ABSTRACT

External factors have a decisive influence on the success and failure of an innovation project. Innovation managers need to know which factors put pressure on the project, are impediments, or stimulate the project. An innovation manager needs to know what the effects of these factors are on the project and its outcomes and also what actions neutralize or enhance these effects. The nearest external factors that influence the functioning of an innovation project are those in the company itself. The innovation manager, for example, needs to know which departments in the company can assist and, for example, must know whether the company has sufficient production capacity to produce the innovation. The innovation manager also has to know whether the marketers are capable of promoting the new products and services to the public. Other external factors that influence innovation projects’ success are those factors that are located in the market. The innovation manager, for example, needs to know if there are competitors working on comparable innovations. It is also important that he has an insight into the question of whether there is customer demand for new products or services. He also has to know whether the government prepares laws and regulations that foster or impede innovations. A thorough analysis of the context of the innovation project is an important issue for both innovation researchers and managers (Bossink, 2004b; Koberg et al., 2003; Kok and Biemans, 2009; Sanchez and McKinley, 1998; White-Hunt and Pomykalski, 1985). This chapter examines how innovation managers work with the internal organizational and external business environmental factors that drive their innovation projects. It looks for answers to the questions:

What business environmental factors drive sustainable innovative projects?

When are these driving factors managed (in)effectively?