Sample Management Paper on Incremental and Radical Innovation

Products have relatively short life cycles in dynamic business environments. firms should integrate product innovation strategies into their operations to maintain a competitive advantage in such dynamic environments. Indeed, product innovation plays a significant role in determining every company’s future. Despite decreases in the operating income in the 2008 recession, it is perceived that the world’s top innovators increased their spending on research and development to innovate new products that would help them survive in the dynamic global business environment. However, new products can achieve success in the dynamic markets depending on the extent it satisfies the customer needs and their functional diversity. These factors do not discriminate between incremental and radical product innovation. Incremental and radical product innovation are different and important in their own ways.

Maintaining or improving a particular product’s position in the global market has become a focus for many companies. Indeed, enterprises have integrated incremental product innovation strategy into their operations. According to Menguc, Auh, and Yannopoulos (2014), product incremental innovation is defined as the series of improvements or upgrades that companies usually make to the existing products, methods, services or processes. The ultimate goal of this product innovation strategy is to design and improve existing products with customer-friendly features. Additionally, most companies use an incremental innovation strategy to improve a particular product’s development efficiency, competitive differentiation, and productivity (Menguc, Auh & Yannopoulos, 2014). Incremental product innovation is characterized by various factors involving response to customer needs identified from current offers, utilizing and enhancing a particular product’s current capabilities, prolonging the life-cycle of a product or services, and others.

Radical product innovation is concerned with the development and commercialization of new products and services in dynamic business environments. The objectives of radical product innovation are to develop and commercialize products that offer unprecedented performance beliefs, substantial cost reductions, and creates new businesses. However, this concept of product innovation faces challenges associated with a more complex customer adaption process and more uncertain development processes. Firms that are focused on developing new products must understand the components of this concept of product innovation (Slater, Mohr & Sengupta, 2014). These components include organizational architecture, organizational culture, senior leadership, the radical product innovation development process, and the product’s launch strategy.

Incremental product innovation is a common approach that many established companies use to achieve several goals, including protecting a given business model. This product innovation focuses on creating and improving new business models without eliminating or cannibalizing the current ones. Besides, incremental product innovation is concerned with growing sales and profits of the existing products and services. Opposed to incremental product innovation, radical innovation tends to eliminate existing business models and does not protect a given business model.

Staying competitive is one of the advantages of integrating incremental product innovation strategy into a firm’s operations. Products need to evolve to allow competition with the existing products to roll on. Incremental innovation also makes it easier for a company to communicate and sell a particular idea. one of the advantages of radical innovation is developing an innovative idea that comes with the chance to create a whole new brand and market.

Most companies have integrated innovation into their operations to determine their success and longevity in the dynamic global business environment. firms have decided to put more focus on incremental and radical product innovation strategies to achieve their objectives. These product innovation strategies are of importance to companies. For instance, an incremental product innovation strategy can help a firm to communicate and sell a particular idea or product easily.


Menguc, B., Auh, S., & Yannopoulos, P. (2014). Customer and supplier involvement in design: The moderating role of incremental and radical innovation capability. Journal of Product Innovation Management, 31(2), 313-328.

Slater, S. F., Mohr, J. J., & Sengupta, S. (2014). Radical product innovation capability: Literature review, synthesis, and illustrative research propositions. Journal of Product Innovation Management, 31(3), 552-566.