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Research Highlights • An assessment of institutional quality, innovation, and economic growth in developing countries. • Long-run causality from innovation and institutional quality to economic growth is present. • Short-run directions of causality are varied among variables of interest. • Innovation and institutional quality generally positively impact economic growth. Continuous innovation is the lifeblood of a competitive economy. Furthermore, and arguably, the existence of institutions of governance of quality can be a catalyst for emerging economies to transition up the universal innovation value chain. In this context, we investigate temporal causal interactions among institutional quality, innovation, and economic growth for developing countries (DCs) spanning the period of 2005–2020. Employing a vector error-correction model (VECM), we find that for each case and specification (49 instances), there is evidence of the long-run causality from institutional quality and innovation to economic growth. Stated another way, in the long run, institutional quality and innovation Granger-cause economic growth. However, the short-run causality results differ depending on the specific measures of innovation and institutional quality. The strongest short-run conclusion is support for the feedback hypothesis for economic growth and innovation where there is a strong endogenous relationship between innovation, institutional governance, and economic growth. The empirical analysis shows over 70% of our observations support that economic growth and innovation jointly determine each other in the short run. The results suggest that DCs should develop and pursue long-term growth strategies that simultaneously develop innovation and improve institutional governance. [ABSTRACT FROM AUTHOR]

Crisis highlights conflicts but also helps disparate organisations rally around common objectives through forming ecosystemic relationships. To improve future crisis response, we study the influence of crisis-driven transitions on innovation in ecosystems. We illustrate the study with the dynamics of hydrogen innovation at Enel. Here, innovation caters to multiple value propositions; therefore, we define interecosystemic innovation as an innovation that addresses the value propositions of more than one ecosystem. The unexpected disruption caused by the energy crisis focuses attention on a single value proposition, thus fomenting the dynamic, temporal sequencing of interecosystemic innovation. This increases activity in the ecosystem core as well as interaction with the ecosystem periphery, allowing more rapid innovation iterations throughout the ecosystem. When operating in the intercept of ecosystems, firms need to consider the multiple value propositions of ecosystem participants to identify and mitigate tensions that may impede innovation. [ABSTRACT FROM AUTHOR]

To date, one of the most prominent methods to integrate users into the innovation process is the lead user method. However, due to its high resource intensity, it is less used than its potential would allow. In times of the internet and especially social media, this is changing since methods like netnography allow to efficiently identify potential lead users. Hence, based on a case study in the aviation industry, targeted screening and pyramiding are combined to identify lead users. Three users with sufficient characteristics to be lead users were included based on their degree-centrality and relevant contribution on Twitter. This study proposes the combination of these methods and Twitter as a suitable approach for lead user identification. [ABSTRACT FROM AUTHOR]

The emergence of digital innovation in academia and practice has been established, and it is time to consider when and how it affects innovation performance. Before this background, we examine how innovation practices such as open innovation and dominant design impact innovation performance, particularly in the case of digital innovation. We develop a theoretical framework that is tested on a long panel of patent data for 788 technologies over 32 years. Open innovation has no impact on the innovative performance of technologies in general, but for digital innovation, we find a positive effect. In addition, dominant design has a stronger impact on the innovative performance for digital innovations than for other innovations. We conclude that the management of digital innovation is different from that of other innovations since both open innovation and dominant design are more important for innovative performance. Indeed, some of the benefits of openness may only apply to digital innovation. [ABSTRACT FROM AUTHOR]

The synonymic use of sustainable innovation types obstructs the impact of increasingly disperse research on sustainable innovation, environmental innovation, eco-innovation, and green innovation. To identify the meaning and contributions of each innovation type over time, we apply co-word analysis as a bibliometric technique to 1,985 papers, analysing the evolution of motor, emergent and basic themes for each type. For environmental innovation, the focus has shifted from environmental regulations and policies to patents and inventions with an environmental impact, while in sustainable innovations the societal impact of technology adoption has become a driver. Green innovation increasingly concerns environmental technology and its management, whereas eco-innovation studies aspects related to efficiency and decision making. Clear distinctions among sustainable innovation types will increase the impact of this expanding body of research and make it more available to managers and policymakers. [ABSTRACT FROM AUTHOR]

Team performance is key in each organisation. Hence, cultural effects in teams are a relevant matter of subject clarifying the ambiguous findings from previous research. With this background, we investigate how the macro-constructs of conflict, communication effectiveness, social integration, creativity and satisfaction interact with cultural diversity on team performance in an environment characterised by a largely homogeneous and ethnic workforce. We test our hypotheses on a sample of firms in Thailand. Our results indicate that creativity and satisfaction have a significant positive impact on team performance whereas cultural diversity has a significant positive impact on influencing conflict in a team-based environment. However, cultural diversity has no significant impact on communication effectiveness and social integration, and it has no significant impact on team performance. The key theoretical contributions from our study are that cultural diversity can contribute to conflict even in a team composition that is seemingly cohesive and homogeneous in nature. Further, our study establishes that creativity and satisfaction have a positive effect on team performance even in the context of a homogeneous and ethnically majority-based team. For the practitioners, the results of the study indicate that initial actions need to be taken by the leaders of multicultural teams as they create teams to avoid the initial pitfalls due to conflict. [ABSTRACT FROM AUTHOR]

This study empirically analyses the effects of five critical success factors on the front end of innovation and new product development success. Data from a self-developed questionnaire on a cross-industry sample of 77 German-based small- and medium-sized firms were collected through an online survey. Accouting for factors not included in previous studies, the results indicate that strategic alignment, creative encouragement, and external collaboration are the key predictors of front-end success. Surprisingly, the impact of process formalisation and the importance of cross-functional collaboration for front-end success could not be supported. We conject that collaboration in the front end of innovation must exceed simple communication and information exchange to significantly effect front-end success. Managerial implications of this study include the need for an internal search for ideas by fostering employees' creative abilities while simultaneously remaining open to external input. Also, activities in the front end of innovation should be aligned with the organisation's overall business strategy to promote successful ideation. [ABSTRACT FROM AUTHOR]

The Lean Startup approach and its related Minimum Viable Product thinking is one of the key trends not only in entrepreneurship, but also in more and more established companies. Before this background, this paper experimentally investigates whether and how the Lean Startup approach improves innovation processes in established companies. For this, the overall experiment had 23 participants, the outcome was then matched against a control group and evaluated through a survey with 146 representatives of the target group of the product. The results show that the Lean Startup approach outperforms the traditional approach and that this method improves the success rate of innovation ideas and thus supports the learning philosophy within established companies. Moreover, the experiment revealed a superior performance, especially relating to financial output. Based on these results, implications for research and companies are discussed, as well as limitations and further research suggestions. [ABSTRACT FROM AUTHOR]

The rising use of crowdfunding makes it important for project initiators to know how they can increase the likelihood of success of their crowdfunding campaign. The effects of using social media, although relatively easy to do via most crowdfunding platforms, have not yet been analysed in greater detail in scientific research. We address this research gap by investigating the effects of social media reach and utilisation on measures of reward-based crowdfunding success, based on an analysis of 230 projects from the crowdfunding platform wemakeit. Our results show that social media reach via the number of social media accounts that belong to the project and the number of accounts that belong to the project initiator increases the number of investors and the percentage of the funding goal that is obtained. Furthermore, social media reach via the size of the projects' and the individuals' social networks has not been found to be important for crowdfunding success. Social media utilisation in regard to the amount of content shared is found to be positively associated with crowdfunding success. [ABSTRACT FROM AUTHOR]

In recent years, there has been a shift in the epicenter of innovation from developed to emerging markets. Western multinationals are increasingly harnessing the potential of emerging markets by setting up local subsidiaries and developing frugal and reverse innovations. This study is an attempt to explore this shift and investigate the process of development of these innovations using a case study analysis approach. The study analyses the case of a technology-based Danish multinational (MNC) and explores how frugal innovations in India and China are developed. Based on nine interviews with leading R&D experts, the results provide evidence for the ongoing innovation shift and offer insights into the development of frugal products in local R&D projects. Growing traction towards reverse innovation, where MNCs are developing frugal products for global markets is also an important finding. [ABSTRACT FROM AUTHOR]

More and more, established companies try to cooperate with start-ups, build their own, or try to imitate their mindsets. But, do they make decisions like expert entrepreneurs? Effectuation theory describes entrepreneurial decision-making, it has been popular in entrepreneurship research for the last two decades, but still underexplored in contexts such as established company's decision-making. Therefore, this study answers the question of which factors affect the use of effectuation in established companies. Furthermore, the current use of the start-up decision-making principle is investigated. The research results show a higher use of effectuation over causation (alternative mechanism) in established companies. However, decision-making principles like "Mean orientation" and "Contingency orientation" are still dominated by causation. Identified factors for implementing effectuation in established companies are divided into six categories. In particular, effectuation requires a high flexibility and willingness to change goals. Using the already available means and resources of a company to pursue new goals, is another argument for using effectuation. Additionally, a more open and transparent culture, encouraging the identification and admittance of mistakes, also supports the use of effectuation. Based on this research, established companies should be able to understand better on which factors the implementation of effectuation depends and where it makes sense to use it. [ABSTRACT FROM AUTHOR]

This research is an approach to connect creativity and multicultural experiences (MCEs): we give insights into how and what type of MCE influences people's perceptive abilities such as creativity. We offer one of the first empirical examinations that links the perception of creativity concept to strategy of acculturation. This study addresses an often-mentioned research gap by examining laypersons' ability to perceive different levels of creativity. For this, a sample of 195 participants from 26 countries with and without MCE was researched. Findings indicate that attitudes as well as personal and professional goals apparently influence people's creativity perception. The acculturation strategy integration seems to be a determining factor in this respect. As MCE has become a firm part of many people's CV, the present paper adds to an omnipresent phenomenon in today's society, which is worth studying. [ABSTRACT FROM AUTHOR]

Customer capital has attracted a great deal of attention among marketing scholars in recent years. This study explores at first the links between customer capital with firm innovativeness (i.e., the ability to generate new ideas and actions within firms) and customer response speed (i.e., the ability to respond to the customers' needs immediately). Furthermore, it is analysed how firms' marketing capability mediates these relationships. For this, a unique environment in post-sanctions Iran is chosen. By using the original survey data from 107 small and medium-sized enterprises (SMEs), our results confirm that durable relationships that a company builds with its customers over the time enhance the market information within firms. This, in turn, enables firms to respond faster to market changes with innovative products and services. Furthermore, the lifetime relationship with the customers enhances the awareness of firms about customers' needs and demands in a timely manner. Accordingly, it accelerates the process of responding the customers' requirements before competitors can catch up. [ABSTRACT FROM AUTHOR]

Make-or-buy decisions on technology-intensive components represent a key task in the management of technologies. Against this background, this paper presents an analysis of a technology company which gave key insights into their make-or-buy decisions on the strategic and operative level. The results show two kinds of make-or-buy decisions, called type 1 and type 2. In contrast to type 1 make-or-buy decisions whose scope is mostly limited to the production and quality function, type 2 decisions are strongly linked to engineering and R&D activities. Moreover, two new decision matrices are introduced: a ‘product/subsystem aggregation’ scheme and a ‘make-or-buy controlling’ matrix. In an environment in which companies move towards greater use of outsourcing, the framework ensures that company strategy and core competencies are followed in the long run despite short-range deviations of make-or-buy analysis results. These findings might be helpful and suitable to other manufacturing companies that deal with technology-intensive components on a strategic and operative level. [ABSTRACT FROM AUTHOR]

Research on the lead user method has been conducted for more than thirty years and has shown that the method is more likely to generate breakthrough innovation than traditional market research tools. Based on a systematic literature review, this paper shows a detailed view on the broad variety of research on lead user characteristics, lead user processes, lead user identification and application, and success factors. The main challenge of the lead user method as identified in literature is the resource issue regarding time, manpower, and costs. Also, internal acceptance and the processing of the method have been spotted in literature, as well as the intellectual property protection issue. From the starting point of the initial lead user method process introduced by Lüthje and Herstatt (2004), results are integrated into a revisited view on the lead user method process. In addition, concrete suggestions for corporate realization options are given. The article closes with limitations and future research suggestions. [ABSTRACT FROM AUTHOR]

Earlier research on the lead user method is focused on individual case studies and how the method was applied in a specific context. In this paper, we take a broader approach, analyzing a sample of 24 lead user projects, which included working with 188 lead users. These projects were analyzed regarding their specific processes, resources, challenges, and success factors, using the data of an open innovation intermediary. The key finding is that a refinement and elaboration phase and the integration of designers are crucial success factors which, to date, have not been included in the literature. Moreover, crowdsourcing contests and netnography proved to be of significant value for the need, trend, and lead user identification phases. This paper concludes by discussing theoretical and practical implications, the limitations of this study, and recommendations for future studies. [ABSTRACT FROM AUTHOR]

Business model innovation (BMI) is the process of integrating a new logic of doing business into an established firm to improve profitability or to capitalise on new business opportunities. However, existing research offers only limited clarity on BMI compared to business model upgrades or a specific product innovation. From a body of extant literature, we develop a BMI identification tool which is then tested by senior managers from four large European corporations to assess whether innovation efforts represent BMI. The tool operationalises BMI and offers straightforward criteria and indicators to assist researchers but especially practitioners at accelerating BMI in established firms. This paper closes with recommendations for future research and limitations. [ABSTRACT FROM AUTHOR]

Literature on the champion theory proposes the informal character of the champion's role and also notes difficulties in institutionalizing it. Nevertheless, formally institutionalized roles that seem to fit the description of a champion can be recognized in organizations, especially as enablers of open innovation activities. However, research cannot answer how this institutionalization occurs and which factors influence it. To answer these questions, we investigate a unique single case in which a champion role was institutionalized in the purchasing department of a multinational company. The new role's task is to identify, select, and integrate supplier innovations. Our results indicate that the informal role of the champion can be successfully institutionalized when certain success factors are considered, which are management commitment, use of success stories, and matching of champions with research and development teams. We contribute to innovation management literature by using the well-established champion theory to explain how and why large multinational companies formally establish the role of the innovation champion. Our research offers pathways for further research about both, the antecedents and the consequences of role formalization. Practitioners can build on the success factors derived in this study when formally implementing innovation champions as enablers of open innovation activities. [ABSTRACT FROM AUTHOR]

An important and frequently researched concept in the field of open innovation is the integration of lead users into the process for developing innovative product concepts. Social media has offered promising new possibilities for companies in terms of supporting lead user integration. This paper provides an overview of relevant aspects of lead user research, as well as the identification of lead users. Furthermore, we connect lead user theory with social media and discuss possible ways to identify lead users. Based on the conclusion that existing research does not yet sufficiently provide a detailed understanding on identifying lead users in social media, we conducted an empirical study to gain deeper insights in the social media habits of lead users; this involved a case study comprising 20 interviews. This study's findings present a rather ambivalent picture, concluding that identifying lead users via social media may work with some limitations. Social media can contribute complementary with established approaches like pyramiding to the identification of lead users, but it is not a standalone solution. It strongly depends on the content of the project and on the group of individuals where lead users should be originated. Based on these findings, we derive theoretical and managerial implications and show how companies can utilize social media in addition to established methods for identifying lead users. Finally, the paper concludes with a discussion of study limitations and recommendations for areas of further research. [ABSTRACT FROM AUTHOR]

Internationalization is a hot topic in innovation management, whereby the phenomenon of 'Born Globals' is still limited to research in the domains of Entrepreneurship and International Management. As business model design plays a key role for Born Globals, we link these two concepts. For this, we propose hypotheses about the influence of efficiency-centered and novelty-centered business model design on international firm performance. To test these hypotheses, we performed a quantitative survey with 252 founders of international companies in Germany, Switzerland and Liechtenstein. Additionally, we gained further insights through a case study analysis of 11 Born Globals. The results show that business model design matters to international firm performance and the business model design of Born Globals tends to be more efficiency-centered. Based on a multiple case study, we analyzed business models in a more sophisticated way and derived propositions that yielded in an archetype of a Born Global's business model. [ABSTRACT FROM AUTHOR]

Over the past decade, research on innovation in family firms has received growing attention by scholars and practitioners around the globe with a wide range of aspects explored within the current body of literature. Despite the constantly growing number of scientific publications, research lacks a comprehensive and critical review of past and present research achievements. First, conducting a bibliometric analysis with a focus on innovation in family firms, we identify five topical clusters that help to understand the foundations of recent findings: namely ownership and governance, structural settings, organizational culture and behaviour, resources, and innovation and strategy. Second, based on a thorough literature review the major research avenues are reflected. The comparison of the results of both analyses showed the following areas for future research on family firm innovation: members' individual human capital and their leadership behaviour, openness to externals, cross-country comparisons, and finally the family's functional integrity on innovation performance. [ABSTRACT FROM AUTHOR]

Creativity is a vibrant field of scientific research with important applied implications for the management of innovation. In this article, we argue that the proliferation of creativity research has led to positive and less positive outcomes and discuss five relevant research themes. We first introduce our readers to the different proposed dimensions of a creative object. Next, we explain recent developments on the level of the creativity magnitude issue. Based on that, we review how researchers currently operationalize creativity. After discussing how creativity is conceptualized and operationalized, we outline how it might be enhanced. Finally, we present an overview of the wide variety of methodological approaches currently used in creativity research. We close by calling for more interdisciplinary research and offering other suggestions for future directions. [ABSTRACT FROM AUTHOR]

Multi-cultural teams are seen as a wellspring of creativity and innovativeness. Yet, we still miss an in-depth study of their potential and challenges during the innovation process in firms. This is a serious omission as many international firms are in need of improving their global innovation position by the inclusion of insights from team members of different nationalities with knowledge about markets and culture. To derive first insights, we conducted a longitudinal qualitative study in a large global company with 70 personal interviews in five innovation teams over a period of two years. These data, based on semi-structured interviews, provide us with rich information about effects of cultural diversity in teams in the innovation process. Data were analysed through a thematic network analysis and two coders inductively forming categories. Results indicate that cross-cultural teams have a high potential of creativity, but are confronted with difficulties arising from different working- and communication styles which have to be proactively managed from the beginning. While progressing, teams learn to cope with this diversity related to some more surface-level cultural dimensions and members even align. Yet, diversity of power distance induces conflicts that deeply impact the innovation process. Based on these findings, we develop a set of propositions, which lead into a conceptual model on the effects of multi-cultural team work on creativity and innovation. Finally, we discuss further implications for research and practice. [ABSTRACT FROM AUTHOR]

A rich body of literature has emerged from research on Western new product development (NPD). However, the impact of country- and culture-specific influences on these processes has not been examined in detail yet. Hence, this study identifies the differences in NPD practices between the Indian and German research and development (R&D) subsidiaries of multinational companies (MNCs). Data have been generated by interviews with R&D executives in both countries across multiple cases. The study samples strategic, organisational, and operational aspects and indicates differences in process coordination, reward systems, NPD creativity techniques, market orientation, and the average age of NPD teams. Other aspects, such as top management support, the use of structured NPD processes, and the use of heterogeneous NPD teams, show no substantial differences between the countries. Our findings suggest that, while some aspects are universally applicable across cultural frontiers, Western companies must understand India's different expectations regarding NPD and adjust their practices accordingly. [ABSTRACT FROM AUTHOR]

In times of changing business models and international competition, there is an inherent need for companies to foster and develop mechanisms to absorb new technologies for innovative products and processes effectively. Such considerations lead to the strategic make-or-buy decision which was the subject of our research. This quantitative explanatory study in the German industry shows in particular that companies base their decision for internal or external sourcing on multiple weighted criteria with scoring models and, even more common, with portfolio matrices. These results are in common with recent research, however, other results are surprising, e.g. just a small minority of companies involve people from controlling and legal departments in these decision processes. The paper also reveals differences between companies with different timing and com-petitive strategies, which are in line with the proposed characteristics of these strategic focuses in literature. Implications for theory and practice are given to foster future research in this area. [ABSTRACT FROM AUTHOR]

Corporate innovation management geared to long-term success calls for a strategy to grow innovations into a substantial competitive advantage. This, however, coincides with an enormous failure-rate at the market, especially in the field of breakthrough innovations. Hence, in recent times, companies are trying to alleviate the risk of lacking user-acceptance through opening their innovation processes to external actors, particularly customers. The method of integrating lead users is determined by the effective and systematic identification of leading-edge customers, which is considered to be a critical phase within this approach. With the arrival of Web 2.0 applications, there is a huge potential to improve these selection processes. Our research into online communities and weblogs scrutinised the search criteria in an online environment and revealed the following characteristics as crucial factors for the online identification of lead users: being ahead of a market trend, high expected benefits, user expertise and motivation, extreme user needs as well as opinion leadership and an online commitment. [ABSTRACT FROM AUTHOR]

The article presents an introduction to a special issue on open innovation and the integration of suppliers in companies, with topics including the lead-user concept in innovation management, multilevel business-to-business relationships, and the relationship between suppliers and customers.

No abstract received. [ABSTRACT FROM AUTHOR]