Showing papers in "Creativity and Innovation Management in 2012"

Towards Systematic Business Model Innovation: Lessons from Product Innovation Management

Abstract: 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.

Managing Distributed Innovation: Strategic Utilization of Open and User Innovation

Abstract: Research from a variety of perspectives has argued that innovation no longer takes place within a single organization, but rather is distributed across multiple stakeholders in a value network. Here we contrast the vertically integrated innovation model to open innovation, user innovation, as well as other distributed processes (cumulative innovation, communities or social production, and co-creation), while we also discuss open source software and crowdsourcing as applications of the perspectives. We consider differences in the nature of distributed innovation, as well as its origins and its effects. From this, we contrast the predictions of the perspectives on the sources, motivation and value appropriation of external innovation, and thereby provide a framework for the strategic management of distributed innovation.

Innovation Contests: A Review, Classification and Outlook

Abstract: Innovation contests as a means to realize innovative product or service solutions are growing in popularity among practitioners and researchers. An increasing number of organizations worldwide have adopted innovation contests, not only for innovation purposes, but also for other reasons such as promoting sustainability. At the same time, innovation contests represent a growing research field to scholars from different backgrounds, e.g., economics or information systems. In this article, first, the growing body of literature on innovation contests is reviewed and classified into five research categories: economic perspective, management perspective, education focus, innovation focus and sustainability focus. Second, some design elements of innovation contests that are central for the understanding, design and management of innovation contests are presented based on the current body of literature. Finally, current research gaps are presented and some of the research questions are developed that could be explored to contribute to the body of literature.

Psychological safety, knowledge sharing, and creative performance in healthcare teams.

Abstract: We examined how psychological safety fosters knowledge-sharing processes and enables team creative performance. Using a multi-respondent design, we tested our hypotheses using survey data collected from 73 patient-centred healthcare teams working in the field on rare diseases. The data were analysed using latent class regression analysis. We confirmed that a high level of psychological safety within the team is a significant predictor of creative team performance and is mediated by the sharing of two types of knowledge: information and know-how.

Facilitating SME Innovation Capability through Business Networking

Abstract: Innovation processes can be regarded as complex, dynamic, and a result of cumulative dynamic interaction and learning processes involving many actors. In this setting, private small- and medium-sized businesses (SMEs) can be considered a key factor – as generators of new ideas, as entrepreneurs carrying out new ventures, and as partners for other local actors. This study focuses on the SME networks and their ability to participate in innovative processes directed at new value creation. We present a case study of the development of a young innovation network. Our focus in the case study is on the SME's ability to carry out innovation and new value creation in a network. The key contribution of the study centers on the new understanding of the way SME innovation could be promoted through facilitated network development.

A Firm‐Level Analysis on the Relative Difference between Technology‐Driven and Market‐Driven Disruptive Business Model Innovations

Abstract: Using the business model concept as a theoretical framework, this paper examines the relative disruptiveness potential between technology-driven and market-driven innovations. The study analyses retrospectively four case studies comprising two technologically sophisticated IT innovations and two technologically less sophisticated market-driven innovations starting from their inception to the point of disruption over a period of 5–15 years. It finds that, while the disruption process of technology-driven innovation conforms to the patterns predicted by disruptive innovation theory, the disruption process of market-driven disruptive business model innovation depicts a bottleneck shape, where the positive effects of initial strategic choice, model specialization and investments on disruptiveness potential reach the maximum level and start to stagnate due to the same initial strategic choice and cost factors. Implications for researchers and practitioners are discussed.

Networks for Innovation – But What Networks and What Innovation?

Abstract: Innovation is a social and interactive process in which collaboration and exchange of knowledge and information play crucial roles. Two conflicting hypotheses have been raised in previous research: Burt's structural hole hypothesis and the density hypothesis. In brief, the former of these hypotheses builds upon arguments for open network structures in the acquisition of innovation; the latter one builds upon arguments for closed network structures for innovation. To shed some light on this state of confusion, this paper tests these two conflicting hypotheses on two separate measures of innovation in a service industry setting. One innovation measure is more incremental in nature and regards the implementation of employees' ideas. The other innovation measure is more radical in nature and regards new services. Findings suggest that social network measures are, indeed, powerful predictors of innovation and, further, that the impact of these are likely to be radically different depending upon the type and measure of innovation. Consequently, this paper recommends caution when studying the impact of social network measures upon innovation, and that more fine-grained measurements in particular are needed rather than focusing upon inter-relationships of an overly general and superficial nature.

Consumers' Creative Talent: Which Characteristics Qualify Consumers for Open Innovation Projects? An Exploration of Asymmetrical Effects

Abstract: Virtual customer integration and open innovation are considered as appropriate means to improve the success of new product development. However, only when consumers are qualified and motivated to contribute promising ideas and relevant know-how they are able to add value to a producer's innovation process. In this study, we explore the symmetric and asymmetric impact of various creativity components on consumers' idea generation, concept development, or prototype building abilities as well as interest in co-creation projects. Our results show that creativity components are of different importance. While some characteristics are needed above certain thresholds to successfully accomplish a certain development task, exceeding those does not necessarily lead to better outputs. Other characteristics improve the creative output only if they exceed specific levels.

Does Organizing for Creativity Really Lead to Innovation

Abstract: Stimulation of creativity has long been assumed to enhance innovation. Accordingly, organizing the work environment to unleash the creative potential of employees has been studied extensively. However, the present creativity literature has yet to produce sufficient empirical evidence to confirm this assumption, and therefore the generalizability of the relationship between organizational creativity and innovation remains indeterminate. This paper adopts the leading creativity and innovation models to identify the work environment characteristics stimulating creativity, and subsequently analyses whether this environment leads to product and process innovation in small and medium sized firms. The findings demonstrate that this environment does not yield the same results for product and process innovation, and particular factors of the work environment do not behave according to the expectations to enhance the likelihood of doing innovation. The study discusses these findings and advances the literature by showing that the relationship between organizational creativity and innovation is not generalizable, but is contingent upon the innovation type and, as the discussion will show, particular characteristics related to the firm. Accordingly, the paper suggests new research opportunities to further explore organizational creativity and innovation.

Identification of Lead User Characteristics Driving the Quality of Service Innovation Ideas

Abstract: Research indicates that creative ideas provide the seed for successful service innovations. However, little attention has been paid to understanding idea creation, especially for service innovations. Lead user analysis has been shown to provide the highest potential to create attractive innovation ideas. But which characteristics in lead users are important in this regard is still under-researched. In the realm of an idea contest, we examine the impact of specific lead user characteristics in driving the quality of service innovation ideas. Our study broadens the understanding of which customers are suitable and should be activated for service innovation idea contests. Using the data of 120 ideas resulting from an idea contest for new online services of soccer clubs, our findings demonstrate that specific lead user characteristics affect the quality of service ideas generated. We find that dissatisfaction with existing services has the highest impact on idea quality. Thus, companies should make use of their complaint management database to invite dissatisfied users to participate in idea contests. The results also show that highly experienced users provide ideas of higher quality. Our findings imply that companies should design closed-membership idea contests so that only people who show specific characteristics can be admitted.

A Multi-Level Model for Organizational Ambidexterity in the Search Phase of the Innovation Process

Abstract: Innovation is one of the most critical means in supporting and improving the competitive position of the firm, in particular, and a firm's survival and growth depend greatly on its ability to balance the exploitation of existing knowledge with the exploration of new possibilities, by building ambidexterity capability. While different alternatives to realize the simultaneous reconciliation of exploration and exploitation at an operational level have been proposed, how organizations build ambidexterity capability is not fully understood. The aim of this paper is thus to explore how exploration and exploitation balancing can be achieved in practice. We decided to focus on the early phase of the process where firms search for new ideas with which to renew themselves. To this end, we analysed the search phase of a highly innovative technology-based company by investigating structural design choices combined with the presence of specific roles and searching practices. The results show how the exploration and exploitation balancing act can actually be achieved and maintained through a multi-level approach that integrates both the operational and the strategic levels. Our findings thus contribute to the organizational ambidexterity literature, by proposing a first interpretative model for dealing with ambidexterity in the search phase of the innovation process.

Do Intelligent Leaders Make a Difference? The Effect of a Leader's Emotional Intelligence on Followers' Creativity

Abstract: This research investigates the connection between emotional intelligence (EI) and creativity. This was studied by exploring: (i) an association between leaders' EI and their followers' creative output; (ii) an association between six sub-dimensions of EI and creativity; and (iii) a mediating role of climate in the link between EI and creativity. Two questionnaires (one for leaders and one for employees) were used to collect data in a hospital. Sixty-six usable leader-employee dyads were collected. The findings confirmed a positive relationship between leaders' EI and employees' creativity. At an EI's sub-dimensions level, the current research showed an association between creativity, on one hand, and self-encouragement and understanding of own emotions, on the other. Finally, no mediating effect of climate was observed. The absence of a mediating effect is interesting, since it suggests a direct link between leaders' EI and employees' creativity, regardless of the climate. This is important, since it calls attention to the paramount role of leaders in shaping individual and organizational behaviours as far as creativity is concerned. The paper also discusses implications for management and practice.

The Context of Innovation Journeys

Abstract: While the innovation literature offers many insights about the dynamics of innovations and to some extent their embedding in society, the contexts in which this happens are often treated as specific and/or contingent. After a brief theoretical discussion of co-evolutionary and actornetwork theories, I show that there are general patterns (‘layers’) in the context, in particular, niches, regimes and socio-technical landscapes. A new ‘layer’ of institutionalized anticipatory co-ordination is emerging, stimulated by the challenge of handling emerging technologies like nanotechnology. The analysis in terms of ‘layers’ raises questions about what the scope of agency can be.

Towards a Comprehensive Understanding of Lead Userness: The Search for Individual Creativity

Abstract: In innovation research the identification of lead users has attracted considerable research effort. While lead user research has made important advances, there is still a significant lack in terms of understanding antecedents to lead userness. Therefore the aim of this paper is to offer a framework which is rooted in creativity psychology in order to provide a more comprehensive understanding of who leading-edge users are. It will allow for a systematic investigation and detection of innovative users. We conducted an empirical study in the field of small kitchen appliances in co-operation with Philips Consumer Lifestyle, a field which lacks some of the typical characteristics that have been emphasized in markets traditionally studied in lead user research. With our research we show that (1) lead userness is fundamentally linked to individual creativity; (2) particularly creativity- and domain-relevant skills (cognitive style, product knowledge and use experience) are related to lead userness; (3) creativity-relevant skills can be explained by personal characteristics, such as education, gender and openness to experience.

Individuals' innovation response behaviour a framework of antecedents and opportunities for future research

Abstract: Innovation response behaviour is defined as individuals’ novelty-supporting or novelty-impeding action when navigating innovation initiatives through the organization. A typology of innovation response behaviour is developed, distinguishing between active and passive modes of conduct for novelty-supporting and novelty-impeding behaviour, respectively. The antecedents of innovation response behaviour are delineated based on West and Farr's five-factor model of individual innovation. Moreover, we argue that within organizational contexts, individuals often fail to implement their ideas due to innovation barriers, perceived as factors that are beyond their control. Based on the theory of planned behaviour, we reveal how these barriers influence individuals’ intentional and exhibited innovation response behaviour. Propositions about proximal and distal antecedents of individuals’ innovation response behaviour are derived. Proposing a research framework to study the organizational process of innovation from an actor-based perspective, this paper intends to link existing research on individual innovation with the process of innovation at the organizational level, explicitly accounting for the socio-political dynamics and arising managerial problems associated with successful innovation implementation within organizational realities. Implications for research in innovation management are discussed and avenues for future research outlined.

Key Resources and Internationalization Modes of Creative Knowledge‐Intensive Business Services: The Case of Design Consultancies

Abstract: In the ‘knowledge economy’, knowledge-intensive business services (KIBS) are a key driver for innovation and competitiveness. The internationalization of these businesses raises challenges given their specificities such as knowledge intensity, the importance of customer interaction and intimacy in service delivery. This paper focuses on design consultancies as a specific type of creative KIBS for which these characteristics are emphasized. The objective of this research is to analyse the resources leveraged by the firms to compete internationally. It is based on 11 case studies of design consultancies located in five different countries (France, Italy, Portugal, Spain and the UK) that were selected for their capacity to perform at the international level for several years. The paper advances three internationalization modes depending on contingent variables and focusing on specific resources that enable international competitiveness: star-based, process-based and glocality-based. In star-based creative KIBS, the individual designer has developed a reputation that attracts customers internationally, operating as a brand. In process-based creative KIBS, the reputation of a collective creative process attracts clients from other countries. In glocality-based creative KIBS, the geographical proximity obtained by opening international offices helps to develop a close understanding of the client through frequent interactions, and also to know the client's market well and to better understand local codes and signs. These modes complement those presented in the existing internationalization literature which takes the peculiarities of creative KIBS into consideration.

SME Network Characteristics vs. Product Innovativeness: How to Achieve High Innovation Performance

Abstract: Small- and medium-sized enterprises (SMEs) must on the one hand innovate for company survival with the appropriate degree of product innovativeness, and on the other they need to collaborate and focus on core competences for efficiency matters. This research examines the relation of network characteristics and product innovativeness on innovation performance in SMEs. We tested hypotheses on the relationship between these three variables via data gathered from 60 SMEs, active in the medical devices sector. In this context we aim to offer consensus on the theoretical and empirical question of whether or not network characteristics and product innovativeness have a direct effect on innovation performance of SMEs. Results show no significant direct effect of product innovativeness on innovation performance. A positive interaction effect of multiple network characteristics on innovation performance was found, which confirms the significant importance of network configuration on innovation performance for SMEs. It indicates that, for SMEs in a highly regulated sector like the medical devices sector, the interaction of network characteristics is of crucial importance for high innovation performance. It is the combination of network characteristics that counts

Transaction Cost Economics and Open Innovation: Implications for Theory and Practice

Abstract: Transaction cost economics (TCE) has had a strong impact on theories of economic exchange but also on open innovation, even though the relationship is often implicit rather than explicit. In this paper, we highlight what we consider to be the problematic use of TCE in the context of open innovation, suggesting that it has a limited descriptive power and potentially does normative damage to open innovation practice. A case study of the Volvo Group will be drawn upon to illustrate these claims. The case questions the belief that hierarchical control eliminates transaction costs. Also, it suggests that an overemphasis on calculative reduction of transaction costs together with a focus on governance and rationality leave little space for an innovative climate, thus diverting attention away from the creative potential of transactions. Indeed the self-fulfilling prophecy character of subscribing to the assumptions of TCE may not merely limit but actually undermine innovation.

The Influence of the Type of Relationship on the Generation of Innovations in Buyer–Supplier Collaborations

Abstract: Recent research pointed at the potential of buyer–supplier collaborations for joint innovation generation. However, studies reveal mixed results. Since multiple contingency factors influence the results of cooperation, this study analyses different relationship patterns as a context for joint innovation generation and problem solving. A comprehensive model of buyer–supplier relationships is conceptualized drawing on social psychology literature. Based on a sample of 250 small and medium-sized enterprises (SMEs) from the German machinery construction sector, buyer–supplier relationships are empirically classified into four distinct types. These then are related to the innovation outcomes. The results indicate that a relational context fosters joint innovation generation and problem solving. Interestingly, a high degree of formalization, if it is legitimated, can also lead to innovation. Sporadic superficial interactions as well as interactions dominated by tension hinder joint innovation generation, though. The results help managers to consider the potential innovative outcomes when making decisions about supplier cooperation.

Knowledge Domain Spanners in Ideation

Abstract: Ideation is increasingly receiving attention as a management issue, and we can at present witness the emergence and diffusion of a range of different proactive approaches towards ideation. This dev ...

Customer Integration during Innovation Development: An Exploratory Study in the Logistics Service Industry

Abstract: Previous research has shown that though customer integration during innovation development can enhance companies' innovation performance, it can also harm innovativeness. A possible reason for these contradicting findings is that innovation development is a dynamic process that requires different tasks. Thus, a more fine-grained picture of how customer-oriented companies engage in customer integration throughout the entire innovation development process is necessary. This article contributes to the innovation and marketing literature by providing insights into how companies co-create knowledge about customer needs relevant for innovation development. Using a multiple case study design, this study examines four substantive cases that illustrate the activities logistics service providers undertake to integrate customers during the process of idea generation, development and implementation. The results show that companies focus on both proactive and reactive customer integration during idea generation and implementation but refrain from reactive customer integration during development.

Cross‐Divisional Innovation in the Large Corporation: Thoughts and Evidence on Its Value and the Role of the Early Stages of Innovation

Abstract: Forty-five years after Ansoff's seminal work on synergies, many multi-divisional corporations still struggle to create additional value. Therefore, it is surprising that in times of open innovation, little research has been conducted on the impact of cross-divisional product development. In our paper, we derive conceptual arguments for the relevance of joint initiatives and examine the role of cross-divisional collaboration in the early stages of the innovation process. Our research model is tested using a quantitative survey in 110 multi-divisional firms. We find that the extent of collaboration in the early stages of innovation strongly determines the impact of cross-divisional products on corporate success. To achieve collaboration, our results highlight the relevance of appropriate integration mechanisms and incentives.

Exploring Networks of Activism on Corporate Social Responsibility: Suggestions for a Research Agenda

Abstract: One increasingly important development for which firms need to find innovative solutions is the growing attention to corporate social responsibility (CSR). The shaping of CSR can be seen as a process in which firms and a variety of other actors are involved. This paper highlights the role of activists, and especially the role of networks of activism, in the process of (re-)defining, and sometimes innovating, the role of firms in issues of CSR. This can be seen as a process of institutional change in which norms are changed. Therefore, this paper contains a short theoretical examination of three relevant literatures (social movements, institutional theory and social network analysis) to flesh out some of their commonalities in order to develop proposals for a further research agenda for understanding how networks of activist groups (and firms) operate in shaping corporate social responsibility - an issue highly relevant in understanding the changing role of business in society. In addition, such insights can also contribute to understanding the role of activists in influencing innovation trajectories. © 2012 Blackwell Publishing Ltd.

The Ethical Dilemma of Information Asymmetry in Innovation: Reputation, Investors and Noise in the Innovation Channel

Abstract: A sufficient and steady stream of innovations is widely seen as a basis for healthy modern economies. Governments divert substantial resources from other purposes in society to increase innovation. Yet the failure rate among innovative SMEs is high, suggesting that resources are wasted. Avoiding such waste is a challenge for both governments and investors, but also raises a question for the innovative company, namely how to build and fund the enterprise on an ethical basis. The dilemma of giving in to temptations to ‘cut corners’ clearly exists, for example to exploit the inevitable asymmetry of information arising in innovation and potentially deploy this in support of misleading claims about specific capabilities and/or the unjustified creation and exploitation of reputation. This is consistent with Olaf Fisscher’s finding that entrepreneurs starting new ventures tend to exhibit an inherent bias towards compromising their own values in order to succeed at any cost. When the innoSME’s aspirations are unrealistic or the proposed innovations are of marginal value, the ethical issues are broader and extend also to those who are potential financiers. Noting this as a gap in the ethics literature, we argue that the current situation fails to match economic and ethical ideals and that work is needed to develop tools which allow those who provide finance and support for innovation to target it more effectively at those who have a prospect of successfully launching genuine innovations and thus reduce the ‘noise’ in the innovation field.

Corporate Social Responsibility in Innovation: Insights from two Cases of Syngenta's Activities in Genetically Modified Organisms

Abstract: Corporate social responsibility (CSR) implies that companies have collective responsibility beyond legal requirements. This ‘beyond’ can be described along the ‘triple bottom line’ of sustainability (social, environmental and economic dimensions). Dealing with these dimensions is under discussion in societies and some propose the stakeholder concept as a framework for companies to identify their responsibilities. However, who counts as a key stakeholder and what is a legitimate stake are difficult to determine. This article discusses reasons, possibilities and difficulties of managing responsibility in innovation, taking two cases of genetically modified organisms as examples. It is argued that the stakeholder approach is necessary to provide different perspectives, but is not enough or even completely unsuitable for defining responsibilities. Moral responsibility involves judgement that differs between stakeholders and might vary over time, owing to emerging insights and changing priorities. Therefore, pursuing or abandoning a particular project does not constitute a responsible organization; rather, it is the preparation of decisions, accountability and the resulting pattern of behaviour that renders an organization responsible. The various notions of responsibility set the scene for discussion but do not provide a clear answer to the questions of right or wrong and good or ill intent. Key conclusions are that companies need to organize for responsibility and that responsibility needs to be complemented with accountability.

Construction of Meaning in Socio‐Technical Networks: Artefacts as Mediators between Routine and Crisis Conditions

Abstract: This article focuses on the construction of meanings taking place in organizational routinized innovation processes. The results of the single case study investigating the company Carmlod, which institutionalized a routine process for their innovations, show how boundary objects like standardized methods and designed objects facilitate the communication process within interdisciplinary teams. Nevertheless, there is no guarantee that team members continue using the distinct meanings of the mutually shared object. They follow their strategies and goals according to their professional disciplinary knowledge. Only when a fundamental crisis takes place, in which nobody knows the right strategy to achieve a possible solution any more, do artefacts within the contingent space of manoeuvre become important. In the process, team members are forced to enter into a coercion-free discourse within a socio-technical network that allows them to come up with true innovation and genuine collectively shared meanings.

Variety is the Spice of Innovation: Mediating Factors in the Service Idea Generation Process

Abstract: To create a breakthrough service innovation, firms need to go beyond current customers' needs and tap into the needs of the future market. As marketing theory favours customer-centric approaches, customer-led ideation and co-creation of innovation seem natural candidates for extracting the ‘sticky’ information nested in some of the most innovative customers' minds. Grounded in the service innovation literature, this paper extracts innovative service ideas from ordinary users (n = 388) in three different service domains and seeks to identify the salient characteristics of the most innovative customers. Past research shows that innovative users are more likely to be service defectors, frequently switching from firm to firm, and motivated by their predisposition to seek variety. Using a structural modelling strategy, variety seeking is tested as a mediating factor between the subjective knowledge level and the presence of high level unmet needs leading to the generation of innovative service ideas. The results show that variety seeking fully mediates the relationship between subjective knowledge and unmet needs. Several interpretations of the role of variety seeking on customers' behaviour are explored within the context of capturing innovative service ideas.

Authority and Managing Innovation: A Typology of Product Development Teams and Communities

Abstract: Understanding the conditions under which organizational groups operate is basic for successfully managing innovation. The goal of this article is to provide a typology for distinguishing different forms of communities and teams that promote innovation. Existing typologies are incomplete because they neither look at procedural and institutional authority simultaneously, nor include all kinds of groups used for progressing innovation. This article pays particular attention to two key variables that impact productivity, namely the relationship of groups to institutional and procedural authority. Four groups, autonomous and functional teams and communities of practice and epistemic communities, are linked to the two dimensions. Accordingly, the article provides a conceptual framework for understanding how various groups function and manage themselves in subtle, different ways. By choosing various innovation groups for different purposes, firms can respond to change and create a competitive advantage. Intervention strategies that help to achieve successful innovation outcomes of groups are discussed. Finally, the article suggests further research areas.

Thematic Ideation – Antecedents and Consequences of Individuals’ Thematic Similarity Recognition

Abstract: Work on thematic thinking, an individual’s preference for basing decisions and cognitive processes on thematic similarity, has been developed recently. These preferences also build the basis for idea generation (thematic ideation) and evaluation processes. Research results indicate that there are inter-individual differences in these preferences. We apply these findings from the field of cognition to the business context and theoretically develop and empirically test a set of antecedents and consequences of thematic thinking. Results indicate that experience and positive affect are positively related to thematic thinking. The consequences that were examined, adaptation and creativity, showed relations which were reverse to the ones hypothesized based on related prior literature. Counter-intuitively, adaptation is positively related to thematic thinking, while creativity is negatively related. We discuss theoretical and managerial implications and highlight avenues for future research on thematic thinking.