IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v39y2010i9p1198-1213.html
   My bibliography  Save this article

Under the radar: Industry entry by user entrepreneurs

Author

Listed:
  • Haefliger, Stefan
  • Jäger, Peter
  • von Krogh, Georg

Abstract

We inductively develop a model of the commercialization process for new products or services user entrepreneurs undertake when entering an industry while drawing on proprietary technology developed in another industry. Extending the growing field of user entrepreneurship, we identify a two-phase approach to industry entry by user entrepreneurs who start "under the radar" of incumbent firms, gain experience, attract a first potential customer base, and then, in a second phase, engage in commercialization. During this process, a community of fellow users is of major importance for the entrepreneur, serving as a knowledge pool for skills development and experimentation with different commercialization paths. We study a nascent group of firms founded by users of video games who became entrepreneurs on entering the animation industry by producing Machinima, a new film genre characterized by shooting film in video games. We explain how user entrepreneurs gain access to complementary assets (video games) for their new use (shooting film), how they deal with intellectual property issues when using other firms' assets, and how user entrepreneurs combine domain knowledge about film production with their experience in video games and the art of Machinima. Our propositions hold implications for management and policy.

Suggested Citation

  • Haefliger, Stefan & Jäger, Peter & von Krogh, Georg, 2010. "Under the radar: Industry entry by user entrepreneurs," Research Policy, Elsevier, vol. 39(9), pages 1198-1213, November.
  • Handle: RePEc:eee:respol:v:39:y:2010:i:9:p:1198-1213
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048-7333(10)00156-3
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters,in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87 World Scientific Publishing Co. Pte. Ltd..
    3. Jehoshua Eliashberg & Anita Elberse & Mark A.A.M. Leenders, 2006. "The Motion Picture Industry: Critical Issues in Practice, Current Research, and New Research Directions," Marketing Science, INFORMS, vol. 25(6), pages 638-661, 11-12.
    4. Linus Dahlander, 2007. "Penguin in a new suit: a tale of how de novo entrants emerged to harness free and open source software communities," Industrial and Corporate Change, Oxford University Press, vol. 16(5), pages 913-943, October.
    5. Read, Stuart & Song, Michael & Smit, Willem, 2009. "A meta-analytic review of effectuation and venture performance," Journal of Business Venturing, Elsevier, vol. 24(6), pages 573-587, November.
    6. Dominik Papies & Michel Clement, 2008. "Adoption of New Movie Distribution Services on the Internet," Journal of Media Economics, Taylor & Francis Journals, vol. 21(3), pages 131-157.
    7. Eric von Hippel, 2007. "Horizontal innovation networks—by and for users," Industrial and Corporate Change, Oxford University Press, vol. 16(2), pages 293-315, April.
    8. Sonali K. Shah, 2006. "Motivation, Governance, and the Viability of Hybrid Forms in Open Source Software Development," Management Science, INFORMS, vol. 52(7), pages 1000-1014, July.
    9. Harhoff, Dietmar & Henkel, Joachim & von Hippel, Eric, 2003. "Profiting from voluntary information spillovers: how users benefit by freely revealing their innovations," Research Policy, Elsevier, vol. 32(10), pages 1753-1769, December.
    10. Hiro Izushi & Yuko Aoyama, 2006. "Industry evolution and cross-sectoral skill transfers: a comparative analysis of the video game industry in Japan, the United States, and the United Kingdom," Environment and Planning A, Pion Ltd, London, vol. 38(10), pages 1843-1861, October.
    11. Fuller, Johann & Jawecki, Gregor & Muhlbacher, Hans, 2007. "Innovation creation by online basketball communities," Journal of Business Research, Elsevier, vol. 60(1), pages 60-71, January.
    12. Baldwin, Carliss & Hienerth, Christoph & von Hippel, Eric, 2006. "How user innovations become commercial products: A theoretical investigation and case study," Research Policy, Elsevier, vol. 35(9), pages 1291-1313, November.
    13. Andrew Leyshon, 2001. "Time - space (and digital) compression: software formats, musical networks, and the reorganisation of the music industry," Environment and Planning A, Pion Ltd, London, vol. 33(1), pages 49-77, January.
    14. von Krogh, Georg & Spaeth, Sebastian & Lakhani, Karim R., 2003. "Community, joining, and specialization in open source software innovation: a case study," Research Policy, Elsevier, vol. 32(7), pages 1217-1241, July.
    15. von Hippel, Eric, 1987. "Cooperation between rivals: Informal know-how trading," Research Policy, Elsevier, vol. 16(6), pages 291-302, December.
    16. 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.
    17. Henkel, Joachim, 2006. "Selective revealing in open innovation processes: The case of embedded Linux," Research Policy, Elsevier, vol. 35(7), pages 953-969, September.
    18. Aoyama, Yuko & Izushi, Hiro, 2003. "Hardware gimmick or cultural innovation? Technological, cultural, and social foundations of the Japanese video game industry," Research Policy, Elsevier, vol. 32(3), pages 423-444, March.
    19. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paris Chrysos, 2015. "Value Care: Managing The Emerging. The Case Of Developer Support Forums," Post-Print halshs-01584767, HAL.
    2. Rullani, Francesco & Haefliger, Stefan, 2013. "The periphery on stage: The intra-organizational dynamics in online communities of creation," Research Policy, Elsevier, vol. 42(4), pages 941-953.
    3. Füller, Johann & Schroll, Roland & von Hippel, Eric, 2013. "User generated brands and their contribution to the diffusion of user innovations," Research Policy, Elsevier, vol. 42(6), pages 1197-1209.
    4. repec:kap:sbusec:v:49:y:2017:i:1:d:10.1007_s11187-017-9867-5 is not listed on IDEAS
    5. Agarwal, Rajshree & Shah, Sonali K., 2014. "Knowledge sources of entrepreneurship: Firm formation by academic, user and employee innovators," Research Policy, Elsevier, vol. 43(7), pages 1109-1133.
    6. repec:spr:scient:v:104:y:2015:i:3:d:10.1007_s11192-015-1628-0 is not listed on IDEAS
    7. Sampsa Hyysalo & Petteri Repo & Päivi Timonen & Louna Hakkarainen & Eva Heiskanen, 2016. "Diversity And Change Of User Driven Innovation Modes In Companies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-33, February.
    8. Block, Jörn H. & Henkel, Joachim & Schweisfurth, Tim G. & Stiegler, Annika, 2016. "Commercializing user innovations by vertical diversification: The user–manufacturer innovator," Research Policy, Elsevier, vol. 45(1), pages 244-259.
    9. Elena Casprini & Alberto Di Minin, 2015. "How are companies facing the social media (r)evolution?," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2015(2), pages 67-86.
    10. Linda Hamdi-Kidar & Cyrielle Vellera, 2012. "What drives lead users to become users entrepreneurs ? an exploratory study of motivations," Post-Print halshs-00851319, HAL.
    11. Broekhuizen, Thijs L.J. & Lampel, Joseph & Rietveld, Joost, 2013. "New horizons or a strategic mirage? Artist-led-distribution versus alliance strategy in the video game industry," Research Policy, Elsevier, vol. 42(4), pages 954-964.
    12. Kinsuk Mani Sinha & Pamela Adams & Franco Malerba, 2015. "Intermediate Users as a Source of Innovation in a Development Context: Empirical Evidence and Theory," Globelics Working Paper Series 2015-14, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:39:y:2010:i:9:p:1198-1213. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/respol .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.