Nurturing Innovation in Globalized Corporations : A case study of Kraft Foods & Qualcomm Inc.

Abstract: The capability to innovate and to carry innovation successfully down to markets will undoubtedly be a crucial determinant of the global competition among firms in the few upcoming years. There is growing awareness among business leaders that innovative activity is the main driver of economic growth as well as a potential factor in meeting global market challenges. But for innovation to flourish, companies need to understand the core of innovation and the role organizational factors play in the process of innovation. In this thesis, we examined organizational structure, forms of innovation and competencies and capabilities and innovation. Two case studies, Kraft Foods and Qualcomm, were presented to carry out our research. Through a review of relevant literature, a theoretical framework, upon which the research model, the survey and interview questions were based, was constructed. Interviews were conducted with eight corporate executives, while the survey was executed with 20 respondents from various departments of each firm. Interviews data was analyzed with qualitative method while the collected responses from survey were analyzed with statistical hypothesis testing method. Both results were discussed in comparison with the literature. The test results revealed the positive impact of competencies and capabilities on innovation for both firms. But the test results of company structure varied between the two firms. That can be explained by the rigidness of the structure through the different layers of the organization. Innovation forms were investigated in light of the importance of external knowledge sources for innovation.