The paper "How Schumpeter's Influential New Combinations and Creative Destruction Concepts Foster Innovation " is a perfect example of a business assignment. Severe competition between modern companies is called globalization and also the newly emerged markets with their trade opportunities and labor force full of new skills and capabilities. All such conditions have raised a great concern for the businesses in their willingness to obtain a competitive advantage over others. Such concern is entailed by the capability to attract new customers and retain the existing ones. Targeting the expansion of new consumers, companies have already realized the importance of innovation as the trigger in their development.
That is why companies use the knowledge, skills and abilities of their workforce to develop new innovative ideas that would give organizations to obtain a competitive advantage. Urbancová (2013) displays that through innovation and knowledge it is possible to achieve a competitive advantage, which in the current century is the critical prerequisite to business success. Besides, the importance of innovation is recognized as the ability of employees’ knowledge, qualification and experience to be used for the purpose of continuous development and research of the entire organization (Knight and Cavusgil, 2004).
However, only effective management of innovation can bring a competitive advantage to the companies. Thus, while operating on the global scale, organizations leverage innovativeness and knowledge to obtain considerable market success. The importance of innovation lays in the strong relationship between the performance of the company within a certain market and the new products it represents there. Besides, new products help to keep market shares and thus improve the profitability of the organization. While a company’ s efficiency depends also on such non-price factors as design and quality, ability to shorten the product lifecycles, the innovation of these processes is critical for the company’ s success.
The first who developed the term of innovation was Austrian- American economist, Joseph Schumpeter, who defined innovations as certain changes that if they do not come from new discoveries, but from a combination of already existing ones and can be applied anew (Urbancová , 2013).
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