Project Description
In today's rapidly evolving business landscape, companies are compelled to continuously enhance their competitiveness and innovative capacity to secure long-term growth and sustainability.
The ability to innovate alone is no longer sufficient; organizations must also focus on innovation efficiency the capacity to effectively bring both incremental and radical innovations to market while optimizing resource utilization. This dual focus on innovation and efficiency is critical, as the interplay between these two dimensions can significantly influence a firm's performance and adaptability.
Traditionally, efficiency and innovation have been perceived as opposing forces. This misconception often leads organizations to overlook opportunities to improve the cost-benefit ratio of their innovation activities. Various organizational structures, cultures, and management styles can either hinder or promote innovation efficiency, creating a complex landscape for firms striving to balance these competing demands. Accordingly, one aim of this project is to investigate how the efficiency of both incremental and radical innovation projects can be enhanced and how their relationship with the existing core business can be effectively managed through diverse management approaches grounded in ambidexterity theory.
In the entrepreneurship context, scaling a business brings an equally critical challenge into focus: while new ventures are celebrated for their innovativeness, the key question is how to introduce professional structures without undermining the entrepreneurial drive and creativity that fuels innovation. As new ventures grow, they must transition from in-formal, founder-centered management to more formalized, professional operations. Yet little is known about how entrepreneurs navigate this transition or how it impacts their motivation. Therefore, the second subproject examines how new ventures implement professional management practices and how these shifts influence entrepreneurs' engagement, energy, and long-term commitment.
Relevance to Liechtenstein
The research project is significant for Liechtenstein and the Alpine Rhine Valley region, particularly in terms of its impact on local businesses, start-ups, and economic development in general. Liechtenstein can benefit from improved innovation efficiency among local businesses and from innovative start-ups that develop into established companies. For example, by focusing on the dual aspects of exploitation and exploration strategies, local companies can optimize their existing capabilities while promoting new ideas and innovations. This balance is crucial for maintaining competitiveness in a global market, especially for small and medium-sized enterprises, which predominate in the region. In addition, the Alpine Rhine Valley, with its unique geographical and economic landscape, offers both challenges and opportunities for innovation and entrepreneurship. The research project focuses on understanding the factors that influence innovation efficiency and can provide valuable insights for local companies trying to navigate this complexity. By studying companies in this region, the project aims to identify best practices and strategies that can be tailored to the specific needs of Liechtenstein's economy and entrepreneurial ecosystem. Furthermore, the results from this research can serve as guidance for stakeholders in the region in creating a favorable environment for innovation and entrepreneurship.
Scientific, Economic and Societal Impact
The project addresses the critical balance between exploitation and exploration and emphasizes the need for companies to increase their innovation efficiency. By examining how companies can effectively manage both incremental and radical innovations, the research contributes to the university's commitment to promoting innovative practices that can lead to sustainable growth.
Furthermore, the project addresses the tensions between "efficiency and innovation". By promoting a nuanced understanding of innovation efficiency, the results of the research project aim to support companies in strategically optimizing resource use while pursuing innovative projects. This approach not only improves business performance but also promotes sustainable business practices.
Sustainability plays a central role throughout the entire research project, as the importance of effective innovation strategies for adapting to changing market conditions is at the forefront. By examining how companies can balance both exploration and exploitation, the results achieved in the research project are intended to help companies promote or establish sustainable business practices that are essential for long-term profitability.
