Integrating leader-users’ knowledge: Evaluating the absorptive capacity of different technological companies.

PHD Student: Ana Elisa Martins Pacheco de CastroSupervisor: Prof. Dr. Roberto SbragiaSão Paulo University

AGENDA

Context Gap from Literature Question Point Literature Review Conceptual ModelMethodology Expected Contribuitions

CONTEXT

Environment is changing

The increased flow of knowledge (ICTs):

The information created and transmitted via the Internet, telephone networks and private networks reached more than 900 billion gigabytes (IDC, 2010);

People are getting more technological;

Restructuring of old business models eg: music industry;

Emergence of new business models based on external knowledge – Youtube; Wikipedia; Red Hat.

CONTEXT P&D:

Commoditization of technology X Reduced costs and risks

Knowledge’ specialization

Rising collaboration networks complexity

Firms invest in greater product variety but are less able to differentiate themselves and the concern about how to create value have become the dominant themes for managers.

The meaning of value and the process of value creation are rapidly shifting from a product- and firm-centric view to personalized consumer experiences.

CONTEXT

Innovation Process

Lean

Organizational and systems integration

Flat and flexible organizational structures

Bank developed data (information integration)

Rapid prototyping

Efficient sharing of knowledge

-

How to resolve these issues?

CONTEXT

Challenge for companies

Increase internal knowledge

Improve the user experience

Reduce costs and risks

Expand the product line, but focused

-

WHAT DOES THE LITERATURE SAY

Innovation

Absortive Capacity

Users Collaboration

(ZAHRA; GEORGE, 2002, VON HIPPEL, 1986)

LEAD USER (VON HIPPEL, 1986)

1. Lead users have new product or service needs before the others consumers2. Lead users expect to benefit significantly by finding a solution to their needs.

Churchill et al, 2009

Realized

CONCEPTUAL LOGIC ON ZAHRA; GEORGE, 2002, P. 192 )

- Knowledge source and complementary- Prior Knowledge

Transform

Exploitation

Competitive Advantage

-Flexibility- Innovation- Performance

Absortive Capacity

Activation triggers

Social integration mechanism

Regimes of apropriability

Potential

Acquire

Assimilate

WHAT HAS BEEN SAID Lead User Innovation Absortive Capacity

- Risks (ENKEL; KRAUSCH, GASSMANN, 2005)

- Benefits (VON HIPPEL, 1986; EISENBERG, 2011)

- Combining ideas from employees and lead users (EISENBERG, 2011)

- Determinants (FLATTEN et.al, 2011; LÜTTHEJE; HERSTATT, 2004; RITTER, WALTER, 2003; GASSMANN et.al, 2010)

- Motivation (HUANG et.al.; 2009; RAYMOND, 2001; DAHALANDER, GASS, 2010)

- Methods to integrate lead users (CHURCHILL et.al, 2009)

- Results from colaboration (VON HIPPEL, 1996)

- Lead user typology (CHURCHILL et al, 2009)

-Dimensions (COHEN; LEVINTHAL, 1990; ZAHRA;

GEORGE, 2002; TODOROVA; DURSIS, 2007)

- AbsortIve routines (DUCHEK, 2013; EASTERBY-SMITH et.al.; 2008; COHEN; LEVINTHAL, 1990)

- Practices (FOSS et.al, 2011)

- Determinants (ENKEL; HEIL, 2014; LANE;LUBATKIN, 1998; MOWERY; OSLEY, 1995; PENNINGS; HIRIANTO, 1992)

- Absortive toolkits

- Internal team characteristics (MOWERY; OSLEY, 1995)

- Knowledge absorbed characteristic absorbed (VERONA, 1999)

WHAT HAS NOT BEEN SAID YET

- There are few studies that address all dimensions of absorptive NPD (DUCHECK 2013);

- Many studies have dealt with the integration of lead users in a specific phase of DNP, usually in the early stages (ENKEL,E.; KAUSCH, C.; GASSMANN, 2005; VON HIPPEL, THOMKE; SONNACK, 1999; LUTHJE E HERSTATT, 2004; OLSON; BAKKE, 2001; LAURSEN, SALTER, 2006; OLIVEIRA; VON HIPPEL, 2011; VON HIPPEL, 1988; ENKEL,E.; KAUSCH, C.; GASSMANN, 2005), but few talk about how this integration can happen in more advanced stages of the NPD process.

- Studies talk about absorptive capacities in different companies but no one evaluates the absorptive differences of different sectors with the aim of linking the different absorptive practices to the results of innovation leaders users.

WHAT HAS NOT BEEN SAID YET

- Few studies that address all dimensions of absorptive NPD (DUCHECK 2013);

- Many studies have dealt with the integration of lead users in a specific phase of DNP, usually in the early stages (ENKEL,E.; KAUSCH, C.; GASSMANN, 2005; VON HIPPEL, THOMKE; SONNACK, 1999; LUTHJE E HERSTATT, 2004; OLSON; BAKKE, 2001; LAURSEN, SALTER, 2006; OLIVEIRA; VON HIPPEL, 2011; VON HIPPEL, 1988; ENKEL,E.; KAUSCH, C.; GASSMANN, 2005), but few talk about how this integration can happen in more advanced stages of the NPD process.

- Studies talk about absorptive capacities in different companies but no one evaluates the absorptive differences of different sectors with the aim of linking the different absorptive practices to the results of innovation leaders users.

QUESTION POINT

How do companies absorb lead-user's knowledge and which kind of contribution this knowledge brings to innovations’ outcomes in companies with different technologic demands?

LITERATURE REVIEW

FIRMSUniversity

Competidors

Supplier

CompaniesUsers

Lit

erat

ure

P

ersp

ecti

ve

Colaborative Perspective

OPEN INNOVATION (CHESBROUGH, 2003USER INNOVATION (VON HIPPEL, 1988)

Typology

Lead User

Early Adopter

Routine user

Laggards

Market Oriented

Technology Oriented

Acquire

Firm’s Result Perspective

Toolkits

Motivation

Communication

Coordination

User Innovation(VON HIPPEL, 1988)

Innovation ABSORTIVE CAPACITYTODOROVA; DURISIN, 2007

Knowledge’s Perspective

Routines

Assimilate

Transform

Explore

Practices Perspective

CONCEPTUAL MODEL

AConceptPhase

Discovery Phase

DevelopmentPhase

Test PhaseMarket

introduction

K ‘s Acquisition

K ‘s Assimilation

K ‘s Transformation

K ‘s Explotation

InovationsResults

Absortive Capacity

Based on Zahra; George, 2002; Von Hippel,

Prior Knowledge

Routinesand

Toolkits

Social integrationmechanism

Regimes ofapropriability

Nature ofthe project

Market K

TechnicalK

Lead UsersIndividual

Lead UserColletive

Lead UsersIndividual

Lead UserColletive

Lead User’s K

Activationtriggers

METHODOLOGY

Multiple case’s study (6 projects in different industries)

Time Dimension: Longitudinal

Retrospective Case

Triangulation: documents and enterviews

Analises Unit: User Innovation’s Project

Respondent’s profile: marketing/ sales, manufacture and P&D people.

Variables:

Absorptive Capacity1- rotines (how is the integration) 2- toolkits (mode of interaction, intensity of relationship, nature of the relationship

Lead Users1- Individual or coletive2- From the nature of knowdledge: market-oriented or technology-oriented

Results of Innovation

1-Market oriented: raising expectations, minor modifications of the product, product development, with greater acceptance, reducing errors in the development.

2 -Oriented technology: Significant improvement in product quality; development of new products or services

Technological Demand

(Services; TI; Indústria)

Variables:

Absorptive Capacity of Lead Users Knowledge

Nature of the Project

Techinical K

Market K

Lead Users Individual

Lead User Colletive

Lead Users Individual

Lead User Colletive

Acquire

Assimilate

Exlplore

Transform

Rotine

Toolkits

Acquire

Assimilate

Exlplore

Transform

Rotine

Toolkits

Acquire

Assimilate

Exlplore

Transform

Rotine

Toolkits

Acquire

Assimilate

Exlplore

Transform

Rotine

Toolkits

Service

Industry

IT Company IT Company

Industry

Service

Inovation’s ResultsIn Service

Inovation’s ResultsIn Industry

Inovation’s ResultsIn IT Companies

Innovation’s Outcomes from Lead User

CONTRIBUTIONAcademic Contribuitions:

1- Lead User Innovation – by comparing the behavior for lead users in different sectors and segments.2- Absortive Capacity - by showing how users leaders’ knowledge can be incorporated into all phases of NPD.3- Innovation Strategy – by connecting such different results arising from the absorption of lead users knowledge in different sectors.

Manager Contribuitions:

The results of this study are relevant for companys of different segments that seeking to involve appropriate users in NPD. In a more timely manner, this study aims:

1- Display the ways of involving lead users in different phases of DNP.2- Clarify the types of problems that can be solved by lead users and suggest some ways to protect this knowledge (appropriabily);3- Pointing different forms of relationship and communication most appropriate choices of different types lead users (individual and collective);4 - Increase understanding of the innovative possibilities from the integration of lead users in NPD.

Thank you

absorptive capacity

Lead Users

(ZAHRA; GEORGE, 2002, VON HIPPEL, 1986....)

Results of Innovation

Demanda Tecnológica

(Serviços; TI; Indústria)