Title: Product attributes and digital innovation performance: the importance of country and firm level supporting environment

Authors: Marcelo J. Alvarado-Vargas; Tejovathi Inamanamelluri; Qi Zou

Addresses: Department of Management, College of Business and Innovation, University of Toledo, 2801 W Bancroft Street, MS103, Toledo, OH 43606, USA ' Department of Information Operations and Technology Management, College of Business and Innovation, University of Toledo, 2801 W Bancroft Street, MS103, Toledo, OH 43606, USA ' Department of Management, College of Business and Public Management, West Chester University of Pennsylvania, 700 South High Street, West Chester, PA 19383, USA

Abstract: The emergence of digital technology has changed the structure and functions of products. Digitalised products are connectable with digital resources, reprogrammable for personal customisation, and upgradable for continuous improvement. Digital innovation (DI) not only makes industrial products capable of serving various customers' needs, but also brings great challenges to companies. In the literature, DI critical success factors remain uncovered, so do the environmental conditions that support DI. In this paper, we developed a theoretical model that identifies product attributes (e.g., product modularity, upgradability, usage frequency, and uniqueness) that have effects on product DI performance. Further, we elaborated the importance of establishing and selecting appropriate environment at country level (e.g., degree of uncertainty avoidance and degree of technology proficiency), and firm level (e.g., strategy, resources, and structure) for DI. Essentially, this study suggests that interaction effects of product attributes and supporting environments could significantly improve product DI performance.

Keywords: digital innovation; product modularity; product upgradability; product usage frequency; product uniqueness; digital innovation supporting environment; digital innovation performance.

DOI: 10.1504/IJTM.2020.108977

International Journal of Technology Management, 2020 Vol.82 No.3/4, pp.206 - 226

Accepted: 31 Jul 2019
Published online: 07 Aug 2020 *

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