Management & Strategy

Abstract

Industrial revolution, globalization, developments about technology (like biotechnologies, mass production) and fast and cheaper communications have emerged many breaking points on social, culturel and business life etc. At the same time these factors are a dynamic that change competation form. These dynamics have impacted slowly conditions of consumptions and production during their emerging. These improvements have changed many things side of customer and business. So how did this happen then? Specially due to globalization and communication information technologies influence on the world more and more, the interaction of all players is increase and easier. So their influences above the social and business life have been increasing each day like ivy wrapping around the wall. For example one of the consequences of this effect is about value creation. The value creation process,which is a key factor in the success of companies, is no longer just quality production. In other words a firm must be able to produce diversificated, quality and also cheaper good faster their rivals to pursue the value creation process. Firms research and use new strategic tools like innovation to struggle with existing and potential rivals. It is important that innovation is used by firms to reach competitive advantages as like sometimes a weapon or shield in regard to other competitors’s tactics. While more and more the importance of innovation strategically, firms seek the new ways to embed it to the organization. Because the concept doesn’t concern with only today but also future of firms. Innovative goods or services must focus on to meet consumer requirement faster than the rivals. Firms try to entegrate unique the new ways to create innovation. The key factor for successful of innovation is related with knowledge’s using skill. So innovation dynamics such as culture, learning and market are very important for becoming innovative. Many researchers who study related with innovation management process, emphasize that firms must endeavor to construct some dynamics such as an innovation culture, learning orientation and market orientation (Hult, Hurley & Knight,2004; Tushman &, O’Reilly,1997; Cameron & Freeman,1991; Maatoofi & Tajeddini, 2010; Han, Kim & Srivastava, 1998; Slater &Narver, 1995; Baker & Sinkula,1999). In these chapter, they will be explained their effects between them in detail. Also it will be studied how to be their relation or how to be created relative priority degree for a firm each other.