What a Difference a DV Makes ... The Impact of Conceptualizing the Dependent Variable in Innovation Success Factor Studies

The quest for the "success factors" that drive a company's innovation performance has attracted a great deal of attention among both practitioners and academics. The underlying assumption is that certain critical activities impact the innovation performance of the company or the project. However, the findings of success factor studies lack convergence. It has been speculated that this may be due to the fact that extant studies have used many different measures of the dependent variable "innovation performance". Our study is the first to analyze this issue systematically and empirically: we analyze the extent to which different conceptualizations of the dependent variable (a firm's innovation performance) lead to different innovation success factor patterns. In order to do so, we collected data from 234 German firms, including well-established success factors and six alternative measures of innovation performance. This allowed us to calculate whether or not success factors are robust to changes in the measurement of the dependent variable. We find that this is not the case: rather, the choice of the dependent variable makes a huge difference. From this, we draw important conclusions for future studies aiming to identify the success factors in companies' innovation performance

High-Potentials - Conjointanalytische Identifikation und empirisches Realbild zukünftiger kaufmännischer Führungseliten

Die mit Hilfe einer Conjoint-Analyse bei Personalmitarbeitern identifizierten "High-Potentials" unter den BWL-Studenten zeichnen sich im empirischen Portrait durch durchgehend beeindruckende Qualifikationen aus, was Noten sowie praxis- und außeruniversitäres Engagement angeht. Aufgrund ihrer Motivation lassen sie sich in drei markante Persönlichkeitstypen einteilen ("Unternehmer", "Wissenschaftler" und "lässige Genies"), die jeweils zu unterschiedlichen Stellenprofilen passen. Anhand ihrer Arbeitgeberpräferenzen wird deutlich, daß es den einbezogenen Unternehmen mehrheitlich nicht gelungen ist, sich bei den High-Potentials als attraktive Arbeitgeber zu positionieren. Als Schlüsselvariable für künftige, an High-Potentials orientierten Personalmarketing-Strategien wird in der empirischen Analyse das Ansehen eines Arbeitgebers in der Öffentlichkeit ermittelt. (Autorenref.

Venture Capitalists' Evaluations of Start-up Teams: Trade-offs, Knock-out Criteria, and the Impact of VC Experience

The start-up team plays a key role in venture capitalists' evaluations of venture proposals. Our findings go beyond existing research, first by providing a detailed exploration of VCs' team evaluation criteria, and second by investigating the moderator variable of VC experience. Our results reveal utility trade-offs between team characteristics and thus provide answers to questions such as "What strength does it take to compensate for a weakness in characteristic A?" Moreover, our analysis reveals that novice VCs tend to focus on the qualifications of individual team members, while experienced VCs focus more on team cohesion. Data was obtained in a conjoint experiment with 51 professionals in VC firms and analyzed using discrete choice econometric models. (author's abstract

Mass or Only "Niche Customization"? Why We Should Interpret Configuration Toolkits as Learning Instruments

In order to configure individual products according to their own preferences, customers are required to know what they want. While most research simply assumes that consumers have sufficient preference insight to do so, a number of psychologically oriented scholars have recently voiced serious concerns about this assumption. They argue that decades of consumer behavior research have shown that most consumers in most product categories lack this knowledge. Not knowing what one wants means being unable to specify what one wants¿and therefore, they conclude, the majority of customers are unable to use configuration toolkits in a meaningful way. In essence, this would mean that mass customization should rather be termed "niche customization" as it will be doomed to remain a concept for a very small minority of customers only. This pessimism stands in sharp contrast to the optimism of those who herald the new possibilities enabled by advances in communication and production technologies as the dawn of a new era in new product development and business in general. Which position is right? In order to answer this question, this research investigates the role of the configuration toolkit. Implicitly, the skeptic position assumes that the individual customers' knowledge (or absence of knowledge) of what they want is an exogenous and constant term that does not change during the interaction with the toolkit. However, learning theories suggest that the customers' trial-and-error interaction with the configuration toolkit and the feedback information they receive should increase their preference insight. If this was true and the effect size strong, it would mean that low a priori preference insight does not impede customers to derive value from mass customization. Three experiments show that configuration toolkits should be interpreted as learning instruments that allow consumers to understand their preferences more clearly. Even short trial-and-error self-design processes with conventional toolkits bring about substantial and time-stable enhancements of preference insight. The value of this knowledge is remarkable. In the product category of self-designed watches, the 10-minute design process resulted in additional preference insight worth 43.13 euros on average or +66%, measured by incentive-compatible auctions. A moderator analysis in a representative sample shows that the learning effect is particularly strong among customers who initially exhibit low levels of preference insight. These findings entail three contributions. First, it becomes evident that the interaction with mass customization toolkits not only triggers affective reactions among customers but also has cognitive effects¿a response category not investigated before. Second, it suggests that the pessimism regarding the mass appeal of these toolkits is not justified¿mass customization has the potential to truly deserve its name. The prerequisite for this, and this normative conclusion is the final contribution, is that the toolkit should not be interpreted as a mere interface for conveying preexisting preferences to the producer. Rather, it should be treated as a learning instrument. Several suggestions are made for how firms employing this innovative business model could design their toolkits towards this end. (authors' abstract

The 'making' of an entrepreneur: testing a model of entrepreneurial intent among engineering students at MIT

In the present study a covariance structure model is tested to identify the causes of entrepreneurial intent among engineering students. Specifically, we explore whether steady personal dispositions or whether perceptions of contextual founding conditions have an impact on the intention to found one's own business. The survey of 512 students at the MIT School of Engineering broadly confirms the model. Personality traits have a strong impact on the attitude towards self-employment. The entrepreneurial attitude is strongly linked with the intention to start a new venture. The students' personality therefore shows an indirect effect on intentions. Furthermore, the entrepreneurial intent is directly affected by perceived barriers and support factors in the entrepreneurship-related context. The findings have important implications for policy makers inside and outside universities. (authors' abstract

Decision-Makers' Underestimation of User Innovation

In the past few decades,much Research has documented the importance of users assources of innovations. Over the last 10 years, Research Policy alone has published 56 Research articles investigating this phenomenon. We ask to what degree the findings of users as Innovators have been absorbed by decision-makers responsible for new product development (managers) and by those who shape the contextual conditions for innovation (policy makers and public administration). A realistic perception of the sources of innovation is important as it con- stitutes the Basis for arational allocation of resources and thus indirectly Impacts the Innovation Performance of companies and societies at large. In a large-scale survey of n=1500 decision-makers, we found support for a substantial underestimation of users as a source of innovation: While the true proportion of user innovation among the most valuable 1678 innovations in nine industries is 54.4% (as established inexisting research articles), decision-makers estimate it to be 21.7%. A content analysis of transfer media (450 academic textbooks, popular innovation books, and business articles) underscores this theory-practice gap: Of 3469 text paragraphs dealing with the sources of innovation, only 2.7% mention users as innovators. We develop six propositions on the reasons for and con- sequences of this underestimation that may serve as a starting point for future research and practical con- sequences

Integrating Problem Solvers from Analogous Markets in New Product Ideation

Who provides better inputs to new product ideation tasks: problem solvers with expertise in the area for which new products are to be developed, or problem solvers from "analogous" markets that are distant but share an analogous problem or need? Conventional wisdom appears to suggest that target market expertise is indispensable, which is why most managers searching for new ideas tend to stay within their own market context even when they do search outside their firms' boundaries. However, in a unique symmetric experiment that isolates the effect of market origin, we find evidence for the opposite: Although solutions provided by problem solvers from analogous markets show lower potential for immediate use, they demonstrate substantially higher levels of novelty. Also compared to established novelty drivers, this effect appears highly relevant from a managerial perspective: we find that including problem solvers from analogous markets vs. the target market accounts for almost two thirds of the well-known effect of involving lead users instead of average problem solvers. This effect is further amplified when the analogous distance between the markets increases, i.e., when searching in far vs. near analogous markets. Finally, results indicate that the analogous market effect is particularly strong in the upper tail of the novelty distribution, which again underscores the effect's practical importance. All this suggests that it might pay to systematically search across firm-external sources of innovation that were formerly out of scope for most managers. (authors' abstract

Finding commercially attractive user innovations: A test of lead user theory

Firms and governments are increasingly interested in learning to exploit the value of lead user innovations for commercial advantage. Improvements to lead user theory are needed to inform and guide these efforts. In this paper we empirically test and confirm the basic tenants of lead user theory. We also discover some new refinements and related practical applications. Using a sample of users and user-innovators drawn from the extreme sport of kite surfing, we analyze the relationship between the commercial attractiveness of innovations developed by users and the intensity of the lead user characteristics those users display. We provide a first empirical analysis of the independent effects of its two key component variables. In our empirical study of user modifications to kite surfing equipment, we find that both components independently contribute to identifying commercially attractive user innovations. Component 1 (the "high expected benefits" dimension) predicts innovation likelihood, and component 2 (the "ahead of the trend" dimension) predicts both the commercial attractiveness of a given set of user-developed innovations and innovation likelihood due to a newly-proposed innovation supply side effect. We conclude that the component variables in the lead user definition are indeed independent dimensions and so neither can be dropped without loss of information - an important matter for lead user theory. We also find that adding measures of users' local resources can improve the ability of the lead user construct to identify commercially-attractive innovations under some conditions. The findings we report have practical as well as theoretical import. Product modification and development has been found to be a relatively common user behavior in many fields. Thus, from 10% to nearly 40% of users report having modified or developed a product for in-house use in the case of industrial products, or for personal use in the case of consumer products, in fields sampled to date. As a practical matter, therefore, it is important to find ways to selectively identify the user innovations that manufacturers will find to be the basis for commercially attractive products in the collectivity of user-developed innovations. We discuss the implications of these findings for theory and also for practical applications of the lead user construct, i.e. how variables used in lead user studies can profitably be adapted to fit specific study contexts and purposes

The Social Network Position of Lead Users

The field of lead user research has seen a great deal of attention from academics and practitioners alike. However, we still lack a full understanding of the nature of users with high potential for innovation. In this paper, we employ a social network perspective on lead users. Increasing the realism of our research in three empirical studies with different empirical settings and methods, we provide robust evidence that lead users have a distinctive social network position: They exhibit an unusually high level of "betweenness centrality", meaning that they are positioned as bridges between different social groups. This finding has two major implications for lead user theory. First, it consolidates seminal conceptual work on lead users and their embeddedness in social networks. And second, the findings extend and validate prior work on the social network perspective of lead users by combining theoretical insights from cognitive psychology, research on creativity, and network theory. As the social network positions of individuals can be mapped quickly and at low cost with modern Web mining tools, our findings may point to a new and readily applicable approach for the efficient and effective identification of lead users in real-life projects, an aspect that is usually emphasized as the most crucial activity in lead user projects. (authors' abstract

See Paris and ... found a business? The impact of cross-cultural experience on opportunity recognition capabilities

Internationally mobile individuals such as migrants and expatriates exhibit a higher level of entrepreneurial activity than people without cross-cultural experience. Current research suggests that this pattern is rooted in specific resources and institutional arrangements that increase the attractiveness of exploiting entrepreneurial opportunities. In this study, we provide an additional explanation: We argue that cross-cultural experience increases the ability to recognize entrepreneurial opportunities. This argument is supported by two complementary studies - a longitudinal quasi-experiment and a priming experiment. We find convergent evidence that cross-cultural experience increases a person's capabilities to recognize particularly profitable types of opportunities by facilitating the application of cross-cultural knowledge for the discovery of arbitrage opportunities and creative recombination