Exploring the benefits and challenges of embedded innovation : multiple cases from Jordanian mobile telecoms

This research offers a framework of embedded innovation systems (EIS) that helps understand the mechanisms, drivers, and challenges that encounter multinational mobile telecoms while developing and deploying their services based on this system. Using a case evidence, a purposive sample of Innovation, Marketing, Finance, and Operation executives has been selected. Based on evidence from the three multinational telecoms in Jordan, a case study with multiple units of analysis is presented. Focus groups is the second source of data collection to understand the discourse between the telecoms’ customers and the operators on how service innovation is designed and implemented. The embedded Innovation literature pointed out key models of innovation systems such as Open, Inclusive, Quadrable Helix, Organisational Ambidexterity, and Regional Innovation Support. A proposed conceptual model has been mixed with the firm-level innovation to grasp the advantages of all these models and draw a systemic view of embedded innovation system at the firm-level. Normative Theories of Innovation and the Theory of Innovation Diffusion have been also considered in the proposed model to advance it to a theoretical framework. Using thematic analysis, three categories of findings have been interpreted and classified. The first, conveys the mechanisms of embedded innovation systems. This theme refers to innovation support system, production environment, R&D infrastructure and policies, and internal factors. The second theme conveys the drivers for Jordanian telecoms to develop EIS, including diversified markets (e.g. fintech industry) for a higher level of competitive advantage, simulating intellectual capital, and creating social innovation initiatives. The third theme conveys the challenges of developing EIS, including lack of customer’s trust, managing innovation change, and lack of customer co-creation policy. The present study offers a contribution to knowledge by theorizing EIS as a systemic firm-level innovation that Simanis & Hart (2008) claimed missing. It also offers an advancement for the regional innovation firm-level innovation developed by Hassink (2001) where telecoms service innovation is the context not a standard line of production. The theory building process followed in this study uncovered new relationships between the intellectual capital, and innovation change management. It also emphasised on the role of customer trust during the design, implementation, and deployment of EIS. At the practical level, this study offers a systemic guide for telecoms professionals to understand the key success factors of EIS systems and know how to face the obstacles they encounter when involving the wider stakeholders of the Jordanian telecoms in this system