The Impact of Innovations on the ICT Market in the Twenty-first Century

Abstract

This article explores the influence of innovations on the information and communication technologies (ICT) market. In the first part of the article, I draw on extant literature concerning the definition of innovation to describe notable types of innovation and the factors that determine their introduction in various functional areas and processes. Following this, I analyze the influence of innovation on the efficiency of virtual organizations that have been active in the ICT market (i.e., Google, Nasza-Klasa). These case studies clearly illustrate that innovation allows firms to secure competitive advantages within the dynamic segments of the ICT market, and is thus a key factor for success. In this vein, the case studies demonstrate that for enterprises that operate in dynamic markets characterized by frequent changes in technology, innovation is the primary contributor of competitive advantage. In particular, product and service innovations are most important for providing firms with advantages over their competitors and redefining the market structure.