Systemic Innovation Capability: The Case Study of Embraer, the Brazilian Aircraft Manufacturer

Abstract

Targeting at an uncovered intersection of the fields of management of technology (MOT), knowledge management, and strategic alliances, we propose the concept of systemic innovation capability, which is the ability to effectively combine knowledge from a variety of internal and external sources into innovative products, services, efficient business processes, and valuable new combinations of knowledge, holistically taking into consideration business, marketing, operations, and technological aspects. Additionally, we validate the concept by presenting the case of Embraer, a Brazilian commercial aircraft manufacturer successfully competing in the global marketplace. Based on an extensive literature review with support from Embraer’s case, we also propose the knowledge partnership model. In developing the model, we coined the concept of “new product development effectiveness.” Furthermore, we proposed the concept of “knowledge relevance,” which is roughly a mutually attractive force between partners’ knowledge pools. Finally, we made practical considerations about concepts and models proposed in the chapter.