Taino Construction Supplies: Managing innovation risks at an SME in a small, developing nation
Taino Construction Supplies
Carmen Rios Figueroa and Julia Sagebien
Richard Ivey School of Business
Last year covered in case
The president of Taino Construction has to make several strategic decisions that can guide the firm during very difficult times for the construction industry - globally and locally. He is trying to find ways to capitalize on the company's innovations and international advantages. At the same time, he is trying to adapt the company to the needs of the local market, which requires smaller volumes and simpler products. In order to do this, management must assess the level of risk inherent in the company's portfolio of innovations by estimating the potential of the markets for these products, determining how to strategically position the products in the markets and making a sober assessment of the company's financial strength.
The case can be used in a management of innovation course as well as in an international business or marketing strategy or integrative strategy course. It could also be used in a family business course. It lends itself to use in a green products/sustainability module. The objectives of the case are 1) to allow students an opportunity to analyze a company's innovation portfolio and, more specifically, the level of risk inherent in market opportunities 2) to explore how innovative international strategies can help a company survive adverse local market conditions, though it may add to the overall risk of the innovation portfolio of the company 3) to showcase a company committed to green products, allowing for a discussion on sustainability in the construction industry, as well as on how what is considered a "green product" by some stakeholders is not considered a green product by others 4) to showcase the complexity of the relationship between a company's clients/competitors/partners and the way in which government initiative can offer opportunities and challenges to a company 5) to offer an opportunity to conduct financial performance analysis.
Key Management Reading
- Ambec, S. & Lanoie, P. (2008). Does it pay to be green? A systematic overview. Academy of Management Perspectives. 45-62
- Reinhardt, F. (1999). Bringing the Environment Down to Earth. Harvard Business Review. July; 149-157
- Wilson M, Schwarzman M, Malloy T, Fanning E, Sinsheimer P. (2008) Green Chemistry: Cornerstone to a Sustainable California. Special Report to the California Environmental Protection Agency. University of California Centers for Occupational and Environmental Health
- Poliakoff, M., & Anastas, P. (2001). A principled stance. Nature, 413(6853), 257.
- Hjeresen, D.L., Kirchoff, M.M., Lankley, R.L. (2002) Green Chemistry: Environment, economics and competitiveness. Corporate Environmental Strategy, 9(3). 259-266
- Manley, Anastas, Cue. (2008) Frontiers in Green Chemistry: meeting the grand challenges for sustainability in R&D and manufacturing. Journal of cleaner production. 16:743-750
- Larson, A. (2006) Illustrating the Financial Benefits of Green Chemistry. Darden Business Publishing. Case #: UVA-ENT-0076
- IN4GC Intro to Green chemistry Power point (posted in multimedia section)
- Martin Poliakoff on green chemistry (also posted in multimedia section)
- Which principles of green chemistry are used in the case?
- How do the principles of green chemistry translate into business benefits?
Green Chemistry Principle
- Principle 1 Prevent Waste
- Principle 6 Design for Energy Efficiency
Building and Architecture
Business Government relations
Community Development/Economic development
Business, government and society
Better access to certain markets
Managing your competitors
Self Identified as Green Chemistry?