Innovation of a Japanese Global Firm in Emerging Markets

Epson's Case on a Process to Introduce “InkTank”

Abstract

As a result of growing usage of compatible ink for inkjet printers (IJP) in emerging markets since early 2000s, Epson faced serious concerns on its existing business model, however, managed to overcome the problem by introducing “InkTank” in 2010, earlier than any other IJP vendors. This paper explores the characteristics of innovation process to introduce InkTank in emerging markets. The case illustrates the key elements, commonly described in literatures on innovations, such as top management's keen interest, sense of crisis, teamwork between HQ and local office. Most importantly, throughout the entire process of InkTank introduction, the global organization kept interpreting various events and findings from search activities, by top management, through teamwork between HQ and local office, and by local office with their own initiative. This case implies a significance of organizational capability for Japanese global firms to interpret environments to initiate innovations for emerging markets.