Literature Review: Technology and Innovation in Strategic Management

This report presents a systematic literature review on the impact of technology and innovation on strategic management within organizations. It examines various articles, including those focusing on responsible innovation, marketing innovation in the context of Industry 4.0, and the integration of supply chains for enhanced competitiveness and firm performance. The review analyzes the strategic implications of these innovations, offering recommendations for firms to improve and maintain their competitive edge. Key areas of discussion include organizational commitment to innovation, the role of marketing innovation, and the importance of process innovation in SMEs. The report also touches on the evolution of marketing innovation and its impact on business strategies. It draws conclusions from data analysis and surveys, emphasizing the importance of strong organizational commitment and the benefits of process innovation in driving product innovation and overall business performance. The report also addresses the evolution of marketing innovations and how organizations can adopt a strategic approach.

Technology and Innovation in Strategic Management
Literature review on areas of technology and innovation in order to improve and
maintain competitiveness of the organisations
By
Student number: 211049
May 2022

Table of Contents
Technology and Innovation in Strategic Management..............................................1
Introduction...............................................................................................................3
Responsible Innovation.............................................................................................3
Innovation for a positive purpose...........................................................................3
An alternative logical management?......................................................................4
Article 1: “The impact of organisation commitment to process and product
innovation in improving operational performance”, by Tarigan, (2018)..................6
Article 2: “The impact of marketing innovation on the competitiveness of the
enterprises in the context of Industry 4.0”, by Ungerman et al., (2018)...................8

Article: 3 “Innovation-oriented supply chain integration for combined
competitiveness and firm performance”by Lii and Kuo, (2016).............................10
Recommendations...................................................................................................13
References...............................................................................................................17

Introduction
This report will depict a systematic literature review on multiple articles
based onvarious areas of technology and innovation. Also, the strategic impact of
technology and innovation on the organisations will be analysed. Moreover, the
recommendations will be provided for the firms for the strategic approach to
improve and maintain their competitiveness.
Responsible Innovation
While creative results are easy to achieve for all types of brands, responsible
innovation is something that has to be well thought out to be achieved. Responsible
innovation is the development of new projects, cycles or action plans in the public
sector. This means that a responsible innovation approach includes changes that
have a significant impact on society and the climate(Von Schomberg and Hankins,
2019).
Innovation for a positive purpose
Innovations work with social spaces, so they will have positive and negative
impacts. If you describe society, you can see that innovations have permeated
every aspect of our lives, including living, shopping and working. There are many
examples of brands that have adapted their approach to innovation to address the

difficulties associated with these social spaces. It is clear that one of the major
social problems prevalent in non-industrialised countries is the expressed need for
unhappy everyday conditions and access to few goods. The tendency to shy away
from social issues such as these has led to negative reactions from brands such as
Primark and Misguided, which have recently been confronted with ignorant
analyses of the environments in which representatives in less developed countries
operate(Mastenbroek et al., 2021).
Despite this, some brands have taken an alternative stance to help address
social issues in a positive and innovative way. Toms, a California-based footwear
brand, has chosen to radicalise its action plan to focus on its One for One brand
idea. To summarise the brand's model: For every pair of shoes purchased from
Toms, the brand donates shoes to young people with limited resources. With their
responsible and resourceful action plan, their organiser Ben Mycoskie is leading
the charge to ensure that their customers' social concerns are addressed by
empowering them to combat social issues with their purchases(Van der Burg et al.,
2019). This highlights the importance of responsible innovation, as Tom's action
plan demonstrates that brands in developed countries can use their assets and the
support of their customers to make a positive impact in less developed countries.
An alternative logical management?

An alternative to the consequentialist model of responsibility is to surrender
to moral causality and believe that the temptation of the unusual and the inability
to 'predict wisely' will allow us to escape moral responsibility for our activities.
The disillusionment of this methodology- and opportunity-based standard shifts
our consideration of responsibility, risk and evidence towards the components of
future engagement positioning - care and response - that offer more remarkable
opportunities to absorb vulnerability and enable reflection on purpose and value.
Emerging innovations are often referred to as 'institutional gaps'(Pacifico Silva et
al., 2018). There is little conceptualisation or coherent decision-making to frame
them. In this context, it is important to move from old models of governance to
more decentralised and open models of governance that take place in new places -
markets, organisations and associations - in addition to the usual strategic and
legislative issues.
Various non-governmental forms of science and innovation management at
different levels have taken on this commitment to anticipation and expanded the
elements of STS knowledge that characterise the balance of social and political
decisions on specific innovations. New models of anticipatory management have
emerged, i.e. constructive, timely and varied forms of innovation assessment, early
engagement, subtle models of self-consideration and integration of social
professionalism. They were complemented by strategic instruments such as

regulated regulations, guidelines, certificates and approvals, major operational
reports, innovation assessments and key guidelines(Van der Burg et al., 2019). To
varying degrees, these driving forces seek to bring broader ethical reflection into
the logic and process of innovation, breaking the previous ethical division of
labour as described above. They are trying to open up science and innovation to a
wider range of information sources, especially by creating new spaces for 'public
discussion'.
Another important aspect of the forward-looking perspective on the duties of
science and innovation is that it is shared. The volatility of innovation is
intrinsically linked to its aggregate nature. When we document innovation as
'genuinely shaping society', we find that its impact is 'fundamental' and results
from the interaction between the profession and society. This suggests a broad or
shared political commitment between researchers, research funders, pioneers and
others. It reflects an understanding that while artists are not individually
irresponsible individuals, it is the often complex and interconnected structure of
science and innovation that allows for 'coordinated irresponsibility'3. responsible
decision-making(Von Schomberg and Hankins, 2019).
Article 1: “The impact of organisation commitment to process and product
innovation in improving operational performance”, by Tarigan, (2018)

The purpose of this study is to investigate the impact of organisational
commitment on operational performance through control, planning and product
innovation. The study investigates seven hypotheses by testing the relationships
between the concepts using quantitative and research methods. The study was
conducted in small and medium-sized enterprises in the footwear and sandals
industry. Sixty-three small and medium-sized footwear firms were selected for the
study.
Studies reveals that product innovation is the introduction of a new product
to the market(BETRU, 2017). According to the study, product innovation is a
product change made by a company prior to the research and development
process(Talukder, 2016). Product innovation is the introduction and development
of new types of goods or services that fill gaps in previous products, focusing on
quality (BETRU, 2017). According to recent study, innovation in research,
development and/or design activity aims to create new value (Prajogo et al., 2018).
In science, innovation is a new way of translating an existing science or technology
into a product or production process (Talukder, 2016). On the government side,
innovation policy is found at different levels, e.g. at the level of chambers of
commerce and industry, at the provincial and international levels in the Ministry of
Industry. Product innovation can be divided into three basic categories(Prajogo et
al., 2018).

Product line extensions, compliant products and the emergence of new
products. Product line extensions are relatively new to the market but not to the
company (Talukder, 2016). Conference products are relatively new to the
company, but the products are already known in the market(Prajogo et al., 2018).
Products new to the market are new to the company and the market. Three
indicators can measure product innovation. These include the development of new
products, product quality improvement, and the acceleration of the market launch
of new products (Teh et al., 2015). In addition, design plays an important role in
product innovation because it facilitates product manufacturing and reduces the
number of defective products (BETRU, 2017). Manufacturing processes include
supplying materials, auxiliary materials, packaging materials, semi-finished
products and finished products that can be delivered to customers. Process
innovation describes a change in how a company produces products and services
(Prajogo et al., 2018).
Process innovation introduces the latest production process or a new daily
routine activity. Process innovation is a latest production method in which new
technology is applied to the whole value chain process, including production,
distribution and processing (Teh et al., 2015). Process innovation in SMEs is a
process involving various interactions between stakeholders. Networks,
relationships and social closeness are usually stronger at the local level. This is

very essential for developing social relations including, communication, mutual
trust and interaction, and a culture of openness to latest ways of thinking
(Bresnahan and Yin, 2017). Research has shown that process innovation changes
the way products are made and transported (Bresnahan and Yin, 2017). Process
innovation leads companies to adopt new ways of working by acquiring new
technologies or improving existing ones. This helps companies achieve economies
of scale or scope, which improves quality (BETRU, 2017).
Process innovation increases the efficiency of production processes, which
in turn leads to cost reductions. When an organisation grows, the need to change
strategy and structure becomes apparent (Bresnahan and Yin, 2017). Strategic
change is about changing how employees construct meaning by engaging in
discourse that sets a new direction for the company(Prajogo et al., 2018). All
organisations need to adapt their strategies, structures, management processes and
administrative procedures(Talukder, 2016). Many companies take a two-pronged
approach to these changes, aligning the technical and managerial aspects of the
business. The technical side denotes the people who manufacture the products or
services offered by the company.
In contrast, the managerial side guarantees that the company's daily
activities are carried out and that the objectives associated with the company's
activities are achieved(Teh et al., 2015). Even if both sides have completely

different ideas about what needs to be changed, they must align perfectly and work
towards the same goal. For example, the costs of customer complaints and returns
are reduced(Talukder, 2016).
Therefore, it is essential to continuously make improvements. The
improvement process can be measured in three ways: continuous improvement of
the production process, dissemination of exploratory data, and repeated training in
production-related areas. Several conclusions can be drawn from the data analysis
and surveys(Prajogo et al., 2018). First, a strong organisational commitment
ensures excellence in innovation processes through established guidelines and
procedures with clearly defined competencies and responsibilities(Bresnahan and
Yin, 2017). Furthermore, process innovation in SMEs contributes to product
innovation and improves overall business performance(Talukder, 2016).
Article 2: “The impact of marketing innovation on the competitiveness of the
enterprises in the context of Industry 4.0”, by Ungerman et al., (2018)
The main objective of this article is to analyse and identify the impact of
innovation marketing on the competitiveness of companies in the context of
Industry 4.0. To accomplish this goal, it is essential to create a quality database that
is large enough to analyse this topic in all its complexity. The outcome of the entire
study depends mainly on the quality of the database. The pilot survey was

conducted to obtain a basic orientation on the problem at hand and to obtain basic
statistical characteristics for the subsequent selection of appropriate data
processing methods and procedures.
In accordance with the recent researches marketing innovation should
involve marketing concepts and strategies that differ significantly from the original
marketing approach(Colbert et al., 2016). Marketing innovation is based on the
realisation that simply following existing marketing principles does not guarantee
performance and competitiveness in a crowded market. Marketing innovation is
based on lateral thinking whose bold, borderless and provocative(Attaran et al.,
2019). The fields of marketing innovation are gradually evolving. They include
personal marketing, ambient marketing, ambushmarketing, guerrilla marketing,
viral marketing, buzzmarketing, mobilemarketing, product placement all-case
marketing, word-of-mouth marketing, geo-marketing,neuro-marketing behavioural
marketing, etc. (Colbert et al., 2016). These new areas are emerging very
rapidly(Colbert et al., 2016). These new areas are emerging very quickly, and their
significant impact on the market. These new areas are evolving quickly, and their
definitions and classifications are often inconsistent. Many studies have classified
innovative marketing into six major regions(Smith et al., 2019).
The first is an innovation based on key technology - the use of key
technologies has led to new and different products. The second is an innovation

based on a single common control vehicle. The third is an innovation that
addresses unmet customer needs(Colbert et al., 2016). The fourth is the innovation
that comes from unbridled imagination - this type of innovative marketing is often
sought in creative activities(Attaran et al., 2019). Fifth is an innovation based on
research, and finally, functional excellence? Innovative marketing is the subject of
another study. The research shows that innovation is linked to Big Data
analysis(Millar et al., 2018). This includestext data and image on the internet, data
collected from the control systems of autonomous vehicles, i.e. integrated
multimodal data, medical, commercial and financial data, and data from product
transactions. Various studies analyse the functions offered by innovative
marketing.
According to a research, innovative marketing is based on six functions,
product positioning, product design or packaging,communication channels,
pricingor product promotion or, marketing methods, product delivery, and service
delivery(Colbert et al., 2016). In addition, the use of apps, social media and the
opening of processes to customers were given examples of these functions(Smith
et al., 2019). The second part of the study deals with implementing marketing
innovations in Industrie 4.0 companies(Smith et al., 2019). Furthermore, studies
and surveys show that with the advent of Industrie 4.0, especially those who are
involved in work automation will lose their jobs. This applies to assembly line

workers and all those who work in conventional ways(Smith et al., 2019). On the
other hand, according to experts, the introduction of Industry 4.0 will lead to a
significant increase in labour productivity(Azar and Ciabuschi, 2017).
Production processes will be completely merged within the next ten years,
including development and service. Sensors, scanners and cameras will control
machines without the help of humans(Colbert et al., 2016). Robots will
automatically answer questions from maintenance staff and make corrections(Azar
and Ciabuschi, 2017). As a result, the production process is accelerated and
improved, and productivity is generally increased. The results clearly show that
introducing innovation into an organisation's marketing process can maintain and
improve competitiveness and strategic management.
Article: 3 “Innovation-oriented supply chain integration for combined
competitiveness and firm performance”byLii and Kuo, (2016)
The purpose and aim ofof this study is to explore how innovation-driven
partnerships and supply chain collaboration can be established through the use of
supply chain integration (SCI) to support industry core competencies and
effectively improve the value of service, products, information, and also the
efficiency of financing and decision-making, thereby improving business
performance. This study addresses the innovation orientation, SCI, integrated

competitiveness and business performance of electronics manufacturers.
Employees from procurement, marketing and logistics departments participated in
the study to obtain a sample of managers, employees and research and design
(R&D)engineer’s familiar with the reality in their companies. The questionnaire
calculated the dimensions of 57 items categorised fewer than six headings; the
categorised items were based on the respondents' subjective perceptions. The
results of the questionnaire were analysed using SPSS software.
Several studies have proposed the resource dependency theory, which states
that organisations should form alliances with other organisations to overcome the
vagaries of the environment to obtain the necessary resources in a stable
environment(Millar et al., 2018). Organisations can resort to cooperative strategies
to obtain their resources to survive. The resource dependency theory states that an
organisation that cannot produce the resources it needs can enter into commercial
relationships with other organisations(Carayannis et al., 2015). Research has
shown that resource dependency theory refers to interactions between
organisations and their environment or between organisations themselves(Dereli,
2015). The research shows that resource dependency theory emphasises the need
for organisations to adapt to external uncertainty, overcome interdependencies and
adopt proactive management and control of resource flows(Ni et al., 2020).

Furthermore, the research findings suggest that strategic management, as
suggested by resource dependency theory, helps organisations survive by acquiring
strategically important resources and stabilising relationships with the
environment(Farinha et al., 2016). Several studies have recognised that the essence
of resource dependency is the exchange of organisations with other organisations
when they cannot produce the required resources or provide the required
capabilities internally(Gureva et al., 2016). Thus, resource dependency theory
helps organisations find key resources remotely when internal resources or
capabilities are insufficient(Gureva et al., 2016). By working with supply chain
partners, organisations can procure important resources remotely and improve their
long lasting survival. When internal resource needs cannot be met, the organisation
must rely on external resources, creating interdependence between the organisation
and external service providers(Farinha et al., 2016). The organisation must
maximise the development of all available resources to achieve and expand its
competitive advantage(Ni et al., 2020).
When the development of resources no longer meets the organisation's
needs, the organisation must resort to external resources to meet those
needs(Dereli, 2015). The resource dependency theory states that if an organisation
cannot produce the resources it needs, it must enter into interdependent and
complementary business relationships with other organisations(Brunswicker and

Vanhaverbeke, 2015). According to various studies, SCM integration is the most
important business process for moving and adding value to products, services and
information from the supplier to the final customer(Ni et al., 2020). SCM is an
appropriate coordination mechanism that optimises internal and external business
processes(Carayannis et al., 2015). According to the resource dependency theory,
an acquiring company can combine its resources with the complementary
resources of its co-operating partners, resulting in a unique resource property that
is difficult to imitate(Millar et al., 2018).
Many studies describe SCI as the integration of customersandsuppliers.
Their definition includes a horizontal integration component involving the
incorporation of various internal functions; for example, an organisation is as much
a portion of the supply chain as its customers and suppliers(Millar et al., 2018).
Innovation-driven and customer-driven relationships share a common goal: to
respond more efficiently to customer requirements and increase
profits(Brunswicker and Vanhaverbeke, 2015). Previous research has shown that
building good relationships with customers means understanding their potential
and current and needs, improving a company's ability to innovate(Carayannis et al.,
2015). Indeed, innovation-led companies are always looking for technological
leaps to meet the requirements of existing customers and raise their profile, exceed
customer service expectations, retain customers, and attract new ones(Dereli,

2015). The study says that an innovation-driven approach helps companies
integrate their supply chains and realise the potential of supply chain management
mechanisms in several dimensions(Ni et al., 2020).
Recommendations
After critically analysing the systematic review of the literature, multiple
recommendations can be deduced to guide firms for their strategic approach to
improve and maintain their competitiveness.First, organisations need to develop a
flexible business model. Offering services outside of office hours, allowing clients
to shop online at any time, and giving after-sales support are all examples of
flexible business practises. Of course, having employees available 24 hours a day
is not always practicable. Companies, on the other hand, can generate the
impression that they are always available by judiciously employing technology.
Organisations should use technology to receive estimates and serve clients when
employees are out of the office, thanks to automated email responses, virtual
assistants, and call management software. Companies must not only provide
speedier service to their customers, but they must also leverage technology to
provide more flexibility to their staff.
As workers seek a better work-life balance or need to organise their work
around different tasks, more and more people prefer to work outside traditional

working hours. Flexible working is not only a great way to increase employee
engagement, but it can also help companies attract new customers. In addition, the
organisations should need to increase their productivity based on technology.
Improving efficiency is perhaps the most desirable way to achieve more without
increasing overhead costs. In return, the organisation should offer cost savings to
customers or provide a more efficient service, becoming the preferred supplier in
the market.
In addition, the organisation should put in place improvement processes in
the technology and innovation. An audit of present processes will aid in the
identification of bottlenecks and the determination of which activities take the
longest. The company may then determine where improvements can be made to
optimise procedures and boost efficiency across the board. Additionally, software
should be used by businesses to improve collaboration.
The correct task management software can boost productivity considerably
across the board. Teams spend less time on internal emails and meetings since they
can cooperate more easily on projects. Reporting is also simplified, and managers
can keep track of what their teams are working on and allocate resources where
they are most required. Businesses should also strive to automate their daily work.
The technology will allow companies to automate daily tasks to focus on more
interesting and profitable activities. The software will allow employees to track

time spent on individual tasks and monitor productivity to see improvements.
Organisations should also look for opportunities to bring about change in the
market. In addition, organisations should use data analysis. Finally, organisations
should use data analysis as an element of competitive advantage.
This is a direct result of the fact that a company's data is extremely
important, and any organisation that does not examine these numbers is missing
out on important information. Advanced data analysis allows companies to
understand their customers’ needs on a level that were not possible before. When a
company knows what its customers are looking for, it can fully optimise its
strategy to stay ahead of the competition by providing the best solutions to its
customers' problems. Furthermore, companies should strive to manage and
improve the customer experience with the help of technology. Using technology to
improve the customer experience is the best choice for companies. Companies
need to provide the necessary multi-channel experience to their customers.
Chatbots can help get questions answered as quickly as possible.
Organisations should also collect feedback to see where improvements in the
technology can be made. Similarly, companies need to offer technology-based
campaigns to improve operational performance. A successful marketing activity or
campaign involves identifying the right target audience, developing a compelling
message, setting a competitive price for the product or service, and choosing the

right channel (often more than one) to attract attention with attention-grabbing
creativity. This multi-step process usually involves many skilled professionals and
requires a large outlay of capital. Sotherefore, the more effective it is, the better it
is for the company. In addition, companies need to modernise their data
management and improve collaboration by using the latest equipment and
technology tools. If an organisation has multiple departments, centralising many
data in one system can greatly improve operational efficiency. If an organisation is
working with very vulnerable people, the need is even greater.
In addition, the organisation should devote more of its resources to
introducing the latest technologies and innovations. Investing in technology that
makes staff more productive and happy is essential to retaining the best staff. It
also helps to maintain staff morale in difficult times. Technology will enable
companies to get the benefits they want from today's digital generation. For
example, it sets up a hosted telephone system and a secure virtual organisation that
allows employees to telework. In addition, companies need to invest in technology
to strengthen their organisations. A network solution increases computing power
and provides additional server capacity. This is an important step forward when
companies need to quickly adjust their workload and complete tasks. Network
virtualisation can help eliminate network hardware and minimise system
complexity.

This increases operational efficiency and ultimately improves the bottom
line. Companies should also invest in technology because the technology that
increases efficiency and employee satisfaction is essential to retaining the best
professionals. It also helps maintain employee morale in difficult situations.
Technology will enable companies to provide the benefits desired by today's digital
generation. For example, setting up a hosted phone system and a secure virtual
organisation will allow employees to work remotely. There is no doubt that
technology affects business productivity in many ways. Even a single application
or business software can improve a company's performance on several
performance indicators. Technology allows you to set KPIs and targets that work
best for your business.
Today's technology has advanced reporting capabilities that can improve
business performance. It allows companies to gain insights into market trends,
customer preferences and business performance. In addition, it provides easy
access to performance metrics and analytical reports that companies can use to
adjust their strategy. Hence, organisations should harness technology and
innovation in various areas to improve and maintain their competitiveness.

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