THE IMPORTANCE OF INNOVATIONS FOR THE DEVELOPMENT OF FRANCHISING SYSTEMS
Abstract
In today's global competitive business environment, innovations are crucial for the success of the company. It is necessary to emphasize the importance of understanding wishes and needs of consumers and an innovative manner in which their needs can be met more efficiently in comparison to competition. Franchising is, certainly, one of the business concepts that is difficult to associate with innovation, as it presents the use of a proven business model. At the global level, there is a constant tendency in the development of existing and new franchise systems. In this regard, the paper points out the importance of innovation for the development and improvement of the franchise systems. The phenomenon of open innovation is increasingly important in recent years. The paper highlights the importance of open innovation as the best way to innovate the franchising company's business through the adoption of ideas from the external environment and the exchange of internally created ideas. The model of open innovation involves the integration of customers, suppliers and franchisees in the new product development process. The open strategy of new product development is very important for franchising companies that want to be leaders. The paper reviews the development perspectives of open innovation in franchising systems in the future.
References
Acur, N., Kandemir, D., & Boer, H. (2012). Strategic Alignment and New Product Development: Drivers and Performance Effects. Journal of Product Innovation Management, 29, 304-318.
Chesbrough, H., & Appleyard, M. (2007). Open Innovation and Strategy. California management review, 50(1), 57-76.
Cooper, R.G., & Kleinschmidt, E.J. (2000). New product performance: What distinguishes the star products. Australian Journal of Management, 25(1), 17-45.
Cooper, R.G., Edgett, S.J., & Kleinschmift, E.J. (2003). Bencmarneting best NPD practices- II. Research Technology Management, 47(3), 50-59.
Duckett, B. (2008). Business format franchising: a strategic option for business growth – at home and abroad. Strategic Direction, 24(2), 3-4. doi:10.1108/02580540810848629.
Enkel, E., Gassmann, O., & Chesbrough, H. (2009). Open R&D and open innovation: exploring the phenomenon. R&D Management, 39, 311-316.
Faems, D., de Visser, M., Andries, P., & Van, L.B. (2010). Technology Alliance Portfolios and Financial Performance: Value-Enhancing and Cost-Increasing Effects of Open Innovation. Journal of Product Innovation Management, 27, 785-796.
Fuchs, C., & Schreier, M. (2011). Customer Empowerment in New Product Development. Journal of product innovation management, 28, 17-32.
Gámez-González, J., Rondan-Cataluña, F., Castro, E.C., & Navarro-Garcia, A. (2010). Toward an international code of franchising. Management Decision, 48(10), 1568-1595. doi:10.1108/00251741011090333.
Gassmann, O., & Enkel, E. (2004). Towards a Theory of Open Innovation: Three Core Process Archetypes. U: R&D Management Conference (RADMA), Lisabon. 2-16.
Gassmann, O. (2006). Opening up the innovation process: towards an agenda. R&D Management, 36, 223-228.
Gassmann, O., Enkel, E., & Chesbrough, H. (2010). The future of open innovation. R&D Management, 40(3), 213-221.
Hooley, G., Piercy, N., & Niconland, B. (2012). Marketing Strategy & Competitive Positioning. Pearson Education Limited.
Jespersen, K. (2011). Online channels and innovation: are users being empowered and involved. International Journal of Innovation Management, 15(6), 1141-1159.
Mac Cormack, A., Crandall, W., Henderson, P., & Toft, P. (2012). Do You Need a New Product-Development Strategy?: Aligning Process With Context. Research Technology Management, 55(1), 34-43.
Milisavljević, M. (2010). Strategijski marketing. Beograd: Centar za izdavačku delatnost Ekonomskog fakulteta.
Nijmeijer, K., Fabbricotti, I.N., & Huijsman, R. (2013). Making Franchising Work: A Framework Based on a Systematic Review. International Journal of Management Reviews, 1-22.
Nietoa, M., & Santamaria, L. (2007). The importance of diverse collaborative networks for the novelty of product innovation. Technovation, 27, 367-377.
Poolton, J., & Barclay, I. (1998). New product development from past research to future applications. Industrial Marketing Management, 27(3), 197-212.
Schilling, M., & Hill, C. (1998). Managing the new product development process: Strategic imperatives. The Academy of Management Executive, 12(3), 67-81.
Stanković, Lj., & Đukić, S. (2004). Problems of measuring success of a new product. Facta Universitatis, Series: Economics and Organization, 2(2), 101-110.
Stefanović, S., & Stanković, M. (2013). Comparative analysis of the development of franchising in Serbia and worldwide. Marketing, 44(2), 115-127.
Body Creator (2013) Preuzeto sa www.bodycreator.com 2013 Dec 24.
Entrepreneur (2013) Preuzeto sa www.entrepreneur.com/article/225992#ixzz2qwPBwFM8 2013 Dec 14.
Funny Chips (2013) Preuzeto sa www.funnychips.net 2013 Dec 4.
The Joint (2013) Preuzeto sa www.thejoint.com/_articles/INC_04272012.pdf 2013 Dec 14.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).