Innovate or Dye: How Matex International Innovates for Sustainability

Kenneth Goh, Thomas Lim

Public-listed Matex International Ltd, a Singapore-based specialty chemicals and dye manufacturer, was committed to spending up to 10% of its revenue on research and development (R&D), particularly in the area of developing cutting-edge dyes and dyeing processes that were more environmentally-friendly. This was in spite of the increasingly competitive macroeconomic environment and the long-term need to improve shareholder value. Matex Executive Director Dro Tan elaborated on how open innovation was a key part of the firm's corporate DNA. Moreover, innovation was not only a central component of Matex's unique selling proposition, but also its competitive strategy. Dro further shared that the company's R&D agenda was influenced by its clients' needs. It was also highlighted that the timing to launch a new product was very much determined by market conditions, and governments and the legislation they passed were a key driver. For instance, Matex's latest product Megapro ECO®, a revolutionary dye that did not require the use of any salt, would not have gained impetus for its launch, had it not been for the stricter environmental laws that were enacted by China, the world's largest textile export market, in 2015. The case examines how innovation is actually a process, and explores the way Matex weaved sustainability into its overall strategy using innovation as a vehicle.

Learning Objective

This case is intended for use in strategic management, innovation, and sustainability courses. The case discussion should enable students to achieve the following learning objectives: understand the practical implications of managing the open innovation process, grasp how a paradox mindset can help managers lead the innovation process, recognise the role of innovation in integrating sustainability goals into corporate strategy, and appreciate the practice of innovation in family firms.

Details

Pub Date: Aug 24, 2020

Discipline: Entrepreneurship

Subjects: Differentiation strategy, Family businesses, Innovation, Sustainability

Source: Singapore Management University

Product #: SMU833-PDF-ENG

Teaching note: Available

Industry: Chemicals, Regulation

Geography: Singapore

Length: 14 page(s)