Academic journal article Innovation: Organization & Management

An Empirically Derived Framework of Web-Based Interactive Innovation Practices

Academic journal article Innovation: Organization & Management

An Empirically Derived Framework of Web-Based Interactive Innovation Practices

Article excerpt

Interactive innovation is a new paradigm of innovation. It is built upon three streams of influential innovation studies: open innovation; user innovation; and open-source software (OSS). It can be classified into product-oriented and technology-oriented interactive innovation (i.e., PII and Til, respectively). In terms of the former, Baldwin and von Hippel (2011) argued that a paradigm shift is occurring in our understanding of innovation and they found that technological progress is moving whole classes of innovation opportunities from the region where only pro- ducer innovation is viable to regions where single- user innovation or open collaborative innovation is also viable. In terms of the latter, according to Enkel, Gassmann, and Chesbrough (2010), the era of open innovation has just begun. A major shift has started toward a new paradigm in the sense of Kuhn (1962). Earlier conceptions of innovation gave rise to anomalies in the Kuhnian sense, such as the inability of Xerox to appropri- ate the value generated by its Palo Alto Research Center (PARC) in the 1980s, or the inability of Lucent to leverage its considerably greater research capabilities at Bell Labs against Cisco (which had no research capability at the time) in the 1990s.

Til corresponds to the prevailing understand- ing of open innovation, which is defined as 'the use of purposive inflows and outflows of knowl- edge to accelerate internal innovation, and to expand the markets for external use of innovation, respectively (Chesbrough, Vanhaverbeke, & West, 2006, p. 1). PII could be defined as the mechanisms that innovative ideas or designs, which are unprotected by intellectual properties, that come from customers. These include some expert-level lead users to a central organization, in order to satisfy the customers' own needs or to create better products or services for the common good. Previous studies did not clearly distinguish between these two categories of interactive inno- vation. For example, Enkel et al. (2010) consid- ered user innovation as one of open innovation's best-researched sub-fields. However, Baldwin and von Hippel (2011) alerted that their understand- ing of open innovation - all information related to the innovation is a public good - differs fun- damentally from an organization's 'openness' to the acquisition of new ideas, patents, products, etc., from outside its boundaries, often via licens- ing protected intellectual property (Chesbrough, 2003). In our study, it was found that none of the existing studies were comprehensive enough to capture all the components of interactive innova- tion. Customization was overlooked by academic literature of interactive innovation.

We implemented this research by using web- based interactive innovation (WII) in physical goods as our empirical context. First, web-based cases are particularly suitable for this study. In the past decade, Internet has become a standard medium for the flow of information regarding innovation. Openness is today taking different forms than in the past, particularly given the availability of new information and communica- tion infrastructures to support innovation, what some call 'innovation technology (Dahlander & Gann, 2010; Dodgson, Gann, & Salter, 2005). When implemented on a specific website, inter- active innovation usually forms standard pro- cesses and becomes streamlined, and this can demonstrate the emphasis the organization puts on this innovation approach. Baldwin and von Hippel (2011) indicated that, design costs and communication costs have and are continuing to decline very rapidly because of the advent of per- sonal computers and the Internet. They believe these largely exogenous technological trends are the main causes of the increasing importance of single-user and open collaborative innovation models in the economy at large. Second, physi- cal goods industries are important in economy, and WII has been adopted in consumer goods industries such as: fashion; electronics; automo- tives; food; household goods; personal computer industries; and even some industries that produce industrial products such as chemical and phar- maceutical industry (e. …

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