Drivers of Innovation Processes in Young and Established Companies in Nigeria: A Theoretical Examination

Abstract

In the face of global business environment and competition, companies that do not invest in innovation are most likely to die (young). Understanding and implementing innovation processes is therefore critical not only for managers but also for academics and practitioners. Generally, innovation falls into three domains: strategy, product or service and process. However the avalanche of literature on the subject is characterized by diversity of approaches and practices by various innovation experts and institutions that lends itself to distinct studies. The result of these studies indicate limited literature to the stages required to effectively turn the individual or group ideas into new products, services and profits. The objective of this paper is to examine relevant literature on the drivers of innovation and innovation processes that young and established companies follow in launching products or rendering services from a developing country's perspective. To achieve this objective, drivers of innovation were first examined to find out those that are the most appropriate in the innovation process. Second, a presentation of some relevant innovation processes by various experts and practitioners was made to uncover some critical innovation processes spanning from idea generation through the development of new products, services or business models to sales and profits (reality). Literature findings indicate that the effectiveness of drivers of innovation process as well as the implementation of the steps in the process is contingent on the level of economic development in a country, the structure, the industry and so on. Important contributions have been made from this review: moving beyond empirical studies to a theoretical conceptualization. The paper suggests more investment in innovation and a culture of innovation in organizations.