Developing a conceptual model on strategies overcoming barriers for the introduction of radical innovations in niches

Developing a conceptual model on strategies overcoming barriers for the introduction of radical innovations in niches

Schulz, Jara (TU Delft Technology, Policy and Management)

Kamp, L.M. (mentor)
Ortt, J.R. (graduation committee)

Delft University of Technology
Universiteit Leiden

Industrial Ecology

2019-03-14

Radical innovation is widely acknowledged as important for companies aiming to contribute to sustainable development while maintaining and improving their competitive advantage. However, the diffusion and development process of radical innovations is described as uncertain and long-winded due to barriers raised within the socio-technical system. This system is a linked network of technological aspects, actors and institutions in which the process of development and diffusion of the radical innovation evolves. In order to overcome barriers within this system, companies can adopt a niche strategy, which enables the creation of a market despite these barriers. In these niche markets the radical innovation is able to develop until it reaches maturity and can survive in the mainstream market. Ortt & Kamp (2019) developed a barrier framework including seven core factors and seven influential factors representing the components of the social-technical system of a radical innovation. The core factors represent the market characteristics; it is assumed that if one of these core factors is absent, large-scale diffusion is obstructed. The influencing factors describe the underlying problems causing the absence. The first objective of this is research was to link niche strategies to barriers comprised of one influencing and one core factor as described in the barrier framework. The second objective of this research was to develop evaluation criteria that companies can use to define the most suitable niche strategy for their particular situation. In order to reach these objectives, a multi-method approach was taken in which three different methods were applied in three different research steps. In the first research step a conceptual model including the linkages between niche strategies and barriers was developed by means of logical reasoning. Furthermore, a list of evaluation criteria was proposed. The credibility of the proposed conceptual model and the proposed evaluation criteria was subsequently assessed in the second research step, a literature review, and the third research step, two primary case studies. The aim of these steps was to improve and refine the conceptual model and evaluation criteria using pattern matching and cross-case analysis. If proposed relationships could be confirmed by literature and/or empirical evidence, the relationships were found appropriate. This thesis research made a first attempt to link niche strategies formally to the barrier framework developed by Ortt & Kamp (2019). In total, 157 linkages were found. Furthermore, the research adds a list of 28 niche strategies that extend the currently described amount of niche strategies in literature, including both the innovation phase and market adaptation phase; it adds a categorisation of the niche strategies; and it adds a list of evaluation criteria. The outcome of the research can help companies to develop a comprehensive decision-making process focused on defining a suitable strategy to overcome the experienced barrier, or the model can be used to define a niche strategy. The evaluation criteria can be used to assess the suitability of strategies in its’ particular situation.

Innovation
Niches
Strategies
Barriers
Sustainability

http://resolver.tudelft.nl/uuid:cbfaa96b-29b2-4c55-8020-03d66bcc07a3

Student theses

master thesis

© 2019 Jara Schulz