Innovation Sourcing Strategies: A Multiple Case Study Approach in the Portuguese Beverage Industry

Details

Supervisors

Blome, Constantin

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

Innovation Sourcing Strategies refer to the practices employed to acquire and integrate essential knowledge for new products, services, and processes from external sources, rather than relying solely on internal development. This thesis investigates the perception, implementation, and outcomes of such strategies in the Portuguese beverage industry. The research started with a literature review on the topic. The methodology included analyzing four case studies of major companies in the Portuguese beverage sector. Professionals in innovation-related roles were interviewed based on the literature review’s findings to gather valuable insights into how these companies balance in-house and open innovation. Main findings include that, compared to B2B companies, B2C companies engage in more specialised commercialization innovation, which involves developing creative strategies for bringing new products to market, such as product placement and marketing campaigns. Their close and continuous connection with customers provides richer data insights for decision-making. Small and medium-sized companies avoid fully outsourcing innovation by purchasing it externally, preferring long-term partnerships, while major players within international groups may buy innovation when seeking specific characteristics, leveraging their substantial financial and human resources. Additionally, in the past, only these major groups had venture departments to invest in startups, but this trend has recently extended to medium-sized companies as well. Firms with multiple core products face a more complex innovation process, due to managing numerous simultaneous projects with distinct initiatives, in contrast to single-product firms. These findings underscore the growing importance of innovation sourcing, given their evolving nature in recent years and the highlighted importance of involving external stakeholders in the innovation process, recognizing that not all necessary knowledge can be sourced internally.