International Journal of Technology Management (26 papers in press)
Absorptive capacity, technological innovation capability and innovation performance: an empirical study in Hong Kong
by Antonio K.W. Lau, William Lo
Abstract: This study examines how different learning processes of absorptive capacity (AC) influence technological innovation capability (TIC), leading to better innovation performance and product competitiveness under a new industrial context. Data from a self-administrative industrial survey conducted in 200 firms in Hong Kong was used. The results show that the combination of four individual learning processes (i.e. acquisition, assimilation,rntransformation and exploitation) of AC provides the better fit of the study than a single construct of AC. All the learning processes affect innovation performance through TIC. The assimilation and exploitation have direct effects on product competitiveness. The finding of this study increases our understanding of how the learning processes of AC relates to TIC andrnfirm performance. This study also addresses the current weaknesses of AC in empirical studies by using direct measures of AC, breaking down AC into four components separately, and also studying the intangible outcomes of AC.
Keywords: Absorptive capacity; technological innovation capability; empirical study; Hong Kong.
Worldwide IP coverage of patented inventions in large pharma firms: to what extent do the internationalisation of R&D and firm strategy matter?
by Patricia Laurens, Christian Le Bas, Antione Schoen
Abstract: The paper deals with the determinants of worldwide IP coverage of patented inventions in large pharmaceutical firms. We support the core idea that the internationalisation of firm R&D is a positive key factor which explains global IP coverage. For the global pharmaceutical industry we estimate logit models on the probability that a patent will be expanded worldwide. We retain two categories of worldwide patent: the well-known triadic patent and the new triadic one (triadic+ China + Korea). The data set encompasses the 17487 priority patents applied by 69 enterprises from several countries over the period 2003-2005. One important finding is that patenting in Japan sets up an important barrier, giving Japanese firms an advantage when triadic patenting is considered. For European and US firms our estimation results confirm the idea that the level of firm R&D internationalisation is a significant explanatory factor in international IP coverage, together with control variables. We highlight an inverted U-shaped relationship between these two variables.
Keywords: global patent coverage; pharma firms; internationalisation of R&D; strategy; globalisation of technology.
Classifying different types of modularity for technical system
by Hao Li, Miying Yang, Steve Evans
Abstract: Modular design is regarded as an effective approach to reduce production cost and increase mass customization and personalization in industries. The implementation of modularization requires the support of the entire technical system, including product, service and supply chains. However, most modularity studies only focus on product modularity. There is a need for comprehensive understanding of modularity in product, service and supply chains. This paper addresses this need by defining the modularity of the technical system, including product, service and supply chains; and providing classifications for modularity across product modularity, service modularity and supply chain modularity separately. The contributions of this paper are: (a) a review on the classification of technical system modularity; (b) the analysis of internal relationship among different types of product modularity, (c) a proposal for different types of service modularity and supply chain modularity. This study can assist manufacturing companies to improve modular design and management of technical system.
Keywords: technical system; product modularity; service modularity; supply chain modularity.
The dynamics of relational quality in co-development alliances
by Francis Bidault, Alessio Castello
Abstract: Co-development alliances are a specific form of cooperative arrangements which firms engage in with the intention of creating new products, services or technologies through coordinated efforts and commitment with other organisations. These cooperative agreements have been increasing in numbers over the past few decades. In this article, we discuss the role of relational quality, a construct that has been recognised as affecting the survival and ultimate success of alliances. We argue that relational quality is especially critical in co-development alliances, and propose a model for analysing it, and its drivers, based on a set of retrospective and longitudinal case studies that we conducted. We formulate several research propositions that can be derived from the model presented.
Keywords: co-development; R&D partnerships; cooperative R&D; joint R&D; technology alliances; joint innovation; co-innovation; relational quality; confidence in partners; trust and control.
Technological Capabilities, Political Connections and Entry Mode Choices of EMNEs Overseas R & D Investments
by Yanyu Wang, Zhenzhen Xie, Wei Xie, Jizhen Li
Abstract: Through the combination of resource based view and institutional perspective, this study investigated how different types of ownership advantages interact to influence the entry mode decisions of emerging market multinational enterprises (EMNEs) investing in R & D overseas. Data from a survey of 82 Chinese manufacturing firms were analyzed to determine that the technological capabilities (i.e. traditional ownership advantages) and political connections (i.e. non-traditional ownership advantages) jointly influence decisions by firms to choose greenfield investments (i.e. resource-exploitation entry mode) over some sort of acquisition or joint venture (i.e. resource augmentation entry mode). Specifically, the study showed that strong political connections at home encourage greenfield investments. Strong technological capabilities have relatively little direct impact, but interact with political connections to encourage greenfield investments.
Keywords: Research and development; Resource-based view; Entry mode choices; Technological capabilities; Political connections; Emerging economies; China.
How do firms meet the challenge of technological change by redesigning innovation ecosystem? A case study of IBM
by Yuchen Gao, Xielin Liu
Abstract: An innovation ecosystem can add competitive advantages to focal firms and help them win the market with their partners. However, the ecosystem needs to evolve as the environment changes. There are few studies focusing on how the architecture of innovation ecosystem evolves and how firms accomplish this evolution through appropriate strategies of leveraging complementors. The main purpose of this study is to explore the evolutionary process of ecosystem under both radical and incremental technological changes based on a single case study and a patent analysis of IBM. From the innovation ecosystem perspective, we find that the ecosystem architecture is becoming more complicated when transforming from a single-hub to a multi-hub form via sharing patents of IBM. We also find that IBM has advanced its ecosystem as well as leveraged complementary technologies mainly by technological collaboration, mergers and acquisition (M&A), but the emphases of leverage strategies are varying along with distinct technological changes. Moreover, IBM would help the complementors co-evolve with the developing ecosystem. This study is expected to contribute to the literature of strategy and innovation ecosystem and provide firms with implicating guidance to survive and grow in a time of technology turbulence.
Keywords: innovation ecosystem; technological change; evolution; IBM; patent analysis.
Intellectual Property Strategy for the Ecosystem of the Internet of Things
by Yi-juen Chen, Ta-jung Lu
Abstract: In this paper we explored the Internet of Things (IoT) ecosystem and the intellectual property (IP) strategies of Taiwanese firms. A questionnaire survey and interviews with high-ranking managers of IoT firms offered insight in this study. Our contribution is adding the multi-supply context to the multi-invention context, introducing the ecosystem to the formulation of the IoT IP strategy, and the argument that the profitability of IoT firms is shifting from the individual firm basis to the entire ecosystem basis. We argue that IoT IP strategies must support this trend and consider aligning IP strategy with the IoT ecosystem, utilizing multi-IP protection, integrating IP strategy with industry solutions and monitoring the litigation trigger point. These resultant strategies will prove helpful to IoT firms in formulating a practical IP strategy.
Keywords: Internet of Things; IP strategy; open source; ecosystem.
The Strategy of Collaborative Monopoly with use of the scheme of Standardization for Storage Product
by Haruo Awano, Koji Tanabe
Abstract: It is important to standardize a new product in order to expand a market. However, it is not easy to profit from a standardized product because its specification is open to competitors. This paper examines the way in which IBM, HP and Quantum (former Seagate) were able to succeed in profiting from the business of LTO (Linear Tape Open) and in jointly monopolizing the market in spite of the fact that LTO was standardized. A key factor for their success is a strategy of collaborative monopoly with use of the scheme of standardization. This strategy consists of two strategic activities. First activity is to carry out the open type razor and blade business model by utilizing the scheme of standardization in order to profit from the consumables such as storage media. Second activity is to realize antecedent development of both technology and business for the next generation of the media.
Keywords: standardization; monopoly; collaboration; razor and blade; business model; strategy; consumables; IBM; HP; Quantum; LTO; antecedent development; DVD.
Identifying R&D Partners using SAO Analysis: A Case Study of Dye-sensitized Solar Cells (DSSCs)
by Xuefeng Wang, Yun Fu, Ying Huang, Yuqin Liu, Donghua Zhu
Abstract: This paper proposes a systematic process to identify potential research and development (R&D) partners from a technological perspective based on subject-action-object (SAO) semantic analysis. Improvements to traditional methods are made by combining the SAO structure map and the collaboration network analysis. The SAO structure map reveals the technological development trends, organizations research contributions, and their research experiences in the field, which are the factors that indicate an organizations R&D capabilities. Furthermore, we explore the organizations collaboration statuses through collaborative network analysis and their collaborative publications, which make it easier to identify the organizations sense of cooperation. Potential R&D partners are identified by examining the organizations R&D capabilities and sense of cooperation. An exploratory study is conducted on dye-sensitized solar cells (DSSCs). The proposed method provides useful information for organizations (firms, institutions, universities, etc.) to identify potential R&D partners or make cooperation related policies.
Keywords: Partner identification; subject-action-object (SAO); mapping science; semantic analysis; collaborative network analysis; dye-sensitized solar cells (DSSCs).
Distribution structure and evolution of global innovators based on patent coupling analysis: A study of the flat panel display industry
by Yong Hong, Miao Cui, Hong-hong Zhang
Abstract: In open innovation environment, to effectively seek and acquire external knowledge sources, and promote organisational innovation, it is necessary to understand distribution structure and evolution characteristics of global innovators. This paper by using the perspective of knowledge characteristics of innovators and their knowledge relationships, adopting a patent coupling analysis approach, proposes an analysis content framework and corresponding procedures. We take the flat panel display sector for example, and investigate the overall distribution structure, individual technology characteristics and their evolution for the Top 60 innovators in three stages. The research findings revealed the overall distribution groups (sub-fields) and evolution of the primary global innovators and the individual technology characteristics and technology innovation strategy evolution. This study provides firms valuable references to analysing external knowledge sources, manage R&D cooperation and determine technological innovation strategies.
Keywords: external knowledge sources; patent coupling analysis; distribution structure; technology characteristics; global innovators.
A comparative study of the effects of internal and external technology spillovers on the quality of innovative outputs in China: The perspective of multistage innovation
by Xionghe Qin, Debin Du
Abstract: This study compares the extent to which external technology spillovers, represented by foreign direct investment (FDI), and internal technology spillovers, represented by universityinstituteindustry cooperation (UIC), influence the quality of innovative outputs. It does so by employing the perspective of multistage innovation in China. We construct a conceptual framework that divides the innovation process into three stages: knowledge innovation, technology innovation, and product innovation. Through a combination of the three-stage innovation value chain approach and econometric modeling of the knowledge production function, a panel regression is used to analyze the effects of FDI and UIC on the quality of innovative outputs during each stage, using data for 20062015 on 30 provinces in China. By comparing UIC with FDI, we find that UIC has a higher coefficient and stronger significance level than FDI in the knowledge innovation and product innovation stages, while instituteuniversity linkages exhibit a negative association with the quality of innovative outputs in the technology innovation stage. However, from a regional perspective, it is found that only instituteuniversity linkages in the knowledge innovation stage show a positive association with journal paper quality in coastal regions, whereas industryuniversity cooperation matters more in the product innovation stage in inland regions.
Keywords: foreign direct investment; university-institute-industry cooperation; innovative output quality; external technology spillover; internal technology spillover.
Exploring the Effectiveness of Pursuing Competing Technologies in Parallel Projects during Predevelopment
by Ties Van Bommel, Edwin J. Nijssen, Ronald J. Mahieu
Abstract: Prior research has studied the effectiveness of parallel projects in the research and development stages. However, it has ignored predevelopment, which R&D intensive firms generally distinguish as a separate stage lodged between research and development. Predevelopment focuses on activities and decisions to select, from a subset of related technologies, the best option for a product application. Parallel projects are often a means of speeding up this process by actively pursuing learning spillovers. This paper develops assumptions about learning potential and then uses a real option model to test the trade-off between the higher costs and benefits of this parallel project approach. We compare outcomes for predevelopment using the same approach under research and development conditions, respectively. The results reveal that, when moving from research to development, the effectiveness of pursuing competing technologies in parallel projects first increases and then decreases, with a maximum positive result in predevelopment. The results also show that learning spillovers can compensate for the higher investment costs. Data from an empirical case support our findings.
Keywords: competing technologies; interproject learning; parallel development; predevelopment; real options.
The Opportunity-driven Innovation Catching-up from China In Engineering and Technical Services Industry: Does Technology Gap Generate Opportunity Gap in Innovation?
by Jia Ma, Yusen Xu
Abstract: Narrowing the technology gap is often considered as a basic measure for latecomer firms to accomplish innovation catching-up. To capture more innovation opportunities, most latecomer firms endeavor to close the technology gap between the leading firms through hard investment in R&D. However, in this study, we find different logic in this issue. In the multi-case study, 14 latecomer firms from China in the engineering and technical services industry, which successfully accomplished the innovation catching-up, have been investigated. The key influencing factors of innovation catching-up have been identified and the relationships among these influencing factors have been detected. An Opportunity-Action Model of innovation catching-up are build up based on the multi-case analysis, revealing that the innovation catching-up of latecomer firms from China in the engineering and technical services industry is opportunity-driven. Three main forces, including the environmental stimulus, talent resource and local market-pull, shape the innovation opportunity. Linking to the international and technology localization are two essential strategic activities for latecomer firms responding to the innovation opportunities. The research finding shows that the innovation catching-up of these latecomer firms are driven by opportunity, which is mainly shaped by the external forces but not decided by the internal technological (capability) factor. The empirical evidence and finding therefore implies that the larger technology gap between the latecomer and the leading firms does not signify that the latecomer firms have fewer innovation opportunities in such context. In the innovation diffusion, at least as shown in this study of the engineering and technical industry in China, the technology gap does not directly generate the opportunity gap in innovation. On the other hand, the opportunity gap between the latecomer firms and leading firms especially embedded in emerging markets or low-end markets, actually make changes of the technology gap through the latecomer firms technological catching-up.
Keywords: Innovation Catching-up; Innovation Opportunity; China; Technology Gap.
Knowledge Transfer Efficiency Measurement with Application for Open Innovation Networks
by Jiafu Su, Yu Yang, Xuefeng Zhang
Abstract: Knowledge transfer efficiency is an important indicator to evaluate the performance of open innovation (OI). However, there are few researches on the measurement of knowledge transfer efficiency in the context of OI networks. To make up this gap, this study explores the measurement of knowledge transfer efficiency based on the weighted OI network. Firstly, this paper builds the weighted OI network model with node and edge weights. On the basis of the weighted OI network model, the weighted path length and clustering coefficient are introduced and analyzed. Moreover, the efficiency of knowledge transfer is further proposed as the main measure of knowledge transfer efficiency by comprehensively embodying the above factors, and then an extended application of the proposed main measure is developed to identify and locate the important members with great impact on knowledge transfer. Finally, a real case of several OI networks is provided to illustrate the applicability of the weighted OI network model and the knowledge transfer efficiency measurement method.
Keywords: open innovation network; knowledge transfer; weighted complex network; efficiency of knowledge transfer; member importance.
Structural Characteristics of Extended Alliance Portfolio Configuration and Firm Innovation
by Hosung Kim
Abstract: So far, the scope of alliance portfolio configuration (APC) studies has included only one degree, namely direct alliances or partners of a focal firm. Based on the sociological concept of Three Degrees of Influence Rule, this study extends the scope of the APC of a focal firm to three degrees, and two structural variables (clustering coefficient and the average distance from a focal firm) are extracted from the extended APCs of 31 Korean bio-pharmaceutical firms. Then, the effects of these variables on firm innovation performance are analyzed using the two-step generalized method of moments (GMM) estimates. The results show that the more clustered the extended APCs are, and the closer their average distance from a focal firm, the more favorable the innovation performance of the firms. Additionally, the average distance was found to moderate the clustering effect in the extended APC. Attempting to interpret the APC with such an expanded concept is expected to accelerate further research in the future.
Keywords: extended alliance portfolio configuration (APC); clustering coefficient; average distance; two-step generalized method of moments (GMM).
Special Issue on: People Create Your Innovative Technology – How Do You Manage Them
How Individuals Perform Customer Knowledge Absorption Practices A Contextual Approach to Open Innovation
by Christian A. Mahringer, Martin Rost, Birgit Renzl
Abstract: Enabling individuals to perform open innovation practices requires an in-depth analysis of the context in which those practices are enacted. However, research on the context within which open innovation is practiced, is still in its beginning. This paper develops a theoretical framework of the relationship between open innovation practices, individuals performing those practices, and context factors that enable or constrain those individuals carrying out open innovation practices. Moreover, the paper reports empirical research on context factors enabling or constraining salespeople in performing customer knowledge absorption practices, a specific subset of open innovation practices, in a pharmaceutical packaging machines firm. The paper contributes to open innovation research by (1) advancing a contextual view on open innovation, (2) emphasizing the need to distinguish between open innovation practices that provide an analytical tool to unravel the social dimension of open innovation, and (3) identifying context factors that enable or constrain customer knowledge absorption.
Keywords: Open innovation; inbound open innovation; open innovation practices; practices; outside-in process; customer knowledge; user knowledge; knowledge transfer; knowledge absorption; firm characteristics; context; contingency view; organisational design; salespeople; competencies; skills; bio-pharmaceutical industry; case study; subsidiary.
Crafting better team climate: the benefits of using creative methods during team initiation
by Dirk J. Primus, Crystal Jiang
Abstract: This study employs a mixed methods approach to investigate the effect of creative methods, the combinative use of model building and storytelling, during team initiation on team climate, a critical people-related factor in the management of collective innovation work. Qualitative analysis provides empirical evidence that creative methods benefit team initiation by raising participative confidence, engagement with the social environment as well as the team activities, friendly competition among team members, and by reducing fear of failure and habitual thinking. We also find support that the use of creative methods initiates and supports the development of positive team climate over the span of a teams life. A quantitative comparison with two control groups using the 14-item team climate inventory (TCI) 13 weeks after the team initiation indicates that the test group has significantly higher values in all dimensions of the TCI than the two control groups. Overall, this examination informs the work of innovation managers and scholars with vital insights about the effectiveness of using creative methods during team initiation.
Keywords: Team climate; Team building; Creative methods; Team initiation.
Organizational justice, emotional exhaustion, and turnover intention among Korean IT professionals: Moderating roles of job characteristics and social support
by Mi Jin Noh, Hyeongyu Jang, Beom-Jin Choi
Abstract: We performed a study to determine the influence that organizational justice has on turnover intention through emotional exhaustion and the moderating roles of job characteristics (job satisfaction and job commitment) and social support (supervisor support and colleagues support) in IT departments of Korean firms. Appropriate measures were developed and tested on 579 respondents who were programmers, systems analysts, and system operators with a cross-sectional questionnaire survey. The results showed that procedure justice, interaction justice, and distribution justice of organizational justice have negative impacts on employees emotional exhaustion in IT departments. Emotional exhaustion has a significant effect on turnover intention. The moderating effects of job satisfaction and colleague support in the relationship between emotional exhaustion and turnover intention are significant at the level of 0.05. Thus, managers should focus on enhancing organizational justice to reduce turnover intention while improving job satisfaction, job commitment and social support.
Keywords: Emotional exhaustion; Job characteristics; Organizational justice; Marketing capability; Social support; Turnover intention.
Integrative leadership for technology innovation
by Awie Vlok, Marius Ungerer, Johan Malan
Abstract: Abstract: Leading teams to bring about new technologies successfully during fast-changing times can be challenging. In the current era, people are more connected than before and able to access knowledge, networks, equipment and services themselves without corporate structures and management permission. Industrial age management practices appear inadequate for technology innovation in the innovation economy, while the literature reveals surprisingly little evidence of research into leader competencies across the technology innovation process. This paper reports the results of an exploratory mixed-methods study involving successful technology innovation leaders who were identified through peer-referenced snowball sampling. Qualitative research triangulated expert opinions, case materials, workshops results and the literature to identify leadership competencies. A measurement instrument was developed for the quantitative research, which involved eligible respondents rating the significance of identified leader behaviours. Statistically significant relationships were found in a hypothetical competency model through exploratory PLS-SEM analysis. The results reinforced some previously identified competencies, and contributed to understanding and identifying additional innovation leader competencies, including integrative leader competencies, to lead technology innovation into the future.
Keywords: Keywords: Technology innovation; innovation process; leader competencies; integrative leader; leader success orientation.
Freedom-form organizations, innovation and quality of work life: Towards a new model of interaction
by Isabelle Corbett-Etchevers, Céline Péréa, Damien Richard, Rodolphe Colle, Christian Defélix
Abstract: In this article, we aim to bring together the fields of innovation management and organizational psychology (Deci and Ryan, 1985; 2000) in order to study an increasingly adopted organizational form the Freedom-form organization (F-form) and its effects on innovation capability and quality of work life. The findings from an exploratory case study of a small French company in the software services industry allow us to build a model and to formulate propositions for studying the interaction between Freedom-form organizations, innovation capability and quality of work life.
Keywords: Freedom-form organization; quality of work life; innovation capability.
Walking the Innovation Tightrope: Maintaining Balance with an Ambidextrous Organization
by Aoibheann Gill, Kathryn Cormican, Trevor Clohessy
Abstract: People create innovations. Consequently, organisations must create environments to support them in their innovative endeavours. The ambidextrous organisation is essential to support human centred innovation and therefore it is imperative to ascertain what the key determinants are in terms of structure and architecture, context and culture and leadership. Using mixed-method research approaches comprising case study and structured Kano model techniques, this paper presents an in-depth analysis of the ambidexterity initiatives of an American medical device manufacturers new product development (NPD) department. The findings of our study illuminate the following key insights. First, we confirm that structure and architecture, context and culture and leadership are pivotal to ensuring effective ambidexterity during exploration and exploitation activities. Second, this study identifies, categorises and prioritises those salient factors that contribute to ambidexterity that organisations should adequately address to avoid undermining their pursuit of effective ambidexterity. Finally, we outline several people management considerations that are highly relevant to enhancing ambidexterity across many determinants. Ultimately, we argue that this studys findings facilitate the creation of a business ecosystem that is more conducive to operationalising effective organisational ambidexterity.
Keywords: Ambidexterity; Determinants; Kano Model. Medical Device Manufacturer; New Product Development Department; People Management.
Special Issue on: Digitalizing Products Towards an Integrated View of Challenges in Development, Design and User Acceptance
A decision support model to assess technological paradigms
by Alessandro Casagrande-Seretti, Francesca Montagna, Gaetano Cascini
Abstract: Envisioning the emergence of a new technological paradigm involves several issues, spanning from strategic assessments and managerial actions to design decisions and technology related choices. The present study focuses on this latter perspective, by proposing a model that estimates the success probability of innovative products as a function of design actions. This focus on the design decisions that underlie radical shifts is not conflicting, but complementary to the more traditional perspectives of forecasting that consider environmental variables or process management factors. The model is based on a database of past successful and unsuccessful innovations, which are used to build a logistic regression model, whose evidences can assist both designers and managers. The former get advice on how specific design choices affect product perception and innovation adoption, while the latter are supported in identifying the most promising projects. The model is illustrated through two cases of digital products.
Keywords: radical innovation; technology paradigm emergence; product success; design decisions.
Professionals Use of ICT in Hospitals: The Interplay Between Institutional and Rational Factors
by Luca Gastaldi, Giovanni Radaelli, Emanuele Lettieri, Davide Luzzini, Mariano Corso
Abstract: This study gathered novel evidence on the interplay between the organizational and the individual mechanisms that affect the continued use of Electronic Medical Record (EMR) in hospitals. Our model integrates mechanisms inspired by both Institutional Theory (i.e., organizational expectations, change culture and alignment of meaning systems) and Technology Acceptance Models (i.e., perceived usefulness and ease of use). Tested on hospital professionals, our results point out the predominant role played by rational, individual-level mechanisms and the interplay with organizational expectations, as the only institutional factor that affects the continued use through both direct and mediate relationships.
Keywords: Healthcare; Hospital; Electronic Medical Record; ICT; Technology Use; Technology acceptance.
Digital-physical product development: a review and research agenda
by Stine Hendler, Harry Boer
Abstract: Companies are increasingly digitally augmenting previously non-digital products. This requires significant changes in the product development process and its supporting context within the companies. However, only little relevant literature exists. The aim of this paper is to develop a platform for further research within this new field by reviewing available literature characterizing digital-physical development and proposing a research model and agenda. The paper reveals a scattered and immature field of research. While digital-physical product development is of huge industrial importance, few papers specifically address the phenomenon and, then, they typically only focus on one or two constructs. So far, we are in the very beginning of theory development. Directions for literature research in adjacent areas are proposed, together with case study and action research methods to explore fitting digital-physical development practices and their context.
Keywords: Digital-Physical; Smart Products; New Product Development; Agile Development; Digital Innovation; Digitized Products; Digitalization.
Managerial attention alteration in integrated product-service development
by Siri Jagstedt
Abstract: This paper examines managerial attention alteration in an integrated product-service development project. A case study was conducted to shed light on the issue of developing integrated offerings in a product-oriented organisation. It is shown that attention given to product-related aspects will suppress service-related aspects. Since structures and channels benefit a product-orientation, service-related issues that use the same channels tend to be undermined. It is suggested that attention to both aspects would be enabled by a focus on the overall integrated offering rather than on the individual components competing for attention. However, an integrated project faces challenges in maintaining such a focus due to organisational structures that separate product- and service-related issues into separate channels and structures.
Keywords: Product-service development; solutions; servitization; attention; attention-based view.
Digitalizing Products: Towards an Integrated View of Challenges in Development, Design and User Acceptance
by Paola Belingheri, Paolo Neirotti
Abstract: Making products smarter and connected through digital technologies requires firms to combine a product-oriented logic with a service logic. The challenges of such a combination are manifold and we just begun understanding how firms should deal with these challenges. The papers included in this special issue have recall the attention on the importance of horizontal integration mechanisms in the product development process and of a balanced managerial attention on the product and the service-side of innovation. In the same way, a crucial role in determining the market success of smart connected products is played by design decisions aimed at increasing the level of usefulness and efficiency of smart connected products compared to established solutions. This requires firms attention not only on the design choices for product functionalities, but also on the capability to influence the institutional framework (i.e. the sets of meanings, values, and managerial principles) that affect how products are used.
Keywords: digital transformation; product-service systems; innovation performance; smart connected products; new product development process.