Innovation Management: Strategies, Implementation, and Profits

by Allan Afuah

Innovation is the key to gaining and maintaining a competitive advantage in the business world. Using multi-functional research from economics, organizational theory, general management and marketing, and strategy literature, Innovation Management, 2/e, provides a systematic approach to the strategies and processes that underlie the financial results of innovation.
Designed to meet the increasing number of courses in innovation management, the text provides full coverage of this vitally important area of business. Drawing from his extensive professional and academic experience, Allan Afuah shows the relationship between innovation, a management function, and profitability, a financial function. He creates a framework that encompasses the basic questions of the "who, what, when, and where" of innovation, combining the latest theoretical discussion with abundant examples. In this second edition, Afuah explicitly incorporates coverage of the Internet as a technological change and offers an entirely new chapter, "Strategies for Sustaining Profits." The text takes a unique multi-functional approach that integrates the important contributions of economics, organizational theory, marketing, and finance to innovation management. This approach provides students with a full presentation of appropriate management theory and detailed coverage of practical
concerns such as the role of government regulation, choosing a profit site, and the transfer of innovation. The impact of the public and international sectors is highlighted with chapters on globalization, innovation in emerging economies, and the role of government in promoting innovation. In addition to a strong analytical and theoretical foundation, the book offers many pedagogical examples. Most chapters conclude with short practice cases designed to supplement the numerous examples within each chapter. These cases are followed by a list of key terms and questions to stimulate discussion. Innovation Management, 2/e, is an ideal text for business school programs and also provides guidance for executives and managers seeking a better understanding of the value of innovation.

Genres: Business

400 pages, Hardcover

First published October 23, 1997

Reviews

[Marcus Goncalves · Rating 4 out of 5]

This book offers a clear, strategy-driven framework linking innovation to competitive advantage, with practical tools useful for students and managers. However, it reflects a traditional, firm-centric view, underplaying ecosystems, co-creation, and contextual factors. Its prescriptive approach also lacks strong empirical grounding. Overall, a solid foundation, but less aligned with contemporary innovation perspectives.

[Robert · Rating 5 out of 5]

In this second edition, Afuah develops in much greater depth many of the same concepts introduced in the previous edition (1998) but changed some of the terminology and rearranged the sequence of material while separating strategy issues from those concerning implementation and adding an entirely new chapter, "The Internet: A Case in Technological Change" (Chapter 16). He also incorporates many of the readers' reactions and suggestions generated by the earlier edition. However, he retains the same seven themes that "underpin the synthesis and intregrative framework" that can allow students of innovation "to get their minds around this increasingly important field - a framework that allows them to build on and make cause-and-effect predictions." That is again his goal in this second edition and he achieves it fully.

Opinions are mixed as to whether or not it is possible to "manage" innovation. Perhaps some of the disagreements have to do with how manage is defined. Afuah seems to be among those (I among them) who believe that it is possible to establish and then manage an environment in which innovation can flourish, and it is also possible to manage the adoption, production, marketing, sales, and distribution of products that result from innovative thinking.

Readers will also appreciate the two appendices, "Dominant Designs and Standards" and "Some Organizational Designs." They and Afuah's thoughtful responses to the 17 questions during which he develops the seven themes will provide a wealth of information and counsel but presumably he would be the first to agree that it would be a fool's errand for any of his readers to attempt to implement all of his recommendations. It remains for each reader to absorb and digest all of the material, then select only what is most relevant to her or his own organization's needs, interests, objectives, and resources. Then, when formulating a game plan, it would be wise to keep clearly in mind what Peter Drucker observed in 1963: "There is surely nothing quite so useless as doing with great efficiency what should not be done at all."