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Integration of innovative users as source of service innovations

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  • Skiba, Florian
  • Herstatt, Cornelius
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    Abstract

    In this study we research user integration in the German service industry. Goal is to explore the industrial practice with regard to four dimensions of user integration, i.e., why, whom, how, and how successful the service industry integrates to find novel service ideas. Data is collected from a large-scale survey sent out to 2,905 service companies and posted in various user groups related to service innovations. Drawing from data gathered from 301 respondents in our study, we present explorative findings for each distinct dimension of user integration. To better understand the interrelation of these dimensions, we also create a structural equation model using partial least square for estimation of direction and strength of relationships between those. Results show that service companies like companies from other industries actively pursue the development of radical innovations. We find that service companies do not integrate users by random. Instead a service company's level of importance for radical innovation significantly determines both, choice of users integrated as well as choice of integration instruments deployed. In our study we can also show, that many of the beliefs brought forward by service companies for not integrating users cannot be sustained in the light of our findings. We can demonstrate that user contributions provide true value to those companies integrating the latter, and also that using tools which are considered easy and versatile to apply can still have a significant impact on the attractiveness of user ideas. --

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    Bibliographic Info

    Paper provided by Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management in its series Working Papers with number 54.

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    Date of creation: 2008
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    Handle: RePEc:zbw:tuhtim:54

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    1. Glen L. Urban & Eric von Hippel, 1988. "Lead User Analyses for the Development of New Industrial Products," Management Science, INFORMS, vol. 34(5), pages 569-582, May.
    2. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, December.
    3. Bruce Tether, 2003. "The sources and aims of innovation in services: Variety between and within sectors," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 481-505.
    4. von Hippel, Eric, 1976. "The dominant role of users in the scientific instrument innovation process," Research Policy, Elsevier, vol. 5(3), pages 212-239, July.
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    6. Hipp, Christiane & Grupp, Hariolf, 2005. "Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies," Research Policy, Elsevier, vol. 34(4), pages 517-535, May.
    7. Gary B. Magee, 2002. "Rethinking Invention: Cognition and the Economics of Technological Creativity," Department of Economics - Working Papers Series 861, The University of Melbourne.
    8. Franke, Nikolaus & Shah, Sonali, 2003. "How communities support innovative activities: an exploration of assistance and sharing among end-users," Research Policy, Elsevier, vol. 32(1), pages 157-178, January.
    9. Franke, Nikolaus & von Hippel, Eric & Schreier, Martin, 2005. "Finding commercially attractive user innovations: A test of lead user theory," Working papers 4536-05, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    10. Luthje, Christian & Herstatt, Cornelius & von Hippel, Eric, 2005. "User-innovators and "local" information: The case of mountain biking," Research Policy, Elsevier, vol. 34(6), pages 951-965, August.
    11. de Brentani, Ulrike, 1995. "New industrial service development: Scenarios for success and failure," Journal of Business Research, Elsevier, vol. 32(2), pages 93-103, February.
    12. Mansfield, Edwin, 1988. "Industrial R&D in Japan and the United States: A Comparative Study," American Economic Review, American Economic Association, vol. 78(2), pages 223-28, May.
    13. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
    14. Tietz, Robert & Morrison, Pamela D. & Lüthje, Christian & Herstatt, Cornelius, 2004. "The process of user-innovation: A case study on user innovation in a consumer goods setting," Working Papers 29, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    15. Diamantopoulos, Adamantios & Riefler, Petra & Roth, Katharina P., 2008. "Advancing formative measurement models," Journal of Business Research, Elsevier, vol. 61(12), pages 1203-1218, December.
    16. Alba, Joseph W & Hutchinson, J Wesley, 1987. " Dimensions of Consumer Expertise," Journal of Consumer Research, University of Chicago Press, vol. 13(4), pages 411-54, March.
    17. Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
    18. Eric von Hippel, 1998. "Economics of Product Development by Users: The Impact of "Sticky" Local Information," Management Science, INFORMS, vol. 44(5), pages 629-644, May.
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