Impacts of Technological Innovation on Product and Service Quality and Sustainable Financial, Environmental and Social Results in the Aeronautics Sector: A Brazilian Case Study

Impacts of Technological Innovation on Product and Service Quality and Sustainable Financial, Environmental and Social Results in the Aeronautics Sector: A Brazilian Case Study * Sustainability 2024 , 16 (8), 3476; https://doi.org/10.3390/su16083476 (registering DOI) Abstract : 1. Introduction (a) To conduct a search in the literature to identify possible outputs of technological innovation. (b) To identify the definitions of quality within the innovation environment. (c) To identify the possible impacts of the outputs of technological innovation on the quality of products and services. (d) Using the definitions of the financial results found in the literature, we seek to verify the possible impacts of the outputs of technological innovation on the financial results of the organizations (the units of the analysis). (e) To corroborate the relevant academic literature on the relationship between technological innovation, quality and financial results. 2. Systematic Literature Review (a) Identification of articles on the theme of this work for the systematic literature review was carried out through searches conducted in the available databases (Web of Science and Scopus ® ) and using the search criteria according to the established constructs. (b) Evaluation of the identified articles and selection of the texts related to the research theme was conducted. (c) The theoretical foundation was elaborated, addressing the main concepts and definitions identified in the academic literature related to the research topic. (d) The possible outputs (tangible) and resulting results (intangible) of technological innovation were identified and presented. (e) The respective (intangible) outputs that impact the quality of products and services within organizations and their financial results were selected. (f) An analysis of how the identified results can be observed within the organizations was conducted. ® platforms; such platforms are known for having a large collection of published journals. On these platforms, search parameters were set, in order to identify articles that are related to the research constructs. The words entered were the following: “Technolog* Innovation” AND “Quality” AND “Financ*”. The platforms returned a list of possibly relevant articles on the researched theme. Data extraction was performed in June 2022. For broad-reaching results, in order to attain the largest possible number of articles related to the research topic, a word filter alone was performed, and no restrictions related to language, period or region of publication were applied. ® (302 articles) platforms were consolidated in Microsoft Office Excel ® software (Version 18.2311.1071.0); after the content analyses, they were filtered and manipulated to prepare the graphs that are presented in the following sections of this chapter. From the analysis of each article, it was observed that 99 (ninety-nine) articles were duplicates and 13 (thirteen) articles were not available or were not in English, Portuguese or Spanish or they did not address the researched theme, so these were disregarded in the construction of this theoretical review. After that, ninety-seven (97) articles remained, which were used for the elaboration of the analyses of the history of publications on the theme. 3. Theoretical Background 3.1. Technological Innovation 3.2. Outputs of Technological Innovation 3.3. Impacts of Technological Innovation 3.4. Quality and Technological Innovation (a) Conformation to requirements (Philip Crosby and Garvin); (b) Performance: performance and reliability of the product and services (Garvin and W. Edwards Deming); (c) Customer satisfaction and customer loyalty (Garvin). 3.5. Technological Innovation and Financial Impacts (a) Profitability; (b) Financial results (financial ratios—checking liquidity and indebtedness); (c) Growth in sales during the past three years; (d) Growth in market value during the past three years. 4. Methodology Approach 4.1. Research Question how are organizations impacted by technological innovation in the quality of products and services and in financial, environmental and social results? 4.2. Research Approach 4.3. Case Study Framework and Data Collection ® software will be used as a supportive tool to help organize and synthesize the data collected. This will help in grouping the interviewees’ responses, making it easier to identify similar or contradictory answers, to analyze each case and to present the results. ® software), which is intended to highlight the common responses or opposing opinions of the interviewees on a given topic. The results are presented in the section discussing the results. 4.4. Means of Data Collection and Analysis ® software was used to assist in conducting comparisons between the interviewees’ statements and their respective analyses. The purpose of the analysis of economic and financial indicators is to determine and evaluate whether the company has good or bad results regarding profitability, return on investments, solvency capacity and liquidity. In the context of technological innovation activities, this information aims to verify the answers of the interviewees and to accurately assess the obtained results for a better understanding and accuracy of the results related to technological innovation activities. 4.5. Research Protocol and Instrument 4.6. Pilot Test 4.6.1. Pilot Test Data—Quality 4.6.2. Pilot Test Data—Financial Results 4.6.3. Summary of Pilot Test Results 4.7. Conducting Field Research (1) Authorization was requested from the company to carry out the field research, considering its business units and group companies as the units of analysis for this work. (2) An invitation email was sent to employees who work in activities related to technological innovation. (3) In the case of a positive response, the interview was scheduled and recorded. (4) The data from the interviews were transcribed into text and the data were evaluated with the aid of the NVIVO ® software. The analysis of the cases of the data was performed individually and was carried out in two stages: individual analysis of the cases and comparative analysis to verify the existence of common points. (5) In addition, documents provided by the interviewees and annual reports published by the company on its website were evaluated. 4.8. Cases Presentation 4.8.1. Organization A 4.8.2. Organization B 4.8.3. Organization C 4.8.4. Organization D 4.8.5. Organization E 5. Results 5.1. Results of Cases 1, 2, 3 and 4—Organization A 5.1.1. Business Unit 1 5.1.2. Business Unit 2 5.1.3. Business Unit 3 5.1.4. Business Unit 4 5.2. Results of Case 5—Organization B 5.3. Results of Case 6—Organization C 5.4. Results of Case 7—Organization D 5.5. Results of Case 8—Organization E 5.6. Results Related to Technological Innovation and Quality 5.7. Results Related to Technological Innovation and Financial Results 5.8. Results Related to Technological Innovation and Environmental and Social Impacts 6. Discussion (a) Any change in a given technology—for example, it is innovation that effectively creates products, services or processes, or improves existing ones [46]. (b) The introduction of technologically new products or processes and significant improvements that have been implemented in existing products, services and processes [11]. (c) The implementation of an idea for creating a new product, service or the introduction of new elements in a production or service realization process [4]. (a) Organizations stated that, in most cases, the products and services that undergo technological innovation meet internal requirements (of the project or the organization) and external requirements (from regulatory bodies). The interviewees mentioned that the internal requirements must adhere to the customer needs and be aligned with the business strategy for the activities to achieve the results that are the goal of the organization. Another point on the theme is that the development of new characteristics must occur within a certain timeframe, because if the planned time is exceeded, then the innovation may become obsolete and no longer useful to the market. (b) Regarding performance, the interviewees reported different technological innovation activities that had been carried out within the organization that resulted in a better performance of the products and services: reduction in operating costs/use of the solution; better performance regarding the reduction in fuel use; reduction in gas emissions; greater convenience for customers; the incorporation of new features to meet specific situations. For the improvement in the characteristics of products and services, it was mentioned that there is the possibility that technological innovations in the characteristics of products can generate a totally modified product which—when compared to the previous version—is even more efficient, despite the name for the product being kept the same on the market. It was stated by the interviewees that technologically innovative products and services may require a maturation and a learning curve to reach their best performance. (c) Regarding customer satisfaction, it was stated by most of the interviewees that technological innovation activities originate mainly with the aim of meeting needs, resulting in customer satisfaction. As a result of satisfaction, some of the organizations that perform technological innovation activities pointed out the importance of the maintenance or growth of participation in certain markets in which they operate. Some mentioned the advantage of holding the majority of a specific market, resulting from the construction of the brand image with products, solutions and services that satisfy their customers and that are reliable. (d) Regarding customer loyalty, some of these companies have been in operation for a short time or have produced new solutions for specific customers; thus, it is not possible to assess long-term loyalty. Other interviewees answered that they observe customer loyalty within the organizations and that the companies seek customer retention through reliable and satisfactory products and services; the result of this can be verified by evidence of maintenance and market share. 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[Google Scholar] Year Author Definition 2004 [1] Innovation is the successful implementation of creative ideas by an organization. 2012 [17] Innovation refers to new applications of knowledge, ideas, methods, and skills that can generate unique capabilities and leverage an organization’s competitiveness. 2012 [16] Process innovations are changes to existing processes or the creation of new processes used by an organization for the delivery of products or services. 2013 [23] Innovation connotes the adoption of a new idea or behavior in a company. 2014 [12] Considering creativity and innovation as knowledge-based capabilities, these processes help the company build its competencies and learn about new technologies that can be exploited to meet market demands. 2019 [8] An innovation can be the implementation of a new product or process (good or service) or its significantly improved version, a new marketing method, or a new organizational method in business practices, workplace organization, or external relations. QUALITY Topic What? How? Compliance with requirements Whether a greater/lesser degree of rework is perceived; the guarantee is activated after the application of a technological innovation [47] Primary Data: Interviews with semi-structured questions [38]. Secondary Data: Company documents, such as productive performance indicators, e.g., whether or not—after innovation in the history of the production process—the product met the requirements parameterized by the company through indicators of rework and customer complaints. Performance of product, service and/or process Whether the product—after technological innovation—gains new characteristics that are considered to be competitive/better differentials: easier to use, greater durability, lower cost, easier or faster to produce for the organization, brings the desired result in a shorter time, etc. In the case of services and processes, for example, greater agility in service is perceived (Garvin). Primary Data: Interviews with semi-structured questions [38]. Secondary Data: Company documents: – Results of research carried out by the intelligence of launching products or services in the market – Evaluations of whether the company perceives a reduction in cost compared to previous products, processes or products, mainly related to COGS (cost of goods sold). Customer satisfaction Whether better results are observed in the satisfaction surveys deployed by organizations. In the case of a product, whether there is an increase in sales due to a positive or negative spread from the opinion of existing customers about the brand. In the case of services, whether there is a higher rate of customer loyalty [48]. Primary Data: Interviews with semi-structured questions [38]. Secondary Data: Indicators with satisfaction rate (customer satisfaction survey on products and services provided). Usually, this indicator is answered by the customer at the end of a service provision, or through surveys prepared by the organizations’ market intelligence [30]. Customer loyalty Retention of existing customers. Primary Data: Interviews with semi-structured questions [38]. Secondary Data: Customer retention goals and result indicators of organizations. FINAN CIAL RESULTS TOPIC WHAT? HOW? Profitability Whether the company has made a profit in the past three years. Primary Data: Interviews with semi-structured questions. Secondary Data: Profit results in public reports. Financial results (financial indicators—verifying investment and indebtedness) Verify whether the company’s financial indicators have performed well or poorly in the past three years. Primary Data: Interviews with semi-structured questions. Secondary Data: Financial indicators based on the results published in reports (indicators: LG—general liquidity; SG—general solvency; LC—overall liquidity; ROI—return on investment), based on information from the past three years. Sales growth Whether the company has achieved growth in sales over the past three years. Primary Data: Interviews with semi-structured questions. Secondary Data: Information in public reports about companies’ revenue over the past three years. Growth in market value over the past three years Whether the company has increased its market value in the past three years. Primary Data: Interviews with semi-structured questions. Secondary Data: Information published in reports on market value over the past three years. Evaluated Scope Questions Whether the company develops new products and innovates in services [28,41]. Does the company have a routine for launching new products and/or services or existing products and services with new features? If so, how often? How many products/services have been launched in the last three years? What are the main drivers/aspects considered by the organization for the promotion of innovation activities? 1.1—How are organizations impacted by technological innovation in the quality of products and services, in terms of compliance with internal (design) and external (legislative) requirements? [28] Do you regularly seek to identify and meet the requirements imposed by the market in which you operate (legislation)? How often? Are the customer’s interests also considered? Please cite examples. Is there a process to evaluate whether the products or services that have undergone technological innovation meet all the technical requirements that were defined in the project? If so, how is it done and what were the last results obtained? 1.2—How are organizations impacted by technological innovation in the quality of products and services, in terms of performance/performance of the product or service? [28] Are the performance characteristics of the product or services constantly improved? If so, what are examples of improved features and how is this result confirmed/tested? Does the innovation carried out in the products or services generate a higher perceived quality of the product compared to that of competitors? Please cite examples. 1.3—How are organizations impacted by technological innovation in the quality of products and services, in terms of customer satisfaction? [12,40,41]. Are there customer satisfaction indicators about the products and services? If so, what are the goals and are their results satisfactory over the past three years? 1.4—How are organizations impacted by technological innovation in the quality of products and services, with regard to customer loyalty? How are new technologically innovative products and services received by the market from a reliability point of view? Does the company remain stable/constant in the number of sales or does it exceed them monthly? If so, have the results of the past three years met or exceeded the target? Is there a customer retention plan? If yes, result of the indicators in the last three years. 2.1—How are organizations impacted by technological innovation in financial results, in terms of profitability? [15] Has the company made a profit in the last three years? If so, do you think there is any connection with innovation activities? 2.2—How are organizations impacted by technological innovation in financial results, with regard to financial results (financial indicators)? [15] Does the company need to finance investments in innovation with financial institutions? 2.3—How are organizations impacted by technological innovation in financial results, in terms of sales growth? [15] Has the company increased its number of sales in the last three years? If so, do you see any relationship between this number and innovation activities? Have sales results over the past three years met or exceeded the target? 2.4—Market value [15] Has the company increased or maintained its market value over the past three years? In your opinion, does this have anything to do with innovation activities? Year Author Researched Topic Research Method 2020 [7] Quality management and digital transformation Theoretical review 2020 [49] Digital transformation and value creation Case study 2019 [41] Maturity in innovation management Case study 2019 [93] Outputs of technological innovation Theoretical review 2019 [8] Quality and innovation Case study 2018 [42] Outputs of technological innovation Survey 2017 [35] Critical factors and digital transformation Survey 2017 [43] Indicators to measure innovation results Theoretical review 2015 [28] Outputs of innovation Survey 2014 [12] Critical success factors Theoretical review 2012 [17] Quality and innovation management Theoretical review 2009 [44] Relationship between innovation and competitive advantage Survey 2005 [40] Relationship between innovation, quality, growth, profitability and market value Survey Code of Proposition Evaluated Factor Interview INTECQUP11 Compliance with internal (design) and external (legislative) requirements. There are areas of market intelligence, innovation and digital within each business unit that identify customer and market requirements about each business area and align with engineering. The company has indicators that verify the performance of the product; an example is the verification of COGS (costs of goods sold) to verify whether, from an innovation or innovative process, there was a cost reduction, for example. To verify whether costs have really been reduced, it is necessary to contact the area of each business unit to obtain this information. INTECQUP12 Performance of the product or service. It is part of the organization process. A verification of the objectives achieved of the deliveries against the approved budget is made, and this activity is part of the routine implementation of any product investment project that is of the company, including innovation. However, for the results of each project, it is necessary to check with each specific business unit. The company invests in product maturity to reduce warranty claims, but data on the performance of these products during the warranty period are managed by the support and services areas, so it will be necessary to collect more information from these areas. INTECQUP13 Customer satisfaction There are indicators to check customer satisfaction, but to check the results it is necessary to check with each specific BU (business unit). INTECQUP14 Customer loyalty The company has published reports; it is necessary to check the numbers in it in relation to customer loyalty. There is, however, a need to check with the “Retain Customers” value stream team of each BU. Evaluated Factor Evidence Compliance with internal (design) and external (legislative) requirements. Organizational structure containing the areas that perform the mapping and studies of the requirements that are applicable to the products. The company’s annual reports also include meetings with CETESB, health surveillance, federal/state police, ministries, mayors, municipal secretaries of education, class entities and Brazilian business associations for relations with regulatory bodies, routine inspections and compliance with legislation, survey of needs and expectations of the municipality related to education and social development, strategic and political discussions and greater integration and learning from various sectors. Presented indicators of reduction in COGS (costs of goods sold) resulting from implemented innovations fostered by innovation programs within the organization. Performance of the product or service. Data not made available by the organization. The company states in its annual reports that it invests a high amount annually in the technological improvements of its products and processes. Customer satisfaction. One of the values of the organization is that it exists to serve customers. In the company’s reports, it is stated that surveys are carried out with the objective of determining the level of customer satisfaction. In addition, in the organization’s annual reports, it is possible to observe that the company promotes events to listen to their customers, gathering data on their satisfaction with the products and collecting information that helps in the adoption of improvements in products and processes to improve the interface with the customer. Customer loyalty. Sales in 2020, 2019 and 2018 were BRL 19,769,193,000, BRL 21,994,560,000 and BRL 18,832,886.00, respectively. The company states that it has a customer loyalty plan. The organization is in key rankings for product support and customer support, respectively. This reinforces the organization’s position in customer loyalty, which, according to the company, must be ensured at every relationship opportunity, from prospecting to after sales. The company has a support and service delivery area that, as stated by the company, was strategically created to leverage after-sales business, creating synergy between all business units, promoting efficiency and global performance and respecting the specificities of each segment and region, with a focus on thinking about tomorrow and retaining customer loyalty. Construct Evaluated Factor Observed Results Quality Compliance with internal (design) and external (legislative) requirements [28] “Organization A” has formal processes in place to meet the requirements. For project requirements, there is a range of tests that the products need to go through due to the complexity of the products. Regarding market requirements, the company has a market intelligence team who are specialized in analyzing the requirements of different countries in order to meet not only national but also international requirements for the commercialization of products and services in these markets. In addition, the products are tested on a recurring basis and are only launched on the market after approval and certification by competent bodies. Performance of the product or service [28] The company improves the characteristics of products/processes, for example, with equipment that lasts longer or is less detrimental to the environment. In addition, there are indications of changing features for a better customer experience, for example, noise reduction for a more pleasant journey. Customer satisfaction [12,40,41] The company has satisfaction indicators, providing results within the expected parameters. Customer loyalty The company builds customer loyalty, in addition to its performance, through the development of specific technologies; the customer becomes dependent on the company for maintenance, parts supply or various services. Construct Interview New Products and Services The company has a systematic process for innovation. It develops products considered disruptive, such as electric landing aircraft, vertical takeoff and that can be operated autonomously. In addition, the company has developed new products for existing markets, such as large aircraft for transporting large cargo and military missions, VIP executive aircraft and—in the field of commercial aircraft—recently completed the launch of a new generation of aircraft. New Features for Products and Services The organization promotes changes or adaptations in the characteristics of the products, according to the experience of the users. For example, business aviation has made design innovations based on user experience, such as the concept of sound and picture quality experience, interior seating and comfort. These changes have been made on the basis of customer requirements. There are adaptations to meet environmental issues; an example is electric or hybrid propulsion in the pursuit of generating lower emissions. In addition, there are adaptations that are made in the products to meet standards and regulations. Construct Evidence New Products and Services On the company’s website, it is possible to observe the launch of all the products mentioned by the interviewee. New Features for Products and Services On the company’s website, it is possible to observe the launch of new versions of existing products, that is, the same platform with new features. Research Question Code Evaluated Factor Answers during the Interview TECHNOLOGICAL INNOVATION OUTPUTS The company/business unit develops new products and innovates in services or incorporates new features into existing products. Not only within the business unit, but within the entire company there are technological innovations. The DT (Technological Development) team is always studying new products and new solutions. An example is the X family of aircraft. It is a product launched by the company and that has been updated in new versions since its entry into service, back at the beginning of this century. This aircraft is an example of an avionics system. There were improvements regarding the performance of the aircraft, when it was changed, for example, the wingtip, we changed other characteristics to improve consumption, we also made packages of intense improvements in the maintenance part. Other improvements that have been implemented are, for example, characteristics for landing at airports with specific characteristics, working on characteristics such as ascent speeds, different angles and different curves. So, challenges like this require innovations in various systems and, perhaps, other products to meet specific needs. Research Question Code Evaluated Factor Answers during the Interview INTECQUP11 Compliance with internal (design) and external (legislative) requirements It’s the requirements and they’re well defined. And when internal, the feasibility of achieving it is also considered. Because if you look exclusively at what the market wants, it’s typically an inequality, as we all want the best thing possible, only as cheap as possible as well. That is not feasible. So it is necessary to find a balance between what is feasible, cost and adequate price, so that the customer is satisfied with the result. INTECQUP12 Performance of the product or service With technological innovations, product performance is usually improved. For example, the one on the wingtip of this plane. The company developed a wingtip that was very different from what existed until then in this class of aircraft. The performance of the aircraft in terms of fuel consumption has been considerably improved and this has brought about a repositioning of this product in the market. INTECQUP13 Customer satisfaction Using as an example a product that went through a more significant technological innovation, where we put a different generation engine, with an absolutely different technology. The company had enormous difficulty in introducing this new technology for reasons of gaining market reliability. It was the first time that someone was actually making an airplane with this technology and then, over time, all the other airplanes came with this technology and came with a better maturity, bringing a very important competitive differential. INTECQUP14 Customer loyalty The example given of the company’s growth in a segment, becoming the only one in the market of that aircraft is an example of loyalty, as customers returned to buy or indicated/generated a network of satisfaction about the technologically innovative product. Research Question Code Evaluated Factor Answers during the Interview INTECRFP21 Profitability There is no rule or trend about financial results, because there are solutions that are specific, precisely to reduce costs. It has solutions that are to increase the perceived value of the product. INTECRFP22 Financial results (financial indicators—verifying investment and indebtedness) As in the previous question, innovations are part of the organization’s strategy, they can bring the maintenance of financial results, but there is no rule. INTECRFP23 Growth in sales Innovations are made with a focus on a significant gain in sales or profit for the business unit, for example, launching a new product to increase margin, in addition to sales growth. INTECRFP24 Market Cap Strategically, innovations are made for the company’s survival, competitiveness, and increased sales and/or margin. There is no rule, as mentioned, but being part of a set of factors can be linked to the growth of the organization and, consequently, its market value. Research Question Code Evaluated Factor Answers during the Interview TECHNOLOGICAL INNOVATION OUTPUTS The company/business unit develops new products and innovates in services or incorporates new features into existing products. The company has a series of products resulting from innovations, mainly in areas such as Commercial and Executive aviation, because Defense is a separate market, it is more complicated to develop new products, to innovate within defense. The company has different examples of new aircraft launched in recent years, as well as evolution of existing aircraft, in which the characteristics have been improved. Research Question Code Evaluated Factor Answers during the Interview INTECQUP11 Compliance with internal (design) and external (legislative) requirements The requirements for innovative projects are shaped by the customer’s needs, either to meet a specific situation or to generate better convenience and satisfaction. In addition, our industry is extremely demanding, with several requirements, tests and analyses and certifications that the product needs to pass and obtain in order to be marketed. INTECQUP12 Performance of the product or service The technological innovations that have recently been applied in aircraft already developed bring better performance to the product from the point of view of performance, be less polluting and bring greater comfort to passengers through noise reduction, for example. INTECQUP13 Customer satisfaction As mentioned in the previous example, the change in the aircraft for noise reduction is an example of improvement oriented towards customer satisfaction. There are other altered features or products created that are oriented to meet a specific customer need with the aim of generating user satisfaction. INTECQUP14 Customer loyalty Regarding loyalty, innovation is used to open markets, but companies that do not innovate end up being left behind, so in addition to opening new markets or winning new customers, innovation also allows you to keep existing customers. Research Question Code Evaluated Factor Answers during the Interview INTECRFP21 Profitability The interviewee comments that not all technological innovations carried out have profitability as their main objective, some may have as their objective, for example, to expand the company’s market share, but others may have the objective of increasing the profit margin, but it depends on the company’s strategy. In the beginning, technological innovations can make the product expensive, but due to the added value, it brings a better result. And there are those innovations that are specific to reducing costs and bringing a better result. INTECRFP22 Financial results (financial indicators—verifying investment and indebtedness) Technologically innovative products bring significant gains to the business unit. Being seen as essential for the survival of the business. The financial results that can be observed are cost reduction, increased sales or simply maintaining the company’s share and relevance in the market, keeping the business alive. INTECRFP23 Growth in sales It depends on the company’s strategy for technological innovation, some may aim to increase sales value and market growth, others only to reduce costs, for example. INTECRFP24 Market Cap The company has increased its market share in the executive aircraft business and gained space in this market, consequently being able to influence its market value positively. Research Question Code Evaluated Factor Answers during the Interview TECHNOLOGICAL INNOVATION OUTPUTS The company/business unit develops new products and innovates in services or incorporates new features into existing products. In the aeronautics industry, “Organization A” was the most prolific and most fertile company in the subject of technological innovation in the last 15 or 20 years in Brazil. The company has systematically launched different products in different markets. “Organization A” operates in a considerably broader manner than most other companies that, in my opinion, “Organization A” is the most capable of innovating, and is certainly able to maintain current products and incorporate innovations into those products. The company has been practicing this for a long time and you just have to look at the longevity of our products. An example of things that we have been bringing to the products to keep them current, since the launch of the X aircraft, several versions have been made. The X aircraft, which in the past also had several new systems to always be up to date. Another example is the X aircraft, which is both a conceptual innovation, but also the incorporation of innovative elements into an already established platform. The new version of the aircraft has undergone so many innovations that it is almost an entirely new design. Research Question Code Evaluated Factor Answers during the Interview INTECQUP11 Compliance with internal (design) and external (legislative) requirements There is a lot that is done because of requirements, certification standards and the need to make changes to something, sometimes because of legislation and sometimes because of world realities. The company today is developing a whole concept of aircraft, because of the need, for example, for environmental issues. The challenge is real, companies have to do their part, the market rewards this not only with recognition, but also with the purchase of products. Technologically innovative aircraft require investment to become environmentally friendly, economical, comfortable and effective. Then, the company meets mandatory requirements to start operating, be it regulation, customer, comfort issues, among others. INTECQUP12 Performance of the product or service In the 80s, the X aircraft introduced scimitar-shaped propeller blades to the market that no one used at that time, it was an innovation. Today, almost all airplanes use this type of aerodynamics in their propellers. We can mention that this type of performance-enhancing innovation has been in the company’s DNA since it started operating. And it’s not always an innovation like this, of the disruptive type, DT’s technological innovation, they can be day-to-day innovation to bring benefits to the product, from modifications that improve safety and from the point of view of materials. From a manufacturing point of view, the introduction of automatic systems on the assembly line is formed by robots to improve uniformity and consistency in manufacturing. In addition, the software upgrades that we see in our cell phones and in our computers happen in airplanes as well, sometimes in electronics, sometimes in their own mechanics. The search for reducing fuel consumption for the customer to have more operating profit. INTECQUP13 Customer satisfaction As the requirements are aligned with the customer’s needs, innovations usually bring satisfaction about the products marketed by the company and as we do this well and with quality we tend to succeed. However, success depends a lot on the market and the product must be well aligned with that. For example, in the Commercial or Executive Department, luxury or more comfortable items generate satisfaction, in the case of Defense, the reliability, robustness of the product and adherence to the missions of the Armed Forces generate satisfaction. INTECQUP14 Customer loyalty Defense, more specifically, depends on the local government for a new product on the market or with new characteristics to gain market share, if there is no local support, most likely these products will not be successful. Therefore, the product needs to be initially aligned with the country’s needs and that the country’s Armed Forces are customers, bringing and demonstrating the reliability of the products and opening markets. So it is not enough to innovate in the case of Defense, it is also necessary to have local support and proven reliability in the operation of the products sold. Research Question Code Evaluated Factor Answers during the Interview INTECRFP21 Profitability The innovation activities are aligned with the company’s strategies, which consequently is to make a profit. An example of profitability growth in sales is what happened at UN2 a few years ago, where there was a strategic change to keep the products technologically updated, decreased the number of planes sold and increased the price of the planes, reducing the market share, but obtaining a higher profit, so it is a set of factors that need to be aligned with the business strategy. INTECRFP22 Financial results (financial indicators—verifying investment and indebtedness) The company’s competitors are doing the same thing all the time, so they bring elements to their products, to better position their products and our response is to do the same thing in order to meet the company’s goals and strategies. Therefore, the financial results that will obtain positive results must be those aligned with these strategies. INTECRFP23 Growth in sales The company seeks to innovate to have products at a lower cost of materials or production or to sell more, but the result will depend on the business strategy, it is not only the technology element that is considered. INTECRFP24 Market Cap Innovation can influence the growth of the organization’s market value, but the market value or not can also be related to other factors. Research Question Code Evaluated Factor Answers during the Interview TECHNOLOGICAL INNOVATION OUTPUTS The company/business unit develops new products and innovates in services or incorporates new features into existing products. UN4 cites as examples of innovation made by the company the launch of two specific aircraft in recent years, as well as specific solutions and requirements that have been changed as a result of improvements to existing products. In addition, the area is responsible for serving these new products or with new characteristics with services that are developed by the area, some services are specific to the type and size of aircraft or solution, for example. Research Question Code Evaluated Factor Answers during the Interview INTECQUP11 Compliance with internal (design) and external (legislative) requirements The interviewee does not have access to details about the conformity of the products, but knows that there are strict quality criteria. The company works with Safety, Quality, Delivery and Cost (SQDC), which is one of the pillars of the company’s products and services. INTECQUP12 Performance of the product or service The company needs to meet standards, for example, for gas emissions and noise. An example of this is Europe’s airports, where many airports are very restrictive about noise. The company needed to adapt and carry out some technological developments to be able to suppress aircraft noise. So the main pressures in the area are those of new regulations. In these cases, the product must perform according to the standards because it is subject to a fine, so we have to ensure the performance of the aircraft within these parameters for the customer and these situations stimulated many developments of the company’s products. INTECQUP13 Customer satisfaction According to the interviewee, customer satisfaction is built through the quality of the company’s products and services. The company has been concerned from the beginning that the technologically innovative or a new feature is well accepted and is reliable for the market. In addition, it is not the value of the technology that will make the difference, but the gain it will bring to the user. The X aircraft is an example of this, it brought a performance gain, reduced fuel consumption and was very well received by the market. However, if the company launches a technology that causes problems in the field, it may not be well noticed, even bringing good performance results, for this reason it is necessary to take care to obtain customer satisfaction. INTECQUP14 Customer loyalty The loyalty of the services is achieved from the good service, which is born, according to the interviewee, from an adequate service or above expectations and reliability. Research Question Code Evaluated Factor Answers during the Interview INTECRFP21 Profitability The interviewee states that the area has innovation initiatives focused on cost reduction. An example of this was a machining and forming project that resulted in a more efficient use of aluminum and resulted in less waste, reducing costs. However, there are technological innovations with other focuses than cost reduction that can become, for example, the most expensive or time-consuming process. INTECRFP22 Financial results (financial indicators—verifying investment and indebtedness) The company has financial indicators that have fluctuated between positive and negative. The interviewee does not have access to the financial information arising from the innovation activities to clarify whether there may be any relationship or not. INTECRFP23 Growth in sales Sales of services grow as the sale of products increases. INTECRFP24 Market Cap The interviewee does not have access to information about the organization’s market value. The information published by the company shows an oscillation in market values over the past few years. Research Question Code Evaluated Factor Answers during the Interview TECHNOLOGICAL INNOVATION OUTPUTS The company/business unit develops new products and innovates in services or incorporates new features into existing products. The interviewee mentions that there is an area of innovation within the company and each business unit has activities focused on its segment. The corporate area supports the business areas in the technological innovation activities of the solutions. Carrying out proofs of concept, innovating some things in the command and control line and, sometimes, also internalizing what the technological development area produces. They were cited as an example of technologically innovative products developed in recent years by the company: the creation of corporate command and control solutions or air traffic defense and control. Research Question Code Evaluated Factor Answers during the Interview INTECQUP11 Compliance with internal (design) and external (legislative) requirements The company declares that the solutions developed meet the delimited requirements that usually arise to meet customer needs. INTECQUP12 Performance of the product or service The interviewee did not indicate an improvement in performance due to technological innovation. In general, the company works on updates to meet customer needs and this would be the main focus of the solutions developed within the organization. INTECQUP13 Customer satisfaction The company invests in innovation with a focus on satisfying customers and bringing competitive differentials. The company also invests in after-sales to provide adequate service for the solutions developed, building reliability for its products in the market in which it operates. INTECQUP14 Customer loyalty The company states that throughout the operation of the solution, the company is usually responsible for providing after-sales services, as it is the company that has the knowledge of the technology, which there are few or no companies with knowledge in certain markets. In addition to factors focused on generating customer satisfaction, this can be considered another factor that generates loyalty. Research Question Code Evaluated Factor Answers during the Interview INTECRFP21 Profitability According to the interviewee, the company’s sales typically reach a standard profit margin, determined by the organization. However, this margin can vary according to the organization’s strategy, for example, products for entry into a market tend to have a lower margin. INTECRFP22 Financial results (financial indicators—verifying investment and indebtedness) The company’s indicators show financial health with growth in a few years. Even the return on investment indicators are considered good when compared to the other companies in the group. INTECRFP23 Growth in sales The interviewee reported that he has noticed a growth in sales in recent years, in which sales are aligned with the organization’s goals. The company’s reports show results in which there has been growth in sales over the past six years. INTECRFP24 Market Cap According to the company’s reports, its market value has grown in the past three years. Research Question Code Evaluated Factor Answers during the Interview TECHNOLOGICAL INNOVATION OUTPUTS The company/business unit develops new products and innovates in services or incorporates new features into existing products. The interviewee mentions that the company, as a developer of space systems, works all the time with technological innovation. In the case of space product development, it is assumed that the company thinks well in advance about the product it will launch, because due to the complexity of the product it is necessary to develop it for specific needs and that its technology is still useful in the face of other technologies in the face of the deadline for its development, that is, it needs to have a vision of the whole and market trends. The interviewee mentioned during the interview that he has technological innovation in his vein and that he launched a totally innovative satellite developed by the organization and other technologies developed from preexisting innovations and knowledge. Research Question Code Evaluated Factor Answers during the Interview INTECQUP11 Compliance with internal (design) and external (legislative) requirements The interview said that innovation is directly linked to meeting the customer’s expectations and whether the product meets the customer’s needs. When the product and/or service meets these requirements, it is considered by the company that it has quality and it did not happen that a product provided by the company was unsatisfactory and not accepted by the customer. INTECQUP12 Performance of the product or service The company has recent products that have not yet undergone improvement innovations, but the interviewee mentioned that the new products launched by the company have new characteristics to meet needs that were not met until then, that is, they have characteristics that the equivalent products in the market did not have until then. INTECQUP13 Customer satisfaction Since the innovations developed by the company are carried out to serve the customer, the answer is yes. The interviewee mentions that the company, together with the Commercial team, throughout the development and performance of the products, have ways of capturing feedback on what is being done, for this reason the products launched have a good return and achieve customer satisfaction. INTECQUP14 Customer loyalty Because it has recent technologically innovative products that are under development or in the beginning of operations for specific customers, there is currently no visibility on loyalty issues. Research Question Code Evaluated Factor Answers during the Interview INTECRFP21 Profitability The company does not have a positive track record of profitability. The interviewee commented that because it is a company that works with technology that requires investment, currently the company has found it difficult to source investments and obtain financing, it has used its results to carry out innovation activities. INTECRFP22 Financial results (financial indicators—verifying investment and indebtedness) The company has good short- and long-term liquidity indicators and low indebtedness. INTECRFP23 Growth in sales The company has fluctuated in the number of sales in the last five years, and there is no rising or falling line. INTECRFP24 Market Cap The company’s market cap has increased when compared to the 2019 and 2020 reports, years in which the company declared its market value. Research Question Code Evaluated Factor Answers during the Interview TECHNOLOGICAL INNOVATION OUTPUTS The company/business unit develops new products and innovates in services or incorporates new features into existing products. The group is perhaps one of the companies that has the most robust culture of technological innovation in Brazil. The group has a number of new products and services launched on the market. Some examples are the new large aircraft launched in 2019, the products related to urban mobility. In addition, there are software and parts developed by the company that can be considered more innovative than the new products themselves, as they are new technologies, bringing to the product characteristics that do not exist in other products on the market. Research Question Code Evaluated Factor Answers during the Interview INTECRFP21 Profitability The company deploys innovations that, in some cases, can be translated into greater profitability, not necessarily increasing sales. INTECRFP22 Financial results (financial indicators—verifying investment and indebtedness) Not necessarily. The company invests in innovations in its products with private capital or enters into partnerships for the development of new technologies or new products and solutions. INTECRFP23 Growth in sales Technological innovations are not always translated into growth in the number or value of sales. It may happen, for example, that as a result of the innovation of the portfolio the number of sales falls by 10%, for example, but in this same scenario it may happen that your profit rises by 10%. However, the company cannot stop innovating because the market is constantly evolving and those who do not adapt will be left behind and, consequently, face a drop in sales and a reduction in market share. INTECRFP24 Market Cap Historically, yes, the company is constantly growing its value in the market and its strategy as well as innovation activities are linked to this strategic growth plan of the organization. Research Question Code Evaluated Factor Answers during the Interview INTECRFP21 Profitability The company deploys innovations that, in some cases, can be translated into greater profitability, not necessarily increasing sales. INTECRFP22 Financial results (financial indicators—verifying investment and indebtedness) Not necessarily. The company invests in innovations in its products with private capital or enters into partnerships for the development of new technologies or new products and solutions. INTECRFP23 Growth in sales Technological innovations are not always translated into growth in the number or value of sales. It may happen, for example, that as a result of the innovation of the portfolio the number of sales falls by 10%, for example, but in this same scenario it may happen that your profit rises by 10%. However, the company cannot stop innovating because the market is constantly evolving and those who do not adapt will be left behind and, consequently, face a drop in sales and a reduction in market share. INTECRFP24 Market Cap Historically, yes, the company is constantly growing its value in the market and its strategy as well as innovation activities are linked to this strategic growth plan of the organization. Research Question Code Evaluated Factor Answers during the Interview TECHNOLOGICAL INNOVATION OUTPUTS The company/business unit develops new products and innovates in services or incorporates new features into existing products. The interviewee points out that the company has a technologically innovative cybersecurity solution. This solution has been divided into three different service packages to best suit customer and market needs. Research Question Code Evaluated Factor Answers during the Interview INTECQUP11 Compliance with internal (design) and external (legislative) requirements The interviewee states that the company has two areas that are fundamental in verifying whether the project requirements have been met. The product management area is the people responsible for the product, they are the ones who talk to the marketing team, to the commercial, to listen to the market and understand what a value solution is, they are the ones who model these products and what are the requirements and characteristics that this product has to meet, In addition, they are the ones who interface with the technical team Operational Development to turn this fact into a product that stops standing. And there is a second team that is in the middle of the road that is called “customer success”, this team has 2 objectives. The first is to ensure the success of our product at the time it was consumed by the customer to ensure that he will get the best out of our product, but also this team that receives the customer’s feedback on the quality of what the company delivers. As the company works closely together, it currently ensures compliance with project requirements and external requirements, where applicable. INTECQUP12 Performance of the product or service The company has visibility into performance between time and the customer, so for all solutions the company determines with the customer for response times to ensure that it is delivering not only the best solution, but within the requirements that are expected by the customer from the door to the inside. This area that verifies performance is a new area, about three years old. Generally and historically, the company declares that it has always developed new products, evolved products together with customers to ensure excellent performance, a characteristic being the issue of response time to a customer who had a specific pain. INTECQUP13 Customer satisfaction The interviewee mentions that the company has made its customers satisfied with the solution it has delivered and is expanding its market share or entering markets that it was not before due to this construction of a good image about the solutions they deliver and their quality. INTECQUP14 Customer loyalty It is perceived by the company that the solutions delivered generate loyalty by maintaining and growing the market share in which the company operates, but no other formal indicators were mentioned. Research Question Code Evaluated Factor Answers during the Interview INTECRFP21 Profitability The interviewee mentions that these new solutions that the company presents to the market usually bring a return that may not be expected. There is some difficulty from the point of view of presenting the value to the market. The company’s reports for the past two years demonstrate that there is no net profit. However, the interviewee states that the company has been successful in developing new solutions and they are the ones that have leveraged growth. The company, for example, has tripled in size in the last 5 years. INTECRFP22 Financial results (financial indicators—verifying investment and indebtedness) The company demonstrated improved liquidity and reduced indebtedness in the last published report, when compared to the previous year. INTECRFP23 Growth in sales The company has achieved growth in sales in recent years, which is also due to the growth of the market in which it operates. INTECRFP24 Market Cap It was not possible to locate information on the company’s market value in the published financial statement reports. Evaluated Scope Organization A Business Unit 1 Organization A Business Unit 2 Organization A Business Unit 3 Organization A Business Unit 4 Organization B Organization C Organization D Organization E If the company develops new product and innovates in services [28,41] Yes, three innovations were cited during the interviews. Yes, innovations in aircraft and new models have been cited. Yes, the launch of an entirely new aircraft and various solutions were cited. Yes, the unit creates new services to serve the products launched by the company. Three new aircraft, new features and new solutions were mentioned. Yes, the company develops software for integration between systems. The company develops satellites and has as an example of product the technological development the first satellite designed by the national industry. The company was opened with the purpose of developing and manufacturing and marketing a specific innovative product that aims to serve a new market. The company develops software and has intellectual property of cyber security solutions. The company exemplified three solutions developed by the organization for different security purposes. Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content. © 2024 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Share and Cite MDPI and ACS Style
Santos, M.P.; Berssaneti, F.T.
Impacts of Technological Innovation on Product and Service Quality and Sustainable Financial, Environmental and Social Results in the Aeronautics Sector: A Brazilian Case Study. Sustainability 2024 , 16 , 3476.
https://doi.org/10.3390/su16083476
AMA Style
Santos MP, Berssaneti FT.
Impacts of Technological Innovation on Product and Service Quality and Sustainable Financial, Environmental and Social Results in the Aeronautics Sector: A Brazilian Case Study. Sustainability . 2024; 16(8):3476.
https://doi.org/10.3390/su16083476
Chicago/Turabian Style
Santos, Manoela Pastor, and Fernando Tobal Berssaneti.
2024. “Impacts of Technological Innovation on Product and Service Quality and Sustainable Financial, Environmental and Social Results in the Aeronautics Sector: A Brazilian Case Study” Sustainability 16, no. 8: 3476.
https://doi.org/10.3390/su16083476