Constructing Innovation: How Firms Use Market Communication to Shape Perceptions of Innovation

About the Project

Project Details

In contemporary markets, competitive advantage depends not only on firms’ ability to innovate, but also on how innovation is communicated and perceived by external stakeholders. While prior research has predominantly conceptualised innovation as an objective, output-based construct, captured through measures such as patents, R&D intensity, or new product introductions, this perspective overlooks a critical dimension of value creation: the role of communication in shaping market beliefs under conditions of uncertainty. In practice, investors, analysts, and other stakeholders rarely observe innovation directly. Instead, they rely on managerial communication to infer firms’ capabilities, strategic priorities, and future growth potential. Among these communication channels, earnings call communications (ECCs) represent a particularly influential yet underexplored setting. These calls provide a recurring, high-stakes forum in which senior executives articulate firm strategy, justify investment decisions, and respond to analyst scrutiny. As such, ECCs can be understood not merely as disclosure mechanisms, but as strategic marketing communications through which firms actively construct and manage perceptions of innovation. This project reconceptualises innovation as a perception-based construct that is co-created through firm communication and stakeholder interpretation. It introduces the concept of communicated innovation, defined as the extent to which firms emphasise innovation in their market-facing narratives. Crucially, the project distinguishes communicated innovation from realised innovation, captured through objective outputs such as patents and R&D activity, allowing for the identification of a “talk–walk gap” between what firms say and what they actually do. Drawing on insights from marketing and strategy, the project examines how firms use language, framing, and narrative structures to signal innovation and influence stakeholder perceptions. It pays particular attention to the strategic use of forward-looking statements, transformational rhetoric, and emphasis framing in shaping expectations about future value creation. At the same time, it investigates the conditions under which communicated innovation aligns with, or diverges from, realised innovation, and the implications of this alignment for credibility and market outcomes. Empirically, the project combines large-scale textual analysis of earnings call transcripts with firm-level financial, analyst, and innovation data. It employs both traditional natural language processing (NLP) techniques and advanced large language models (LLMs) to capture not only the salience of innovation-related language but also deeper semantic and narrative features that reflect how innovation is constructed in discourse. This multi-method approach enables a more nuanced and scalable analysis of strategic communication than has been possible in prior research. By integrating communication, perception, and innovation outcomes, the project makes several important contributions. It advances marketing theory by positioning firm communication as a central mechanism through which intangible assets are constructed and valued. It contributes to innovation research by highlighting the role of perception alongside objective outputs. Finally, it offers practical insights into how firms can design credible and effective innovation narratives, manage stakeholder expectations, and sustain long-term value in increasingly information-driven markets.

Person Specification

The successful applicant should hold, or expect to achieve: A First or Upper Second Class Honours undergraduate degree, and a Masters degree with Merit or Distinction, both in relevant subjects. Qualifications from overseas institutions will be considered, but performance must be equivalent to that described above, and the University reserves the right to ascertain this equivalence according to its own criteria.

Submitting an application

We can only consider applications that are complete and have all supporting documents. Applications that do not provide all the relevant documents will be automatically rejected.Your application must include:

1. English language copies of the transcripts and certificates for all your higher education degrees, including any Bachelor degrees.
2. A Research Statement detailing your understanding of the research area, how you would approach the project, and a brief review of relevant literature. Be sure to use the title of the research project you are applying for. There is no set format or word count.
3. A personal statement which outlines any further information which you think is relevant to your application, such as your personal suitability for research, career aspirations, possible future research interests, and further description of relevant employment experience.
4. A Curriculum Vitae (Resume) which details your education and work history.
5. Two academic refereeswho can discuss your suitability for independent research. References must be on headed paper, signed and dated no more than 2 years old. At least one reference should be from your most recent University. You can submit your references at a later date if necessary.
6. Evidence that you meet the English Language requirements. If you do not currently meet the language requirements, you can submit this at a later stage.
7. A copy of your passport. Where relevant, include evidence of settled or pre-settled status.

Contact Information

For enquiries about this project, contact marian.garcia@aston.ac.uk

Location

This position will be based on the Aston Campus in Birmingham, UK. The successful candidate will need to be located within a reasonable distance of the campus, and will be expected to visit in person regularly.

Interviews

Interviews will be conducted online via Microsoft Teams. If you are shortlisted, you will be contacted directly with details of the interview.

Funding Notes

This project covers all tuition fees and includes an annual stipend. Please note that the successful candidate will be responsible for any costs relating to moving to Birmingham and/or visiting the Aston campus. International students must meet the financial requirements for the visa, flights, and NHS Surcharge. Applicants should be confident that they can meet these costs before applying. Further information can be found here: Financial Requirements | Aston University

Project supervisors

Prof Marian Garcia

Dr Lucia Silvestro