globalization and development on economic growth, technological advancements, and cultural exchange, offering insights into the strategies companies use to navigate the evolving global landscape. The paper also highlights the importance of innovation in adapting to changing market conditions and securing a firm's long-term mission and vision. The review covers various perspectives from different researchers and explores how innovation can be fostered through various stages, from idea generation to commercialization and implementation. It also addresses the role of management in promoting an innovative culture within an organization and the different types of innovation, including technical, administrative, and process innovations. The literature review emphasizes the reciprocal relationship between these concepts and their combined effect on living standards. It concludes by suggesting the importance of understanding the dynamics of globalization, innovation and development in order to achieve sustainable success.

Running head: Innovation, Globalization and Development
Innovation, Globalization and Development

Innovation, Globalization and Development
(Literature review: Innovation, globalization and development)
The paper talks about the innovation, globalization, and development. It explains that
how innovation and development are becoming the significant part of the business in the world.
If the company wants to gain achieve long-term mission and vision of the firm across the world
then it needs to develop and build innovative technologies and products around the world.
Through innovation, development, and globalization, the company can gain the competitive
advantages in the market across the world. The firm can easily expand and flourish its business
at international level.
Innovation, globalization, and development play a crucial and vital role in every
organization to start a new business across the world. Innovation is the process of converting an
idea or thought into a good or services which creates worth and value for the customers.
Innovation helps to generate new strategies and methods for joint venture within the
organization. Through innovation, the firm creates new technologies and products in the market.
Further, globalization brings risks and opportunities for the local company in emerging and
talented market economies to improve and innovate their competitive position. After the various
researchers, it has been analyzed by the West & Bogers (2014) that globalization is an active and
cognizant process to expand and flourish business in different countries across the world. The
main aim of the globalization is to secure socio-economic combination and development of the
world through a free flow of products, services, knowledge, and experience across the world. It
is the concept of securing real political, socio-economic and cultural conversion of the earth into
a real universal community. Hsu, Tian, and Xu (2014) said that globalization is a process of
integration and interaction among the organizations, people, and governments of different
countries across the world. This process affects the environment, political system, culture and
economic development. It also ensures the sustainable development of all individuals around the
world. In addition, development is the process of systematic use of technical and scientific
information and knowledge in order to meet the long-term goals and objectives of the firm.
Further, it is the process of socio-economic conversion which is based on complex
environmental and cultural factors and their interface within the organization (Schneider and
Spieth, 2013).
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Innovation, Globalization and Development
Further, globalization is the output of advances in information technologies,
transportation, and communication. It defines the growing economic, cultural, political and
technological linkages which connect communities, governments, individuals, and businesses
across the world. It has led to a variety of chances for different persons from different countries
(Asongu, 2014). In addition, it refers to a criterion where regions and countries across the world
become interdependent and interconnected for meeting their requirements, needs, and
expectations within the organization. It helps to enhance the experience and knowledge of the
people across the world (McMichael, 2013). A merchant can collect most important information
about a variety of products in different nations. Due to globalization, a political player can
collect a variety of useful information and knowledge of the individuals and governments across
the world. It provides a contribution in improving and enhancing international relations among
different countries. Children can study anywhere across the world. People can connect through
internet technology and android mobile phones (West & Bogers, 2014). It also helps to resolve
the various social issues like dowry and child labor. It includes the flow of ideas, thoughts,
practices and innovative technologies and social relations with significant impacting on the
cultural, economic, political and social dimensions of countries and its people across the world
(Darling, 2013). Further, it is the powerful political, economic, social and cultural dimensions. It
is not a new concept but it plays a significant role in today’s era. Fujita & Thisse (2013) said
that globalization is the primary center on the combination of technology, goods, services, labor,
and finance. Greater integration and combination has had several effects on the production in the
regional economy across the world (Fujita & Thisse, 2013).
It has been analyzed by the Sifianou (2013) that globalization allows poor countries and their
people to develop and build the economy and increase their standards of living in the world. The
citizens of the countries must understand that how globalization works across the countries.
Potrafke (2013) has defined the goals and objectives of the globalization which have been
discussed below.
 To stimulate and encourage competition in the home market in order to minimize the
production cost of the farmers. In this way, they can gain competitive position in the
global market (Garriga, Von Krogh, and Spaeth, 2013).
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Innovation, Globalization and Development
 It helps to increase the exports and maintains a balance of payments by reducing costs
and free access to import of stocks, capital goods, and raw material.
 It boosts and increases the foreign direct investment across the world. The foreign
technology will support in gross domestic products and it will also help to raise the
standard of living. It also provides some other benefits to the people. These are the key
goals and objectives of the globalization (Fujita & Thisse, 2013).
It plays a vital role in migration and immigration of the people in different countries across
the world. It is considered as theory and process in order to meet the long-term goals and
objectives of the companies across the world (Kozauer and Katz, 2013). The globalization
theories focus on the nations and societies around the world. Education also plays a vital role in
globalization. Crane & Matten (2016) said that globalization brings various opportunities to
increase and enhance the prosperity and it ensures the better job opportunities around the world.
It provides a wide range of products and services at lower prices in different countries across the
world. Through globalization, higher productivity and efficiency can be achieved by the people.
It also provides procurement and outsourcing in the nation and it provides some natural
advantages in the country (Jaumotte, Lall and Papageorgiou, 2013).
Further, globalization encompasses some disadvantages also. It includes that globalization
ruin the environment while moving from one location to another wastes oil etc. Further, it leads
hyper-specialization but it becomes negative sometimes. It increases various communicable
diseases and companies face greater competition in the market across the world. Further,
developing countries can suppress the development and growth of the under-developed and
undeveloped countries across the world (Amin, 2014). It also affects the culture of the different
regions around the world. The balance of payment and other deficit are faced by the companies
due to globalization. It decreases the employment growth rates in the market. Inequality and
unequal distribution of income are the major problems in the company which is faced by the
organization due to globalization. It also affects the career, living standards of the communities
and families in the world. It affects the environment and economy of the country negatively.
Further, the principle of globalization is becoming much harder in many companies thus it
affects the business activities and operation of the country (Staeheli, 2016).
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Innovation, Globalization and Development
It has been studied by the Ebenstein, Harrison, McMillan, and Phillips (2014) that
innovation is the process by which creative and imaginative inspirations lead to actual outcomes
and results. Stromquist and Monkman (2014) explain that innovation is the process of getting
new ideas and converting them into actions and results. Overall, innovation provides solutions
for various problems and key challenges that are faced by the organization across the world. It is
the course of converting new and fresh ideas into results and outcomes. It is used in a broad
manner across the world. In addition, innovation is the process of improving and increasing the
performance of the organization and employees as well. The level of performance can be
achieved through innovation and development. Ranga & Etzkowitz (2013) said that innovation is
the course of action which involve many activities performed by the various leaders, players, and
organizations. The scope of innovation is much wider. It focuses on the development and growth
within the organization. It involves creativity and imagination. Innovation helps to an
organization to develop and implement new and innovative technologies in order to meet the
mission and vision of the organization. It plays a vital and significant role in every organization o
expand and flourish its business at international level. Further, innovation is the collective
process by which the companies abandon and discard the old theories and paradigms and gain
some advantages from new technologies and innovation. Innovative ideas and thoughts come
from the various sources including goals, objectives, unreasonable demands and time pressures.
Innovative ideas and thoughts help to gain the competitive advantages of the world (Garriga,
Von Krogh, and Spaeth, 2013).
The innovation process may be defined by the Kozauer and Katz (2013) to gain the long-
term goals and objectives within the organization. The stages of innovation process have been
discussed below.
Idea generation and mobilization: Idea generation is the important process of the innovation. In
this stage, new idea and thought are generated by the people as well as the company. Further, it
can improve in existing ideas and thoughts also.
Advocacy and screening: After generating an idea, the company evaluates and analyzes the ideas
and thoughts. Through screening and advocacy, the company measures and evaluates the new
ideas and thoughts across the world. Advocacy and innovation is the biggest advantage for the
firm (Kozauer and Katz, 2013).
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Innovation, Globalization and Development
Experimentation: The experimentation is the further stage of innovation. Through
experimentation, the company and people test and check the ideas and thoughts to gain the long-
term goals and objectives of the firm (Garriga, Von Krogh, and Spaeth, 2013). It evaluates and
analyzes an idea and thoughts to fulfill the needs and requirements of the company. People
gather information about the results and outcomes in order to determine the long-term goals and
objectives of the company (Gagnier et al, 2013).
Commercialization: The main aim of the commercialization is to create market value for an idea
and thought by monitoring on its potential and competent impact. It is the stage of the innovation
and modernization process to meet the long-term mission and vision of the company (Serenko
and Bontis, 2017).
Diffusion and implementation: It is the final stage of innovation process which influences the
business activities and operation effectively. In this stage, the company implements new ideas
and thoughts to gain the long-term advantages within the organization across the world. All
these stages play a vital role to implement a new plan and idea in the company.
Managers and top management play a vital and significant role to meet the challenges
and issues of the innovation. In this way, innovation is essential in every business in order to
meet the needs and requirements of the customers. Frankenberger, Weiblen, Csik & Gassmann
(2013) said that in innovation, managers and top management needs to pay attention to operate
and manage the innovation projects in the company. Managers should keep an eye on their
innovation projects work. They should clear that how the ideas and thoughts are evaluated and
selected by the organization. In this way, managers and top management can help to establish
and manage the culture of an innovation. A supportive and open environment lead to
organizational growth and success across the world. Innovative culture plays a significant role in
every organization to determine the success and growth of the company. It helps to increase the
expectations and choices of the customers within the organization. It maximizes the connectivity
of the globalization in the world. Further, it helps to establish the best method for the
organization business and it helps to generate competitive advantages in the market. Alegre,
Sengupta, and Lapiedra (2013) said that there are various types of innovation which include
technical, administrative and process. Through innovation, the company implements and
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Innovation, Globalization and Development
develops new technology to improve the existing process and technology (Frankenberger,
Weiblen, Csik & Gassmann, 2013).
There is a reciprocal relationship between innovation, globalization, and development.
Competition is supposed to encourage innovation and development. Living standards of people
are rising due to the innovation and development within the organization. In today’s era,
innovative performance is a significant factor to determine the national and competitiveness
progress and growth in the market. However, innovation is very important to reduce the global
key challenges and issues such as sustainable development and climate changes. Further, the
significance of innovation and development has been reinforced by the innovative and new
technologies and globalization (Garriga, Von Krogh, and Spaeth, 2013). It will also help to
develop and deliver the new products and services across the world. Further, globalization is
becoming the major trends in the universal economy across the world. There are various factors
affect globalization and development such as technologies, historical, resources, markets,
economy, and industrial organization. These factors affect the globalization and development in
emerging market. Globalization is the universal interaction and effort of the private sector as
well as public sector towards digital, financial, economic and digital which makes easy the
transfer of people, and cross-border movement across the world. In addition, the rise of the
transnational corporations is a predetermined process (Richey and Klein, 2014). As a result,
TNC,s has become a main important force of economic growth and development. The countries
can use significant tools and strategies to monitor and evaluate the transnational corporations to
implement the effective and unique national policies and strategies in order to improve the living
standards of people (Gallego, 2014). It will also protect the environment across the world.
Further, innovation is also an important tool to determine the success and growth of the company
across the world. The company cannot run the business effectively and efficiently without
innovative technology and development. In addition, the development also plays a crucial role in
every organization in order to determine the long-term sustainability in the world. After the
various researchers, it has been studied by the Ernst, Hoyer, and Rübsaamen (2013) that
innovation, development, and globalization are the important part of the every company to attain
the progress and success the across the world.
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Innovation, Globalization and Development
On the above discussion, it has been analyzed that globalization is considered as a
multifactorial phenomenon. It helps to increase the business across the world. Further, the paper
focuses on the innovation and development. Innovation is important at all stages of the
development. It ensures the new technologies and development in order to gain the economic
growth and success across the world. It also ensures the welfare of the people across all the
economies in the country. In today’s era innovations and development has become the most
important attributes of the economy around the world. Various innovation technologies are
adopted by the companies in order to ensure the sustainability and success of the company. In
addition, many companies take help of the various external experts to identify and implement the
changes in the organization. Further, the organization needs to focus on the various strategies and
policies to reduce the negative impact of globalization around the world. The globalization,
innovation, and development are interconnected with each other. Through innovation and
development, many companies can evaluate and determine the growth and success strategies of
the organization.
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