Framework and Overview of Modeling Approaches
Conversion industries guarantee food security and play a vital role in improving the accessibility of poor people to food and improving their purchasing power. Cost effective conversion and complementary industries, with proper marketing and transportation, play an important role in rural development. (Olamade, 2014).
Total innovation management
Total Innovation Management (TIM) discusses the components of strategy, culture, organization, and the relationship between them (Xu, 2007). It presents a model for the relationship between technology and non-technology. This new model integrates various characteristics of new innovation and traditional innovation. The main emphasis of traditional innovation management has been the creation of technology or innovation processes, and the role of management includes processing innovations or innovating the product (Zhirong, 2000).
Performance in traditional innovation is related to R & D. A key factor in traditional innovation is competitive advantage. Also, in total innovation management, the function of cultural elements, organizations, innovators, place and time are important. (Xu et al, 2007).
Important components of Total innovation management are Innovation strategy, Innovation culture, the organizational structure, technology management and innovators. the innovation synergy among innovative elements.
The notable difference between total innovation and traditional innovation management is that it breaks through the previous innovation framework, which is only limited in the research and development department. The employment of TIM goes through three transformations ranging from individual innovation to overall innovation, from separate innovation to integrated innovation, and from a focus only on the company's internal resources to an emphasis on the integration of internal and external resources.
Innovation is therefore not only the responsibility of a few people or functions, but also in an integrated strategic process for value creation and creation. TIM demands that all functions and all employees are involved in the overall innovation - the resources for innovation will be much higher and the costs of applying TIM will grow consequently. If TIM is not linked to the innovation strategy to create more value in the market than it costs, TIM is therefore not supported and subsequently not carried out.
In a dynamic and complex market, only continuous innovation can drive a company's sustainable growth and profits. In the innovation process, however, companies often get caught up in the “war of innovative wear and tear” (Braun, 1997) and lead to what is known as the innovator's dilemma (Christensen, 1997). Much research and practice has shown that innovation must be brought into the framework of corporate strategy in order to overcome this dilemma and serve the process of changing business strategy (Janszen, 2000; Roussel, Saad, &; Xu, 2000).
The implementation of TIM undergoes three transformations. They range from individual innovation to total innovation, from separate innovation to integrated innovation, and from a focus only on the company's internal resources to a focus on the incorporation of internal and external resources. Innovation is therefore not only the responsibility of a few people or functions, but also in an integrated strategic process for value creation. TIM should be integrated into corporate innovation strategy such as R&D (Roussel et al., 1991).
Strategy implementation should be supported by organizational and institutional innovations (Janszen, 2000). According to institutional economics, the establishment of an institutional innovation entails two prerequisites: on the one hand, the innovation changes the latent profits and, on the other hand, the innovation costs must be lower than the added profits (Davis & North, 1970).
TIM demands that all functions and all employees to take part in total innovation - the resources for innovation will be much higher and the costs of implementing TIM will increase consequently. If TIM is not linked to the innovation strategy to create more value in the market than it costs, TIM is therefore not supported and subsequently not carried out.
Organizational innovation is essential for companies that want to pursue strategic challenges as they lead to improvements in the management of the organization (Higgins, 1995).
Thus, organizational innovation means the implementation of a new organizational method in a company’s business attitudes, such as the arrangement of the workplace and also
external relationships. New methods aid in the organization’s routines and procedures, in addition to driving the work and practices which facilitate learning and knowledge sharing within the company (OECD, 2005).
First, product and/or service innovation, which implies changes in a product or service provided by the organization by using new or existing technologies. It refers to the development and marketing of new products and services, related to customer satisfaction. Second, process innovation, which includes changes in the way in which new or significantly improved products or services are created and delivered. It is the development of different ways of manufacturing and providing services. Third, marketing innovation (competitive position),
which refers to changes in the context in which goods or services are introduced to the market by focusing on the consumers’ needs. It is the development of new power and leadership structures. Lastly, organizational innovation (management or mental process), which is comprised by changes in the underlying mental models which shape what the organization does, therefore, it is the result of strategic decisions taken by the company through a newly developed business in order to provide a sustainable competitive advantage. (Oslo Manual (2005, Ganzer et al, 2018).
marketing innovation addresses the implementation of new methods, with significant changes in product development, packaging, promotion, positioning, and even in pricing. Therefore, marketing innovation seeks to address the consumers 'needs, by the way new markets are opening, the product repositioning of a company within the market, aiming to increase sales (OECD, 2005).
Development Indicators of a local foods supply were positively related to the choice to engage in marketing. Factors affecting farm financial performance varied significantly between a short-term and a long-term measure. The results emphasize the importance of considering multiple outcome measures, developing local supply chains and provide implications about beginning farms (Clare Ahearn, et al ,2018)
Aliabadi et al., (2009), in a study entitled "Smart Packing in the Food Industry", factors for smart packaging such as temperature and time indicators, gas concentration controller, increased ease in the production and distribution of anti-counterfeiting and theft systems and increase the safety and quality of food products.
Eskandarpour et al (2014) carried out a study entitled "The Uniform Price Law and Integration in Global Date Markets". The results of the study indicated that the convergence of prices in global markets and among major exporters such as Iran, Tunisia, Emirate, Iraq and Saudi Arabia could make it possible to access markets. It should be noted that theere is price convergence and the unit price law in the long run between global prices and export prices in Iran's export markets.
Tsai et al (2017), in an article entitled "Experiential value in branding food tourism", achieved the results that branding could significantly increase the return on investment. Illustration in branding, such as local food image has a significant relationship with an increase in tourism.
Rapp et al (2010) postulates that customer-orientation is the collection, sharing, and use of information with customers at the organization level and coordinated actions based on this information. Customer orientation, as a dimension of market orientation, emphasizes the importance of identifying and addressing the needs and preferences of buyers and customers (regardless of other dimensions of market orientation).
Market innovation is orientation. Market innovation means the innovation of marketing channel, the operational ways et al., by which to create new market, new channel and new ways. Innovation synergy is approach. Due to the inherent limitation of isolated innovation, it’s necessaly to integrate all the innovative elements systemically. Synergy of all the innovation agents has becoming the dominant paradigm of innovation management both native and abroad since 198Os, and it’s the basic approach to realize TIM. (Zhirong, 2003)