Innovation as - Innovation as newness what is new how new and new to whom Jon-Arild Johannessen Bjrn Olsen G.T Lumpkin The Authors Jon-Arild

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Innovation as newness: what is new, how new, and new to whom? Jon-Arild Johannessen, Bjørn Olsen, G.T. Lumpkin The Authors ! Jon-Arild Johannessen, Jon-Arild Johannessen is a Professor at the Norwegian School of Management, Oslo, Norway. Bjørn Olsen, Bjørn Olsen is an Associate Professor at the Bodø Graduate School of Business, Norway. G.T. Lumpkin, G.T. Lumpkin is Assistant Professor at the University of Illinois at Chicago, Chicago, Illinois, USA. Acknowledgements ! The authors thank Rod Shrader for his helpful comments on an earlier draft and gratefully acknowledge the funding that was provided for this research by the Norwegian Research Council (The FAKTA-programme). Abstract ! Innovation implies newness. To define and measure innovation better, we investigated three dimensions of newness: what is new, how new, and new to whom? Drawing on prior research by Schumpeter and Kirzner, we developed a scale that addresses six areas of innovative activity: new products, new services, new methods of production, opening new markets, new sources of supply, and new ways of organizing. Using factor analysis on data from two separate field studies - 684 firms from eight industries and 200 information technology firms - we found that innovation as newness represents a unidimensional construct, distinguished only by the degree of radicalness. Article type: Theoretical with application in practice. Keywords: Innovation, Measurement, Entrepreneurialism, Norway. Content Indicators: Research Implications*** Practice Implications* Originality** Readability** European Journal of Innovation Management Volume 4 Number 1 2001 pp. 20-31 Copyright © MCB University Press ISSN 1460-1060 Introduction During the last decade we have observed an explosive attention, both in the popular press (e.g. Young, 1994) and among academics (e.g. Drazin and Schoonhoven, 1996; Kanter, 1985), on innovation as a means to create and maintain sustainable competitive advantages. Innovation is considered a fundamental component of entrepreneurship (e.g. Covin and Miles, in press) and a key element of business success (e.g. Nonaka and Takeuchi, 1995). This is becoming even more evident as we move into a post-capitalist, knowledge-based society (Drucker, 1993). Jacobson (1992) argues that continuous changes in the state of knowledge produce new disequilibrium situations and, therefore, new profit opportunities or "gaps". The rate of change is also increasing due in part to exponential advancements in technology, frequent shifts in the nature of customer demand, and increased global competition. D'Aveni (1994) categorizes the situation in its extreme form as "hyper-competition" and, as we move into a more knowledge-based society, an increasing number of industries and firms are likely to face such hyper-competitive conditions. Hence, the unending and increasing stream of knowledge that keeps marketplaces in perpetual motion will require companies to focus even harder on being innovative in order to create and sustain competitive advantages. The growing importance of innovation to entrepreneurship is reflected in a dramatic increase
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Innovation as - Innovation as newness what is new how new and new to whom Jon-Arild Johannessen Bjrn Olsen G.T Lumpkin The Authors Jon-Arild

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