Innovation and Enterprise: Factors Leading to Success/Failure - Essay

This essay delves into the concept of innovation, highlighting its evolving nature and the influence of diffusion theory. It explores various factors crucial for the success and failure of innovation within organizations. The essay discusses the importance of an innovative organizational culture, supportive policies, effective change management, and employee collaboration. Using Spotify as a case study, it demonstrates how these factors contribute to business innovation and success. The analysis emphasizes the significance of understanding these elements to foster innovation and achieve sustainable growth in a competitive market.

ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Nature of innovation and factors leads to innovative success and failure...................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation refers to a process that lead to the evolution of new perspective so that both
the company and the associated customer can have an approach to new product or service. Along
with passage of time the nature and the process of innovation changes. This essay will discuss
the concept of innovation and its nature with the involvement of diffusion theory. Various factors
that are related with the success and failure of innovation are also being highlighted in this essay.
MAIN BODY
Nature of innovation and factors leads to innovative success and failure
Innovation refers to a process that make the emergence of new idea or the product. It
means it is the process wherein the ideas are converted into real product or the services (Kahn,
2018). This process works in the direction of creating value for its customers. It is an important
concept and act as a base for the entrepreneurs or the start-ups along with for the running
enterprises too. Since market is highly competitive so in order to sustain in such high
competition it is important that the company must be innovative and focus over the production of
new product so that it can meet the needs of its customers (Meissner, Polt and Vonortas, 2017).
Likewise, in order to have establishment of new business it is essential that the idea of the
business is innovative and creative so that it can attract the customers towards it.
Along with the passage of time the process and nature of innovation also changed. This
means that in the initial time innovation is highly focussed towards technology or the
technological change. This means that the focus is being lied over the up-gradation and
introduction of the new technology. But along with the changing trends the nature and the
process of innovation also got evolved. This includes broadening the scope of innovation. Now
the innovation is not only limited up-to the technological change but its nature has changed
(Edwards-Schachter, 2018). This includes the inculcation of the concept of change and
invention. This means that now the innovation is having more focus towards the invention of
new products or the services. It is acting as a linking and key pin in assisting the companies to
meet the changing environment and the raising competition.
This can also be understood with the concept of diffusion theory. This theory explains
that how with the period of time the idea or the change get momentum and finally it is being

accepted and adopted by the people. As per this theory the end result of any change or the
innovation is the acceptance of the people regarding the product or the idea (Benhabib, Perla and
Tonetti, 2017). As per this theory there are five stages of adaptation. As per its first stage of this
theory that includes innovators there is no requirement of any special understanding. This is
because this stage is ready to take risk, and they are welcoming towards the change. In case of
second stage of early adopters, appeal regarding how to do manual or execution is required.
Since this stage is well aware of the changes, so they are ready to adopt changes (Diffusion of
Innovation Theory, 2019). In case of third stage that includes early majority concentration
towards raising importance of innovation in terms of defining the success stories are involved.
This stage are also an adopter of change but only with adequate evidences. Late majority is the
next stage which is not easily ready to accept change, but they can in case of adoption by
majority of population. The last stage includes laggards. This stage is strictly against change
because of their traditions and conservatives. Thus, in order to implement changes it is essential
to have an understanding about this five stages of diffusion model by the companies.
However, in case of organization there are various factors that are responsible for the
success or failure of innovative changes. This means that if the culture of the organization is not
innovative or supporter of innovation then no organization can implement innovation into their
workplace. Organizational policies also plays an important role in the success or the failure of
the innovation. As training is the base of brining innovation and if the organization has no
adequate focus or policy towards the training then it will lead to the failure of the innovation.
Likewise, if due to low morale and motivation of the employees the innovation in the
organization may fail (Rallet and Torre, 2017). Change management is also an important factor
that is responsible for the success or the failure of the innovation. As if the perspective of the
company is not a supporter of the change management concept, and they are not readily
accepting changes then it would become very difficult for the company to implement change or
the innovation in the business operation. No process will be succeeded if there is no co-
ordination or collaboration among employees regarding the changes and the innovation. This
means that it is very essential that the employees of the organization must be a supporter of the
innovation and the changes.
Thus, by having a consideration towards these factors every company including Soptify
adopts and bring innovation in its working operation that change the whole concept of songs.

Through the involvement of innovation in its business it gives a new perspective to population
that they can have a better access and quality with new approach of songs. Spotify with the
involvement of innovative technique allows the customer to have access of their favourite songs
within their mobile through its mobile application. It has changed the entire mode of music
industry whereby radio and televisions are used to listen the songs. But with an adequate
consideration towards the above factors of innovation and diffusion, Spotify become of the most
successful and demanded company of the music world. Thus, it is counted under the true
example of success of innovation.
CONCLUSION
From the above essay it is concluded that the innovation is one of the leading concept of
the business world. It makes the companies to beet the market competition along with meeting
the needs of its customers. Innovation is the key of success for the business organization if it has
dual consideration towards the factor related with the execution of innovation in the business
operation.

REFERENCES
Books and journals
Benhabib, J., Perla, J. and Tonetti, C., 2017. Reconciling models of diffusion and innovation: A
theory of the productivity distribution and technology frontier (No. w23095). National
Bureau of Economic Research.
Edwards-Schachter, M., 2018. The nature and variety of innovation. International Journal of
Innovation Studies. 2(2). pp.65-79.
Kahn, K.B., 2018. Understanding innovation. Business Horizons. 61(3). pp.453-460.
Meissner, D., Polt, W. and Vonortas, N.S., 2017. Towards a broad understanding of innovation
and its importance for innovation policy. The Journal of Technology Transfer. 42(5).
pp.1184-1211.
Rallet, A. and Torre, A., 2017. Geography of innovation, proximity and beyond. In The Elgar
companion to innovation and knowledge creation. Edward Elgar Publishing.
Online references
Diffusion of Innovation Theory., 2019. [Online]. Available through
<https://sphweb.bumc.bu.edu/otlt/mphmodules/sb/behavioralchangetheories/
behavioralchangetheories4.html>
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