INNOVATION IN PROJECT-BASED FIRMS
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesisAlternative title
INNOVATION IN PROJECT-BASED FIRMS (English)
The concept of Innovation in the new economy based on knowledge is undeniable. Innovation is regarded today as the most important parameter for growth, both in national and business level, since it tends to become a top priority in all national policies. The differences in competitiveness and the observation of per capita income per national economy can be attributed in a sense to many levels of innovative activities and development. Innovation can be defined as "the use of knowledge to produce and deliver new products or services that consumers want". Innovation can refer to a new product or a new service in production patterns or to the technology used, as well as to an administrative procedure or an organizational structure (internally or externally in relation to their clients or suppliers). An innovative action may be radical or gradual (depending on the change rate in existing functions of a business).
This paper analyses the innovation in project-based firms; whether or not project- based firms provide a context supportive of innovation and what is their motivation to be innovative.
Project-based firms differ from the non-project-based firms in the organizational structure. The former generate results in response to specific client demands by structuring projects around temporary assemblies of in-house specialist staff and executing business within a fixed time limit. In today‟s environment, where the markets and technologies are rapidly changing, companies seek for a flat and more flexible structure and this is the reason why many companies are discussing a move away from the mass-production, mass-consumption business model that thrived in the 20th century and prefer a project-based organizational structure. Project-based firms can operate in many industries such as construction, IT, communication, consulting and professional services etc.
Given the thrive of the project-based structure in firms and the importance of creativity and innovation in our days in order to be competitive in the market, the interaction of those two has to be discussed.
Place, publisher, year, edition, pages
2012. , 30 p.
Innovation Management, Motivation, Process, Project-based firms, Non-project-
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-143942OAI: oai:DiVA.org:kth-143942DiVA: diva2:710037