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The role of openness in the fuzzy front-end of service innovation
Institution:1. Faculty of Information Technology, King Mongkut''s Institute of Technology Ladkrabang, Thailand;2. Sussex School of Business, Management, and Economics, University of Sussex, United Kingdom;3. Hull University Business School, University of Hull, United Kingdom;1. Durham University Business School, Mill Hill Lane, Durham, DH1 3LB, UK;2. Molde University College, Faculty of Business Administration and Social Sciences, 6410 Molde, Norway;1. Swiss Federal Institute of Technology Zurich (ETH Zurich), Leonhardstrasse 21, 8092 Zurich, Switzerland;2. Norwegian University of Science and Technology (NTNU), Richard Birkelandsvei 2B, 7491 Trondheim, Norway
Abstract:The early stages of innovation involve high levels of uncertainty, leading to it being labelled as the “fuzzy-front end” (FFE). Although openness has been identified as pivotal to innovation performance in the open innovation literature, little effort has been put into exploring its role in the FFE. Specifically, this study examines ‘openness competence’ within the FFE–i.e., the ability of a FFE team to explore, gather and assimilate operant resources from external sources by means of external searches and inter-organisational partnerships. The aim is to investigate the impact of openness competence on front-end uncertainty reduction and service innovation success. Data were obtained from a survey of 122 IT-based service innovation projects implemented by IT service provider firms in Thailand. The results suggest that openness competence positively influences both the degree of uncertainty being reduced during the FFE and the overall success of service innovations. These findings offer several implications for research on open innovation and the FFE as well as encouragement to managers to apply a more open approach to the FFE of their service innovation projects.
Keywords:Fuzzy front-end  IT-based service innovation  Open innovation  Openness competence  Uncertainty reduction
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