Significance of Innovation in Business Process of Value Chain

G.P. Reddy¹ and Vijayachandra Reddy.S.^2,

¹Principal Scientist and Head Agribusiness Management Division, National Academy of Agricultural Research Management (NAARM), Hyderabad, Andhra Pradesh

²Research Associate, Agribusiness Management Division, National Academy of Agricultural Research Management (NAARM), Hyderabad, Andhra Pradesh

Cite this paper:
G.P. Reddy and Vijayachandra Reddy.S.. Significance of Innovation in Business Process of Value Chain. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2014; 2(1):18-25. doi: 10.12691/jbe-2-1-3

Abstract

This article constructs a speculative framework to explain significance of Innovation in business value chains. It draws on three streams of literature – need, significance and developing innovation capabilities in order to identify three important variables which contribute a greater role in influential how value chains are directed and changed accordingly to the Innovation process in business world. These are: (1) Need of Innovation to Energize, Growth and Profit, and Survival of firms (2) Significance of innovation in Business Process, and (3) Development of Innovation Capabilities. Thus, the article highlights the concept of value and it’s progress as value chain then it focus on the needs and importance of value chain triggered by innovation. It also helps to integrate small firms and corporate sector and establish a link between small firms and international markets through effective value chain system. In addition, it describes the value chain innovation capabilities and roles of various dimensions in the innovation. So that innovation in the business process can facilitate appropriate participation of the small and corporate sector firms through suitable policy framework.

Keywords:
value chain innovation exchange product value innovation capabilities

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