The Identification of Innovation Opportunities by Digital Marketing Agencies

365 Pages·2017·6.23 MB·English

by  Matthew Hendry

Matthew Hendry

UNIVERSITY OF BRIGHTON

THE IDENTIFICATION OF INNOVATION
The Identification of Innovation Opportunities by

OPPORTUNITIES BY SEARCH ENGINE
Digital Marketing Agencies
OPTIMISATION AGENCIES:

SMALL FIRM CASES IN A UK CLUSTER

Matthew Hendry

31/01/2017

MATTHEW JAMES HENDRY

A thesis submitted in partial fulfilment of the

requirements of the University of Brighton for
A thesis submitted in partial fulfilment of the requirements of the University of Brighton for the
degree Doctort ohf Pehilo sdopehyg ree Doctor of Philosophy.

NOVEMBER 2017
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Abstract Matthew Hendry
Abstract

The aim of this thesis is to further knowledge of how digital marketing agencies identify
opportunities for innovation.
Being innovative within digital marketing is an issue faced by many of the small digital
marketing agencies. Recent research that has been carried out on SME innovation has focused
on networking and integration. It could be said that this research is largely not applicable to
the SEO (Search Engine Optimisation) industry when competitive advantage is such a major
factor. Furthermore, the research suggests that many small agencies would take an ad-hoc
approach to innovation. Other research has also shown that innovative companies can grow
faster and become more profitable. Therefore, agencies that can become more advanced in
their innovation capabilities could see competitive advantages come from this.
This thesis investigates the emerging processes that are currently being used within digital
marketing agencies to identify opportunities for innovation. It specifically looks at the
identification stage of innovation rather than the entire innovation process. Breaking the
innovation process down into various sub-processes enables a far greater depth of insight to
be drawn.
The research approach was qualitative with four in depth interviews of experts within the field
being completed. Then based on these findings a further 17 interviews were completed in five
agencies located within the Brighton and Hove area. All interviews carried out were semi
structured.
The contribution to knowledge is based around four key areas. Firstly, a definition of
innovation is developed specific to the digital marketing agencies. Secondly, a model of
innovation identification is constructed. Thirdly, key insights around time pressures within the
industry are put forward. Finally, the concept of open innovation is considered.
Within this project it was found that those companies more adept within their innovation
capability were able to provide an appropriate definition of innovation. These companies also
had a process for identifying innovation opportunities in place. In addition, time to complete
innovation will always be an issue within this industry. However, there are some limited long
term ways in which this can be mitigated through management support and company
structure. Finally, within the concept of open innovation, there was found to be a disparity
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Abstract Matthew Hendry
within the industry which thinks of itself as open when the reality points towards it being more
closed than it believes.
This thesis produces rich insights into the ways in which creativity is developed into innovation
and how companies within the digital marketing industry may be able to absorb ideas from
creative employees into the business in order to improve their innovative capabilities.

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Contents Matthew Hendry
Contents
Abstract ...................................................................................................................................... ii
Contents .................................................................................................................................... iv
List of Tables ............................................................................................................................. ix
List of Figures ............................................................................................................................. x
Acknowledgements................................................................................................................... xii
Declaration ............................................................................................................................... xiii
1 Chapter 1 – Introduction .................................................................................................... 1
1.1 Aims and Objectives ................................................................................................... 1
1.2 Scope .......................................................................................................................... 1
1.3 Structure of the Thesis ............................................................................................... 2
1.4 Structure of the Chapter ............................................................................................ 3
1.5 Industry background .................................................................................................. 4
1.6 Business Models......................................................................................................... 9
1.7 A Brief History of Search .......................................................................................... 10
1.8 How Search Works ................................................................................................... 13
1.9 Conclusion ................................................................................................................ 15
2 Chapter 2 – Literature Review ......................................................................................... 16
2.1 Introduction ............................................................................................................. 16
2.1.1 Scholarly application of the literature ............................................................. 17
2.1.2 Structure of the chapter .................................................................................. 17
2.2 Innovation Definition ............................................................................................... 19
2.3 Innovation Models ................................................................................................... 21
2.4 Degrees of innovation .............................................................................................. 24
2.5 Innovation Levels ..................................................................................................... 28
2.5.1 Individual .......................................................................................................... 28
2.5.2 Group Innovation ............................................................................................. 31
2.5.3 Organisational .................................................................................................. 34
2.5.4 Level Characteristics ........................................................................................ 34
2.6 New Product Development...................................................................................... 35
2.6.1 Models ............................................................................................................. 36
2.6.2 Fuzzy Front End ................................................................................................ 39
2.7 Creativity .................................................................................................................. 40
2.7.1 Creativity Definition ......................................................................................... 40
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Contents Matthew Hendry
2.7.2 Difference between Innovation and creativity ................................................ 43
2.7.3 Management of Creativity ............................................................................... 44
2.8 Opportunity Extraction ............................................................................................ 47
2.9 Knowledge Management ......................................................................................... 48
2.10 Open Innovation ...................................................................................................... 51
2.11 SME Innovation ........................................................................................................ 53
2.12 Innovation Laboratories ........................................................................................... 55
2.13 Innovation Measurement ........................................................................................ 55
2.14 Clusters .................................................................................................................... 56
2.15 Technological Opportunities .................................................................................... 57
2.16 Innovation Search .................................................................................................... 58
2.17 Conclusion ................................................................................................................ 59
3 Chapter 3 - Methodology ................................................................................................. 61
3.1 Introduction ............................................................................................................. 61
3.2 Structure of the Chapter .......................................................................................... 62
3.3 The Four Social Science and the Nature of Society Assumptions ............................ 63
3.4 The Authors View ..................................................................................................... 65
3.5 Pragmatism .............................................................................................................. 67
3.6 Method Selection ..................................................................................................... 70
3.6.1 Quantitative and Qualitative ........................................................................... 71
3.6.2 Induction and Deduction ................................................................................. 72
3.6.3 Validity and Triangulation ................................................................................ 74
3.7 Interviews................................................................................................................. 75
3.8 Sampling ................................................................................................................... 77
3.8.1 Method and Participants ................................................................................. 77
3.8.2 Number of Interviews ...................................................................................... 79
3.8.3 Definition of Digital Marketing Companies...................................................... 79
3.8.4 The Choice of Small Agencies .......................................................................... 81
3.8.5 How, where and when the data was collected ................................................ 81
3.9 Ethics ........................................................................................................................ 82
3.9.1 Researcher Role ............................................................................................... 84
3.9.2 Data Protection ................................................................................................ 84
3.10 Carrying out the Interviews ..................................................................................... 85
3.10.1 Linking the Research Propositions to the Interview Questions ....................... 85
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Contents Matthew Hendry
3.10.2 Purpose ............................................................................................................ 88
3.10.3 Pilot Study ........................................................................................................ 88
3.10.4 Changes ............................................................................................................ 89
3.10.5 The proposition and question ordering ........................................................... 90
3.11 Analysis .................................................................................................................... 91
3.11.1 Nvivo ................................................................................................................ 92
3.11.2 Usefulness of data collected ............................................................................ 92
3.11.3 Presentation of findings ................................................................................... 93
3.12 Conclusion ................................................................................................................ 93
4 Chapter 4 – Expert Results ............................................................................................... 94
4.1 Introduction ............................................................................................................. 94
4.2 Structure of the Chapter .......................................................................................... 94
4.3 Expert Overview ....................................................................................................... 95
4.4 Expert ....................................................................................................................... 96
4.4.1 Opening questions ........................................................................................... 96
4.4.2 Definitions/terminology ................................................................................... 97
4.4.3 External Influences ......................................................................................... 102
4.4.4 Opportunity Identification ............................................................................. 107
4.4.5 Why opportunities are pursued ..................................................................... 115
4.4.6 Company approach to innovation ................................................................. 118
4.4.7 Open Innovation ............................................................................................ 124
4.4.8 Miscellaneous ................................................................................................ 129
4.5 Expert Interviews Connection to the Literature Review ........................................ 129
4.6 Conclusions ............................................................................................................ 131
5 Chapter 5 – Company Results ........................................................................................ 133
5.1 Introduction ........................................................................................................... 133
5.2 Structure of the Chapter ........................................................................................ 133
5.3 Company Overview ................................................................................................ 134
5.4 Company ................................................................................................................ 135
5.4.1 Opening questions ......................................................................................... 135
5.4.2 Definitions/terminology ................................................................................. 138
5.4.3 External Influences ......................................................................................... 143
5.4.4 Opportunity identification ............................................................................. 151
5.4.5 Why opportunities are pursued ..................................................................... 177
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Contents Matthew Hendry
5.4.6 Company approach to innovation ................................................................. 183
5.4.7 Open Innovation ............................................................................................ 198
5.4.8 Uni/Closing questions .................................................................................... 208
5.4.9 Miscellaneous ................................................................................................ 210
5.5 Company Interviews Connection to the Expert Interviews ................................... 211
5.6 Conclusions ............................................................................................................ 213
6 Chapter 6 – Analysis and Discussion of Results ............................................................. 214
6.1 Introduction ........................................................................................................... 214
6.2 Structure of the Chapter ........................................................................................ 214
6.3 Definition ............................................................................................................... 214
6.4 Model ..................................................................................................................... 218
6.4.1 Maturity Model .............................................................................................. 223
6.5 Time ....................................................................................................................... 225
6.6 Open Innovation .................................................................................................... 227
6.7 Key Confirmations and Qualifications of the Literature ........................................ 228
7 Chapter 7 – Conclusions and Recommendations .......................................................... 231
7.1 Introduction ........................................................................................................... 231
7.2 Structure of the Chapter ........................................................................................ 231
7.3 Further considering the Research Propositions ..................................................... 231
7.3.1 RP0 ................................................................................................................. 231
7.3.2 RP1 ................................................................................................................. 232
7.3.3 RP2 ................................................................................................................. 233
7.3.4 RP3 ................................................................................................................. 234
7.3.5 RP4 ................................................................................................................. 234
7.3.6 RP5 ................................................................................................................. 235
7.3.7 RP6 ................................................................................................................. 236
7.3.8 RP7 ................................................................................................................. 237
7.4 Contribution to Knowledge .................................................................................... 238
7.4.1 Definition ....................................................................................................... 239
7.4.2 Model ............................................................................................................. 239
7.4.3 Time ............................................................................................................... 241
7.4.4 Open Innovation ............................................................................................ 241
7.5 Recommendations to the Sector ........................................................................... 242
7.5.1 Definition ....................................................................................................... 242
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Contents Matthew Hendry
7.5.2 Model ............................................................................................................. 243
7.5.3 Time ............................................................................................................... 244
7.5.4 Open innovation ............................................................................................ 245
7.6 Recommendations for Future Research ................................................................ 247
8 References ..................................................................................................................... 249
9 Glossary .......................................................................................................................... 271
10 Appendices ................................................................................................................. 273
Appendix A – Possible Ranking Factors ............................................................................. 273
2013 ............................................................................................................................... 273
2015 ............................................................................................................................... 276
Appendix B – Preliminary Question List ............................................................................. 285
Appendix C – Finalised Question Lists ............................................................................... 302
Expert ............................................................................................................................. 302
Top – CEO Level.............................................................................................................. 305
Middle – Head of Department Level .............................................................................. 309
Bottom – Consultant Level ............................................................................................. 313
Appendix D – Coding Discussion ........................................................................................ 316
Manual Analysis ............................................................................................................. 316
Nvivo Analysis ................................................................................................................ 317
Nvivo Node Tree Diagrams ............................................................................................ 317
Matrix Coding Queries ................................................................................................... 330
Appendix E – Development of Model ................................................................................ 333
Appendix F – Model Explanation ....................................................................................... 347
Appendix G – Creativity to Innovation ............................................................................... 352

ORIGINAL IN COLOUR
Note that pages using colour are clearly marked with ‘Original in Colour’ at the top of the page
as required by University of Brighton regulations.
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List of Tables Matthew Hendry
List of Tables
Table 2.1 Process for Perceived Need for Change ................................................................... 30
Table 2.2 Knowledge Sharing vs. Protection Dilemma in Innovation ...................................... 50
Table 2.3 Research Propositions and the Primary Literature Contributing to Formation ....... 60
Table 3.1 Four Social Science and the Nature of Society Assumptions ................................... 63
Table 3.2 Assumptions ............................................................................................................. 65
Table 3.3 Oppositional Comparisons ....................................................................................... 69
Table 3.4 Preliminary Question List ......................................................................................... 88
Table 6.1 Word Frequency Report to “How Would You Define Innovation?” ...................... 215
Table 6.2 Word Frequency Report to “Do You Think There is a Difference Between
Innovation and Creativity?” ................................................................................................... 216
Table A1 Possible Ranking Factors Moz ................................................................................. 275
Table A2 - Possible Ranking Factors Moz ............................................................................... 284
Table A3 Preliminary Questions for All .................................................................................. 288
Table A4 Preliminary Questions for Experts .......................................................................... 292
Table A5 Preliminary Questions for CEO/Founders ............................................................... 296
Table A6 Preliminary Questions for Dept. Managers ............................................................ 299
Table A7 Preliminary Questions for Consultants ................................................................... 301
Table A8 Creativity to Innovation .......................................................................................... 352

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List of Figures Matthew Hendry
List of Figures
Figure 1.1 Porters 5 Forces ........................................................................................................ 5
Figure 2.1 A Mediated Knowledge-Based Model of Radical IT Innovation ............................. 23
Figure 2.2 Dimensions of innovation Space ............................................................................. 24
Figure 2.3 The Four Types of Market-Creating Service Innovations ........................................ 25
Figure 2.4 Dynamic service innovation capabilities ................................................................. 26
Figure 2.5 Individual Innovation Model ................................................................................... 29
Figure 2.6 Integrating group processes in a model of team innovation .................................. 33
Figure 2.7 NPD Network Maturation Formation Process for Developing New Products ........ 38
Figure 2.8 The Fuzzy Front End ................................................................................................ 39
Figure 2.9 A Model of the New Product Development Front End ........................................... 40
Figure 2.10 The Difference between Innovation and Creativity .............................................. 41
Figure 2.11 Relationship Between the Factors ........................................................................ 45
Figure 3.1 Authors own assumptions ...................................................................................... 66
Figure 3.2 Burrell and Morgan Model...................................................................................... 67
Figure 3.3 The interrelationship between the building blocks of research ............................. 70
Figure 3.4 Inductive and Deductive Research .......................................................................... 73
Figure 6.1 Initial Model .......................................................................................................... 220
Figure 6.2 Developed Model .................................................................................................. 221
Figure 6.3 Maturity Model ..................................................................................................... 224
Figure 7.1 Innovation Identification Stool ............................................................................. 235
Figure 7.2 Developed Model .................................................................................................. 240
Figure A1 Manual Analysis Example ...................................................................................... 316
Figure A2 Node Tree Diagram (1) .......................................................................................... 318
Figure A3 Node Tree Diagram (2) .......................................................................................... 319
Figure A4 Node Tree Diagram (3) .......................................................................................... 320
Figure A5 Expected Outcome ................................................................................................ 331
Figure A6 Innovation Mentions ............................................................................................. 331
Figure A7 Process Mentions .................................................................................................. 332
Figure A7 Model Development (Stage 1) ............................................................................... 333
Figure A8 Model Development (Stage 2) ............................................................................... 334
Figure A9 The Difference between Innovation and Creativity .............................................. 335
Figure A10 Model Development (Stage 3) ............................................................................. 336
Figure A11 Model Development (Stage 4) ............................................................................. 337
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