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From Approaching to Challenging the Forerunners: A Study of Innovation Capability Building in Brazilian Firms
Linköping University, Department of Management and Engineering, Project Innovations and Entrepreneurship. Linköping University, Faculty of Science & Engineering.
2023 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Innovation capability refers to the ability to continuously innovate. Firms have recognized this ability as the most critical source of innovation performance, firm performance, and sustained competitiveness. In emerging economies, innovation capability is also noted as a significant source of economic development, which can lead to improvements in education, health, and democracy.  

It is not easy to build innovation capabilities in emerging economies. Unlike firms in developed economies, emerging economy firms (EEFs) lack resources, competencies, and capabilities. They depend on international clusters of innovative suppliers, as critical resources are not readily available within the firm or with other domestic partners. EEFs also face low-quality education, weak institutions, and financial constraints.  

Although innovation capability building has attracted the interest of scholars over the last decades, the possibilities for developing better explanations of the concept are far from exhausted. The literature in this field still lacks consistency, a comprehensive viewpoint, and efficient operationalization. Moreover, economic slowdowns in several emerging economies reinforce the need to better understand how EEFs build innovation capability.  

For this purpose, the case study method was applied in the research papers to investigate firms from Brazil, a recognized emerging economy in Latin America. The research included 13 case studies based on 47 interviews and numerous secondary sources. In addition, different levels of analysis, ranging from project to firm to ecosystem, helped to complement and enrich the findings and conclusions.  

The research shows that EEFs build innovation capability by first learning and accumulating technological capabilities to approach the forerunners. Once the technological gap has been reduced, EEFs continue building their innovation capabilities by sensing the environment, seizing windows of opportunity, reconfiguring existing technological capabilities, managing suppliers and complementors, strategically aligning the technology upgrading, and providing continuous learning to keep their workforce prepared. At this later stage, the goal is to seize opportunities that help EEFs challenge or even overtake the forerunners. Finally, it is especially noteworthy that learning is present throughout the entire process. 

Abstract [sv]

Innovationsförmåga avser förmågan till ständig förnyelse. Denna förmåga framhålls ofta som den mest kritiska källan till bibehållen konkurrenskraft hos företag. I tillväxtekonomier leder företagens innovationsförmåga till ekonomisk utveckling, vilket förutom konkurrenskraft också kan medföra förbättringar av utbildning, hälsa och demokrati.  

Det är svårt att bygga innovationsförmåga i en tillväxtekonomi. Till skillnad från företag i väl utvecklade ekonomier, saknar företag i tillväxtekonomier många resurser och kompetenser. Eftersom de inte har tillgång till kritiska resurser inom företaget eller från inhemska partners är de beroende av internationella kluster av innovativa leverantörer. Företag i tillväxtekonomier verkar också i sammanhang som präglas av lågkvalitativ utbildning, svaga institutioner och ekonomiska begränsningar.  

Även om byggandet av innovationsförmåga har intresserat forskare under de senaste decennierna, finns det fortfarande utrymme för bättre förklaringar. Litteraturen i detta område behöver mer överensstämmelse, helhetssyn och bättre operationalisering. Dessutom leder ekonomiska nedgångar i flera tillväxtekonomier till ett ännu större behov av att förstå hur förtag kan bygga en innovationsförmåga.  

Denna avhandling innehåller forskningsartiklar med studier av företag i Brasilien, en välkänd tillväxtekonomi i Latinamerika. Forskningen analyserar 13 fallstudier som bygger på data från 47 intervjuer samt sekundära källor. Olika analysnivåer, från projekt till företag och ekosystem, bidrar till att komplettera och berika resultaten och slutsatserna.  

Forskningen visar hur företag i tillväxtekonomier bygger innovationsförmåga genom att först utveckla och ta till sig teknisk kunskap så att de närmar sig de ledande företagen i sin bransch. När klyftan har minskat fortsätter de att bygga sin innovationsförmåga genom att känna av miljön, ta tillvara på möjligheter, konfigurera om befintlig kunskap, hantera leverantörer och komplementära organisationer, strategiskt anpassa sin tekniska uppgradering och dessutom uppmuntra kontinuerligt lärande för att vidareutveckla personalen. I detta senare skede är målet att ta vara på möjligheter som hjälper företagen att utmana eller till och med gå om branschledarna. Sammantaget visar avhandlingen hur viktigt lärandet är genom hela processen.   

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2023. , p. 93
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 2356
Keywords [en]
Brazil, Catch-up, Emerging economy firms (EEFs), Forerunners, Innovation capability, Technological capability, Windows of opportunity
Keywords [sv]
Brasilien, Ikapp, Företag i tillväxtekonomi, Föregångare, Innovationsförmåga, Teknisk förmåga, Möjligheter
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:liu:diva-198347DOI: 10.3384/9789180753920ISBN: 9789180753913 (print)ISBN: 9789180753920 (electronic)OAI: oai:DiVA.org:liu-198347DiVA, id: diva2:1803052
Public defence
2023-11-08, ACAS, A-building, Campus Valla, Linköping, 13:00 (English)
Opponent
Supervisors
Note

Funding: This research was supported by the National Council for Scientific and Technological Development (CNPq), Brazil (reference number: 203048/2015-6), and Sweden’s Innovation Agency (Vinnova), Sweden (research grant numbers: 2018-02930 and 2022-00301). 

Research papers:

1. Accumulating technological capabilities through R&D projects: studies on the Brazilian defence industry 

Funders

VINNOVA, 2014-03388

CNPq, 203048/2015-6

 

2. Strategic alignment of technology: Organising for technology upgrading in emerging economy firms

Funders

VINNOVA, 2014-03388

CNPq, 203048/2015-6

 

3. Fostering frugal innovation through computer-aided engineering: benefits and challenges for emerging economy firms

Funders

VINNOVA, 2014-03388 and 2018-02930

CNPq, 203048/2015-6

 

4. Dynamics of Innovation Ecosystems: Orchestrating Actors and Interactions in Emerging Economies

Funders

VINNOVA, 2018-02930 and 2021-03523

CNPq, 203048/2015-6

Available from: 2023-10-06 Created: 2023-10-06 Last updated: 2023-10-09Bibliographically approved
List of papers
1. Accumulating technological capabilities through R&D projects: studies on the Brazilian defence industry
Open this publication in new window or tab >>Accumulating technological capabilities through R&D projects: studies on the Brazilian defence industry
2018 (English)In: International journal of technological learning, innovation and development, ISSN 1753-1942, E-ISSN 1753-1950, Vol. 10, no 3/4, p. 203-230Article in journal (Refereed) Published
Abstract [en]

Emerging economy firms (EEFs) have striven to accumulate technological capabilities and promote indigenous innovation for technology upgrading and catching-up. By assuming that R&D projects affect firm capabilities, this study investigated how EEFs can accumulate technological capabilities through R&D activities. A technological-capability framework was proposed with the dimensions of organisational structure, innovation processes, practice, resources and entrepreneurial leadership. The framework guided an exploratory case study of three R&D projects in the Brazilian defence industry: the thrust vector control (TVC), software-defined radio (SDR) and radar projects. The TVC project utilised existing firm capabilities, whereas the SDR and radar projects needed to develop their capabilities from scratch. Different paths were adopted to accumulate technological capabilities and deliver the projects’ outcomes. It was found that a balance between the dimensions may positively impact the rate at which technology capabilities are accumulated. Theoretical contributions and practical implications for EEFs are also discussed. 

Place, publisher, year, edition, pages
Genèva: InderScience Publishers, 2018
Keywords
emerging economy firms; EEFs; Brazilian defence industry; catching-up; organisational capability; technological capability; capability accumulation; capability dimensions; indigenous innovation; R&D projects; thrust vector control; TVC; software-defined radio; SDR; radar
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-150577 (URN)10.1504/IJTLID.2018.093721 (DOI)2-s2.0-85051021638 (Scopus ID)
Funder
VINNOVA, 2014-03388
Available from: 2018-08-27 Created: 2018-08-27 Last updated: 2023-10-06Bibliographically approved
2. Strategic alignment of technology: Organising for technology upgrading in emerging economy firms
Open this publication in new window or tab >>Strategic alignment of technology: Organising for technology upgrading in emerging economy firms
2019 (English)In: Technological forecasting & social change, ISSN 0040-1625, E-ISSN 1873-5509, Vol. 145, p. 295-306Article in journal (Refereed) Published
Abstract [en]

Technology upgrading plays a crucial role in the catching-up process of emerging economy firms (EEFs) that aim to develop technological capabilities and move from imitation to innovation. The literature on emerging economies has mainly focused on how EEFs overcome the lack of technological knowledge at initial stages of catching-up while neglecting organisational issues that arise at later stages. The purpose of this study was to explore organisational activities performed by EEFs that are innovating at advanced stages of catching-up. Two Brazilian firms, namely Petrobras and WEG, were selected to be studied and to provide evidence for the research. The results indicate that both firms have systematically monitored their environments to look for windows of opportunity and have consistently invested in learning mechanisms to overcome shortcomings in knowledge. Furthermore, an activity for aligning strategy and technology was found to be key for optimising the technology upgrading process and for maximising its results.

Place, publisher, year, edition, pages
New York City: Elsevier, 2019
Keywords
Emerging economy firms; Catching-up; Technology upgrading; Monitoring activities; Learning mechanisms; Strategic alignment of technology
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-150576 (URN)10.1016/j.techfore.2018.05.009 (DOI)000474678600028 ()2-s2.0-85047420236 (Scopus ID)
Funder
Vinnova, 2014-03388
Note

Funding agencies: CNPq (National Council for Scientific and Technological Development - Brazil); Vinnova, Sweden [2014-03388]

Available from: 2018-08-27 Created: 2018-08-27 Last updated: 2023-10-06Bibliographically approved
3. Fostering frugal innovation through computer-aided engineering: benefits and challenges for emerging economy firms
Open this publication in new window or tab >>Fostering frugal innovation through computer-aided engineering: benefits and challenges for emerging economy firms
2021 (English)In: Frugal innovation and its implementation: leveraging constraints to drive innovations on a global scale / [ed] Nivedita Agarwal, Alexander Brem, Cham: Springer, 2021, p. 117-138Chapter in book (Refereed)
Abstract [en]

Frugal innovation has recently attracted the attention of scholars and practitioners seeking new approaches for innovating in both established and emerging economies. However, hitherto, the literature has been concerned mainly with defining the topic; few empirical studies exist on the development process underlying frugal innovation. This study, thus, explores if and how the digital simulation tools of computer-aided engineering (CAE) can foster frugal innovation and what the organizational challenges are that affect this process. Three firms from different industries in Brazil are analyzed through a multiple-case study. The results reveal that CAE can help firms by promoting the development of affordable and quality products, thereby fostering frugal innovation. CAE also contributes to sustainable development by facilitating the design of products that use fewer raw materials along with equipment that consumes less energy. Further, CAE can support business and organizational activities related to marketing and learning. However, firms need to first overcome organizational challenges related to software, hardware, and technical skills to achieve a minimum level of reliability for CAE outcomes. Otherwise, the development of frugal innovation may be jeopardized by inaccurate simulation results. 

Place, publisher, year, edition, pages
Cham: Springer, 2021
Series
Contributions to management science, ISSN 1431-1941, E-ISSN 2197-716X
Keywords
Frugal innovation Benefits of frugal innovation Business model Organizational challenge Technical skill Computer-aided engineering (CAE) Emerging economy firm Brazil
National Category
Economics and Business Business Administration
Identifiers
urn:nbn:se:liu:diva-175741 (URN)10.1007/978-3-030-67119-8 (DOI)9783030671198 (ISBN)
Projects
Vinnova: 2018-02930
Available from: 2021-05-17 Created: 2021-05-17 Last updated: 2025-09-23Bibliographically approved
4. Dynamics of Innovation Ecosystems: Orchestrating Actors and Interactions in Emerging Economies
Open this publication in new window or tab >>Dynamics of Innovation Ecosystems: Orchestrating Actors and Interactions in Emerging Economies
2023 (English)In: New Topics in Emerging Markets / [ed] Bobek, Prof. Vito; Horvat, Dr. Tatjana, Rijeka: IntechOpen , 2023Chapter in book (Other academic)
Abstract [en]

Innovation ecosystem (IE) literature explores the interdependencies between partners that jointly innovate and create value. IEs comprise various actors such as focal firms, suppliers, complementary innovators, and customers. This study elaborates on actors’ interactions that promote the emergence and evolution of IEs in emerging economies. System of Systems (SoS) literature—which classifies the types of authority between the system and its components into virtual, collaborative, acknowledged, and directed—is applied to propose a conceptual framework for analyzing IEs. Following a multiple case study, three ecosystems were selected from the Brazilian armored vehicle sector and analyzed according to the proposed framework. The results revealed that the organizational environment impacts IEs by promoting their emergence and evolution or even leading to their death. The interaction between ecosystem actors can also contribute to the success or failure of IEs. Managing to reach the optimal type of authority can be a valuable tool for orchestrating actors and their interactions in IEs.

Place, publisher, year, edition, pages
Rijeka: IntechOpen, 2023
Series
Business, Management and Economics, ISSN 2753-894X
Keywords
Brazil, defense industry, emerging economies, geopolitical factors, innovation ecosystems, military vehicles, organizational environment, platforms, system of systems, windows of opportunity
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-198409 (URN)10.5772/intechopen.111629 (DOI)978-1-83769-133-3 (ISBN)978-1-83769-132-6 (ISBN)978-1-83769-134-0 (ISBN)
Note

Funding: This work was supported by the National Council for Scientific and Technological Development (CNPq), Brazil (reference number: 203048/2015-6), and Sweden’s Innovation Agency (Vinnova), Sweden (research grant numbers: 2018-02930 and 2021-03523).

Available from: 2023-10-09 Created: 2023-10-09 Last updated: 2025-11-11Bibliographically approved

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