Talk Details (Day 3)

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Innovation in Health and Medicine

Patients of Chronic Diseases as User Innovators and Entrepreneurs: The Case of Medical Treatments/Devices

Presenter: Pedro Oliveira (Católica Lisbon School of Business and Economics)
Plenary Group: Innovation in Health and Medicine - Group V
Plenary Order: 1
Breakout Room: A - Aldrich 107
Abstract:

We build our study upon previous work by Oliveira, von Hippel and DeMonaco (2011) and Oliveira (2012) and empirically explore the role of patients and their families and friends (i.e. users) in developing new medical treatments and devices for themselves. We focus on chronic diseases, including respiratory diseases (Cystic Fibrosis, Asthma and Sleep Apnea), Cancer, Diabetes and medical devices and treatment for general purposes. For each of these chronic diseases we developed a sample of treatments and devices and show that patients with those diseases (or their families and friends) have developed a significant proportion of treatments and devices. Despite some sampling limitations, we found that the majority (more than 50%) of new medical treatment and devices for those diseases were developed by patients or their families and friends. Moreover, a significant percentage of those patients, who are user innovators, have also become entrepreneurs.

User developed medical therapy - the case of Crohn's disease

Presenter: Steve Flowers (University of Brighton)
Plenary Group: Innovation in Health and Medicine - Group V
Plenary Order: 2
Breakout Room: A - Aldrich 107
Abstract:

This paper documents a user-led system of innovation that has grown up around the development of a therapy to treat a chronic autoimmune disorder called Crohn’s disease. The case shows that, by drawing on mainstream scientific research, users took the lead in the innovation process to create an experimental medical treatment based on intestinal parasites for Crohn’s and other chronic autoimmune diseases. The paper explores the characteristics of lead users in such contexts and examines how a combination of a powerful need, dissatisfaction with current medical treatments, and strong regulatory regime can drive the emergence of such outlaw innovations. The paper also examines the directionality of knowledge spillovers and the factors that determine the nature of the time lag between lead user activity and its incorporation in mainstream practice, introducing the concept of the lead user lag. The paper concludes with directions for future research in this area.

User Innovation in Techniques - A Case Study Analysis in the Field of Medical Devices

Presenter: Mareike Hinsch (Institute of Marketing and Innovation, Hamburg University of Technology)
Coauthors: Christian Lüthje
Plenary Group: Innovation in Health and Medicine - Group V
Plenary Order: 3
Breakout Room: A - Aldrich 107
Abstract:

The present research project aims to understand the key characteristics of user-generated techniques and the processes of their development and diffusion by analyzing multiple case studies of surgical techniques. Our findings suggest that while the development of techniques and products follow similar patterns, their diffusion processes vary. We show that the inventor of a technique is of utmost importance for the diffusion of the technique as teacher and trainer. Personal contact between the inventor and potential adopters is crucial as adoption takes place through observation and imitation. We also find that user-generated techniques often lead to ideas for new products or new usage of existent products. Starting off with existing products used in new ways, techniques often result in the development of new instruments. Our findings are the basis for a more thorough quantitative analysis of user-generated techniques and their diffusion in the course of the next months.

Rethinking IS Workarounds: Lessons from Open-Source Healthcare IT

Presenter: Hani Safadi (McGill University)
Coauthors: Samer Faraj
Plenary Group: Innovation in Health and Medicine - Group V
Plenary Order: 4
Breakout Room: A - Aldrich 107
Abstract:

Computer or IS workarounds are sanctioned practices that deviate from espoused ways at working with the system. This paper studies computer workarounds during the implementation of an open-source electronic medical record system. Opposite to the negative consequences of computer workarounds that are outlined in the literature, the paper argues that computer workarounds are necessary to appropriate the health IT system to local needs. The paper follows eight major workarounds during four years of system implementation and focus on their emergence and evolution during the implementation process. The importance of workarounds for health IT implementation has significant implications for open-source system development as workarounds can be incorporated in the system development cycle and channeled into constructive development effort

Creation and Diffusion of Innovation by User-Firm-University Collaborative Networks: Patent Analysis of a CT Scanner

Presenter: Yutaka Hamaoka (Keio University)
Plenary Group: Innovation in Health and Medicine - Group V
Plenary Order: 5
Breakout Room: A - Aldrich 107
Abstract:

Analyzing the Japanese patent data for a CT scanner whose users are highly knowledgeable doctors, this research examines the determiners of the creation and diffusion of innovation.. We found that the patent grant probability of medical institution patents is significantly higher. Even though, that of individual doctor patents is not significantly different, that of doctor and firm co-patents is significantly higher. This indicates that individual doctors who have enough needs information, but less technological information, can be complemented by the technological information from firms. Among social network indexes, network constraint has a negative impact on the patent grant probability. Thus, we confirmed Burt (1992)’s argument that actors facing structural holes can utilize heterogeneous knowledge from sub-social networks that lead to innovation.　A similar analysis was conducted for the number of patent citations. We found that university patents have more citations. Moreover, the network constraint has a positive impact on citations.

Innovation in telehealth in Europe: Ecosystem obstacles to SME penetration and growth

Presenter: Terry Mughan (Anglia Ruskin University)
Coauthors: Greg O'Shea, Saeed Sadighi
Plenary Group: Innovation in Health and Medicine - Group V
Plenary Order: 6
Breakout Room: A - Aldrich 107
Abstract:

Healthcare has emerged as a key sector for innovation in developed economies. Its public/private structure creates generic and nation-specific constraints to business growth which inhibit SMEs in particular. This paper presents early findings from a four-country (Netherlands, Flanders, France, UK) study of innovative SMEs and the obstacles they face in getting assistive technology products to market in domestic and international operations. Access to commissioners, lead-users and end-users figures highly in a list of inefficiencies in the market and fragmented regional ecosystems are ill-suited to the task of rectifying these shortcomings. This paper reports on work in progress and deeper data about company experience and examples of successful practice are still being gathered. Nonetheless, initial observations about end-user need and institutional reform are well-grounded. Discussion of findings and of methods for subsequent stages of inquiry will be welcomed.

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Mass Customization

Certainty biases in Mass Customization: How perceived uniqueness of self-designed products can be boosted.

Presenter: Ilse Klanner (Institute for Entrepreneurship & Innovation, WU Wien)
Coauthors: Nikolaus Franke
Plenary Group: Mass Customization - Group V
Plenary Order: 7
Breakout Room: B - Aldrich 108
Abstract:

One motive for customers to use a mass customization toolkit is that the self-designed product may be more unique than standard products. However, this value dimension heavily depends on the perceived uniqueness a customer attributes to the individual design. The actual uniqueness of the self-designed product is unascertainable, due to the lack of knowledge concerning (future) selected designs by others. To work on customers perceptions, we test two novel toolkit-mechanisms namely (1) informational feedback (“your design has never been created before”), and (2) the option to protect the self-created design against imitation (“your design will be exclusively produced for you and it will be blocked forever”). We find that both mechanisms create substantial value for consumers, measured as willingness to pay. The size of the effects is moderated by a tendency to status consumption, but not “innumeracy”, i.e. a systematic tendency to overrate the true significance of the uniqueness achieved.

Creation of competitive advantage by sustainable mass customization: Development of Design outcomes assessment model

Presenter: Mahnoosh Zebardast (Politecnico di Milano)
Coauthors: Donatella Corti, Marco Taisch
Plenary Group: Mass Customization - Group V
Plenary Order: 8
Breakout Room: B - Aldrich 108
Abstract:

Broad research on Mass Customization and Sustainability on one hand and global pressure on innovative technologies and methodologies toward customer oriented and sustainable manufacturing system on the other hand provokes to investigate links between two concepts and it results in creation of new paradigm, called Sustainable Mass Customization. This study tries to provide SMC (Sustainable Mass Customized) Assessment Frames which support manufacturers who are interested to be more competitive in future by increasing their sustainability and customer orientation. SMC Assessment Frames are developed to be used by design phase in order to assess level of sustainability and mass customization of new product, production system and supply chain configurations.

Sustainable Mass Customization: Proposal of a Reference Framework to Integrate Sustainability and Mass Customization as a New Production Paradigm

Presenter: Golboo Pourabdollahian (Politecnico di Milano)
Coauthors: Marco Taisch, Donatella Corti, Andrea Bettoni, Luca Canetta, Paolo Pedrazzoli
Plenary Group: Mass Customization - Group V
Plenary Order: 9
Breakout Room: B - Aldrich 108
Abstract:

Mass customization strategy is applied by firms in order to make them more customer-oriented and make each individual customer a source of opportunity and hence profit for the firm. Sustainability on the other hand brings not only eco-efficiency for the company, but also has a great impact on economic efficiency and social perspective of the firm. Hence integrating these two concepts together to develop a new strategy of sustainable mass customization can create a significant value for companies in today’s globally competitive environment. This research aims at introducing a reference framework to implement sustainable mass customization.

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User Innovation

CONSTRUCTING STATUS: ANTECEDENTS OF STATUS IN ELECTRONIC NETWORKS OF PRACTICE

Presenter: Sarah Otner (London School of Economics)
Plenary Group: User Innovation - Group V
Plenary Order: 10
Breakout Room: C - Aldrich 109
Abstract:

Empty.

Engraving Market Intelligence in the Heart of Product Development

Presenter: Alexander Lang (Helmut Schmidt University Hamburg)
Plenary Group: User Innovation - Group V
Plenary Order: 11
Breakout Room: C - Aldrich 109
Abstract:

For companies collecting outside data in Lead User Workshops, Internet Competitions and other Open Innovation Activities do not seem to be the hardest part. Looking at a large amount of OI projects within 5 German internationally operating companies between 2008 and 2010, the absorption and the digestion - the integration of the information in the company is far more demanding. For the market information collected, it seems to be difficult to move through the organization from the collector – mainly the marketing department – to the R&D department, where developers should use the information in order to develop products the market is waiting for. It seems that certain employees work under the keep the market out premise (Kmop). To overcome Kmop, the aspects of Kmop were identified, clustered in focus areas and a first concept, including an Internet application, was developed.

The emergence and evolution of knowledge communities: The user innovation research community

Presenter: Lars Frederiksen (Aarhus University, Business and Social Sciences)
Coauthors: Oliver Alexy & Anne ter Wal
Plenary Group: User Innovation - Group V
Plenary Order: 12
Breakout Room: C - Aldrich 109
Abstract:

We explore how scientific communities develop over time and hence aim to improve our understanding of the mechanisms through which knowledge production emerge and evolve. Specifically, we juxtaposes the effects of past experience and network position, addressing the question whether good performers (i.e. number of published papers, number of co-authorships, etc.) become centrally positioned (i.e. cited by others in one scientific domain, widely cited in high ranked journals across a number of scientific disciplines, etc.) or central actors over time become better performers. We use the community of user innovation research as an example. Through a longitudinal network analysis of the co-authorship network in the field linked to information from individual CV’s, our objective is to provide a preliminary step towards unraveling the complex feedback loop between network position and performance in open-system communities. We apply regression analysis and the SIENA social network modeling tool for our analysis.

Towards a comprehensive understanding of individual innovation contribution to corporate NPD – a creativity-based approach

Presenter: Thomas Mack (EBS Business School)
Coauthors: Christian Landau
Plenary Group: User Innovation - Group V
Plenary Order: 13
Breakout Room: C - Aldrich 109
Abstract:

The involvement of consumers in the process of NPD can be a valuable source for corporate innovations. However, how is an individual’s innovation contribution determined? This paper contributes to innovation literature by offering a comprehensive understanding of individual innovation contribution through the integration of two mostly independent streams of research, user innovativeness and organizational creativity. The literature-based investigation shows that while innovation research has mainly focused on the level of user types integrating different personal and contextual characteristics, creativity research is characterized by a systemic view of single factors of influence. In combination both fields add-up to a comprehensive framework that cannot only guide future research and decisions in praxis but offers explanations for (inconsistent) empirical findings in the past.

The magnitude of innovation by demand in a sectoral system: the role of intermediate users in semiconductors

Presenter: Pamela Adams (Franklin College Switzerland)
Coauthors: Franco Malerba, Roberto Fontana
Plenary Group: User Innovation - Group V
Plenary Order: 14
Breakout Room: C - Aldrich 109
Abstract:

How relevant is innovation by demand compared to innovation by other actors in a sector? This study fills a gap in the literature. Using a sectoral system perspective, this study highlights the magnitude of innovation by intermediate user firms in semiconductors. Combining different datasets- patents, co-patents, R&D alliances and new ventures - this study proposes a novel quantitative approach to assessing the magnitude of innovative activity of user firms. The findings include: first, the magnitude of innovations by user firms, as measured by patents, is high in both absolute and relative terms compared to semiconductor firms and other actors in the sector. Second, collaboration in R&D and co-patenting in semiconductors take place not just between user firms and semiconductor firms, but also among user firms themselves. Third, user firms are quite active in entrepreneurial activity in semiconductors and their new ventures, on average, survive longer than spin-offs or other start-ups.

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FLOSS (II)

Relational coordination in an Open Source Software Project: From events to structure

Presenter: Marco Tonellato (University of Lugano)
Coauthors: Eric Quintane (University of Lugano), Guido Conaldi (University of Greenwich), Alessandro Lomi (University of Lugano)
Plenary Group: FLOSS (II) - Group V
Plenary Order: 15
Breakout Room: D - Aldrich 110
Abstract:

Successful production of Open Source Software depends crucially on the commitment of a set of developers with no evident incentive to contribute to a collective project. The prevalent explanation of this apparent paradox of participation holds that visibility and status act as strong motivating factors in the absence of formal incentive systems. According to this view, developers actively search for problems whose resolution grants status and recognition. While the logic of status competition may help explaining specific organizational features of F/OSS projects, it fails to account for active engagement in more mundane, routine and maintenance tasks, which have been shown to be essential to the survival of F/OSS projects. Using a Relational Event Model framework we examine this issue by analyzing the complete set of relational events generated by the matching between 135 software developers and 719 bugs observed during the an entire release cycle of the F/OSS “Epiphany".

SETTING THE STAGE: EXPLORING THE SUSTAINABILITY OF A PRIVATE-COLLECTIVE COMMUNITY

Presenter: Zeynep Yetis (Stockholm School of Economics)
Coauthors: Dr. Robin Teigland, Dr. Paul Di Gangi
Plenary Group: FLOSS (II) - Group V
Plenary Order: 16
Breakout Room: D - Aldrich 110
Abstract:

Emergent forms of organizing such as the private-collective community model have recently gained attention from researchers and practitioners. Little is known about how such communities, where private goods from stakeholders are shared and freely distributed among a public collective, sustain themselves. The purpose of this research is to examine two underlying research questions: 1) who are the stakeholders of a private-collective community and what resources do they contribute to the community? and 2) what characterizes the structure among the different stakeholders of a private-collective community? Using text and social network analyses of interview and archival data across two two-year periods, we find that a diverse set of stakeholders emerges with each stakeholder playing a specific role in resource contribution. Entrepreneurs, the most powerful stakeholder, are kept in check through their interdependence with other stakeholders throughout the community’s core and periphery.

Open Source Communities: Challenges of Moving From Software Into Biology

Presenter: Joel West (KGI - Keck Graduate Institute)
Coauthors: Ujval Kondragunta
Plenary Group: FLOSS (II) - Group V
Plenary Order: 17
Breakout Room: D - Aldrich 110
Abstract:

Research into the success of open source communities has identified two key factors for their success: IP policies that control the output of the community and rules for community participation (West & O'Mahony, 2008). Subequent research on community production of tangible goods identified a third factor: the ability of community participants to replicate the good themselves (Balka et al, 2010). Here we examine efforts to extend open source principles into molecular biology, based on a combination of primary and secondary data on "open source biology" projects. We discuss two key findings: first, the relative lack of community and community processes in these efforts; and second, how the efforts tend to be either much easier or much harder than other tangible goods. Finally, we attempt to explain why these efforts differ both from software and tangible goods efforts, due to environmental factors, the nature of the end product and path dependencies.

Innovation and Value Migration in Layered Architectures: The Case of Cloud Orchestration Stacks

Presenter: Richard Tee (EPFL)
Coauthors: C. Jason Woodard
Plenary Group: FLOSS (II) - Group V
Plenary Order: 18
Breakout Room: D - Aldrich 110
Abstract:

Our paper explores strategic decision making in open innovation ecosystems, focusing on the role of design choices in shaping the evolution of technology and industry architectures. Based on an inductive study of two open-source cloud computing initiatives, we highlight how firms' expectations about the creation, capture, and migration of economic value influence their architectural decisions, both from a technological and organizational point of view. Our research setting is distinctive in two ways. First, the cloud computing ecosystem is not confined to a single product category or standard but spans multiple architectural layers. Second, the interactions within the cloud ecosystem take place against a backdrop of significant competitive pressures, both within layers and with respect to vertically integrated rivals. We draw on existing work on technology and industry co-evolution, modularity, and business ecosystems to consider how internal and external forces shape the interactions within this layered architecture.

On the competition between Proprietary software, Piracy, and Free software

Presenter: Heger Attaya (CEPN university of Paris nord)
Plenary Group: FLOSS (II) - Group V
Plenary Order: 20
Breakout Room: D - Aldrich 110
Abstract:

Publishers of proprietary software are confronted both by the onset of piracy practices and free/open software. So far, the obstacles faced by proprietary software have been presented in the litterature by means of two distinct approches:(i) the piracy/proprietary software (illicit competition); or (ii) the open source/proprietary software (licit competition) standpoints. In this paper we propose an alternative approach of the software market, which focus the coexistance of competitive forces (piracy practices and open software) and the impacts that one in icts over the other. The econometric model herein proposed shows that these concomitant forces constitute determinant issues in the dynamics of the software market. We conclude, among others, that the strengthening in the use of open source software tends to decrease the practice of piracy on emerging market economies.

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Open Innovation and Firms (II)

Organizing for Open Innovation:

Presenter: Frank PIller (RWTH Aachen University)
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 1
Breakout Room: E - Aldrich 111
Abstract:

Our study sheds light on the mutual interdependence between firms’ open innovation activities and their internal organizational practices as one important source of performance heterogeneity. Based on a sample of 365 German manufacturing firms, we investigate the value of aligning external knowledge sourcing with internal organizational structures and practices. By classifying internal organizational structures according to specialization, formalization, and decentralization, we are able to explain a significant amount of variance in the performance effect of external knowledge sourcing. We show that the process of profiting from open innovation demands some level of formalization and specialization to be effective. We further find large differences between firms with a large and a rather low R&D intensity, suggesting that also the ressources available for R&D in general effect the benefits of open innovation.

Houston we have a solution!

Presenter: Hila Lifshitz-Assaf (Harvard Business School)
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 2
Breakout Room: E - Aldrich 111
Abstract:

This research investigates how “opening” the organizational R&D process influences the role of scientists and engineers in organizations. This is a pioneering study of large and mature technology based organization which has experimented with opening the boundaries of the innovation process by broadcasting their strategic R&D problems via “Open innovation” communities & platforms for the world to solve. The results were successful beyond expectations; over 3,000 solvers from 80 countries tried to solve these problems. Some solved beyond expectations, and those in an astonishingly short period of time with few resources. This had obviously triggered a wave of reactions from the R&D units and their members, the top management of the organization and the broader field as well. In this study, I focus on the influence of the Open Innovation experience on the role and practices of the R&D org members.

Gaining performance by linking open innovation practices and internal activities

Presenter: Helle Alsted Sondergaard (Aarhus University)
Coauthors: Ana Luiza de Araújo Burcharth and Mette Praest Knudsen
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 3
Breakout Room: E - Aldrich 111
Abstract:

This paper investigates the role of internal contingencies in explaining performance implications of open innovation by addressing the question: what organizational activities drive and impact the effectiveness of both the inbound and the outbound approaches to openness? The paper finds that inbound open innovation is positively related to the introduction of new products, whereas outbound open innovation is positively related to innovative performance, as measured by the share of turnover from new products. These positive outcomes are furthermore mediated by the use of internal activities that give employees latitude, information and skills to work autonomously. The allowance of autonomy is translated from entrepreneurial initiatives, the training of special talents and the empowerment of employees. In addition, the paper finds that a firm’s lack of external and internal partnering experience limit the adoption of inbound and outbound open innovation practices, and are thus considered necessary prerequisites for profiting from openness.

How do a High Tech SME Adopt an Entrepreneurial Approach to Growth? The Case of Open Innovation

Presenter: Hamid Mazloomi (ESC Rennes School of Business)
Coauthors: Guy Caverot
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 4
Breakout Room: E - Aldrich 111
Abstract:

Open Innovation for large firms tends to be a defensive strategy to overcome market and technological turbulence. However, in small and medium size enterprises (SMEs) it can serve as a strategy of entrepreneurial growth. Through a case study, we demonstrate the entrepreneurial nature of activities underlying open innovation strategy. Due to open innovation strategy, the SME under study adopts a proactive approach to leverage its historical business knowledge and experience (Industrial mobile robots) as well as to profit from external sources to diversify into a new business (Medical robots). This strategy entails re-organizing internal organizing activities and external relationships around three main processes: in-bound knowledge transfer, coordinating and managing the interdependencies, developing complementary assets and capabilities for internal appropriation of innovative rents.

Investigating open innovation strategies: a simulation study

Presenter: Irina Savitskaya (Lappeenranta University of Technology)
Coauthors: Martin Ihrig, Marko Torkkeli
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 5
Breakout Room: E - Aldrich 111
Abstract:

Taking a knowledge-based approach to innovation, we distinguish between four different innovation strategies that vary in how knowledge is sourced and exploited – Open Innovation (OI), Closed Innovation, Outbound OI, and Inbound OI. We build an agent-based simulation model to explore the competitive performance profiles of these strategies as well as their innovation creation potentials. Our simulation research allows for modeling the micro-foundations of open innovation and for studying innovation strategies in different market conditions. We find that the relative financial payoffs associated with the different innovation strategies vary with time – some strategies win out in the short-term others in the long-term. The results also suggest that there is a trade-off between a strategic orientation based on innovativeness versus one based solely on financial returns.

Neither Invented Nor Shared Here: How Attitudes Prevent the Adoption of Open Innovation Practices

Presenter: Ana Luiza Burcharth (Aarhus University)
Coauthors: Mette Præst Knudsen, Helle Alsted Søndergaard
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 6
Breakout Room: E - Aldrich 111
Abstract:

Despite the massive interest in open innovation, many organizations experience the unwillingness of employees to undertake extra-organizational knowledge transactions. Negative attitudes against the reception and utilization of external knowledge (i.e. the not-invented-here syndrome), as well as against the external exploitation of knowledge assets (i.e. the not-shared-here syndrome) are key organizational barriers. This paper empirically assesses the theoretical assertion that these attitudes have separate negative impacts on the adoption of inbound and outbound practices of open innovation. It further suggests the effect of these attitudes can be reduced if firms implement competence-building programs related to the training of employees. The analyses rest on cross-sectional survey data from 348 small and medium-sized firms. By focusing on two important attitudinal antecedents of open innovation, the findings offer an explanation for the problems that firms face in benefitting from inflows and outflows of knowledge and offer some possible guidance how to disengage such attitudes.

OPENING BUSINESS MODELS THROUGH BUSINESS MODEL INNOVATION: LESSONS LEARNED FROM THE NEWSPAPER INDUSTRY

Presenter: Anna B. Holm (Aarhus University)
Coauthors: Franziska Günzel, John Parm Ulhøi
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 7
Breakout Room: F - Aldrich 011
Abstract:

Literature on business model innovation portraits openness in business models as a contemporary and highly beneficial approach to business model innovation. This paper takes the strategic discussion a step further by investigating the development of the changes of the dominant business model in the Danish newspaper industry. Using archival data and interviews with key informants from the two largest media groups from Denmark, we show how the Internet and related technology developments have disrupted the long-standing successful business model of the industry. Our findings suggest that a ‘nuanced’ view and balanced understanding of the term ‘openness’ in regard to business models is needed since the opening of business models may have far more multiform manifestations and implications for the business model viability, it has been reported in the literature. In closing implications for research and practice is briefly addressed.

Open Innovation Potential in Developing Business Environments – Results from a Cross-Country Survey

Presenter: Juha Hinkkanen (Lappeenranta University of Technology)
Coauthors: Juha Väätänen
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 8
Breakout Room: F - Aldrich 011
Abstract:

Open innovation has quickly become a popular topic in academic research. Some researchers have also studied its applicability in emerging markets as a way to leapfrog in the technological catch-up game. However, the literature on their part strongly relies on evidence sourcing from countries such as China and India which are not a synonym for all developing countries. In this paper we employ secondary data from a cross-country study covering 12 countries in Europe and Asia, as we seek to find if there exists such a thing as open innovation potential in emerging markets also outside China and India. We also look at how the multidimensional pressure from product market influences cooperation between firms, and by so the adaptation of open innovation principles. Based on our findings and existing literature we formulate two proposals about open innovation in emerging markets and the relationships between openness and competitive environment.

Open Innovation theory Building: Review of Methodology

Presenter: Daria Podmetina (Lappeenranta University of Technology, Finland)
Coauthors: Irina Savitskaya, Daria Podmetina, Marko Torkkeli, Juha Väätänen
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 9
Breakout Room: F - Aldrich 011
Abstract:

The open innovation revolution has happened around eight years ago but the amount of research produced on the topic is impressive and keeps growing exponentially. There has been the multitude of case study research undertaken in the field of open innovation since then, and few quantitative surveys were conducted as well. However, the question of suitability of some methods for certain kinds of open innovation research is still open and widely discussed. The evolution of method for analysing the phenomena allows seeing how the theory has been creates as well as to explore the missing areas not covered by currently applied methodological palette. In this paper we review the methodology which has been previously applied for researching open innovation paradigm and distinguish blank areas to be yet covered as well as offer new methods to be applied.

Stakeholder Co-Creation: A Case Study Explicating the Underlying Organizational Capabilities

Presenter: Kande Kazadi (University of Antwerp)
Coauthors: Annouk Lievens; Dominik Mahr
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 10
Breakout Room: F - Aldrich 011
Abstract:

A firm’s stakeholders have evolved from passive actors to active, empowered co-creators of value. An evolving phenomenon is co-creation during the innovation process with multiple stakeholders. However, research to date suggests relatively little is known about how and why a firm should engage in co-creation projects with multiple stakeholders. In this article, the authors identify the organizational capabilities enabling a firm to co-create with multiple stakeholders; explore routines and individual features underlying these capabilities; and identify multiple organizational outcomes related to stakeholder co-creation capabilities. A tentative framework is built up by synthesizing diverse constructs from research on organizational capabilities, marketing and co-creation. By integrating constructs from this tentative framework with insights from an exploratory case-study, the authors develop a conceptual framework. The results identify six different capabilities enabling stakeholder co-creation and explain how involving multiple stakeholders during the innovation process may benefit firms.

Case studies on collaborative innovation: Using phronesis and thematic analysis to explore the intra-organizational side of open innovation management within multinational corporations

Presenter: Norman Mueller (Anglia Ruskin University)
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 11
Breakout Room: F - Aldrich 011
Abstract:

This study draws on expert views collated from the Open Innovation (OI) research community as well as practitioners who are interested in participatory and inclusive ways of sustaining internal/team commitment towards OI. Phronesis is suggested as useful perspective and tool to critically discuss methodological issues, conceptual developments, normative challenges and paradigmatic shifts triggered by OI. Thematically conceptualizing and sharing scholars’ and practitioners’ personal experiences provides important learning opportunities and tie-ins for peer practitioners in the areas of innovation management, human resource management, as well as R&D policy aiming to harness individual and team buy-in and commitment as a success factor for internal change management in connection with OI.

Open innovation, corporate venture capital, and internal R&D

Presenter: Christopher Tucci (EPFL)
Coauthors: Henry Chesbrough & Vareska van de Vrande
Plenary Group: Open Innovation and Firms (II) - Group VI
Plenary Order: 12
Breakout Room: F - Aldrich 011
Abstract:

The role of CVC programs inside the firm has received relatively little scholarly attention. Do these programs substitute for traditional corporate investments, such as R&D? Or do they complement internal R&D? To examine these questions, we have developed a dataset of corporations initiating CVC programs from 1973-2001. We find that the existence of a CVC program is positively associated with the level of corporate R&D. We also find that a combination of having a CVC program and higher R&D spending is associated with higher firm performance, thus concluding that CVC investments can complement other corporate innovation initiatives.

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Lead Users

Co-creation with consumers: who are the best targets?

Presenter: Linda Hamdi-Kidar (University of Toulouse Capitole- IAE)
Coauthors: Eric Vernette, Professor at University of Toulouse Capitole
Plenary Group: Lead Users - Group VI
Plenary Order: 13
Breakout Room: G - Aldrich 012
Abstract:

Co-creating products/services with consumers in virtual environments is a major challenge. Many consumers are likely to respond to calls for co-creation so the difficulty is to spot the truly innovative ideas or original solutions, among a flood of banal suggestions. Efficient co-creation supposes that managers can respond to two questions: who are the most competent consumers? and Is this target prepared to co-create? Based on a representative sample of the French population (n = 995), we show that the competence and engagement in co-creation of lead-users and emergent nature consumers are significantly higher than for others. The competence for co-creation mediates the influence of lead-user/emergent nature on engagement in co-creation. Furthermore, we normed the distribution of the scores of these two targets among the population. This results in specific reference points for naming customer data while at the same time making it easier to filter respondents for future co-creation initiatives.

Identification of users with special qualities – Assessing the performance of pyramiding search

Presenter: Christoph Stockstrom (Hamburg University of Technology)
Coauthors: René Chester Goduscheit, Jacob Høj Jørgensen, and Christian Lüthje
Plenary Group: Lead Users - Group VI
Plenary Order: 14
Breakout Room: G - Aldrich 012
Abstract:

Special users may be an important source of innovation-related knowledge and often play key roles during the different phases of the NPD process. As they are typically hidden within a considerably larger population, traditional screening searches for their identification are often inefficient. Pyramiding has been advocated as comparatively more efficient search strategy when target persons are very rare. However, little empirical work has been done on investigating this acclaimed superiority of pyramiding vs. screening. In a survey involving 942 pupils, we first explore if the efficiency of pyramiding may be further increased by stopping rules, i.e. by identifying unpromising search chains early on and abandoning them as soon as possible. Second, we examine the impact of a starting person’s characteristics on the efficiency of the search chain emanating from her. We find that her level of expertise positively affects pyramiding efficiency, while her degree centrality does not affect pyramiding efficiency.

Innovating social services through lead user involvement

Presenter: Lars Bengtsson (Blekinge Inst of Technology)
Coauthors: Peter Svensson
Plenary Group: Lead Users - Group VI
Plenary Order: 15
Breakout Room: G - Aldrich 012
Abstract:

Where do social service innovations come from? Research and textbooks in social work tend to hold the view that new social services come from social workers or groups of social workers, virtual communities among social workers or social-work research and researchers. Following the findings of user-innovation research in the commercial sector, the authors suggest that social service innovation may be lead user-developed, i.e., innovated by social problem holders themselves who has had early exposure to the social problem and who expect major benefits from innovating. Using a case study approach. it is concluded that lead users are able to innovate due to their superior problem and solution knowledge and their legitimacy with other potential users. The paper contributes to the understanding of social service innovation and has implications for both user innovation research in general as well as for the practice of social service innovation.

Lag-Users: A New Source of Innovation

Presenter: Sara Jahanmir (Nova School of Business and Economics, Portugal / Nordakademie, Germany)
Coauthors: Luís Filipe Lages, Associate Professor, Nova School of Business and Economics, Lisbon, Portugal / International Faculty Fellow, MIT Sloan School of Management
Plenary Group: Lead Users - Group VI
Plenary Order: 16
Breakout Room: G - Aldrich 012
Abstract:

Laggards are the last to adopt a product. Despite significant amount of user-led innovation, prior literature tends to ignore laggards’ impact on innovation. Ignoring the input of around 16-22% of the users is something that today’s companies cannot afford. In this study we develop the Lag-User Method and compare it with the Lead-User Method. Empirical findings reveal that not only lead-users, but also lag-users can contribute to new product development. If provided with right tools and method they can innovate. Moreover, lead- and lag-users have different perceptions of user-friendly products as well as different needs and expectations. We propose that by complementing Lead-User innovations with Lag-User Innovations, companies can address a wider range of users. Implications of the new Lag-User Method for theory and practice will be presented.

Mountaineering – An Integrative Approach for Finding Rare Research Subjects

Presenter: Samuli Mäkinen (Aalto University)
Coauthors: Juntunen Jouni, Johnson Mikael, Hyysalo Sampsa, Helminen Pia, Freeman Stephanie
Plenary Group: Lead Users - Group VI
Plenary Order: 17
Breakout Room: H - Aldrich 211
Abstract:

While rare research subjects, lead users, are valuable both for research and development, the effort to find them remains considerable. Several alternative search methods are common in the identification process, but the searches tend not to follow just one, but rather to involve integration of methods. This integration of alternative methods has not, however, been discussed properly to date. This state of affairs can make the lead-user identification process appear either as simple recipe following or as a mysterious process. We argue for a realistic middle ground, and propose an integrative search strategy labeled “mountaineering” towards user innovations and users with high levels of leading edge status. Through six cases we elaborate some of the alternatives and choices in moving from method to another as responses to contingencies in particular searches. This elaboration of actual experiences complements established depictions of ideal search processes and analytical comparisons between particular search methods.

To own or not to own: How ownership effects user innovation - An empirical study in the rowing sport market

Presenter: Thorsten Pieper (Hamburg University of Technology (TU Hamburg-Harburg))
Coauthors: Frank Tietze, Cornelius Herstatt
Plenary Group: Lead Users - Group VI
Plenary Order: 18
Breakout Room: H - Aldrich 211
Abstract:

While theory distinguishes between “common” and lead users, we propose to cluster users with similar characteristics into user groups. Previous research also proposes that ownership (i.e. patent rights) is hardly an incentive for users to innovate. Drawing upon property rights theory, we argue that ownership plays a role in user innovation. We distinguish between private and non-private ownership and study the impact on users’ innovation behavior in a rowing community. In contrast to previously studied sport markets, equipment ownership in rowing remains largely with sport clubs. Results from 743 responses reveal that professional rowers are not significantly more innovative than non-professionals and that ownership strongly effects user innovations. Our results contribute to the discussion about contextual factors determining user innovations in different markets. We conclude that user innovations can be expected less where the non-private ownership dominates and we discuss possibilities to incentivize users to innovate even in those environments.

Lead users’ interaction

Presenter: Christos Tsinopoulos (Durham University Business School)
Coauthors: Zu'bi Al Zu'bi
Plenary Group: Lead Users - Group VI
Plenary Order: 19
Breakout Room: H - Aldrich 211
Abstract:

Building on our previous work on comparing the impact of integrating lead users in new product development, we are presenting a theoretical framework that aims to explain how the integration of user innovators can support the new product development process. Our theoretical framework focuses on the interaction of lead users with three main groups internal staff, suppliers, and product experts. Our theoretical framework argues that as lead users interact with these groups they both learn more about the products they develop. This learning process supports the technical abilities of the lead user group who then can use their newly acquired knowledge to further modify existing products to meet their needs. At the same time this process educates internal staff, suppliers, and product experts about the use of the product which then enhances their ability to develop new and marketable products.

Lead users as firm employees: How are they different and why does it matter?

Presenter: Tim Schweisfurth (Hamburg University of Technology)
Coauthors: Christina Raasch
Plenary Group: Lead Users - Group VI
Plenary Order: 20
Breakout Room: H - Aldrich 211
Abstract:

This paper is the first to study the organizational behavior of “embedded lead users” (ELUs) – employees who are lead users of their employing firm’s products or services. Most of the literature views producers and users as organizationally distinct. Employing lead users is a novel mode for firms to absorb sticky user knowledge. We hypothesize that, due to their unique knowledge structures, ELUs excel in innovation-related behaviors within the firm, specifically in innovative work behavior, boundary spanning behavior, and customer orientation behavior. Using survey data from the mountaineering equipment industry (N=149), we can confirm these hypotheses. We find that lead userness, rather than product involvement or general use expertise, matter for innovation. Additional robustness checks all confirm our results. Managerial implications are discussed, as are directions for future research on this empirically important, but hitherto under-researched phenomenon.