Literature Review of Value Innovation

#valueinnovation #blueoceanstrategy #research

Value innovation, a core concept of Blue Ocean Strategy, involves pursuing both differentiation and low cost to create new market spaces. Introduced over 20 years ago, recent academic research suggests it may be losing traction. Emerging concepts like strategic innovation, disruptive innovation, and value creation are gaining prominence. Why is value innovation fading? Research highlights two key issues: its strategies are easily imitated and lack sustainability, despite various efforts to address these shortcomings. However, this doesn’t diminish its relevance entirely. The tools of Blue Ocean Strategy remain distinctive and have delivered valuable insights for two decades.

The concept of creation of value is constantly evolving, such as is the concept of innovation. New theories will constantly emerge and sometimes evolve from existing ones. Value innovation is no different. We believe that Blue Ocean Strategy was a tremendous hit in academic circles but was not absorbed by consulting firms around the world and thus, was not given a chance to be properly implemented, tested, and most importantly, challenged. Very few strategies are supported by so very clearly elaborated models. We believe that value innovation should remain the focus of any business looking to grow.

Reference: https://www.researchgate.net/publication/354495229_The_Approach_of_Value_Innovation_towards_Superior_Performance_Competitive_Advantage_and_Sustainable_Growth_A_Systematic_Literature_Review