The Emerging Dynamics of Innovation: The case of IT-Industry in India

Katri Stén

Student thesis: Master thesis


The rise of an Indian IT-industry has been a remarkable success story. The offshore business model, with its low-cost based value proposition has been the main thriving aspect for the industry. Yet the times are changing, and the increased competition, commoditized offering and increasingly demanding customers bring challenges for the future. To answer those challenges, the leading IT-companies in India are in the path towards efforts to continuously move up in the value chain and drive non-linear growth. Innovation is considered as a highly contributing factor in accomplishing these ambitions in this fast changing, technologically driven industry. In the light of this challenging and interesting context, this dissertation aims to reveal the emerging innovation dynamics in the Indian IT-industry. This exploratory research is conducted by analyzing the case study, based on qualitative in-depth data gathered by interviewing fourteen individuals working in the industry´s leading companies in Bangalore, India. The collected data is analyzed with grounded theory research method, resulting in a framework which can be applied and tested in variety of other contexts. The dynamics are studied through emerging drivers of innovation and the enabling aspects. The analysis of the case study reveals the efforts of the companies to move towards active innovation strategies by emphasizing innovative culture building in the company across the units and ranks. The findings of this study suggest that innovation processes are becoming more increasingly interactive, requiring simultaneous networking across multiple communities, groups and units. Sensitivity towards the customer is highlighted, and new type of openness towards the customers and partners can be witnessed .The emergence of efforts towards valuing locality as an innovation driver is spotted, and the possibilities for crossovers analyzed. The technical nature of the industry ensures that these companies are using the newest technologies to enable this change process towards higher levels of innovativeness. By analyzing the emerging dynamics of innovation, this dissertation contributes to the theories of innovation by concluding in a framework deeply grounded in the data from the under-researched IT-industry in India.

EducationsMSc in Business, Language and Culture, (Graduate Programme) Final Thesis
Publication date2014
Number of pages92