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

Synergies among Producer Firms, Lead Users, and User Communities: The Case of the LEGO Producer-User Ecosystem

While many firms today proactively involve users in their new product development efforts using a wide variety of methods such as the lead user method, firm-hosted user communities, or mass customization toolkits, some pioneering firms are experimenting with the creation of sustainable producer-user ecosystems designed for the continuous exploration and exploitation of business opportunities. In this paper, the functioning of such ecosystems is studied with particular emphasis on the synergies they can yield. Based on an explorative and longitudinal multiple case study design, the producer-user ecosystem of the firm LEGO is analyzed, and three main actors in the ecosystem are identified: entrepreneurial lead users who aim to start their own businesses, a vibrant user community, and the LEGO company as the focal producer firm and facilitator for multiple user-to-user and user-to-producer interactions. Our study reveals three kinds of synergies: (1) reduced risk for entrepreneurial lead users and the focal producer firm, (2) the extension of the design space of the focal producer firm's products, and (3) the creation of buzz within the user community. Finally, the theoretical and managerial implications of our findings for innovation researchers and practitioners are discussed. (authors' abstract

User community vs. producer innovation development efficiency: A first empirical study

In this paper we report upon a first empirical exploration of the relative efficiency of innovation development by product users vs. product producers. In a study of over 50 years of product innovation in the whitewater kayaking field, we find users in aggregate were approximately 3× more efficient at developing important kayaking product innovations than were producers in aggregate. We speculate that this result is driven by what we term “efficiencies of scope” in problem-solving. These can favor an aggregation of many user innovators, each spending a little, over fewer producer innovators benefitting from higher economies of scale in product development. We also note that the present study explores only one initial point on what is likely to be a complex efficiency landscape

Exploring the nature and implementation process of IT-based user-centric business models

Recent advances in information and communication technologies have allowed companies to interact with external stakeholders, especially users, in a very efficient and effective way. As a result, more and more companies are striving to take advantage of these new opportunities and to harness the creative potential of their users by integrating them into core business processes. Successful companies like Threadless or Dell, which were designed to allow user innovation and co-creation from the outset, clearly demonstrate the potential value of such approaches. However, the introduction of user-centric value creation processes at established companies is a rather complex task, as it requires major adaptations to traditional manufacturer-centered business models. At present, little is known about how established companies can successfully implement user-centric business models. In this paper, we therefore explore (1) the success factors for attracting and engaging users in core business processes, and (2) effective strategies to overcome internal resistance when established companies introduce user-centric business models. We apply a multi-case comparison methodology between three well-known companies (LEGO, IBM and Coloplast) which have successfully integrated users into their core business processes. We find that the successful implementation of user-centric business models requires a comprehensive approach encompassing not only an appropriate social softwaredesign, but also a transparent intellectual property policy, proper incentive systems, evolutional learning and nurturing as well as employee empowerment

Prädikatoren der Qualität von Geschäftsideen: Eine empirische Analyse eines Online-Ideen-Forums

Online-Ideen-Foren sind eine Möglichkeit, den "Match" zwischen Ideenträger und Ideenumsetzer effizienter zu gestalten. Sie schaffen allerdings ein neues Problem, denn meist werden in den Foren sehr schnell sehr viele Ideen online gestellt - gute genauso wie schlechte. Ihre einzelne Bewertung ist aufwändig. Es stellt sich daher die Frage, wie ein interessierter Umsetzer die guten Ideen in effizienter Weise identifizieren kann. Die vorliegende empirische Untersuchung zeigt, dass v.a. objektive "technische" Merkmale der Ideen eine signifikante Prognoseverbesserung erlauben. (Autorenref.

How user innovations become commercial products: A theoretical investigation and case study

Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author. How user innovations become commercial products: a theoretical investigation and case study Carliss Baldwin*, Christoph Hienerth* * and Eric von Hippel*** In this paper we model the pathways commonly traversed as user innovations are transformed into commercial products. First, one or more users recognize a new set of design possibilities and begin to innovate. They then join into communities, motivated by the increased efficiency of collective innovation. User-manufacturers then emerge, using high variable cost / low-capital production methods. Finally, as user innovation slows, the market stabilizes enough for high-capital, low variable cost manufacturing to enter. We test the model against the history of the rodeo kayak industry and find it supported. We discuss implications for “dominant design ” theory and for innovation practice

Designing the Organization for User Innovation

There is increasing consensus among practitioners and academics alike that we are in the midst of a paradigm shift from producer-centered and internal innovation processes toward user-centered and open innovation processes. This paradigm shift induces significant changes to the design of organizations. Even though the research field of user innovation has been developing over a period of more than four decades, there have been only occasional intersections with the research field of organizational design. In this paper we aim to provide an integrated perspective of the two fields. We first identify major user innovation strategies. We then derive the implications of each user innovation strategy on key dimensions of organizational design. We conclude with an outlook on symbiotic producer-user ecosystems and the corresponding implications for organizational design

Designing the Organization for User Innovation

There is increasing consensus among practitioners and academics alike that we are in the midst of a paradigm shift from producer-centered and internal innovation processes toward user-centered and open innovation processes. This paradigm shift induces significant changes to the design of organizations. Even though the research field of user innovation has been developing over a period of more than four decades, there have been only occasional intersections with the research field of organizational design. In this paper we aim to provide an integrated perspective of the two fields. We first identify major user innovation strategies. We then derive the implications of each user innovation strategy on key dimensions of organizational design. We conclude with an outlook on symbiotic producer-user ecosystems and the corresponding implications for organizational design