Tourism multi‐sided platforms and the social innovation trajectory: The case of Airbnb

Multi‐sided platforms (MSPs) have recently gained significant attention due to their disruptive innovation capacity, which is introducing deep changes in several industries. Previous work has studied how MSPs grow and design the development of their business models (BMs). However, none of the previous work has studied how these MSPs innovate their BM by leveraging and implementing social innovations. In this paper we aim at filling this gap. In particular, we focus on the tourism sector and, using the theoretical lens of business model innovation (BMI), we explore the Airbnb case study with a qualitative approach. We identify three main stages that characterized the innovation of the Airbnb's BM. Each of them presents specific peculiarities that have been analyzed. Our study offers new insights to understand how the BM of the MSPs is evolving toward a more sophisticated one that includes also a deeper orientation toward sustainable and social goals.     

The Early Bird Gets the Worm,But the Second Mouse Gets the Cheese: Non‐Technological Innovation in Creative Industries

In the context of economic turmoil, firms in the creative industries (CIs) must make fast decisions as to when to break through with innovations. This paper discusses non‐technological, organizational innovation of early‐adopters, first movers and early followers in order to overcome persistent economic decline, and the implication of different strategies for innovation success. The strategic principle of the pioneer's advantage rests on pre‐emption – the premise that ‘the early bird gets the worm’ and this often applies to business model innovation (BMI). ‘But the second mouse gets the cheese’ points at early followers who may have a more systematic, strategic approach towards innovation. Greater understanding of the advantages of each strategic approach and their significance for innovation performance is critical for CIs where unpredictability and the accelerating pace of change pervade the decisions concerning innovation. Drawing on five exemplary cases of archaeological firms in Spain, this paper explores different innovation process dynamics. The study develops a contingency model where pioneers who challenge their current business model, may be outperformed by early followers who incorporate complementary management innovation (MI) initiatives into the BMI.     

Design‐Driven Innovation in Retailing: An Empirical Examination of New Services in Car Dealership

The paper focuses on innovation in the automotive retail industry. Innovation in service has been acknowledged as a critical source of competitive advantage and retail firms are looking for innovations that can increase their competitiveness. This notwithstanding, there are no studies that focus on whether and how design‐driven innovation (DDI) can be pursued by retail firms as an innovation strategy. In the attempt to close this gap in our understanding of innovation in retail firms, this paper discusses 104 examples of strategic innovation projects identified by automotive retail firms which operate in the UK, Germany, Italy, Serbia and Spain. The exploratory empirical analysis shows that a certain number of automotive retail firms (although not the majority) choose DDI as a strategy embodied in strategic innovation projects designed to achieve superior performance. Moreover, by following the typology proposed by Sawhney and colleagues, the analysis suggests that these projects are elicited by spatial reconfiguration and expansion, whereas temporal innovation does not seem to provide a fertile ground for DDI.     

Radical Innovation with Limited Resources in High‐Turbulent Markets: The Role of Lean Innovation Capability

How do firms radically innovate with limited resources in high‐turbulent environments? We examine this question via in‐depth comparative case studies of ten start‐up firms in diverse high‐turbulent markets. Evidence shows that the perceived value of resources depends on two contextual factors: market type and business model type. More interestingly, firms that see resource limitation as an enabler rather than an inhibitor seem to have a distinct capability that we call lean innovation capability. It is defined as a distinct capability that reflects a firm's ability to experiment with ideas that meet core customer needs by constantly iterating the initial offering with the purpose of validating the learning through continuous market feedback to achieve sustainable performance. The three main qualities of these companies are (1) adopting abductive reasoning, (2) embracing a validity‐driven approach, and (3) operating in the overlapping spaces of fundamental customer needs, business viability and technological feasibility. Lean firms adopt design‐thinking methodology and act like bricoleurs, such as make‐do by applying combinations of the available resources through rapid prototyping to new problems and opportunities in an experimental way. Briefly, lean innovation capability enables firms to manage limited resources by reconfiguring and reallocating existing resources, and, thereby, helps empower resource‐limited radical innovation.     

Early vs. late adoption of radical information technology innovations across software development organizations: an extension of the disruptive information technology innovation model

This paper extends the disruptive information technology innovation model (DITIM) by exploring the impact of adoption timing on innovation outcomes within software development organizations during a disruptive innovation cycle. The DITIM suggests that radical changes in computing platforms result in pervasive and radical innovations in software development organizations across three innovation types: base technologies adopted, services produced and processes adopted. Upstream attributes (amount and radicalness) of the base innovations impact effects in‐kind downstream (a.k.a., strong order effects) on services and processes. Extending these tenets of the DITIM, we posit that during disruptive information technology (IT) innovation, the temporal stage of innovation activity (early vs. late) by software development organizations will significantly impact four innovation characteristics: (1) adoption rate of radical IT innovations, (2) strong order effects on downstream innovations related to the amount of innovation, (3) perceived radicalness of innovations and (4) strong order effects on downstream innovations related to the amount of perceived radicalness of innovation. We examine these impacts by reanalysing a cross‐sectional study of 121 software development organizations that adopted internet computing as reported in the original data analysis of the DITIM. By splitting the data into early and late adopter groups, our moderation analysis shows significant differences between early and late adopting groups in each of the four hypothesized impacts. Specifically, the adoption rate of radical IT innovations, strong order effects on the amount of innovation, perceived radicalness of innovations and strong order effects on perceived radicalness were each found to differ between early and late adopters. However, it is also important to consider innovation type as three significant effects were in the opposite direction for process innovations. These findings suggest that IT‐innovation scholars and practitioners should carefully consider innovation timing and type when studying or managing radical IT innovation.     

Computationally‐Light Non‐Lifted Data‐Driven Norm‐Optimal Iterative Learning Control

Computational complexity and model dependence are two significant limitations on lifted norm optimal iterative learning control (NOILC). To overcome these two issues and retain monotonic convergence in iteration, this paper proposes a computationally‐efficient non‐lifted NOILC strategy for nonlinear discrete‐time systems via a data‐driven approach. First, an iteration‐dependent linear representation of the controlled nonlinear process is introduced by using a dynamical linearization method in the iteration direction. The non‐lifted NOILC is then proposed by utilizing the input and output measurements only, instead of relying on an explicit model of the plant. The computational complexity is reduced by avoiding matrix operation in the learning law. This greatly facilitates its practical application potential. The proposed control law executes in real‐time and utilizes more control information at previous time instants within the same iteration, which can help improve the control performance. The effectiveness of the non‐lifted data‐driven NOILC is demonstrated by rigorous analysis along with a simulation on a batch chemical reaction process.     

Towards Systematic Business Model Innovation: Lessons from Product Innovation Management

Although business model innovations are decisive for a company's long‐term success or failure, they are still poorly understood compared to product innovations. Thus, their execution is imperfectly supported, and their organizational accountability is insufficiently regulated. In this paper, we systematically investigate similarities and differences between product and business model innovation to assess the potential of transferring insights and best practices. Therefore, we condense key findings of product innovation management into a framework as a basis for the analysis of 11 current cases of business model innovation. This paper intends to contribute to a better understanding of the options that exist for business model innovation. We derive implications for an improved management of business model innovation based on the cases analysed. For the innovation process and its organizational anchoring, we disclose potential benefits of a more structured and holistic approach.     

An Eco‐innovation Case Study of Domestic Dishwashing through the Application of TRIZ Tools

The benefits of applying a structured method such as TRIZ (Teoriya Resheniya Izobretatelskikh Zadatch: the Russian theory of inventive problem solving) to Eco‐innovation are examined through use of two problem‐solving tools from TRIZ in an Eco‐innovation case study. A novel problem hierarchy model has been integrated to help identify the systems and sub‐systems level innovations required for Eco‐innovation. The benefits and shortcomings of the TRIZ tools, and the potential contribution of the problem hierarchy model in the innovation process are discussed.     

Growing with others: A longitudinal study of an evolving multi‐sided disruptive platform

Multi‐sided platforms are becoming increasingly relevant in understanding industry changes. The literature has focused on the inception and growth of platforms, neglecting how entrants develop and grow disruptive platforms. To address this shortcoming, we study an entrant that was spun off from an established catalog retailer and is steering a multi‐sided disruptive platform in the German fashion retail industry. We conduct a longitudinal study on how the entrant leverages the relationships with its multiple platform sides during 2014–2019 by analyzing secondary data using topic modeling and qualitative content analysis. We propose three levers: (1) “guarded inception,” which is the collaboration with a knowledgeable partner unaffected by disruption to quickly overcome the chicken‐and‐egg problem; (2) “activating force multipliers,” which is the strategic orchestration of complementors being contractually tied to the entrant and working to extend the entrant's value network. Enabled by these two levers, the entrant was (3) “building on others” to develop the platform along a disruptive path while circumventing internal limitations and external resistance. We contribute to the intersection of the literature strands on platform and disruptive innovation by showing how the entrant strategically leveraged its different platform sides over time to develop and grow a disruptive platform.     

Managing the Innovation of a Corporate IT‐based Cable Design System

Managing new Information Technology innovations requires an understanding of factors that influence organisational choice. When large firms invest in new IT applications such as Computer Aided Design, there is reason to doubt that they adequately understand user needs. Empirical investigation in a UK cables producing Multinational Company highlights the practical challenges faced by such designers, when designing bespoke systems technologies. In addition to understanding end market requirements, it is imperative to understand existing organisational practices and constraints. Evidence from this in‐depth innovation study points to the need to develop integrative theoretical accounts, which include insights from the innovation adoption process as well as the innovation design process.     

Radical Product Innovations in SMEs: The Dominance of Entrepreneurial Orientation

The present study focuses on strategic factors underlying the adoption of radical product innovations in SMEs. It investigates whether market focus, technological posture and entrepreneurial orientation lead to the adoption of more radical product innovations. The study provides some new evidence on this issue drawing upon data collected from Greek SMEs in the food and beverages industry. More specifically, a logistic regression model is applied to analyse the choice between radical as against incremental product innovations. Empirical results appear to support the claim that it is mainly entrepreneurial orientation that favours the choice of radical product innovations. This suggests that in SMEs the notion of entrepreneurial‐push outweighs both market‐pull and technology‐push arguments. The findings are discussed in the context of Greece, taking into account the specific conditions prevailing. Apart from providing some new evidence in the important area of SMEs, they have also important implications for managers and policy‐makers. In addition, they encourage further theoretical and empirical investigation.     

Strategic reasoning about business models: a conceptual modeling approach

Strategic reasoning about business models is an integral part of service design. In fast moving markets, businesses must be able to recognize and respond strategically to disruptive change. They have to answer questions such as: what are the threats and opportunities in emerging technologies and innovations? How should they target customer groups? Who are their real competitors? How will competitive battles take shape? In this paper we define a strategic modeling framework to help understand and analyze the goals, intentions, roles, and the rationale behind the strategic actions in a business environment. This understanding is necessary in order to improve existing or design new services. The key component of the framework is a strategic business model ontology for representing and analyzing business models and strategies, using the i* agent and goal oriented methodology as a basis. The ontology introduces a strategy layer which reasons about alternative strategies that are realized in the operational layer. The framework is evaluated using a retroactive example of disruptive technology in the telecommunication services sector from the literature.     

Disruptive information system innovation: the case of internet computing

Abstract. Information system (IS) innovation can be defined as a novel organizational application of digital computer and information communication technologies (ICT). This paper discusses how modalities of applying ICT technologies in their form and scope exhibit radical breaks, which are introduced herein as ‘disruptive IS innovations’. This notion of disruptive IS innovation is developed by drawing upon and extending Swanson's (1994) theory of IS innovation as well as the concept of radical innovation. Disruptive innovations strongly influence the future trajectory of the adoption and use of ICT in organizational contexts and make the trajectory deviate from its expected course. In doing so, these disruptive innovations distinctly define what an IS is and how it is deployed in order to address current and future organizational and managerial prerogatives. Such changes are triggered breakthroughs in the capability of ICT that lead to the revision and expansion of associated cognitive models (frames) of computing. Disruptive IS innovations are those that lead to changes in the application of ICT that are both pervasive and radical. The pervasive nature implies that innovative activity spans all innovation subsets of the quad‐core model of IS innovation introduced herein. Innovation types include: IS use and development processes; application architecture and capability; and base technologies. Radical in nature, disruptive is innovations depart in significant ways from existing alternatives and lead to deviation from expected use and diffusion trajectory. This paper demonstrates the importance of a concept of disruptive IS innovation by investigating how changes triggered by internet computing (Lyytinen et al., 1998) meet the conditions of a disruptive IS innovation defined herein. The analysis also affirms both the pervasive and radical nature of internet computing and explains how internet computing has fundamentally transformed the application portfolio, development practices and IS services over time. The analysis demonstrates that, with the concept of disruptive IS innovation, we can fruitfully analyse ‘long’ waves of ICT evolution – an issue that has largely been overlooked in the IS community. On a theoretical plane, the paper advocates the view that we need to look beyond linear, unidirectional, and atomistic concepts of the diffusion of IS innovations where innovative activity takes places in a linear fashion by oscillating between small technological innovations and small organizational innovations. In contrast, IS innovation can exhibit fundamental discontinuity; we need to theoretically grasp such disruptive moments. The recent influx of innovation, spurred by internet‐based technology, offers one such moment.     

Innovation in the Agri‐Food sector: Exploiting opportunities for Industry 4.0

Agri‐Food producers have a responsibility to provide safe, secure and sustainable food in a world characterized by disruption and increasing intolerance of waste along supply chains. As such, it is critical that they adopt new technologies to ensure efficient and effective management of their responsibility. While Industry 4.0 (I4.0) technologies can underpin process innovation opportunities, there is a gap in research‐based understanding of how they influence innovation practice and outcomes in Agri‐Food. In this paper, we investigate how I4.0, as a set of enabling technologies, influences core process innovation practice and product innovation outcomes in Agri‐Food firms. We present case studies of two Spanish firms processing fresh food products, competing in two important subsectors of the industry, meat and fruit and vegetables. We used secondary material and semi‐structured interviews as data sources. The findings describe how, in the two cases, I4.0 has enabled responses to new customers requirements through process innovations resulting in enhanced functionality, aesthetics and meaning of the delivered products. Our paper contributes a framework identifying for researchers and managers how I4.0 technologies act as enablers of the core innovation processes and competitive outcomes.     

Employee acceptance of disruptive service innovations at the frontline: The role of collective sensemaking processes

Acceptance of service innovation by frontline employees is a challenging issue, especially if such innovations have the potential to disrupt existing value creation models and individual competencies. Disruptive service innovations are often (1) characterized by a high degree of innovativeness related to significant changes in technology and in the market and (2) may be introduced by technology manufacturers as new service market entrants that cause a competitive threat to the existing service provision. We argue that such innovations challenge frontline employees' focus on routines and standardized service operating procedures. The perceived threat and resulting high levels of uncertainty may inhibit innovation acceptance. Our study follows a collective sensemaking perspective, paying special attention to investigating the moderating role of (1) the exchange of operational information within a workgroup and (2) a firm's entrepreneurial orientation. Whereas the former may increase frontline employees' preference for incremental improvements, the latter may help to increase the acceptance level of potentially more disruptive innovations. We test our theoretically derived hypotheses with an experimental vignette study of 671 frontline employees in the field of audiology, a health care market particularly affected by both more radical and market entrant innovations. Results show that a high degree of innovativeness has a negative effect on innovation acceptance. Frontline employees accept radical innovations less readily than incremental innovations. A competitive threat from new technology manufacturers in the supply chain does not lead to a lower innovation acceptance level. The moderation results indicate significant effects of both information exchange and entrepreneurial orientation. Intensive information exchange within the workgroup strengthens the negative relationship between the degree of innovativeness and innovation acceptance. In contrast, a high degree of entrepreneurial orientation weakens the negative relationship between a competitive threat and innovation acceptance.     

TRIZ for Reverse Inventing in Market Research: A Case Study from WITTENSTEIN AG,Identifying New Areas of Application of a Core Technology

Conventional strategic market research is a very expensive method to gain results which are often marked by a high degree of uncertainty. We have developed and tested a cost‐effective TRIZ‐based concept called ‘reverse inventing’ for the improvement of this situation. Reverse inventing is a logical process comprising the steps of situation analysis, abstraction of strengths, transformation into searchable queries, comparison with existing knowledge bases such as patent databases, and evaluation of obtained results. The method was used for an opportunity assessment of one of Wittenstein's most distinctive products, namely a system for the controlled prolongation of limbs by means of a dynamic intermedular nail for implantation into the bone marrow of limbs, typically legs. The purpose was to identify further business opportunities for the respective business line, in order to extend its revenue base and growth potential. In the course of this study, several potential business areas could be identified for an approach by this business line. Most of the obtained results were rather surprising and outside the classical search field of market analysis. But they still proved to reveal actual high potential areas for the business line in question. The evaluation was based on an analysis of core business line strengths and a comparison with abstract requirement profiles as identified by patent research. Hence it not only indicated general fields of requirement, but also brought forward concrete names of companies and people to contact. We found the method to be highly effective in providing unexpected but valuable ideas for new market opportunities, which lay beyond our customary search horizon. We suggest the application of this method in search strategies for the identification of additional business segments of an organization. Subsequent to the initial phase of analysis the method has to be complemented by classical tools of market analysis and intelligence. It can be utilized in any technology‐driven market, or at least wherever searchable databases, such as patent literature databases, are available for evaluation.     

A User Community‐Based Approach to Leveraging Technological Competences: An Exploratory Case Study of a Technology Start‐Up from MIT

Many studies highlight the impact of technology commercialization on innovation and wealth creation. However, this impact could be far greater, especially as many technologies developed with high costs and effort remain vastly underutilized. One important reason for this problem can be found at the front end of the technological competence leveraging process: searching for market opportunities for a technology is a formidable challenge. In many cases, alternative fields of application (or even a single viable market opportunity) for a given technology are simply unknown to the entity in charge of commercialization. Based on an extensive literature review, we identify two major shortcomings at the front end of the technological competence leveraging process which contribute to the underutilization problem: (1) the local search behaviour of the commercializing entity and (2) the use of solution‐based instead of problem‐based search specifications. On the basis of these insights, we discuss the potential role of user communities in the search for (additional) market opportunities for a given technology, a process usually referred to as technological competence leveraging. We then empirically explore a user community‐based approach in an illustrative case study with a start‐up from MIT. Our findings show that when users were included in the search process, the number of potential markets in which the technology could be applied was five times higher, and more far‐distant application areas as well as application areas previously unknown to the technology holder were reached. In addition, we discover design principles for a user community‐based search process, providing practitioners with a hands‐on guideline for employing a user community‐based approach to technological competence leveraging.     

Human‐knowledge resources and interorganisational systems

This paper analyses how human‐knowledge resources affect interorganisational systems (IOS) capabilities and subsequently attainment of operational and strategic benefits. A conceptual model is constructed combining the transaction cost economics (TCE) view, resource‐based view (RBV) and insights from IOS literature. The model is tested through a triangulation approach combining two qualitative case studies and a quantitative field study within the logistics sector. This sector is chosen due to its need for high reliance on information technology. The findings indicate that human knowledge positively influences IOS capabilities related to cross‐organisational business processes and transfer of knowledge. Findings also show that strategic benefits are the consequence of knowledge transfer, when the transfer supports business processes resulting in operational benefits. The main theoretical contribution of this paper is that it combines a TCE view and RBV to analyse the effect of relationship‐specificity of human‐based knowledge resources in IOS.     

Data‐Driven Shape Analysis and Processing

Data‐driven methods serve an increasingly important role in discovering geometric, structural and semantic relationships between shapes. In contrast to traditional approaches that process shapes in isolation of each other, data‐driven methods aggregate information from 3D model collections to improve the analysis, modelling and editing of shapes. Data‐driven methods are also able to learn computational models that reason about properties and relationships of shapes without relying on hard‐coded rules or explicitly programmed instructions. Through reviewing the literature, we provide an overview of the main concepts and components of these methods, as well as discuss their application to classification, segmentation, matching, reconstruction, modelling and exploration, as well as scene analysis and synthesis. We conclude our report with ideas that can inspire future research in data‐driven shape analysis and processing.     

How do development actors do “ICT for development”? A strategy‐as‐practice perspective on emerging practices in Ghanaian agriculture

This paper examines how development actors within the Ghanaian agricultural sector enact information and communication technology (ICT) in their day‐to‐day outreach practices with smallholder farmers. We draw on an in‐depth qualitative case study, informed by the theoretical perspective of “strategy‐as‐practice” to answer the research question: “what ICT‐mediated strategic practices are used by development actors in the Ghanaian agriculture sector?” The research findings reveal that (1) the activities of development actors are meshed within a network of interdependencies; (2) the enacted strategic practices reflect the trade‐off between novelty of content and novelty of the technologies used to deliver it; and lastly, (3) the praxis of development actors for doing ICT for development consists of hybrid strategies, combining bottom‐up approaches consistent with farmers' indigenous smallholder logic, with top‐down imperatives framing agriculture “as a business” and nurturing value‐chain integration. Consequently, our research points to the impact of ICT initiatives as step‐wise and attained over the long term, rather than disruptive and attained in the immediate term.