Managing Change and Innovation (Research Paper Sample)
Faculty of Business and Law
Assignment 1
Module Title Managing Change and
Innovation
Assignment
Number
Assessment 1
Module Code CORP3545 Assignment
Title
Essay
Module Leader Dr Sime Tchouaso Serge Assignment
Weighting
50%
Submission
Date/Time:
Monday 13 th December 2021,
12 pm (Midday). Submitted
via Turnitin.
Assignment
Release Date:
Tuesday 17 th of January 2022
(online)
Assessment Information – What you need to do
This assignment is an individual assignment.
It requires you to critically discuss the below question.
Does firms’ innovation always improve firms’ performance?
Criteria for Assessment - How you will be marked
In addition to the De Montfort University Undergraduate Generic Mark Descriptors (the link
can be found here. ) and marking scheme below will be utilised to grade your submission. The
marking scheme breaks down the requirements for each section across the various grade
boundaries available. Students should closely follow the sections and word count guidance
provided below as this will give them the best chance to perform well in the assessment.
This assignment is designed to assess the following learning outcomes: 1, 2, 3 and 5.
Faculty of
Business and Law
2
Assessment Details
The word count is 1,250 words
There will be a penalty of a deduction of 10% of the mark for work exceeding the word limit by
10% or more.
The word limit includes tables, figures, quotations and citations, but excludes the references list
and appendices.
Sections Section Guidance Word Count
Guidance
1. Introduction Has the student provided adequate background
information on firm innovation (e.g., statistics on
the proportion of firms engaged in innovation?
See link for examples of businesses discussing
innovation as an important determinant for their
performance, et cetera)
Has the student defined the key terms in their
essay (innovation, product innovation et cetera)?
150
2. Consideration and Critical
Evaluation of the
empirical evidence on the
relationship between firm
innovation and firm
performance.
Has the student drawn on and discussed a range
of empirical studies from the academic (i.e.
journal articles and books) literature on the
relationship between firm innovation and firm
performance?
Has the student engaged in critical evaluation and
discussion (e.g., by comparing and contrasting
studies that support and reject the relationship
between firm innovation and firm performance, by
considering the limitations of the studies
discussed, et cetera) of the relationship between
firms’ innovation and firms’ performance?
700
3. Consideration and
Evaluation of the nuances
of the relationship
between firm innovation
and firm performance.
Has the student discussed, using evidence, how the
relationship between firm innovation and firm
performance may differ across different types of
innovation (e.g., product innovation, process
innovation, management innovation et cetera)
AND/OR different types of organisations (e.g.,
SMEs, micro and large firms; high-growth and
low-growth firms et cetera) AND/OR different
performance metrics (e.g., productivity, profit,
turnover et cetera)?
250
4. Quality of Conclusions
Drawn
Does the conclusion provide a clear answer to the
essay question?
Has the student drawn an appropriate conclusion
based on the evidence and arguments presented in
their essay?
Does the student justify and explain their
conclusion (e.g., what evidence led to this
conclusion and why did the student find this
evidence more convincing than other evidence
discussed? Et cetera).
150
3
5. Structure and
Organisation of Essay.
Referencing Quality, and
Formatting/
Is the essay well organised and structured?
Are references cited appropriately?
Does a significant proportion of the references
used come from academic (journal articles and
books) sources, rather than online sources?
N/A
Total 1250
4
DETAILED ESSAY MARKING SCHEME BY GRADE BAND
80-100%
Excellent-Outstanding
70-79%
Very Good-Excellent
60-69%
Good – Very Good
50-59%
Satisfactory – Good
40-49%
Poor – Satisfactory
<40%
Fail
Introduction Exceptional quality and use
of background information
on firm innovation in
contextualising the essay.
Defines key terms
exceptionally well using
accepted definitions, and
demonstrates excellent
critical engagement with the
definitions of innovation.
Very good quality and use
of background information
on firm innovation in
contextualising the essay.
Defines key terms very well
using accepted definitions,
and demonstrates a high
level of critical engagement
with the definitions of
innovation.
Good quality and use
of background
information on firm
innovation in
contextualising the
essay. Defines key
terms well using
accepted definitions,
and may demonstrate
some critical
engagement with the
definitions of
innovation.
Satisfactory quality and
use of background
information on firm
innovation in
contextualising the
essay. Defines some
key terms, potentially
using some accepted
definitions.
Poor quality and/or
little use of background
information on firm
innovation in
contextualising the
essay. May define some
key terms, but with
limited use of accepted
definitions.
Unsatisfactory
background
information on
firm innovation in
contextualising the
essay. Failure to
satisfactorily
define key terms.
Consideration
and Critical
Evaluation of
the empirical
evidence on
the
relationship
between firm
innovation
and firm
performance.
Demonstrates outstanding
knowledge/understanding
AND critical analysis of the
empirical evidence on the
relationship between firm
innovation and firm
performance. Draws on an
exceptional range of high-
quality sources of evidence
to build their arguments.
Demonstrates very good
knowledge/understanding
AND critical analysis of the
empirical evidence on the
relationship between firm
innovation and firm
performance. Draws on a
wide range of high-quality
sources of evidence to
build their arguments.
Demonstrates good
knowledge/understand
ing AND some critical
analysis of the
empirical evidence on
the relationship
between firm
innovation and firm
performance. Draws
on a range of high-
quality sources of
evidence to build their
arguments.
Demonstrates a
reasonable level of
knowledge/understand
ing of the empirical
evidence on the
relationship between
firm innovation and
firm performance.
Draws on a reasonable
range of sources of
evidence to build their
arguments, some of
which may be of high-
quality.
Demonstrates a poor
level of
knowledge/understand
ing of the empirical
evidence on the
relationship between
firm innovation and
firm performance. May
draw on some sources
of evidence to build
their arguments, but
this is generally to a
poor standard.
Demonstrates an
unsatisfactory level
of
knowledge/unders
tanding of the
empirical evidence
on the relationship
between firm
innovation and
firm performance.
Fails to draw on a
sufficient level of
evidence in their
arguments.
Consideration
and
Demonstrates outstanding
knowledge/understanding
Demonstrates very good
knowledge/understanding
Demonstrates good
knowledge/understand
Demonstrates a
reasonable level of
Demonstrates a poor
level of
Demonstrates an
unsatisfactory level
5
Evaluation of
the nuances of
the
relationship
between firm
innovation
and firm
performance.
AND critical analysis of the
boundary conditions of the
relationship between firm
innovation and firm
performance. Uses
examples exceptionally well
in supporting their
arguments. Draws on an
exceptional range of high-
quality sources of evidence
to build their arguments.
AND critical analysis of the
boundary conditions of the
relationship between firm
innovation and firm
performance. Uses
examples very well in
supporting their arguments.
Draws on a wide range of
high-quality sources of
evidence to build their
arguments.
ing AND may show
some critical analysis of
the boundary
conditions of the
relationship between
firm innovation and
firm performance. Uses
examples well in
supporting their
arguments. Draws on a
range of high-quality
sources of evidence to
build their arguments.
knowledge/understand
ing of the boundary
conditions of the
relationship between
firm innovation and
firm performance.
Uses examples
satisfactorily in
supporting their
arguments. Draws on a
reasonable range of
sources of evidence to
build their arguments,
some of which may be
of high-quality.
knowledge/understand
ing of the boundary
conditions of the
relationship between
firm innovation and
firm performance. May
draw on some sources
of evidence and/or
examples to
build/support their
arguments, but this is
generally to a poor
standard.
of
knowledge/unders
tanding of the
boundary
conditions of the
relationship
between firm
innovation and
firm performance.
Fails to draw on a
sufficient level of
evidence and/or
examples in their
arguments.
Conclusions Conclusion provides an
exceptionally clear and
convincing answer to the
question, which is
consistent with the
arguments presented in the
essay. Conclusions are
exceptionally well justified
and supported.
Conclusion provides a clear
and convincing answer to
the question, which is
consistent with the
arguments presented in the
essay. Conclusions are well
justified and supported.
Conclusion provides a
mostly clear and
convincing answer to
the question, which is
consistent with the
arguments presented in
the essay. Conclusions
are mostly justified and
supported.
Conclusion provides a
reasonably clear and
convincing answer to
the question, which
mostly is consistent
with the arguments
presented in the essay.
Conclusions are
reasonably justified and
supported.
Conclusions provide a
mostly unclear and
unconvincing answer
to the question, which
is not overly consistent
with the arguments
presented in the essay.
Conclusions are mostly
unjustified, tangential
and unsupported.
Conclusions are
unclear,
unconvincing and
tangential, and fail
to satisfactorily
answer the
question.
Structure and
Organisation
of Essay.
Referencing
Quality, and
Formatting
Outstanding structure,
coherence, clarity and
presentation, with an
exceptionally high-quality
use of sources.
Very good structure,
coherence, clarity and
presentation, with a very
high-quality use of sources.
Good structure,
coherence, clarity and
presentation, with a
high-quality use of
sources.
Reasonable structure,
coherence, clarity and
presentation, with a
reasonable quality of
sources used.
Poor structure,
coherence, clarity and
presentation, with a
poor quality of sources
used.
Unsatisfactory
structure,
coherence, clarity
and presentation,
with very few and
very poor quality
of sources used.
6
How to Submit your Assessment
The assessment must be submitted by 12:00 noon (GMT/BST) on 13/12/2021
No paper copies are required. You can access the submission link through the module
page.
Your coursework will be given a zero mark if you do not submit a copy through
Turnitin. Please take care to ensure that you have fully submitted your work.
Please ensure that you have submitted your work using the correct file format,
unreadable files will receive a mark of zero. The Faculty accepts Microsoft Office and
PDF documents, unless otherwise advised by the module leader.
All work submitted after the submission deadline without a valid and approved reason
will be subject to the University regulations on late submissions.
o If an assessment is submitted up to 14 days late the mark for the work will be
capped at the pass mark of 40 per cent for undergraduate modules or 50 per cent
for postgraduate modules
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a mark of zero per cent
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submitted as a reassessment of a previously failed assessment task is submitted
later than the deadline the work will immediately be given a mark of zero per
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7
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Does Firms’ Innovation Always Improve Firms Performance?
by [Name]
Instructor
Course
Date
Introduction
Firms use internal dynamic capabilities to facilitate changes that enhance resilience against threats to ensure survival and adaptation to changing business environment (de Wit, 2020). Studies drawing from a resource-based view have identified innovation as an internal dynamic capability of a firm with a profound impact on performance. Innovation is commonly defined as adopting new or improvement of processes, strategic practices, or products/services by firms to add value proposition, respond to uncertainties, or gain sustainable competitive advantage (Meissner & Kotsemir, 2016, p. 2). Innovative models distinguish the characteristics of innovation based on processes, products, market, and organisational.
Product innovation describes the implementation of new or improvement of activities, procedures, or steps in business operation and supply chain. In contrast, product innovation focuses on improving or designing new products to meet unique customer needs and preferences (Fonseca, 2014, p. 558). The UK innovation survey indicated that between 2014 and 2016, over 50% of enterprises were innovative active despite a slight decline in innovativeness among small and medium-sized firms. Innovation levels differed by the size of enterprises, with large businesses and SMEs accounting for 63% and 49%, respectively (Department for Business, Energy & Industrial Strategy, 2018). Despite the proportion of firms actively engaging in innovative strategies, the overall decline in firms’ (especially SMEs) innovativeness declined between the period. The paper presents empirical-based evidence on the relationship between types of innovation and firm performance and the mediating role of firm size in the underlying relationship.
Firm Innovativeness and Firm Performance
Tuan et al (2016) found that innovation positively impacts different aspects of firm performance, such as market, financial, and product in supporting industries. However, the study indicated that supporting industries should focus more on process and organisational innovation activities than product and marketing innovation to mobilise resources and improve the manufacturing process. Atalay, Anafarta, and Sarvan (2013) found that product and process innovation had a significant effect on firm performance in the automotive supply industry, but no correlation between the relationship between marketing and organisational innovations and firm performance. The characteristic of the automotive supply industry, such as the focus on change in product line and launching of new products, require specific engagement in product and process innovations to improve firms’ performance. The insignificant effect of organisational innovation and market innovation on the performance of firms operating in the automotive supply industry is related to the fact that corporate marketing innovations lack the technical and continuous improvement culture critical to improving competitive power. In a different study, Gunday et al (2011) found a direct relationship between innovativeness and organizational performance. Financial performance (sales and profits) and market performance (market share) are output supported by different innovative types that include market, product, and process innovations.
Empirical evidence revealed that innovation types impact the performance of industries differently. For instance, process and organisational innovations were identified to impact performance in supporting or manufacturing industries, while product and process innovations have a positive effect on performance in the automotive supply industry. The study also provided insight into mediating roles between innovation types and different performance aspects, including the market share and financial.
Product Innovation and Organisational Performance
Research evidence indicates a significant relationship between product innovation and organisational performance. Kuncoro and Suriani (2018, p. 189) found that product innovation is a value proposition strategy that helps companies achieve sustainable competitive advantage. Businesses continuously enhance their products to meet customer needs, address customer complaints, and procure new markets. Creating innovative products allows companies to create value to achieve a strategic position and gain a competitive advantage. Hosseini, Soltani, and Mehdizadeh (2018) found that product innovation helps effectively differentiate product and service offerings in relation to industry rivals to enhance organisational performance. Organisations assess market orientations such as customer needs and changing market trends as antecedents to product innovation resulting in superior performance in the industry. Dibie et al (2019, p. 54) investigated the effect of product innovation on customer retention and acquisition. The study findings revealed that product innovation had an overall significant and positive effect on customer retention and acquisition. Product innovations that integrated specific qualities, features, and characteristics that created value and delivered satisfaction to consumers attracted new clients and retained the existing ones to increase the market share.
Process Innovation and Organisational Performance
Studies have also provided substantial evidence regarding the relationship between process innovation and organisational performance. Dey et al (2019, p. 147) study on the impact of lean management practice (LMP) on organisational efficiency revealed that LMP leads to environmental, economic, and social sustainability. Lean management practice is identified as a process innovation that helps SMEs to be efficient to achieve sustainable performance. Parast (2020) examined the impact of research and development (R&D) investment (in the context of process innovation) on organisational performance. The study findings showed that R&D investment improved the resilience of business to supply chain disruption categories such as process, supply, demand, and environmental. A high level of R&D investment resulted in less pronounced process disruption on firm performance. The limitation of the study was associated with the limited scope of objective measures of supply chain risk to determine the performance outcome of R&D investment. In the empirical research conducted by Hendijani and Saeidi Saei (2020) investigating the mediating role of demand uncertainty on the relationship between business performance and supply chain management, the results indicated that process innovation was an internal practice that profoundly impacted financial performance. In the case of high demand uncertainty, process innovation was an external supply chain integration that improved financial performance. Process innovation increases interaction with suppliers and consumers by shifting the paradigm from the internal to the external environment.
Mediating Effect of Firm Size on Innovativeness and Organisational Performance
In a study conducted by Chandrahekar et al (2019) to ascertain the effect of innovation on firm performance, the findings showed no direct relationship between innovation and firm performance. However, a significant and nonlinear relationship was identified between innovation and firm performance by moderating firm/industry-specific characteristics such as firm size, age, and origin. The findings were consistent with the study by Li et al (2020) on the impact of innovation on the efficiency of firms in different clusters. The results showed that firm size had an inverted U-shaped association with organizational efficiency. The study provides substantial evidence regarding the mediating effect of firm size on the relationship between innovation and firm performance.
Research studies have also provided evidence surrounding the moderating role of company size on the relationship between innovativeness and organisational performance. Kijkasiwat and Phuensane (2020, p. 97) identified that firm size conflated with the financial resource to mediate the impact of innovation on business performance negatively or positively. Innovative practices within the physical capital structures differ across large-sized firms and SMEs to present different performance outcomes. Large firms have greater access to physical capital structures to advance R&D projects that positively impact performance. In contrast, SMEs face challenges accessing financial resources to create a barrier in adopting innovation that draws from internal resources, resulting in adverse performance. Oke, Burke, and Myer (2007) examined the impact of various types of innovations on the performance of SMEs. The findings showed that SMEs focus on incremental innovations rather than radical innovations, which facilitate growth in sales turnover. The practical implication of the finding is that SMEs operating in highly innovative industries should focus on incremental innovations, which positively impact sales turnover growth.
Conclusion
In summary, innovation types impact the performance of industries differently. Process and organizational innovations were linked to supporting or manufacturing industries, while product and process innovations related to the automotive supply industry. Product innovation has a positive effect of creating value prepositions and product differentiation to promote customer retention and acquisition and retain and gain competitive advantage. On the other hand, process innovation was associated with organisational efficiency, reduced supply chain disruption, and improved supply chain integration ...
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