The impact of innovation on the development of the global cosmetics products market

Authors: S. Sviderska, PhD Student, ORCID ID 0000-0003-0179-8838, P. Kukhta, PhD, Associate Prof., ORCID ID 0000-0002-0312-8128, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine

Annotation: To gain insights that guide important business decisions and, consequently, turn data into business actions, various methods and types of data could be used depending on the data’s availability, accessibility, and costs. In consulting practice, the usage of widely published market reports and marketing studies is a standard routine. This paper is an example of how institutional theory could be applied in practice for analyzing and interpreting the findings from a typical market study.By contrast to other widely used qualitative and quantitative tools and techniques, applying institutional lenses is far to be mainstream for industry practitioners and strategy consultants. In the selected case from the wine sector, a market report has been hermeneutically “read” through lenses of institutional theory, which helped to identify coercive and mimetic types of isomorphism in the markets of Georgia and Ukraine.

Keywords: institutional theory, isomorphism, wine sector, strategy, hermeneutics, interpretive reading, management consulting.

Received: 24/01/2021
1st Revision: 02/02/2021
Accepted: 03/03/2021



  1. Chervan’ov, D.M., 2012. Systema innovatsijnoho menedzhmentu: teoriia i praktyka [System of Innovation Management: Theory and Practice], 1st ed., Kyivs’kyj universytet, Kyiv, Ukraine.
  2. Collins, A., Fine, J.B. and Wynne, A., 2020. “Top 10 Largest Beauty Manufacturers”, WWD, April.
  3. Conti, S., 2021. “Prestige Beauty, Nutrition Will Be Engines of Growth at Unilever”, WWD, February 04.
  4. COTY Annual Report on Form 10-K. 2019, 146 р.
  5. Datskova, D., 2020. “Features of Management of the Development of a New Goods under Open Innovation”, Formation of Market Economy in Ukraine, vol. 43, pp. 49–58.
  6. Druker, P., 2007. Biznes i innovatcii [Business and Innovation], Viliams, Moscow, Russia.
  7. Fagerberg, J. and Verspagen, B., 2009. “Innovation Studies – the Emerging Structure of a New Scientific Field”, Research Policy, vol. 38, issue 2, March, pp. 218–233.
  8. Gerstell, E., Spagnuolo, E., Marchessou, S. and Schmidt, J., 2020. “How COVID-19 is Changing the World of Beauty”, McKinsey&Company, May 05.
  9. L’Oréal Annual Report. 2019, 68 р.
  10. Nelson, Emily, 2001. “Rising Lipstick Sales May Mean Pouting Economy”, The Wall Street Journal, November 26.
  11. Personal Care Products Council (PCPC), 2020. Driving the Economy, Shaping the Future: Economic & Social Contributions Report 2020.
  12. Procter & Gamble Annual Report. 2019, 98 р.
  13. Schumpeter, J.A., 1942. Capitalism, Socialism and Democracy, Routledge, London, UK.
  14. Shiseido Annual Report on Form 10-K, 2019. Investor Relations Department, Shiseido Company, Limited, 16 р.
  15. Shtuka, N., and Shevchenko, I., 2020. “The Beauty of Perseverance”, Forbes Україна, September.
  16. Stiglitz, Joseph E., 2020. Liudi, vlast i pribyl. Progressivnyi kapitalizm v epokhu massovogo nedovolstva [People, Power, and Profits: Progressive Capitalism for an Age of Discontent], Alpina Pablisher, Moscow, Russia.
  17. The Estée Lauder Companies Inc Annual Report, 2019, 242 р.
  18. Unilever Annual Report and Accounts. 2019. Unilever Communications, 183 р.
  19. Zhylinska, O.I., 2016. “Developing the Institution of Patenting in Terms of the “Open Innovation” Model”, Business Inform, no. 12 (467), pp. 12–23.
  20. Zott, C., 2003. “Dynamic Capabilities and the Emergence of Intraindustry Differential Firm Performance: Insights From a Simulation Study”, Strategic Management Journal, 24(2), pp. 97–125.