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Uncertainty in process innovations

A case study on the adaption of search engine optimization

Written by Jonathan Samuelsson, Lovisa Skoglund

Paper category

Master Thesis


Business Administration>Marketing & Sales




Master Thesis: The definition of process innovation Process innovation can be defined as the process of change within a company, including technological change and organizational change (Reichstein & Salter, 2016). A key component of achieving long-term competitive advantage (Frishammar et al., 2012). In addition, process innovation is considered to be a major type of technological change, which will have an impact on economic growth and corporate competitiveness (Edqvist, Hommen & McKelvey (Edqvist, Hommen & McKelvey) 2001). In order to achieve process innovation, a company must undergo organizational and technological changes, which can become an important source of increasing internal productivity within the company (Reichstein & Salter, 2016). The company's internal process innovation capability is understood as the ability to develop, understand, transform, and utilize technical resources and knowledge for the purpose of process innovation (Frishammar et al., 2012). In the context of this paper, process innovation refers to the ability to adapt to new technologies in marketing. Therefore, it is important to highlight the possible antecedents of process innovation capabilities (Frishammar et al., 2012). These antecedents can be divided into three different categories: strategy, collaboration, and culture. In order to achieve effective process innovation capabilities, companies should focus on strategic adjustments to achieve collaboration between internal employees and external partners (Frishammar et al., 2012). In addition, with regard to company culture, it is important to emphasize the atmosphere of innovation within the company and the commitment of senior management to the project (Frishammar et al., 2012). Based on these advantages, Reichstein & Salter (2006) believes that strategy, cost, and management involvement are the factors on which successful process innovation projects depend. In addition, Frishammar, Lichtenhaler, and Richtnér (2013) believe that process innovation also has some challenges. First, this can be an expensive and difficult practice, especially in the absence of knowledge. They further emphasized the need for a comprehensive implementation plan and a deep understanding of project resources and expected results. Lager (2000) explained that many companies do not have a working method for process innovation and lack the effort and funds to invest in such initiatives. When introducing process innovation into a company, it first defines the process itself and then the implementation of the project, where the new process definition is implemented into the existing process (Frishammar et al., 2013). As mentioned earlier, the definition of process innovation emphasizes the implementation of new processes. technology. 2.1.2 Process innovation in SMEs There are several reasons why process innovation is used within a company. SMEs usually operate in highly competitive markets, and many participants operate similar services (Beriska & Pula, 2015). When operating in a competitive environment, SMEs need to use marketing to create value and sales (Gilmore, Kraus, O'Dayer & Miles, 2012). If effective process innovation projects related to marketing work are carried out, companies will usually slow down competitors' speed and cost efficiency advantages by giving themselves a company (Frishammar et al., 2012). Saridakis, Idris, Hansen, and Dana (2019) believe that more innovative SMEs are more likely to be internationalized, and that process innovation is related to exports. This means that SMEs that aim to reach a wider international customer base are more likely to succeed if they are innovative. Khazhanci, Lewis, and Boyer (2007) believe that organizational culture is the key to management innovation, which means that process innovation will flourish in SMEs with a supportive organizational culture. Martinez-Ros and Labeaga (2009) investigated the persistence in process innovation and concluded that no matter what form it takes, persistence is crucial to the company. In addition, they believe that companies engaged in certain types of innovation will be encouraged for investment reasons or market position reasons. Laforet (2009) emphasized that the size of a company will have an impact on process innovation. Among them, medium-sized companies are more likely to invest in process innovation than small companies. To successfully adapt to new technologies in process innovation, it is important to have a high process innovation capability. , Because it is related to the company’s ability to acquire, transform and utilize technology-related resources, procedures and knowledge for process innovation purposes (Reichstein & Salter, 2006). However, this is also regarded as one of the challenges of process innovation, which recognizes the difficulty of developing and using technical expertise (Slack, Brandon-Jones & Johnston 2011). Another important aspect that needs to be emphasized is that the improvement of the level of process innovation also promotes the company's products This emphasizes the process innovation structure with a clear internal structure of the company (Reichstein and Salt, 2006). In addition, Wheelwright (2010) put forward three external forces that promote the innovation and development of the company's internal processes; fierce international competition, fragmented and demanding markets, and rapidly changing technologies. As mentioned earlier, SMEs operate in a highly competitive market (Berisha & Pula, 2015) Read Less