Innovation Culture,Collaboration with External Partners and NPD Performance

Researchers and managers have found that the use of external knowledge in the process of new product development (NPD) helps to sustain a firm's competitiveness by strengthening its innovative performance. However, little is known about why some firms use external knowledge sources for NPD in an extensive manner while others hardly ever use them. In addition, there is disagreement about which external partners significantly contribute to the innovative performance of a firm as valuable knowledge sources. Based on the resource‐based view (RBV) of the firm and Kitchell's innovation adoption model, this paper expects a firm's innovation culture to have a significant impact on its openness to external knowledge – measured in terms of its collaborative behaviour with five different external partners – and for that behaviour to influence the firm's NPD performance. A sample of 254 technology‐based firms across several industries is used to empirically test the research model with covariance‐based structural equation modeling (SEM). The findings deepen our understanding of the discrepancies between successful pioneering firms active in technology and knowledge sourcing and others being less successful.     

The influence of interfirm codevelopment competency on e-service innovation

Because of customer demand, rapid product life cycles, and advances in IT, an expanded view of e-service innovation is needed. Our study used concepts from resource dependence and contingency theories to examine the mediating effects of knowledge and technology integration mechanisms (KIMs and TIMs) on interfirm codevelopment competency and e-service innovation, as well as investigating the moderating effect of them on partner match. A field survey was conducted in IT departments of financial and information service firms; we found that companies in these industries emphasized interfirm codevelopment competency in developing e-service innovation but used different types of mechanisms to enhance e-service innovation, which can be viewed as a practice of embodying partner match in interfirm codevelopment competency. We concluded that IT managers should mobilize interfirm codevelopment competency in conjunction with KIM and TIM to achieve e-service innovation. Furthermore, selecting compatibility of partners is crucial in enhancing e-service innovation. We discuss the theoretical and managerial implications of the findings and conclude with comments on limitations in our study.     

Sourcing in or out: Implications for social capital and knowledge sharing

The sharing of knowledge between a firm and its internal or external service suppliers has become an important element of contemporary sourcing arrangements. Moreover, the knowledge based view (KBV) has long suggested that due to stronger cognitive links within firms, internal compared to external service provision creates better conditions for knowledge sharing. Empirical evidence for this claim is however scarce, and the KBV does not explain the mechanisms for more knowledge sharing in internal sourcing in detail. Moreover, there is now some evidence to suggest that firms’ relationships with external sourcing partners are becoming more similar to those with captive centres, which represent a less traditional form of insourcing setting. To scrutinize the possible knowledge sharing advantages of internal sourcing in more depth, we turn to social capital (SC) research. There are some theoretical claims that SC and knowledge sharing are stronger within than between firms, and there is ample evidence that SC facilitates knowledge sharing. Our survey results suggest that the extent of knowledge sharing and SC are indeed stronger in a captive than in an external sourcing mode, and that structural (tie strength), cognitive (shared understanding), and relational (trust) aspects of SC mediate the effect of sourcing mode on the extent of knowledge sharing. By contrast, network stability (a structural aspect) mediated knowledge sharing only indirectly, by reinforcing the other SC aspects. We highlight important contributions to research and practice of IS outsourcing and social capital.     

How social-media-enabled co-creation between customers and the firm drives business value? The perspective of organizational learning and social Capital

Contemporary business organizations are increasingly turning their attention to value co-creation using social media between individual customers and business organizations in the process of new product development (NPD). However, little is known about the mechanisms underlying social-media-based customer-firm co-creation and their implications for business value in NPD. To address this knowledge gap, this study develops a model from the perspective of organizational learning and social capital to examine how the social-media-based customer-firm co-creation mechanism conceptualized as the structural, cognitive, and relational dimension of social capital influences the first-order knowledge outcome (knowledge transfer effectiveness) and second-order dynamic capability outcome (absorptive capacity), and how these co-creation outcomes ultimately influence organizational performance. The model is tested using survey data from 149 Chinese mobile application developers. The results indicate that social-media-based structural, cognitive, and relational linkage, in particular the structural linkage, is an important co-creation mechanism to improve organizational performance. Knowledge transfer effectiveness and absorptive capacity have significant mediating effects in this co-creation mechanism-outcomes-performance framework. Further, the moderating effects of social media use level on the relationships between co-creation mechanism and outcomes are largely supported. The study contributes to theory and practice by shedding light on the social-media-based customer-firm co-creation in NPD at a process level.     

Triangulation or bipolarization: Which mode of cooperation towards stronger cohesion in Europe?

This paper attempts to highlight some weaknesses of European integration by technology. It is argued that these weaknesses of integration arise out of misunderstanding of the relationships between economics and technology. Mainstream economics considers technology as being external to the sphere of economy. It is treated as an external stock of knowledge or information rather than the result of a process of interaction between the actors belonging to the sphere of economy. The theoretical status of technology influences the focus and process of economic development through technology. If technology is considered as being exogenous to the sphere of economics, the resulting stock of technology can be considered as transferable. If technology is considered as the result of an interaction of economic actors, so belonging to the economic sphere, its transfer becomes impossible because of its endogenous nature. In this last frame, technology concept transfer may become a danger for the development of less developed countries as well as for the cohesion of the European Community.Two modes of cooperation between actors of different European countries have been identified: bipolarization, based on the relationship between two economic actors, can correspond to logics of creation or diffusion of knowledge or information. Triangulation is always based on the interrelation of at least three actors, from which at least two will have a relationship based on mutual creation of knowledge, know-how, production, etc.Triangulation seems more oriented to creation of information or knowledge in European countries, while bipolarisation might present the risk of increased dependency, through strengthening the strongest partner of the cooperation.     

Lessons from Ideation: Where Does User Involvement Lead Us?

Firms are increasingly involving users in new product development (NPD). Their product users frequently provide solution information, such as new product ideas. However, these users are often considered a homogeneous group of ordinary users; their individual abilities and the specific input they provide for NPD are not yet well understood. The goal of this paper is to determine whether different types of users are differently predisposed to produce ideas. We derive hypotheses regarding the possible outcome of involving different user types in idea generation tasks from the current literature on customer integration into NPD. In a quasi‐experimental setting, we test our assumptions on 93 users, who generate ideas in a smart home context. The results indicate that users’ contribution depends on their specific domain knowledge, which is broadly understood as knowledge of a specific area that influences ideation towards solutions in this domain. We distinguish between four types of users: those with high trend awareness, high technical skills, high technical innovativeness, and high ethical reflectiveness. We find that users with high technical skills are more likely to produce ideas that are technically feasible. Trend‐aware and technically innovative users produce ideas of greater originality. Ethically reflective users tend to come up with ideas that will have a positive impact on society.     

Reusability and multi-product development policies: a comparison of approaches in the automotive, motorcycle and earthmoving machinery industries

In many industries, the compelling pressure on the replacement of existing products and the expansion of the breadth of product lines, are forcing firms to undertake a growing number of new product development (NPD) projects. The effectiveness of those efforts depends on how well the firm can exploit synergy in innovation. This entails to managing the sharing and transfer of knowledge to projects over time to maximise reusability of technological solutions. The paper investigates how firms have reshaped their NPD process to deal with the challenge of reusability and knowledge transfer in three related industries. Starting from a resource-based view of the innovation process it compares the multi-product development project practices diffused in these industries and identifies the factors which affect the choice of a given approach to reusability and knowledge transfer.     

Knowledge networking to support medical new product development

New product development (NPD) in the pharmaceutical industry is very knowledge intensive. Knowledge generated and used during medical NPD processes is fragmented and distributed across various phases and artifacts. Many challenges in medical NPD can be addressed by the integration of this fragmented knowledge. We propose the creation and use of knowledge networks to address these challenges. Based on a case study conducted in a leading pharmaceutical company, we have developed a knowledge framework that represents knowledge fragments that need to be integrated to support medical NPD. We have also developed a prototype system that supports knowledge integration using knowledge networks. We illustrate the capabilities of the system through scenarios drawn from the case study. Qualitative validation of our approach is also presented.     

Action Planning for New Product Development Projects

Two empirical studies are presented to show how experienced project leaders execute New Product Development (NPD) projects. In the first study we interviewed project leaders from four different design firms. We discovered that inside realistic NPD projects the NPD activities seldom occur in the same order as they are described in the NPD literature. Some activities are omitted, some activities are run in parallel and some even have a seemingly illogical timing. The reasons for these ‘strange’ patterns are usually project‐specific. The NPD project leaders distinguish four types of NPD projects. On the one hand, familiar (client well known and/or standard technology and/or re‐design) or non‐familiar projects (new client and/or new technology and/or innovative design), and on the other hand, the complexity of the product (simple versus complex), and they plan their NPD projects differently according to those four types. For instance, within simple and familiar projects they omit more NPD activities than in projects with a more complex and new nature. In the second empirical study we did a matched pairing study (finding NPD projects which would match each of the four types). This time we interviewed experienced project leaders from different companies, because they are probably more familiar with only one type of NPD project. We found a minimal and a ‘regular’ NPD process. Projects on new products (the non‐familiar type) contain the most activities in the total project. Complex projects execute more activities in the first stages, and also different activities than in non‐complex projects. We also found that NPD project leaders adapt an opportunistic attitude towards carrying out activities in parallel in order to gain time.     

A model for consumer knowledge contribution behavior: the roles of host firm management practices,technology effectiveness,and social capital

This study examines the effects of host firm management practices, social capital, and technological factors on consumer knowledge contribution behavior. Results from 403 respondents in a large firm-hosted virtual community showed that two host firm practices, promoting interaction and organizing offline activities, have positive effects on knowledge contribution behavior through the mediating role of social capital, while the practice of providing incentives has a negative effect. In addition, the impacts of social interaction ties and shared language on knowledge contribution behavior are stronger when the perceived effectiveness of the reputation system is high. The perceived effectiveness of media richness moderates the relationship between trust and knowledge contribution behavior by strengthening the relationship when the perceived effectiveness of media richness is high. Our study suggests that host firms can play an important role in promoting knowledge contributions in virtual communities; and they need to understand the consequences of different management practices, hence able to actively influence and encourage knowledge contribution in virtual communities.     

Hierarchical business value of information technology: Toward a digital innovation value chain

Information technology (IT) increasingly changes the ways through which firms develop and commercialize innovation. Prior studies have mainly focused on the direct effect of IT use on innovation performance, while little is known about how IT use for different purposes in the innovation processes leads to innovation performance at the organizational level. Drawing on the routine-based absorptive capacity (AC) framework, we conceptualize IT use for knowledge search and relational search as IT-enabled internal and external AC routines and unveil the hierarchical benefits resulting from IT use for innovation. We propose a model in which firms need to purposefully use IT to search for knowledge in the new product development process or search for relationships in the collaborative innovation process, leading to first-order benefits (i.e., internal innovation benefits and open innovation benefits) and, in turn, second-order benefits (i.e., innovation performance). By using a unique data set from 1028 German firms between 2003 and 2007, we find that IT use for knowledge search enhances internal innovation benefits, whereas IT use for relational search increases open innovation benefits. More importantly, internal and open innovation benefits mediate the relationships between IT use for knowledge and relational search and various innovation performance measures. Taken together, our findings shed light on a deeper understanding of the digital innovation value chain.     

The relative values of big data analytics versus traditional marketing analytics to firm innovation: An empirical study

Although big data analytics (BDA) does enhance innovation performance, it remains unclear whether BDA contributes more or less than traditional marketing analytics (TMA) to firm innovation. This study tests hypotheses based on data collected from multiple sources by using four-wave survey and archival data from 201 firms. The results indicate that BDA has a stronger positive effect on new product development (NPD) performance than TMA, over time. However, TMA, when coupled with exploitative innovation strategy, has a stronger positive effect on NPD performance than if coupled with exploratory innovation strategy. Conversely, BDA, when coupled with exploratory innovation strategy, has a stronger positive effect on NPD performance than if coupled with exploitative innovation strategy.     

How governance mechanisms in family firms impact open innovation choices: A fuzzy logic approach

The inbound open innovation (OI) process consists of the opening of the innovation funnel to the contribution of external partners, with the aim of tapping into their knowledge. This opportunity is particularly valuable for family firms (FFs), which often have insufficient resources. However, the literature on the OI behaviour of family firms is not conclusive. Indeed, both the behavioural theory (BT) and the resource‐based view (RBV) posit negative and positive outcomes regarding openness choices in FFs. We claim that these contrasting results can be reconciled if, according to the literature, FFs are seen as a heterogeneous breed, whose differences are determined by different levels of participation of non‐family members in the governance mechanisms. Indeed, non‐family members can act in favour of OI. However, previous literature has failed to satisfactorily grasp the nuances of this heterogeneity. We suggest that it is necessary to adequately operationalize the heterogeneity concept by means of fuzzy logic. We conducted a survey on 178 Italian FFs. Results show that the involvement of non‐family members affects the extent to which firms draw on knowledge from external partners. Specifically, the higher the involvement of non‐family members, the more there is collaboration with vertical partners along the supply chain.     

Impact of a firm’s physical and knowledge capital intensities on its selection of a cloud computing deployment model

Cloud computing has become an increasingly common computing infrastructure for contemporary firms. An important decision for firms to make in adopting a cloud computing model is whether to build it in-house (a private cloud) or outsource it (a public cloud). Prior literature has focused on the impact of firms’ characteristics but generated inconsistent results regarding the selection of cloud computing models. To add to this line of inquiry, we consider the relative resource structure, which reflects the importance of physical and knowledge resources for individual firms, and examine their respective effects on the selection of cloud computing deployment models (CCDMs). Using data from 520 companies deploying cloud computing in mainland China, we find that firms with higher physical capital intensity (PCI) tend to outsource cloud computing, whereas those with higher knowledge capital intensity (KCI) tend to use private clouds. Firms with higher codified knowledge capital intensity (CKCI) are found to be more susceptible to the negative relationship between KCI and public cloud selection than those with higher tacit knowledge capital intensity (TKCI). The direct positive influence of regional legal protection on a firm’s preferences for a public cloud is also confirmed, as well as its indirect moderating effect on alleviating the negative relationships between CKCI and deploying a public cloud.     

Exploring ideation and implementation openness in open innovation projects: IT-enabled absorptive capacity perspective

Advancements in information technology (IT) have made organizational boundaries so porous, thereby resulting in a trend toward leveraging external knowledge for innovation. However, firms experience significant obstacles in drawing external knowledge. This study aims to disentangle the role of IT-enabled absorptive capacity in new product development performance. The research model was tested with survey data of open innovation projects from 152 firms. Our findings indicate that IT-enabled absorptive capability improves open innovation project performance in terms of new product innovativeness and product speed to market, but we do not detect a significant direct influence of openness on performance. Our findings also show that the interaction of IT-enabled absorptive capacity and ideation openness significantly amplifies new product innovativeness while the interaction of IT-enabled absorptive capacity and implementation openness accelerates the product speed to market. This study theoretically contributes by building an IT-enabled absorptive capacity theory in the open innovation context and uncovering the effects of two dimensions of openness. In practice, it offers managers strategies to successfully conduct open innovation projects in deploying effective ITs and leveraging various types of openness during the two phases.     

Better the devil you know: Inter-organizational information technology and network social capital in coopetition networks

By enabling more efficient information and knowledge sharing and reinforcing the shared goals for participating members, inter-organizational information technology (IT) becomes instrumental to both accomplishing coopetitive outcomes and avoiding the pitfalls of partner opportunism. We posit that as network social capital is accumulated in technology-enabled coopetition networks, collaboration will enhance the strategic value of outcomes and positively affect goal convergence among network users. Our findings illustrate that the role of technology in coopetition extends beyond facilitating knowledge exchange and may play a vital role in the strategic development of firms pursuing coopetitive options.     

Counterbalancing Exploitative Knowledge Search during Environmental Dynamism: Reinforcing New Ideas for Existing Products

Established firms face the challenge of counterbalancing their predominant focus on exploitation with exploration. This paper explores how these firms can reinforce new exploratory ideas for existing products, especially during periods of environmental dynamism. The study is based on an action research study at a new product development (NPD) department at an international manufacturing firm operating in a cyclical market. The results show that increased environmental dynamism opens new opportunities for counterbalancing exploitative approaches by building exploratory skills. The action contributed specifically to breaking with old traditions in the NPD organization, and resulted in actionable knowledge in terms of an ideation approach. However, the study also shows that fast industry cycles that do not match the remote returns of exploratory knowledge searches diminish the possibility to sustain exploratory knowledge searches in organizations. The paper identifies important problems related to the long‐time horizon of exploration and the cyclical nature of industries.     

A coordination-theoretic investigation of the impact of electronic integration on logistics performance

Using the Coordination Theory, we explored the impact of electronic integration of intra-organizational and inter-organizational business processes on organizational performance in terms of logistics cost and service improvements. Our work extends knowledge on adoption of information technology (IT) in logistics operations, with a focus on examining the performance implications of electronic integration within and between firms in a supply chain. Data was collected from 227 trading firms in Hong Kong and analyzed to investigate the research issues. Our empirical findings revealed that electronic integration is positively associated with logistics performance in cost but not in service, suggesting that electronic integration is not sufficient for delivering superior logistics services. Theoretical and practical implications of our results are discussed.     

End user computing sophistication and success in small firms

End user computing (EUC) is becoming an increasingly important activity in small firms. This paper explores factors influencing the sophistication and success of EUC in small businesses. Case studies of eight small manufacturing firms revealed both positive and negative influences of intra-organizational and extra-organizational factors on EUC sophistication and success. In addition, the case study results indicate a strong need for training and both internal and external EUC support for small firms.     

Knowledge sharing,innovation and firm performance

This study investigates the quantitative relationship between knowledge sharing, innovation and performance. Based on the literature review, we develop a research model positing that knowledge sharing not only have positive relationship with performance directly but also influence innovation which in turn contributes to firm performance. This model is empirically tested using data collected from 89 high technology firms in Jiangsu Province of China. It is found that both explicit and tacit knowledge sharing practices facilitate innovation and performance. Explicit knowledge sharing has more significant effects on innovation speed and financial performance while tacit knowledge sharing has more significant effects on innovation quality and operational performance.