Challenges in the Era of Globalization - iaabd

Challenges in the Era of Globalization
Edited by Emmanuel Obuah
Problem identification: The literature points out that GIs are need driven. Thus similar to the value chain
by Van Horne et al., 2006, the proposed framework starts with the identification of a problem in the
environment. Research is then carried out to find existing grassroots and mainstream concepts or ideas
that could be brought together to address the problem. Embeddedness provides the innovator with
intimate knowledge of the problems and resources available in the environment (Jack & Anderson, 2002).
It thus allows the innovator to determine not only the extent of the problem but also factors to keep in
mind in seeking an effective solution that can be adopted by the intended users. Such factors include the
cultural values of the target population as well as their purchasing power. The goal is to deliver value to
the users of the innovation (Van Horne et al., 2006).
This is consistent with the population ecology theory, which deals with the influence of the environment
on organizations (Hannan & Freeman, 1977). The market acceptance of the innovation is determined by
the relevance of the resulting innovation to the individuals in the environment and its ability to address
the targeted problem in an affordable way (Verma et al., 2004). Thus, only those organizations which
constantly adapt to their environment will survive (Amit, Glosten, & Muller, 1993: 823), as only
innovations which adequately serve the needs of the market can achieve commercial success (Drucker,
1985; Srinivas & Sutz, 2008).
Idea Selection: At this stage, after examining possible indigenous and mainstream ideas that could
resolve the problem, the most appropriate ideas/features are selected. The criteria for the selection of
features at this phase would include; effectiveness in solving the problem, cost-effectiveness, cultural
sensitivities (avoiding the use of anything that may be considered offensive), and ease of use. These
features facilitate the adoption of the innovations. In particular, high-cost and perceived difficulty in
usage, tend to hinder innovation adoption (Longo, 1990; Verma, Tsephal, & Jose, 2004).
This phenomenon is consistent with the structuration theory which explains how innovations are
conditioned by the environment in which they are embedded. It also points out that human actions
determine the social structure and, simultaneously, social structures influence human actions
(Butkeviciene, 2009; Giddens, 1984). Though as previously noted, the ideas selected for integration from
both grassroots and mainstream innovations are influenced by an understanding of what is acceptable and
affordable to the potential users, the selection of ideas may also be aimed at influencing the social
structure; for example, hitherto non-consumers could become consumers as a result of drastically lowered
costs.
Innovation development: This phase can be described as “idea conversion” (Hansen & Birkinshaw
(2007), or “innovation development” ( Van Horne et al., 2006), or the transformation of knowledge into
physical innovation that reflects the different sources of knowledge applied (Roper et al., 2008).
This phase is where the integration of ideas selected from indigenous and mainstream innovations are
developed and pilot tested. Roper et al. (2008), note that innovativeness and performance are enhanced
when different sources of complementary knowledge are harnessed and thus acknowledges the
complementarity and substitutability of different sources of knowledge (Roper et al., 2008).
The difference in approach to be emphasized is the need for the development process to be user-led,
rather than developer-led. von Hippel (2009) points out that user-centered innovations has advantages
over manufacturer led innovations as the user is able to develop exactly what they need (p 29) instead of
relying on manufacturers who tend to focus more on commercial benefits (Riggs & von Hippel, 1994). A
number of authors note that the effectiveness of GIs in solving problems results from the fact that they are
generated by those who have firsthand experience of the problems (Ganguli, 2000; Gupta et al., 2003;
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