International Journal of Quality Innovation

Korean Society for Quality Management (한국품질경영학회)
권호 표지

Research on the Correlation Effect of Innovation Activities on Innovators and Customers ${\sim}$ Using the IC Package and Testing Industries as an Example

  • Tien, Shiaw-Wen (Graduate Institute of Management of Technology Chung-Hua University) ;
  • Chung, Yi-Chan (Department of Industrial Engineering and Management Ta-Hwa Institute of Technology) ;
  • Tsai, Chih-Hung (Department of Industrial Engineering and Management Ta-Hwa Institute of Technology) ;
  • Dong, Chung-Yun (Graduate Institute of Management of Technology Chung-Hua University)
  • Published : 2007.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

In the competitive global market, firms have to keep profit from innovation activities. A firm makes profits by offering products or services at a lower cost than its competitors or by offering differentiated products at premium prices that more than compensate for the extra cost of differentiation. The IC Package and Testing technology industries were the first high technological industry to build in Taiwan. The Package and Testing industries in Taiwan adopted competitive innovation activities to become stronger. In our study, we want to know how innovation activities influence a firm operating in the IC Package and Testing industries. Our study used a questionnaire and Likert five-point scale to survey the innovation activities, customer and feedback in innovation performance in the IC Package and Testing industry. The wafer level chip size packing technology in our study indicates the innovation activities. Because we need to compare the difference between the wafer level chip size packing technology and wire bonding technology to recognize innovation and how the innovator and customer were influenced. Our conclusions are described below: (1) When the innovator adopts innovation activities that can be maintained using experiments and knowledge, using machine and decision variables more quickly will produce success; (2) Innovators should adopt innovation activities that focus on customers that use knowledge and experimentation, training time and cost. If an innovation forces customers to spend much time and cost to learn new technology or applications, the innovation will not be adopted; (3) Innovators that create innovation performance higher than his customers must also consider the impact upon their customers. We have to remind innovator to focus on why their customers have a different level of evolution in the same innovation activities.

Keywords

References

  1. Abbie, Griffin and Albert L. P.(1993), 'An Interim Report on Measuring Product Development Success and Failure,' Journal of Product Innovation management, Vol. 10, pp. 291-380 https://doi.org/10.1016/0737-6782(93)90072-X
  2. Abernathy, W. J. and Clark K. B.(1985), 'Innovation: Mapping their winds of creative destruction,' Research Policy, Vol. 14, No.1, pp. 3-22 https://doi.org/10.1016/0048-7333(85)90021-6
  3. Afuah, A. N. and Utterback, J. M.(1991), 'The emergence of a new supercomputer architecture innovation,' Technology Forecasting and Social Change, Vol. 40, pp. 285-288
  4. Ali A., Drapfel R. and Labahn D.(2000), 'Product innovation and entry strategy: impact on cycle time and break-even time,' The Journal of Product Innovation Management, Vol. 12, pp. 54-69 https://doi.org/10.1016/0737-6782(94)00027-D
  5. Allan Afuah(1998), 'Innovation Management: Strategies, Implementation and Profits,' Oxford university Press, Inc.
  6. Allan N. Afuah. and Nik. Bahram(1995), 'The hypercube of innovation,' Research Policy, Vol. 24, pp. 51-76 https://doi.org/10.1016/0048-7333(93)00749-J
  7. Allen, T. J. and Hauptman O.(1987), 'The influence of communication technologies on organizational structure,' Communication Research, Vol. 14, pp. 574-587
  8. Arthur, B.(1994), 'Increasing returns and the new world of business,' Harvard Business Review July-August 1996. Arthur, B. increasing Returns and Path Dependence in the Economy. Ann Arbor, MI: University of Michigan Press
  9. Baker, N. R. and Sweeney, D. J.(1978), 'Toward a conceptual framework of the process of organized technological innovation within the firm,' Research Policy, Vol. 7, pp. 150-174 https://doi.org/10.1016/0048-7333(78)90003-3
  10. Barczak, G.(1995), 'New Product Strategy, Structure, Process, and Performance in the Telecommunications Industry,' Journal of Product Innovation Management, pp. 224-234
  11. Chi, Hsieh.(1998), 'High-tech Industry and Economic Development in Taiwan,' Council for Economic Planning and Development, Taiwan
  12. Cooper, R. G. and de Brentani, U.(1991), 'New industrial financial services: what distinguishes the winner,' Journal of Product Innovation Management, Vol. 8, pp. 75-90 https://doi.org/10.1016/0737-6782(91)90002-G
  13. Cooper, R. G. and Kleinschmidt, E. J.(1987), 'Success Factors in Product Innovation,' Research Technology Management, Vol. 16, pp. 215-223
  14. Cooper, R. G.(1985), 'Industrial Firms' New Product Strategies,' Journal of Business Research, Vol. 13, pp. 107-121 https://doi.org/10.1016/0148-2963(85)90034-7
  15. Damanpour, F.(1991), 'Organizational innovation: A meta-analysis of effects of determinants and moderators,' Management Science, Vol. 34, pp. 555-590 https://doi.org/10.1287/mnsc.34.5.555
  16. David, P. A.(1985), 'Clio and the economics of QWERTY,' American Economic Review: Papers and Proceedings, Vol. 75, No.2, pp. 328-336
  17. Dewar, R. D. and Dutton, J. E.(1986), 'The adoption of radical and incremental innovation: An empirical analysis,' Management Science, Vol. 28, pp. 1422-1433
  18. Ettlie, J. E., Bridges, W. P. and O'Keefe, R. D.(1984), 'Organization strategy and structural differences for radical versus incremental innovation,' Management Science, Vol. 30, pp.682-695 https://doi.org/10.1287/mnsc.30.6.682
  19. Ettlie, J. E. and Rubenstein, A. H.(1987), 'Firm size and product innovation,' Journal of Product Innovation Management, Vol. 4, pp. 89-108 https://doi.org/10.1016/0737-6782(87)90055-5
  20. Fleck, J.(1994), 'Learning by Trying: The Implementation of Configurational Technology,' Research Policy, Vol. 23, pp. 637-652 https://doi.org/10.1016/0048-7333(94)90014-0
  21. Freeman C.(1991), 'The nature of innovation and the evolution of the productive system,' Technology and productivity-the challenge for economic policy. Paris: OCED, pp. 303-284
  22. Guielford, J. P.(1965), 'Fundamental Statistics in Psychology and Education,' 4th Edition, New York: McGram-Hill
  23. Hage, J. and Aiken, M.(1980), 'Theories of Organization: Form, Process and Transformation,' New York: Wiley
  24. Henderson, R. and Clark, K.(1990), 'Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms,' Administrative Sciences Quarterly, Vol. 35, pp. 9-30 https://doi.org/10.2307/2393549
  25. Henderson, R.(1993), 'Underinvestment and incompetence as responses to radical innovation: Evidence from the photolithographic alignment equipment industry,' RAND Journal of Economics, Vol. 24, No.2
  26. Kartz, M. L. and Shapiro, C.(1985), 'Network Externalities, competition and compatibility,' American Economic Review, pp. 424-440
  27. Kerlinger, F. N.(1986), Foundation of Behavioral Research, 3rd Edition, HRW Inc
  28. King, W. R. and Ramamurthy, K.(1992), 'Do Organizations Achieve Their Objectives from Computer-Based Manufacturing Technologies?' IEEE Transactions on Engineering Management, Vol. 39, No.2, pp. 128-141
  29. Kleinschmidt, E. J. and Cooper, R. G.(1991), 'The impact of product innovation on performance,' Journal of Product Innovation Management, Vol. 8, pp. 240-251 https://doi.org/10.1016/0737-6782(91)90046-2
  30. Knight, K. E.(1967), 'A descriptive mode of the intra-firm innovation process,' Journal of Business, Vol. 40, pp. 478-496 https://doi.org/10.1086/295013
  31. Liu, Chun-chu. Tsai, Ming-tian and Chuang, Li-ming (2001), 'Research on Innovation Measurement Model Construction of Taiwan High-tech Enterprises,' Journal of Human Resources Management, Vol. 1, Issue 1, pp. 53-71
  32. Liu, Song-yung.(2002), 'How does IC Packaging Industry Leave the Bottom of Depression with the Drive of Upstream Industries?,' Microelectricity, pp. T22-T3
  33. Marples, David L.(1961), 'The Decisions of Engineering Design,' The Transactions on Engineering Management, (June), pp. 55-71
  34. Mechanical Industry Research Laboratories(1996), Industrial Technology Research Institute, Specific Topic Research on IC Package Industry, Taiwan
  35. Mechanical Industry Research Laboratories(1996), Industrial Technology Research Institute, Specific Topic Research on Operation and Development of IC Manufacturing Industry, Taiwan
  36. Mechanical Industry Research Laboratories(1996), Industrial Technology Research Institute, Specific Topic Research on Testing Devices of Ie Packaging Industry, Taiwan
  37. Mechanical Industry Research Laboratories(2001), Industrial Technology Research Institute, 2001 Semiconductor Industry Yearbook, Taiwan
  38. Miles, R. E. and Snow, C. C.(1978), Organizational strategy, structure, process. New York: McGraw-Hill Publishing Company
  39. Miller, J. G., Meyer A. D. and Nakane, J.(1992), 'Benchmarking Global Manufacturing Understanding International Suppliers, Customers, and Competitors,' Irwin
  40. Nord, W. R. and Tucker S.(1987), 'Implementing Routine and Radical Innovation,' Lexington, M. A: Lexington Books
  41. OECD.(1991), 'The nature of innovation and the evolution of the productive system technology and productive-the challenge for economic policy,' Paris: OECD, pp. 303-284
  42. Pennings, J. M.(1987), 'Technological innovations in manufacturing,' In New Technology as Organizational Innovation: The Development and Diffusion of Microelectronics. MA. Pennings and A. Buitendam, Eds. Cambridge, MA: Ballinger
  43. Richardson, P. K., Taylor, A. J. and Gordon, J. R. M.(1985), 'A Strategic Approach to Evaluating Manufacturing Performance,' Interface, Vol. 15, pp. 15-27
  44. Roberts, E. B. and Hauptman, O.(1987), 'The financing threshold effect on success and failure of biomedical and pharmaceutical start-ups,' Management Science, Vol. 33, pp. 381-394 https://doi.org/10.1287/mnsc.33.3.381
  45. Rosanna Garcia and Roger Calantone(2002), 'A critical look at technological innovation typology and innovativeness terminology: a literature review,' Journal of Product Innovation Management, Vol. 19, pp. 110-128 https://doi.org/10.1016/S0737-6782(01)00132-1
  46. Rothwel, R. and Gardiner, P.(1988), 'Re-innovation and robust designs: produces and user benefits,' Journal of Marketing Management, Vol. 3, pp. 372-387 https://doi.org/10.1080/0267257X.1988.9964053
  47. Schroeder, R. G., Benson, P. G. and Saraph, J. V.(1989), 'An Instrument for Measuring the Critical Factors of Quality Management,' Decision Science, Vol. 20, pp. 810-829 https://doi.org/10.1111/j.1540-5915.1989.tb01421.x
  48. Smith, B. L. R. and Barfield, C. E.(1996), Technology, R&D and the economy. Washington, DC: The Brookings Institution
  49. Stephen, Green G.(1995), Member, Mark Gavin B. and Lynda Aiman-Smith, 'Assessing a Multidimensional Measure of Radical Technological Innovation,' IEEE Transactions on Engineering Management, Vol. 42, No.3
  50. Tang, He-ming.(1997), 'Package Industry is also Changing,' Electronic and Material, No.1, pp. 40-42
  51. Teece, D. J.(1986), 'Profiting from technological innovation: Implications for integration, collaboration licensing and public policy,' Research Policy, Vol. 15, pp. 285-306 https://doi.org/10.1016/0048-7333(86)90027-2
  52. Tushman, M. L. and Anderson, P.(1986), 'Technological discontinuities and organizational environments,' Administrative Sciences Quarterly, Vol. 28, pp. 439-456
  53. Utterback, J. M. and Abernathy, W. J.(1975), 'A dynamic model of process, and product innovation,' Omega, Vol. 33, pp. 639-656
  54. Von Hippel, E.(1988), The sources of innovation. Oxford University Press, New York
  55. Walker, O. C. and Ruekert, R. W.(1987), 'Marketing's Role in the Implementation of Business Strategies: A Critical Review and Conceptual Framework,' Journal of Marketing, Vol. 51, pp. 15-33 https://doi.org/10.2307/1251645
  56. Wen, Chi-hong.(1997), 'Prosperous IC Package Industry in Taiwan,' 1997 Semiconductor Industry Yearbook, pp. 4-14 - 4-18
  57. Wheelwright Steven, C.(1978), 'Reflecting Corporate Strategy in Manufacturing Decision,' Business Harisons, Feb. pp. 57-66
  58. Yang, Wei-jun.(1997) 'Systematic Packaging of New Trend of Original Component Integration,' Electronic and Material, No. 13, pp. 79-86
  59. Youssef, M. A.(1991), 'Advanced Manufacturing Technologies, Manufacturing Strategy, and Economic Performance: An Empirical Investigation,' Ph.D. Dissertation, City University of New York