{"title":"The Effects of Knowledge Interaction for Business Innovation","authors":"Shari S. C. Shang, Chen-Yen Yao, Da‐Ming Liou","doi":"10.1111/radm.12130","DOIUrl":"https://doi.org/10.1111/radm.12130","url":null,"abstract":"The objective of this paper is to examine the effects of knowledge interaction on different types of business innovation. We first identified three indicators that reflect on the quality of the interaction between customers and technological knowledge, and then classified business innovations as product innovation, problem-solving innovation, or general innovation capability. Hypotheses about the impact of different qualities of knowledge interaction on business innovations were tested by collecting data from 178 high-technology firms in Taiwan. The results revealed that product innovation requires both wide-ranging and deep interaction between customers and technological knowledge, that problem-solving innovation requires either wide-ranging or deeper interaction between customers and technological knowledge, and that wide-ranging knowledge interaction is the most important driver for building general innovation capability. The research results enhance our understanding of knowledge interaction, with a special focus on the content and quality of the knowledge interactions within an enterprise. It also helps business managers in allocating resources and facilitating interorganizational communications for different situations related to innovation.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121053477","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Competition-Based Dynamic Pricing in Online Retailing: A Methodology Validated with Field Experiments","authors":"M. Fisher, Santiago Gallino, Jun Li","doi":"10.2139/ssrn.2547793","DOIUrl":"https://doi.org/10.2139/ssrn.2547793","url":null,"abstract":"A retailer following a competition-based dynamic pricing strategy tracks competitors' price changes and then must answer the following questions: (1) Should we respond? (2) If so, respond to whom? (3) How much of a response? (4) And on which products? The answers require unbiased measures of price elasticity as well as accurate estimates of competitor significance and the extent to which consumers compare prices across retailers. There are two key challenges to quantify these factors empirically: first, the endogeneity associated with almost any type of observational data, where prices are correlated with demand shocks observable to pricing managers but not to researchers, and second, the absence of competitor sales information, which prevents efficient estimation of a full consumer-choice model. We address the first issue by conducting a field experiment with randomized prices. We resolve the second issue by exploiting the retailer's own and competitors' stockouts as a source of variation to the consumer choice set, in addition to variations in competitors' prices. We estimate an empirical model capturing consumer choices among substitutable products from multiple retailers. Based on the estimates, we propose a best-response pricing strategy that takes into account consumer choice behavior, competitors' actions, and supply parameters (procurement costs, margin target, and manufacturer price restrictions). We test our algorithm through a carefully controlled live experiment that lasts five weeks. The experiment documents an 11 percent revenue increase while maintaining a margin above a retailer-specified target.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132951957","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Evolving Schemes of Interpretation: Investigating the Dual Role of Architectures in New Product Development","authors":"T. Magnusson, Nicolette Lakemond","doi":"10.1111/radm.12142","DOIUrl":"https://doi.org/10.1111/radm.12142","url":null,"abstract":"Should product architectures be considered inputs to – or outputs from – new product development (NPD)? Whereas the mirroring hypothesis suggests the former, NPD stage models suggests the latter. Elaborating on these conflicting propositions, this paper analyses the relationships between product architectures and development processes in NPD projects. The analysis demonstrates how project managers use product architectures to interpret their tasks and devise appropriate responses to perceived challenges. Thus, architectures provide useful linkages between knowledge development and organisational change in R&D organisations.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116816082","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Pass-Through Pricing on Production Chains","authors":"Maria-Augusta Miceli, C. Nardone","doi":"10.2139/ssrn.2836715","DOIUrl":"https://doi.org/10.2139/ssrn.2836715","url":null,"abstract":"We here want to analyze how the imperfect competition mark-up and pass-through are transmitted through the production chain and how they change, as a function of the number of firms existing at each production stage. In order to have an analytical closed form solution, we use the standard linear oligopoly framework. Without loss of generality and as first approximation, we assume an homogeneous good and constant returns to scale. The exercise, by using the well known standard results of Nash equilibrium with n firms and the monopoly double marginalization, obtains the mark-up solution parametric in the number of firms in S production stages.Results are mainly the followings, where the first two are just a confirmation of the two-stage results, the third is original: (i) Mark-up vanishes in the increasing number of firms, at any production stage. (ii) Pass-through increases in the number of firms, existing at each production stage, because competition transfers cost increases. (iii) Results are indifferent to the stage at which the larger number of firms happen. In other words, results do not discount the position in the sequence. Classical comparisons between integrated and decentralized chain have been computed with computed consequences on welfare results.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-10-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123423701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kaisa Henttonen, P. Hurmelinna-Laukkanen, P. Ritala
{"title":"Managing the Appropriability of R&D Collaboration","authors":"Kaisa Henttonen, P. Hurmelinna-Laukkanen, P. Ritala","doi":"10.1111/radm.12121","DOIUrl":"https://doi.org/10.1111/radm.12121","url":null,"abstract":"Research and development (R&D) collaboration with various types of external stakeholders is becoming increasingly important for firms pursuing innovation‐related goals. However, collaborating with actors such as customers, suppliers, competitors, and research organisations involves risks related to knowledge leakage and the possible misappropriation of the created value. It is therefore logical to employ mechanisms that safeguard effective knowledge protection and innovation appropriability. In order to shed light on this issue, we conduct an empirical investigation of appropriability mechanisms in R&D collaboration based on a multi‐industry sample from Finland. The results of the study provide novel evidence concerning the relationship between different appropriability mechanisms (intellectual property rights, contracts, labour legislation, human resource management practices, lead time, secrecy, and tacitness) and the firm's propensity to engage in R&D collaboration with various stakeholders.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129363491","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Impact of 3D Printing Technologies on Business Model Innovation","authors":"Thierry Rayna, L. Striukova","doi":"10.1007/978-3-319-04313-5_11","DOIUrl":"https://doi.org/10.1007/978-3-319-04313-5_11","url":null,"abstract":"","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-07-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117250173","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"What Do Consumers Use 3D Printers For?","authors":"Sascha Friesike, H. Send, Robin P. G. Tech","doi":"10.2139/ssrn.2547528","DOIUrl":"https://doi.org/10.2139/ssrn.2547528","url":null,"abstract":"Many authors attribute 3D printing technologies with the potential to revolutionize the production process of physical goods. However, insights on what users actually print in 3D remain in high demand. For the first time, 3D printing allows us to study how user innovators diffuse their creations on a large scale. To better understand this, we examined the world’s largest 3D printing platform called Thingiverse. We examined 12,616 individual objects, which accounted for 50 percent of the platform’s total downloads. We found that most objects belonged to the so-called category ‘3D Printing’ and that the growth rates of the ‘Household’, ‘Models’, and ‘Toys & Games’ categories outpaced all other main categories. We argue that user innovators in 3D printing do not only innovate for the reasons present in theory. Besides the user innovation that serves a niche market and the user innovation that responds to consumer demands which are not yet known to firms, the activities on Thingiverse suggest a third form of user innovation. We label this form of innovation ‘substitutional design’. They are mere substitutes for known and available solutions, but innovative in their creation and production processes. Lastly, we investigated the complexity of the designs available on Thingiverse, exposing that — contrary to theory — designs tend to become simpler as the platform grows.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125224248","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
J. DelVecchio, Frederick L. White, Steven E. Phelan
{"title":"Tools for Innovation Management: A Comparison of Lean Startup and the Stage Gate System","authors":"J. DelVecchio, Frederick L. White, Steven E. Phelan","doi":"10.2139/ssrn.2534138","DOIUrl":"https://doi.org/10.2139/ssrn.2534138","url":null,"abstract":"This paper compares and contrasts the Stage-Gate and Lean Startup methodologies, both two popular approaches for launching new products and services. Although they were formed in different time periods, build on different theoretical traditions, and have targeted different audiences, there is enough commonality to demonstrate how the two respective methodologies have borrowed from one another and, in turn, might inform each other moving forward. We predict that the two theories will converge over time to form a set of best practices in new product development.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"127 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131064105","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Who is Afraid of Pirates? An Experiment on the Deterrence of Innovation by Imitation","authors":"C. Engel, Marco Kleine","doi":"10.2139/ssrn.2269635","DOIUrl":"https://doi.org/10.2139/ssrn.2269635","url":null,"abstract":"In the policy debate, intellectual property is often justified by what seems to be a straightforward argument: if innovators are not protected against others appropriating their ideas, incentives for innovation are suboptimally low. Now in most industries for most potential users, appropriating a foreign innovation is itself an investment decision fraught with cost and risk. Nonetheless standard theory predicts too little innovation. Arguably the problem is exacerbated by innovators’ risk aversion as well as their aversion against others benefitting from their efforts without contributing to the cost, and without bearing innovation risk. We model the situation as a game and test it in the lab. We find even more appropriation than predicted by standard theory. But the risk and the experience of appropriation does not deter innovation. We find even more innovation than predicted by theory, and actually more than would be efficient. In the lab, the prospect of givingimitators a free lunch does not have a chilling effect on innovation.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114335329","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Information Acquisition and Innovation Under Competitive Pressure","authors":"Andrei Barbos","doi":"10.2139/ssrn.1552055","DOIUrl":"https://doi.org/10.2139/ssrn.1552055","url":null,"abstract":"This paper studies information acquisition under competitive pressure and proposes a model to examine the relationship between product market competition and the level of innovative activity in an industry. Our paper offers theoretical support for recent empirical results that point to an inverted-U shape relationship between competition and innovation. The model presents an optimal timing decision problem where a firm endowed with an idea trades the benefits of waiting for additional information on whether this idea can be converted into a successful project against the cost of delaying innovation: a given firm's profit following innovation is decreasing in the number of firms that invested at earlier dates. By recognizing that a firm can intensify its innovative activity on two dimensions, a risk dimension and a quantitative dimension, we show that firms solve this trade-off precisely so as to generate the inverted-U shape relationship. The dynamic setup of our model offers insights not just in the cross-section on the relationship between competition and innovation, but also intertemporally on the optimal timing of innovation at firm level.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-09-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123095021","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}