Breakthrough Radical Innovation From An Islamic Perspective: A Literature Review
DOI:
https://doi.org/10.61132/ijema.v1i2.61Keywords:
radical innovation, maslahah, sustainable competitive advantage, Islamic entrepreneur orientationAbstract
Radical innovation is a breakthrough change in the overall pattern of the old system, as a form of implementing new ideas to achieve a competitive advantage. Radical innovation is a solution to escape from external environmental pressures in the form of competition, deregulation in the industry, scarcity of resources, and higher customer demands. This study builds a conceptual model from an Islamic point of view: the value of maslahah in all cases provides benefits or goodness from radical innovation. Maslahah means the good rewards promised by God in this world and the hereafter, thus maslahah implies the benefits of this world and the hereafter, which encourages people to always think and produce new things that are beneficial.
Downloads
References
Abû Ishâq al-Syâtibi. (n.d.). Al-muwafaqat Fi Usul Al-Syari’ah. Beirut: Dâr al-Kutub al-„Ilmiyyah.
Adams, G. L., & Lamont, B. T. (2003). Knowledge management systems and developing sustainable competitive advantage. Journal of Knowledge Management, 7(2), 142–154. https://doi.org/10.1108/13673270310477342
Agarwal, S., Krishna Erramilli, M., & Dev, C. S. (2003). Market orientation and performance in service firms: Role of innovation. Journal of Services Marketing, 17(1), 68–82. https://doi.org/10.1108/08876040310461282
Amruloh, D. A. G. (2016). Entrepreneur orientation in Islamic perspective. 2nd International Conference on Business and Social Science, 10.
Anning-Dorson, T. (2017). How much and when to innovate: The nexus of environmental pressures, innovation and service firm performance. European Journal of Innovation Management, 20(4), 599–619. https://doi.org/10.1108/EJIM-05-2016-0050
Anwar, S. (2013). Kedudukan maslahah perspektif Prof. K.H. Ali Yafie. Al `Adl, 6(2), 29–43.
Baaij, M., Greeven, M., & Van Dalen, J. (2004). Persistent superior economic performance, sustainable competitive advantage, and Schumpeterian innovation: Leading established computer firms 1954-2000. European Management Journal, 22(5), 517–531. https://doi.org/10.1016/j.emj.2004.09.010
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Becker, S. O., & Egger, P. H. (2013). Endogenous product versus process innovation and a firm’s propensity to export. Empirical Economics, 44(1), 329–354. https://doi.org/10.1007/s00181-009-0322-6
Benner, M. J., & Tushman, M. L. (2003). Exploitation, exploration, and process management: The productivity dilemma revisited. Academy of Management Review, 28(2), 238–256. https://doi.org/10.5465/AMR.2003.9416096
Bharadwaj, S. G., Fahy, J., & Varadarajan, P. R. (2015). Sustainable competitive advantage in service industries: A conceptual model and research propositions. Journal of the Academy of Marketing Science, 23(4), 254–276. https://doi.org/10.1007/BF02896251
Calantone, R. J., Tamer, C. S., & Yushan, Z. (2004). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, 31, 515–524.
Chen, J. S., & Tsou, H. T. (2012). Performance effects of IT capability, service process innovation, and the mediating role of customer service. Journal of Engineering and Technology Management - JET-M, 29(1), 71–94. https://doi.org/10.1016/j.jengtecman.2011.09.007
Chen, Y., & Gayle, P. G. (2019). Mergers and product quality: Evidence from the airline industry. International Journal of Industrial Organization, 62, 96–135. https://doi.org/10.1016/j.ijindorg.2018.02.006
Christensen, C. M. (2006). The ongoing process of building a theory of disruption. Journal of Product Innovation Management, 23(1), 39–55. https://doi.org/10.1111/j.1540-5885.2005.00180.x
Chuang, F. M., Morgan, R. E., & Robson, M. J. (2015). Customer and competitor insights, new product development competence, and new product creativity: Differential, integrative, and substitution effects. Journal of Product Innovation Management, 32(2), 175–182. https://doi.org/10.1111/jpim.12174
Cockburn, I. M., Henderson, R. M., & Stern, S. (2000). Untangling the origins of competitive advantage. Strategic Management Journal, 21(10–11), 1123–1145. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1123::AID-SMJ130>3.0.CO;2-R
Covin, J. G., & Wales, W. J. (2019). Crafting high-impact entrepreneurial orientation research: Some suggested guidelines. Entrepreneurship: Theory and Practice, 43(1), 3–18. https://doi.org/10.1177/1042258718773181
Damanpour, F., Walker, R. M., & Avellaneda, C. N. (2009). Combinative effects of innovation types and organizational performance: A longitudinal study of service organizations. Journal of Management Studies, 46(4), 650–675. https://doi.org/10.1111/j.1467-6486.2008.00814.x
Deffains-Crapsky, C., & Sudolska, A. (2014). Radical innovation and early stage financing gaps: Equity-based crowdfunding challenges. Journal of Positive Management, 5(2), 3. https://doi.org/10.12775/jpm.2014.009
Dirisu, J. I., Iyiola, O., & Ibidunni, O. S. (2013). Product differentiation: A tool of competitive advantage and optimal organizational performance (A study of Unilever Nigeria PLC). European Scientific Journal, 9(34), 258–281.
Doran, J., & Ryan, G. (2014). Firms’ skills as drivers of radical and incremental innovation. Economics Letters, 125(1), 107–109. https://doi.org/10.1016/j.econlet.2014.08.011
Drucker, P. (1985). Innovation and entrepreneurship (1st ed.). Pan Books Ltd.
Dweck, C. S. (1986). Motivational processes affecting learning. American Psychologist, 41, 1040–1048.
Edwards, W. R., Kum, P., & Ranjan, R. (2002). Understanding organization culture and innovation: A case study approach. Department of Management, Monash University.
Garcia, R., & Calantone, R. (2002). A critical look at technological innovation typology and innovativeness terminology: A literature review. Journal of Product Innovation Management, 19(2), 110–132. https://doi.org/10.1016/S0737-6782(01)00132-1
Gartner, W. B. (2014). Competitive strategy, by Michael E. Porter. New York: Free Press, 1980, 396 Competitive Advantage, by Michael E. Porter. New York: Free Press, 1985, 557. 10(4), 873–875.
Gatignon, H., Tushman, M. L., Smith, W., & Anderson, P. (2002). A structural approach to assessing innovation: Construct development of innovation locus, type, and characteristics. Management Science, 48(9), 1103–1122. https://doi.org/10.1287/mnsc.48.9.1103.174
Govindarajan, V., & Kopalle, P. K. (2006). Disruptiveness of innovations: Measurement and an assessment of reliability and validity. Strategic Management Journal, 27(2), 189–199. https://doi.org/10.1002/smj.511
Guimarães, J., Severo, E., & Vasconcelos, C. (2017). Sustainable competitive advantage: A survey of companies in Southern Brazil. Brazilian Business Review, 14(3), 352–367. https://doi.org/10.15728/bbr.2017.14.3.6
Gumusluoglu, L., & Ilsev, A. (2009). Transformational leadership, creativity, and organizational innovation. Journal of Business Research, 62(4), 461–473. https://doi.org/10.1016/j.jbusres.2007.07.032
Hauschildt, J., & Salomo, S. (2005). Je innovativer, desto erfolgreicher? Journal für Betriebswirtschaft, 55(1), 3–20.
Hebda, J. M., Vojak, B. A., Griffin, A., & Price, R. L. (2012). Motivating and demotivating technical visionaries in large corporations: A comparison of perspectives. R&D Management, 42(2), 101–119. https://doi.org/10.1111/j.1467-9310.2011.00667.x
Helfat, C. E., & Peteraf, M. A. (2003). The dynamic resource-based view: Capability lifecycles. Strategic Management Journal, 24(10), 997–1010. https://doi.org/10.1002/smj.332
Hermawan, R. (2012). Menumbuhkan etos kerja Islami dalam masyarakat modern. Yogyakarta: Pustaka Pelajar.
Hidayat, Y. M. (2017). Manajemen Sumber Daya Manusia Perspektif Islam. Jakarta: PT RajaGrafindo Persada.
Hitt, M. A., Ireland, R. D., & Lee, H.-U. (2000). Technological learning, knowledge management, firm growth and performance: An introductory essay. Journal of Engineering and Technology Management, 17(3-4), 231–246. https://doi.org/10.1016/S0923-4748(00)00021-6
Im, G., & Rai, A. (2008). Knowledge sharing ambidexterity in long-term interorganizational relationships. Management Science, 54(7), 1281–1296. https://doi.org/10.1287/mnsc.1070.1349
Jiménez-Jiménez, D., & Sanz-Valle, R. (2011). Innovation, organizational learning, and performance. Journal of Business Research, 64(4), 408–417. https://doi.org/10.1016/j.jbusres.2010.09.010
Kenney, M., & Patton, D. (2005). Entrepreneurial geographies: Support networks in three high-technology industries. Economic Geography, 81(2), 201–228. https://doi.org/10.1111/j.1944-8287.2005.tb00266.x
Kiernan, M. J. (1993). The new strategic architecture: Learning to compete in the twenty-first century. Academy of Management Perspectives, 7(1), 7–21. https://doi.org/10.5465/ame.1993.9409142064
Kotler, P. T., & Armstrong, G. (2018). Principles of marketing (17th ed.). Pearson.
Kuratko, D. F., Hornsby, J. S., & Covin, J. G. (2014). Diagnosing a firm's internal environment for corporate entrepreneurship. Business Horizons, 57(1), 37–47. https://doi.org/10.1016/j.bushor.2013.08.009
Liao, S. H., & Wu, C. C. (2010). System perspective of knowledge management, organizational learning, and organizational innovation. Expert Systems with Applications, 37(2), 1096–1103. https://doi.org/10.1016/j.eswa.2009.06.109
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172. https://doi.org/10.2307/258632
Majid, M. A. (2019). Konsep maslahah dalam maqâsid al-syarî’ah menurut Abû Ishâq al-Syâtibi. Ulul Albab: Jurnal Studi Islam, 20(1), 69–94. https://doi.org/10.18860/ua.v20i1.5618
Maqashid Syariah. (2018). Retrieved December 27, 2021, from https://kemenag.go.id/musabaqah/mqsh.html
Miles, R. E., Snow, C. C., Meyer, A. D., & Coleman Jr, H. J. (1978). Organizational strategy, structure, and process. Academy of Management Review, 3(3), 546–562. https://doi.org/10.5465/amr.1978.4305755
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791. https://doi.org/10.1287/mnsc.29.7.770
Mintzberg, H., Ahlstrand, B., & Lampel, J. (1998). Strategy Safari: A Guided Tour Through The Wilds of Strategic Management. The Free Press.
Mohammad, N., Ather, S. M., & Hussein, M. H. (2010). Is entrepreneurial orientation a missing link between Islamic values and organizational performance? International Journal of Commerce and Management, 20(3), 182–195. https://doi.org/10.1108/10569211011076973
Mosakowski, E. (1993). A resource-based perspective on the dynamic strategy-performance relationship: An empirical examination of the focus and differentiation strategies in entrepreneurial firms. Journal of Management, 19(4), 819–839. https://doi.org/10.1177/014920639301900405
Nadkarni, S., & Narayanan, V. K. (2007). Strategic schemas, strategic flexibility, and firm performance: The moderating role of industry clockspeed. Strategic Management Journal, 28(3), 243–270. https://doi.org/10.1002/smj.576
Nonaka, I., & Takeuchi, H. (1995). The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. Oxford University Press.
Nuryakin. (2018). Competitive advantage and product innovation: Key success of Batik Banyumas to expand market. Jurnal Dinamika Manajemen, 9(2), 203–212. https://doi.org/10.15294/jdm.v9i2.14191
Oraman, Y., Azabagaoglu, O., & Inan, H. (2011). The firm’s survival and competition through global expansion: A case study from food industry in FMCG sector. Procedia Social and Behavioral Sciences, 24, 188–197. https://doi.org/10.1016/j.sbspro.2011.09.114
Oura, M. M., Zilber, S. N., & Lopes, E. L. (2016). Innovation capacity, international experience and export performance of SMEs in Brazil. International Business Review, 25(4), 921–932. https://doi.org/10.1016/j.ibusrev.2015.12.002
Pagano, P. (2009). Innovation and economic growth in the internet age. Economics of Innovation and New Technology, 18(5), 435–447. https://doi.org/10.1080/10438590802564543
Parida, V., Westerberg, M., Ylinenpaa, H., & Roininen, S. (2010). Exploring the effects of network configurations on entrepreneurial orientation and firm performance: An empirical study of new ventures and small firms. Annals of Innovation & Entrepreneurship, 1(1), 5601. https://doi.org/10.3402/aie.v1i1.5601
Peng, C. H., & Hung, H. L. (2010). The effects of innovation, capabilities and research and development on firm performance through knowledge management. Academy of Management Journal, 53(6), 121–136. https://doi.org/10.5465/AMJ.2010.5731913
Peris-Ortiz, M., Rueda-Armengot, C., & Osorio, M. (2010). The entrepreneurial orientation as determining factor for firm performance: A study of Spanish SMEs. Journal of Business Economics and Management, 14(4), 853–865. https://doi.org/10.3846/16111699.2012.707517
Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14(3), 179–191. https://doi.org/10.1002/smj.4250140303
Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
Prahalad, C. K., & Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, 68(3), 79–91.
Priem, R. L., & Butler, J. E. (2001). Is the resource-based "view" a useful perspective for strategic management research? Academy of Management Review, 26(1), 22–40. https://doi.org/10.5465/amr.2001.4011928
Rhee, J., Park, T., & Lee, D. H. (2010). Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation. Technovation, 30(1), 65–75. https://doi.org/10.1016/j.technovation.2009.04.008
Riyadi, S. (2019). Teori ekonomi dalam Islam. Yogyakarta: Pustaka Pelajar.
Rothaermel, F. T., & Hess, A. M. (2007). Building dynamic capabilities: Innovation driven by individual-, firm-, and network-level effects. Organization Science, 18(6), 898–921. https://doi.org/10.1287/orsc.1070.0291
Rumelt, R. P. (1984). Towards a strategic theory of the firm. In R. Lamb (Ed.), Competitive Strategic Management (pp. 556–570). Prentice Hall.
Salvato, C., & Vassolo, R. (2018). The sources of dynamism in dynamic capabilities. Strategic Management Journal, 39(6), 1728–1752. https://doi.org/10.1002/smj.2703
Schneider, B., & Reichers, A. E. (1983). On the etiology of climates. Personnel Psychology, 36(1), 19–39. https://doi.org/10.1111/j.1744-6570.1983.tb00500.x
Schumpeter, J. A. (1942). Capitalism, Socialism and Democracy. Harper & Brothers.
Senge, P. M. (1990). The Fifth Discipline: The Art and Practice of the Learning Organization. Doubleday.
Sirmon, D. G., Hitt, M. A., & Ireland, R. D. (2007). Managing firm resources in dynamic environments to create value: Looking inside the black box. Academy of Management Review, 32(1), 273–292. https://doi.org/10.5465/amr.2007.23466005
Slevin, D. P., & Covin, J. G. (1990). Juggling entrepreneurial style and organizational structure: How to get your act together. MIT Sloan Management Review, 31(2), 43–53.
Swierczek, F. W., & Ha, T. T. (2003). Entrepreneurial orientation, uncertainty avoidance and firm performance: An analysis of Thai and Vietnamese SMEs. The International Journal of Entrepreneurship and Innovation, 4(1), 46–58. https://doi.org/10.5367/000000003101299393
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D. J. (2014). The foundations of enterprise performance: Dynamic and ordinary capabilities in an (economic) theory of firms. Academy of Management Perspectives, 28(4), 328–352. https://doi.org/10.5465/amp.2013.0116
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Tuan, L. T., & Yoshi, T. (2010). Organizational capabilities, competitive advantage and performance in supporting industries in Vietnam. Asian Academy of Management Journal, 15(1), 1–21.
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207
Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal, 24(13), 1307–1314. https://doi.org/10.1002/smj.360
Zahra, S. A., & Covin, J. G. (1995). Contextual influences on the corporate entrepreneurship‐performance relationship: A longitudinal analysis. Journal of Business Venturing, 10(1), 43–58. https://doi.org/10.1016/0883-9026(94)00004-E
Zahra, S. A., Sapienza, H. J., & Davidsson, P. (2006). Entrepreneurship and dynamic capabilities: A review, model and research agenda. Journal of Management Studies, 43(4), 917–955. https://doi.org/10.1111/j.1467-6486.2006.00616.x
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 International Journal of Economics, Management and Accounting
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
