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2015 | Book

Adoption of Innovation

Balancing Internal and External Stakeholders in the Marketing of Innovation


About this book

This edited volume brings together academics from both innovation and marketing fields to explore the additional value for companies that can be generated with the innovations in marketing and the marketing of innovations.

If ideas need to reach the marketplace, then marketing strategies, concepts and tools - such as the continuous development of new product and services - become vital for their success. On the other hand, marketing management is influenced by innovation as illustrated by the way social media and Internet have revolutionized the traditional marketing-mix.

Such linkages between innovation and marketing research need to be much stronger as companies have to convince internal and external stakeholders to achieve successful innovation strategies. State-of-the-art research output from different perspectives would suit the needs of a researcher as well as the company CEO alike.

Table of Contents

Adoption of Innovation: Balancing Internal and External Stakeholders in the Marketing of Innovation
In recent years, innovation management has shown to be a very important topic for academics and professionals. However, the emphasis has mostly been on the upstream activities of the innovation management process and specifically about how to obtain as well as to integrate new sources of innovation beyond the traditional and internal R&D function. Conversely, the downstream activities of the innovation process, specifically marketing and commercialization, have attracted little research. But the situation is changing now due to governments and companies that have realized that in order for an innovation to be successful, it is not enough to have good new ideas: it must foremost be adopted by the market. As a consequence, there is currently a shift in priorities and a renewed interest in the marketing of innovation and especially in the adoption of original products or services, because one important function of marketing is to contribute to the adoption of innovative solutions by potential customers. This book aims to contribute to this advancement and to provide fresh conceptual insights and thinking about the manners to stimulate and to facilitate the adoption of every kind of innovation. This will be managed by a very diverse contributions exploring the role and the balancing of internal and external stakeholders in the marketing of innovation.
Alexander Brem, Éric Viardot
Corporate Prediction Markets for Innovation Management
Theoretical Foundations and Practical Examples for Business Use
This chapter summarizes latest developments concerning prediction markets used by corporations during the innovation process. Though not widely-known yet, prediction markets provide the double possibility of organizing dispersed knowledge efficiently and producing accurate forecasts. Many theoretical aspects of prediction markets and also various practical fields of using them (mainly politics and sports results) have been extensively investigated and discussed before by other authors. This chapter deals with the practical use of prediction markets in business and innovation-driven environments. Major fields in which prediction markets can be successfully used in the innovation process are idea creation, idea screening and filtering, concept evaluation, lead user identification, market success forecasting and pricing, demand forecasting, project management and the forecasting of changes in a competitive environment.
Christian Franz Horn, Björn Sven Ivens
Innovations in Consumer Science: Applications of Neuro-Scientific Research Tools
The study of the biological aspects of the consumer behaviour through the application of neuroscience is one among the many innovations in the area of marketing, particularly in understanding the consumer behaviour. Only recently management scientists have started applying the principles of neuroscience in the management applications and theory building. The new methodologies of ‘Consumer Neuroscience’ provide an opportunity to understand the neural level processes in the brains of the consumers which in turn offer valuable insights into the cognitive decision making process of the consumers, which are otherwise not captured through traditional methods of management research. This chapter introduces the readers to the most commonly used tools of neuromarketing, such as fMRI, EEG, and ERP (P300) and then explains their applications in marketing. This chapter presents several examples that highlight the application of neurosciences to study aesthetics and sensory factors that have helped companies innovate and improve their products and in-store experience of their customers.
Sharad Agarwal, M. J. Xavier
Social Cognitive Theory and the Technology Acceptance Model in the Cloud Computing Context: The Role of Social Networks, Privacy Concerns and Behavioural Advertising
Cloud computing is one of the major innovation advances in information technology. In order for more consumers to adopt cloud computing as a technological innovation there needs to be a better understanding of the issues involved in consumer adoption processes. Whilst there is an increasing amount of interest in cloud computing as a technological innovation there is an important need to examine the reasons why consumers adopt cloud computing. In this paper, the technology acceptance model and social cognitive theory are identified as the theoretical frameworks to understand the consumer adoption process of cloud computing. A set of research hypotheses are stated from both theoretical frameworks to test their relationship with a consumer’s intention to adopt cloud computing as a technological innovation. These hypotheses focus on perceived usefulness, perceived ease of use, online behavioural advertising knowledge, social networks and online privacy concerns. The findings of the study outline the different areas of technological innovation research that are needed in order to advance the information technology industry in the future. The findings suggest that perceived ease of use, perceived usefulness and online privacy concerns can determine a consumer’s intention to adopt cloud computing but online behavioural advertising knowledge and social networks differ amongst consumers in different countries. Finally, some of the key issues influencing consumer adoption of cloud computing are outlined, which due to the emerging nature of this technological innovation will influence the regulation and marketing of cloud computing services by firms and governments in the technology sector.
Vanessa Ratten
Customer Co-Production and Service Innovation Characteristics: A Conceptual Argument
With the servuction system as its overarching framework, this chapter aims to understand how the customer’s perception of service innovation characteristics is influenced by his/her co-production of the service for self (CPS) and the co-production of the service for others (CPO). A set of propositions articulate these relationships: (a) shifts in CPS and CPO are positively related to perceived relative advantage and negatively to perceived risk; (b) upward and downward shifts in CPS and CPO reduce perceived compatibility; and (c) shifts in CPS and CPO are inversely and positively related to perceived complexity, respectively. Since the nature of a service and its managerial consequences are intertwined, our findings in the two spheres of customer co-production (CPS and CPO) have important implications for service researchers and managers with respect to both short- and long-term service operation issues.
Mohammadali Zolfagharian, Audhesh K. Paswan
Building Innovative Competitive Advantage in the Minds of Customers
The paradigm shifts of innovation and marketing in prior years have shown that these shifts arrive at a common point: competitive advantage. From the customers’ point of view, we recognize that brand associations are structured as a network in their minds and that customers distinguish among brands according to their competitive advantages. Therefore, a brand has innovative competitive advantage if it has strong favorable innovations associated with it in the minds of customers. These associations are created by innovating value that is strategically managed by marketers. Based on these concepts, the purpose of this study is to propose a conceptual model on innovative competitive advantage as a result of a detailed literature survey and a synthesis thereof. In addition, a pilot study follows the steps of brand concept mapping methodology, which enables us to represent brand image as a network of associations. It aims to demonstrate the practical application of brand innovativeness maps.
Taşkın Dirsehan
Institutions and Collaborative Innovation
This paper explores the importance of developing institutions as a means to govern collaborative innovation among stakeholders such as individuals and firms. We argue that institutions are a key element in the creation of markets to enable and sustain collaborative innovation. Institutions can be both informal and formal. Informal institutions include conventions, moral rules and social norms whereby there is no external enforcer. Formal institutions need external enforcement by a third party. We use the prisoner’s dilemma game and the empirical results from it as an analogy to draw lessons about how institutions could be developed to enhance collaborative innovations. We use case vignettes to illustrate our findings. We draw implications for managers to shape the institutional structure for collaboration by demonstrating the importance of fairness, reciprocity, development of social capital and understanding demographic characteristics of the participants. In addition, we show when participants are less homogenous, a formal external agency is needed to encourage collaboration.
Chander Velu
Organizing Open Innovation for Sustainability
Drawing Implications from a Case Study in the Agro-Food Complex in the Netherlands
Literature on open innovation has thus far predominantly focused on high technology contexts. Once an industry reaches the limits of a closed innovation model, open innovation may, however, also promise opportunities for sustainable development in a low-tech environment. Because in low-tech environments open innovation is unlikely to emerge spontaneously from the spillovers of R&D, it requires institutions that actively initiate and coordinate open innovation processes. This has subsequently important consequences for marketing, because buyers and sellers may jointly embark on innovation processes that are guided by a third-party organization. Based on a case study on an organization for open innovation in the agro-food industry, this chapter identifies potential contributions and pitfalls of these organizations. Results imply an optimal level between market—and organization-based forms of governing open innovation that depends on industry characteristics such as the stage of industry lifecycle. Implications for policy, business and future research of these findings are discussed.
Paul T. M. Ingenbleek, Gé B. C. Backus
Vision and Radical Innovation: A Typology
In this chapter, we investigate the nature of vision and its potential evolution pathways, in the case of radical innovation. To set the stage, radical innovation and its importance are discussed. Given the importance of vision for firm success in the radical innovation context, vision is deconstructed in order to better understand its three core components—the goal, the passion underlying it and the clarity of the vision. The composition of vision tends to change and become more elaborated over time, depending on its nature, how it begins and who is involved. Given this, a typology is created which is made up of four characteristic combinations of ‘who’ and ‘where’ a radically innovative vision may exist in time and place. As such, four types of vision are characterized which play an essential role in the front-end of radical innovation: value-driven vision, technology vision, bottom-up market vision and top-down market vision.
Susan E. Reid
Innovating the Business Model: The Case of Space
The paper provides insights on the dynamics of the space industry which despite its remarkable potential tends to remain an under-studied sector within the field of business studies. By drawing on our existing work on the space industry this paper investigates the leveraging of innovative business models in the industry utilizing three case studies. From the findings it emerges that all the three companies Virgin Galactic, Mars One and Unilever with the Axe/Lynx Apollo campaign have extensively relied on business model innovation by leveraging specific design elements—content, structure, and governance. Our findings highlight that business model innovation is an imperative to operate successfully in the space industry. Furthermore, a wide variety of private actors appear to be particularly resourceful in adopting novel business models that address the involvement of non-space actors and rely on non-space revenues.
Alessandra Vecchi, Louis Brennan
Real Options Reasoning and Innovative Performance in the Context of Dynamic Capabilities
Innovation has always been along with great uncertainty, and companies that are seeking to develop new products or services should be flexible in their resources to cope with uncertainty. Presenting new goods, commodities or services mostly requires the expenditure of huge amount of both financial and human resources which, in turn, can endanger the company’s status in the market if it fails to fulfill the product requirements. In this way, firms increasingly realize that a flexible workforce helps mitigate downside risks and offers opportunities for achieving superior and innovative performance. Therefore, considering flexible investing plan such as real options reasoning can be regarded as one of top priority for innovative firms. In this regard, the primary and major question of the study will be whether real options reasoning or thinking as a strategy for uncertainty reduction matter when innovative firms are looking to increase their rate of radical and incremental innovative performance in rapidly changing and unpredictable environments? Through a comprehensive literature review, we will attempt to find out whether adaptive capability exercises a mediating role between real options reasoning and innovative performance? Also, the capacity of firms to create and exploit new knowledge is critical for innovative outputs. In other words, a firm’s innovation performance is an outcome of increases in its knowledge base and the success of real options thinking mostly depends on organizational ability to evaluate and utilize outside information and knowledge. Thus we will investigate the moderate effects of absorptive capacity on the relationship between real options thinking and innovative performance.
Asghar Afshar Jahanshahi, Stephen X. Zhang
Uncovering Driving Forces for Better Product Innovation: Have Russian Firms Learned to Balance the Focus on Internal and External Partners?
The current study focuses on exploring how cooperation can help companies to reach their targets in new product development and market launch successfully. The overarching research question of the study is whether cooperation in innovation can help Russian companies to overcome market and institutional context inefficiencies and achieve better performance outcomes. More specifically, we address two aspects of cooperation: the role of cooperation with external partners as a factor of innovation success and the balance of internal versus external stakeholders’ interests in framing innovation strategy. The study is empirically based on a cross-industry quantitative dataset of Russian innovative firms.
Maria Smirnova, Daria Podmetina, Daria Volchek, Vera Rebiazina
Adoption of Innovation
Alexander Brem
Éric Viardot
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