One product, many markets- Absorbing, transferring, andintegrating knowledge fromdiverse local markets in theinnovation process : A case study on a global car-sharing company

Abstract: In the emerging global marketplace many companies are forced to disperse their business fromoperating in one market into various markets, which causes challenges regarding innovationperformance. To efficiently use their resources, these organizations are often developing theirproduct adopted to the home market’s customer needs, something that can lead to poor productacceptance by the secondary markets. Hence, absorption and use of market knowledgethroughout the innovation process are important considerations to maintain a competitive advantage.This case study intends to answer the research question; what are the best-practices for innovationat a global car-sharing firm to better align their product to many diverse markets? Thethesis was carried out as an inductive case study at DriveNow, a car-sharing company aroundEurope who are struggling with the product performance at their many diverse markets. Thegoal with the thesis was to propose recommendations on how to manage the complexity ofabsorbing knowledge from diverse local markets, transferring it within the organization andintegrating it throughout the innovation process. In order to do so, a pre-study was conducted,followed by 23 semi-structured qualitative interviews at the headquarter and four of DriveNows’local offices.The results indicate, on the one hand, that firms have to access important market knowledgethrough their local offices to better align the product to their diverse markets. On the otherhand, the efficiency of how the organization are transferring the knowledge and encouraging employeesto do so are also important considerations. Based on results from this study, we suggesta formalization of various processes in order to facilitate ideation, internal communication andthe subsequent transmission of market knowledge over boundaries. Furthermore the developmentof an adopted global product could be a way of manage the complexity of having a globalproduct but satisfy needs of diverse markets. By capturing market knowledge and create localizedfeatures were it is needed the global product could be better adapted to various markets.