Business model innovation and decision making: uncovering mechanisms for coping with uncertainty

As a research subject, business model innovation spans the strategy, innovation, and entrepreneurship fields. Yet, despite the importance of the concept, prior work has paid little attention to how decision-makers cope with uncertainty and gain understanding about interdependencies in new business model configurations. To address this gap, we combine top-down theorising and evidence-based exploration and seek to unpack some of the coping mechanisms that operate in the evolutionary view of business model innovation. Using in-depth interviewing to collect data, our study reveals five strategies – customer centricity, value co-creation, capability evolution, ecosystem growth, and adaptive pricing – that decision-makers apply to cope with uncertainty in business model innovation. We find that coping mechanisms support decision making during the development of new business models. Furthermore, we find that the five coping strategies delineate decision making for value proposition, value creation, and value capture configurations in more detail than existing literature has described. Our findings have important implications for decision making in business model innovation.     

A reasoned action perspective of user innovation: Model and empirical test

Much research in the field of user innovation has followed two theoretical perspectives — the cost–benefit framework and the community perspective of user innovation. By adopting the theory of reasoned action (TRA) into the context of user innovation, this study establishes an integrative theoretical framework to accommodate both the cost–benefit perspective and the community perspective of user innovation. This TRA-extended framework embraces both the direct and the interactive influences of the cost–benefit factors (the perceived effort in innovation and the perceived benefit from innovation), the individual characteristics (personal innovativeness and experience) and the social interactions (the perceived social influence) in shaping user innovation at the individual level. The empirical results support the proposed theoretical model. The results also reveal that the moderating effect of experience (or perceived effort) on the intentional component of user innovation is different from the effect on the behavioral component of user innovation.     

Open innovation ecosystem organizing from a process view: a longitudinal study in the making of an innovation hub

This paper uses process theory as a theoretical lens to analyze AstraZeneca's enactment of an open innovation initiative with the purpose of strengthening the firm's surrounding innovation ecosystem. Based on empirical data collected over 7 years, we develop a process model of open innovation enactment and explain how the initiative gradually transformed while maintaining its guiding principles, which were set from the start. In applying a process perspective, we highlight open innovation initiatives as dynamic and evolutionary – but not deterministic – developments. As such, we provide a comprehensive and more nuanced understanding of not only what open innovation is but also how it becomes. This study also contributes to the innovation ecosystem literature by theorizing how firms orchestrate innovation ecosystems through open innovation initiatives over time.     

Technological innovation in agricultural co-operatives in China: Implications for agro-food innovation policies

Technological innovation has become a major source of farmer co-operatives’ competitive advantage, however empirical research on co-operatives innovation in a developing country context is rare. We adopt an ethnographic case study method collecting data from 32 co-operatives managers of four exemplar co-operative cases and agricultural experts in China and collected much archival data. In addition, a Delphi study was conducted to collect data on the innovation performance. Based on the distinctive characteristics of co-operatives, we found that first knowledge spillovers and technology acquisition modes are two constructs which best capture the dynamic of technological innovation in co-operatives and develop a typology based on them. Second, grassroots and social innovation in a Chinese co-operative context have their own characters and indeed a hybrid of capitalism (e.g., agribusiness) and New Rural Re-structuring principles (i.e., similar to ICA ones). Third and finally, we provide detailed agro-food policy implications for each of the four types of co-op innovation. The results of the research may be learned by co-ops and policy makers in other developing economies who face similar challenges as in China.     

Leveraging ideas from user innovation communities: using text‐mining and case‐based reasoning

User innovation communities, where end users voluntarily share their ideas about new products or services, have become an important source of innovation. While efforts have been made to extract and develop ideas from these sources, existing studies have largely focused on company‐led efforts to facilitate user participation, rather than on voluntary user discussions within communities themselves. As a remedy, this research proposes to directly target those voluntary ideas from user innovation communities for product/service innovation. Because quantities of textual information within these communities are rather massive, we propose a modified and integrated approach of text‐mining (TM) and case‐based reasoning (CBR). Specifically, by constructing two casebases on ideas and existing products using TM and checking for overlap between the two using CBR, the approach enables the identification of opportunities for innovation and reference products for adaptation. We demonstrate the approach through a case of mobile apps in Apple App Store, and our findings suggest that the approach can help firms and users/developers broaden the source of ideas and leverage them into new product concepts.     

Decision making at the front end of innovation: the hidden influence of knowledge and decision criteria

Decision making at the front end of innovation is critical for the success of companies. This paper presents a method, called decision making based on knowledge (DeBK), which was created to analyze the decision‐making process at the front end. The method evaluates the knowledge of project information and the importance of decision criteria, compiling a measure that indicates whether decisions are founded on available knowledge and what criteria are in fact being considered to delineate them. The potential contribution of DeBK is corroborated through two projects that faced decision‐making issues at the front end of innovation.     

创新者生存华纺股份有限公司总经理薄方明访谈

记者:纺织印染行业现在普遍利润低微,盈利能力在已经是微利的整个纺织行业中处于末端,是微利中的微利.华纺能够一直保持科技投入的慷慨和科技创新的热情,并且在业界获得好评,您作为公司掌舵人,是如何看待科技创新的?     

Global network configuration for innovation: a study of international fibre innovation

This paper develops and empirically investigates the notion of network configuration for innovation. In many industries, firms are increasingly locked into a state of network innovation. Innovation, in such contexts, is often driven by those firms who configure the network to access and control critical innovation knowledge widely dispersed throughout the network. The paper presents the findings of an in-depth study of the evolution of three innovation networks in the global fibre industry. The mechanisms by which firms configure extended networks throughout the innovation processes are unravelled and discussed. A typology of three configuration types derived from the finding is forwarded. The findings suggest that successful innovation network configuration involves recognising where the innovation value resides in the network and developing capabilities and mechanisms to understand and access such value. However, this is problematic for firms embedded in their own base of knowledge and patterns of relationships. Specific managerial implications and suggestions for future research are forwarded.     

New venture departments: Organizing for innovation

A popular approach to managing new business development in a large corporate environment—the New Venture Department— is considered in this article. The author reports on a study of NVDs in 18 companies—discussing why they were, established, ways that they differed and how they evolved over time.     

Modularity in organizational structure: the reconfiguration of internally developed and acquired business units

This paper explores changes in organizational structure and distinguishes between units' origins. Unit reconfiguration is the addition of units to, deletion of units from, and recombination of units within the firm. This study compares the reconfiguration of internally developed vs. acquired units, explores what forms of unit recombination are common, and observes whether firms pursue recombination before divestiture. Theoretical support is drawn from the dynamic capabilities perspective, research on modular organizational systems, and strategy–structure literature. The findings are that acquired and internally developed units serve different roles in the process of change, and that firms perceive reconfiguration to be beneficial. Copyright © 2006 John Wiley & Sons, Ltd.     

The contrary forces of innovation: A conceptual model for studying networked innovation processes

In this paper, we argue that industrial innovation processes can productively be analysed as consisting of two sub-processes that over time create and mobilise contrary forces within both internal and external interactions of the innovation project. One of these forces emerges from the process of mobilising resources, activities, and actors in ensuring commitments to the project over time. The other is the process of explorative learning, which continues to create revised or even new propositions about the realities of the project and its opportunities. We argue that this analytical distinction permits us to expand our understanding of how friction forces develop over time in business networks (Håkansson & Waluszewski, 2001a,b), the patterns of divergence and convergence in innovation processes as identified by Van de Ven et al. (1999) and the processes of “path creation through mindful deviation” as argued by Garud and Karnøe (2001).     

Backing outsiders: selection strategies for discontinuous innovation

A key challenge in managing innovation is to explicitly identify ways to improve an organization's performance with regard to discontinuous innovation. However, discontinuous innovation does not fit the existing ‘frame of reference’ and hence requires a reframing of the traditional ways of innovating within the organization. More specifically, previous research shows that practices that work well in the context of incremental innovation do not work in the context of discontinuous innovation. Thus, the aim of this paper is to explore innovation practices that enable organizations to select innovation projects, which are ‘outside the box’ of its prior experience, i.e. are discontinuous in nature. Building on the experience of more than 150 firms across 12 countries, we have identified nine innovation practices for the selection of discontinuous innovation; these can be grouped into three clusters: enable, engage and experience. In sum, we identify that an organization needs to acknowledge that its choice to engage in discontinuous innovation will have consequences for the innovation practices chosen to select which discontinuous projects to carry forward.     

Roadmapping for innovation management: evidence from Pirelli

Despite the growing interest of practitioners and scholars in technology roadmapping (TRM), our knowledge regarding how TRM can be embedded into the overall innovation process of a firm and used to enhance this process is relatively limited. This study aims to fill this gap. We describe an action research project conducted with Pirelli and the innovative approach to TRM this company developed during the 2010s to cope with the increasing complexity and dynamism of the tire industry. We show that TRM is currently fully integrated into the firm’s R&D activities and contributes to increasing the effectiveness of new product development. TRM supports the systematic gathering, sharing, and elaboration of information across the different functions and business units of Pirelli from the basic research to the commercialization of new products.     

Priorities when selecting business partners for service innovation: The contingency role of product innovation

Firms increasingly engage in business-to-business cooperation to develop relevant innovations. Scholars have shown that firms can improve service innovation either by cooperating with suppliers or by cooperating with competitors. However, there is a dearth of research examining the relative importance of cooperating with suppliers and competitors to improve service innovation, and how this relative importance depends on embracing product innovation. Based on a cross-industry sample of 16,062 Spanish firms, this article addresses these research gaps, finding that firms can benefit from cooperating with both suppliers and competitors to boost service innovation, without prioritizing either. However, this article also shows that, if firms embrace product innovation, they should prioritize cooperating with competitors to boost service innovation.     

模块化生产网络中的劳资关系嬗变:层级分化与协同治理

模块化生产网络的劳动过程不再局限于单个企业内部简单的分工协作,而采用跨组织边界的模块化作业方式,表现为由旗舰企业到外围供应商逐渐分化的复杂分工协作体系。该劳动体系使劳动力分化为核心劳动力和边缘劳动力两大群体,而劳动力的分化与资本权力的集中则使模块化生产网络形成"资强劳弱"的劳资关系格局。本文针对新劳资关系格局存在的各种弊病,指出未来劳资关系的治理必须摆脱经济人假设支配下的零和博弈逻辑,转而塑造合作共赢的新型劳资关系。合作型劳资关系的治理需要在技术、市场与社会价值观构成的开放环境中,由资方、劳方、政府和媒体共同在企业、产业、国家与社会四个层面围绕共享利益平台,建构均衡博弈、网络协同的治理机制。     

Control of intellectual assets in client relationships: implications for innovation

This empirical study of business‐to‐business service firms examines the determinants and effects of control rights to intellectual assets in a property rights theoretic framework. Regression analyses using survey data suggest that service suppliers that retain control over their intellectual output are more innovative. In long‐term relationships, service firms' clients may thus be better off balancing their need to control outsourced activities with the suppliers' incentives to invest in learning and innovation. Additionally, and aligned with property rights theoretic predictions, service suppliers' bargaining power and their indispensability in service projects are positively associated with their ability to retain control rights. In contrast, innovation capabilities are not very significant in determining control rights allocation between service suppliers and their clients. Copyright © 2008 John Wiley & Sons, Ltd.