How emerging market firms like Xiaomi and Narayana Hrudayalaya use componovation approach to innovate

Abstract

Componovation is a semi structured path of innovation prevalent in many emerging markets. Firms in emerging markets often face severe resource constraints, are bereft of proprietary technology and cannot exercise adequate market power because of institutional voids, yet they are able to compete effectively with much stronger rivals by integrating an approach of creative combination and responsive innovation leading to value innovation at the market place called componovation. Findings suggest firms in emerging economy enterprises (EEE’s) are able to achieve outstanding results through the creative use of open generic resources available and unique blending capabilities that often results in product or service offerings having an enhanced value proposition.