Innovative business and new industrial technologies as possible drivers of the SME’s companies growth in a condition of economic recession

Abstract

Numerous models and frameworks of strategic management show the variety of approaches and complexity of the process of the strategic analysis and strategy elaboration. However, according to recent strategic research, executives seek out, first of all, blue oceans strategy to introduce innovation change in the time of serious economic recession (Kim and Maubornge, 2005).

One of the aims of this research is confirm the hypothesis that value innovation can serve as a possible driver of company growth as well as innovative businesses and new industrial technologies can be a factor of regional economics stability in a recession time. The objects of this international research are three real business entities from three different countries operating in three different fields, those companies working in alternative sources of energy industry (Latvia); in security printing industry (Lithuania) and information technologies industry (Ukraine). The authors are basing this research not only on the widely used classical theories (Porter‘s Competitive Framework, Resource-Based view), but also critically assess the latest trends in strategic management theories (Blue Ocean Strategy and Delta Model) and practically apply its.

The outcome of analysis and its findings helped to summarize gained research results in Strategic Canvas of industries and to display it graphically, then to assess and to comment Value Innovation creation for three companies working in the field of alternative sources of energy industry (Latvia), in security printing industry (Lithuania) and in information technology industry (Ukraine). Finally, to define the option for the Blue Ocean Strategy future implementation direction, three strategic options of the Delta Model Triangle were analyzed. The most appropriate strategic option was defined as Total Customer Solution as it supports the ideas of the Blue Ocean strategy.

One of the actual outcomes of the research is a confirmation of hypothesis that innovation and new industrial technologies can serve as a drivers of the business entity growth in a recession time. The future research should be based on the current research findings and be mainly dedicated to the change management and strategic control.