Technological similarity and market entry as antecedents of inbound open innovation

Across industries, companies operate open innovation platforms that encourage users to share ideas and become product designers. Likewise, companies explicitly promote products based on user ideas as “user-designed” (e.g., McDonald’s MyBurger, LEGO Ideas). This paper introduces and empirically investigates two managerially relevant factors that can influence the effect of user-designed products on consumers’ reactions. Specifically, Studies 1a and 1b reveal an inverted U-shaped relationship between the share of user-designed products in a company’s product portfolio and consumers’ purchase intentions, which is mediated by consumers’ perceptions of the company’s innovation ability. Study 2 examines the role of the market entry strategy for user-designed products. While the inverted U-shaped effect holds for followers, the relationship between the share of user-designed products and consumers’ purchase intentions becomes U-shaped for first movers. These results suggest that user-designed products can have unexpected consequences that managers need to be aware of and consider in their actions.

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The Business Effects of Standardization for SMEs

International Journal of Standardization Research ◽

10.4018/ijsr.2019070102 ◽

2019 ◽

Vol 17 (2) ◽

pp. 21-40

Author(s):

Manabu Eto

Keyword(s):

Open Innovation ◽

Price Competition ◽

Market Entry ◽

Japanese Government ◽

Large Role ◽

Niche Markets ◽

The Creation ◽

Dissemination Of Technology

Standardization activity is a type of open innovation, specifically an outbound-revealing open innovation. Through standardization activities, a given technology spreads, its effects extend to the market, and the market expands. However, in many cases, competition intensifies, and price competition occurs. To succeed as global businesses, SMEs should take a strategy known as “Niche Top” in Japan. Standardization activities are more likely to constitute a risk for SMEs. However, the Japanese government has established a system that actively encourages SMEs to standardize. The authors of this manuscript conducted interviews with companies that are targets of this standardization system and investigated how these companies expand their businesses through standardization activities while still securing profits. The results show that standardization by SMEs does not cause the dissemination of technology and the expansion of markets; rather, it helps such SMEs erect barriers to market entry through the creation of standards and plays a large role in securing shares in niche markets.

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Speeding-Up Innovation with Business Hackathons

Conference Proceedings of the Academy for Design Innovation Management ◽

10.33114/adim.2019.11.263 ◽

2019 ◽

Vol 2 (1) ◽

Cited By ~ 2

Author(s):

Myrna FLORES ◽

Matic GOLOB ◽

Doroteja MAKLIN ◽

Christopher TUCCI

Keyword(s):

United Kingdom ◽

Open Innovation ◽

Entrepreneurial Ecosystems ◽

The United Kingdom ◽

Short Period ◽

User Centric ◽

Specific Challenge ◽

Innovation Outcomes ◽

The Way

In recent years, the way organizations innovate and develop new solutions has changed considerably. Moving from ‘behind the closed doors’ style of innovating to open innovation where collaboration with outsiders is encouraged, organizations are in the pursuit of more effective ways to accelerate their innovation outcomes. As a result, organizations are establishing creative and entrepreneurial ecosystems, which not only empower employees but also involve many others to co-create new solutions. In this paper, we present a methodology for organizing hackathons, i.e. competition-based events where small teams work over a short period of time to ideate, design, prototype and test their ideas following a user-centric approach to solve a specific challenge. This paper also provides insights into two different hackathons organized in the United Kingdom, and Mexico, as well as a series of 5 hackathons organized in Argentina, Mexico, Switzerland, United Kingdom and in Senegal.

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