Integrate external sources of knowledge

Techno revOn top of their own R&D activities, product roadmaps and experience curves, firms must develop the ability to proactively harvest technology (r)evolutions. They must be able to absorb technology intelligence from external sources, both in their socioeconomic ecosystem and in the wider environment.

Fig_3_16On top of their traditional marketing approaches, firms need to develop user-centric ways to “pull” untapped customer needs and uncover value gaps. They need to combine powerful analytics with in situ and empathetic observations as well as lead users’ interactions and involvement.

CVFirms exposed to technology-intensive sectors (i.e. most firms) should invest time, money and resources to network and work with disruptive start-ups, in particular through corporate venture capital initiatives. This must allow them not only to create options and leverage their assets but also to effectively develop new competitive and technology intelligence.


Harvest technology (r)evolutions

  • (Book) Argyris, C., & Schön, D. A. (1978). Organizational Learning, Readings. MA: Addison.
  • (Video) How does nature do life-friendly chemistry? – AskNature Nugget by Biomimicry Institute (on Vimeo)
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  • (Article) Choi, D., Lee, S., & Kim, Y. (2012). The complementarities and contextualities of corporate R&D strategies: An empirical analysis of Korean manufacturing industry. Journal of Management & Organization , 18 (3), 311-333.
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  • (Article) Denicolai, S., Ramirez, M., & Tidd, J. (2014). Creating and capturing value from external knowledge: the moderating role of knowledge intensity. R&D Management, 44(3), 248-264.
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  • (Article) Nicholls‐Nixon, C. L., & Woo, C. Y. (2003). Technology sourcing and output of established firms in a regime of encompassing technological change. Strategic Management Journal, 24(7), 651-666.
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  • (Article) Reichstein, T., & Salter, A. (2006). Investigating the sources of process innovation among UK manufacturing firms. Industrial and Corporate Change, 15 (4), 653-682.
  • (Article) Ritter, T., & Gemünden, H. G. (2004). The impact of a company’s business strategy on its technological competence, network competence and innovation success. Journal of Business Research, 57(5), 548-556.
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  • (Article) Shibata, N., Kajikawa, Y., Takeda, Y., & Matsushima, K. (2008). Detecting emerging research fronts based on topological measures in citation networks of scientific publications. Technovation, 28(11), 758-775.
  • (Article) Sood, A., James, G. M., Tellis, G. J., & Zhu, J. (2012). Predicting the path of technological innovation: SAW vs. Moore, Bass, Gompertz, and Kryder. Marketing Science, 31(6), 964-979.
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  • (Article) Tsai, K. H., & Wang, J. C. (2009). External technology sourcing and innovation performance in LMT sectors: An analysis based on the Taiwanese Technological Innovation Survey. Research Policy, 38(3), 518-526.
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  • (Article) Volberda, H. W., Foss, N. J., & Lyles, M. A. (2010). Perspective—Absorbing the concept of absorptive capacity: How to realize its potential in the organization field. Organization Science, 21(4), 931-951.
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Explore untapped customer needs: user-centric innovation

  • (Book) Christensen, C., Karen Dillon, Taddy Hall, & Duncan, D.S. (2016) Competing Against Luck: The Story of Innovation and Customer Choice, Harper Business.
  • (Book) Living Labs: Best of TIM Review; Dec 18, 2015 by Mika Westerlund and Seppo Leminen
  • (Book) Management of the Fuzzy Front End of Innovation; Oct 8, 2013 by Oliver Gassmann and Fiona Schweitzer
  • (Book) Thallmaier, S. R. (2014). Customer co-design: A study in the mass customization industry. Springer.
  • (Video)
  • (Video) How Qualitative Research Shapes the Innovation Process by Kuczmarski Innovation (on Vimeo)
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  • (Article) Bala I., M. Subramaniam, & Srinivasa Rangan, U. (2017). The Next Battle in Antitrust Will Be About Whether One Company Knows Everything About You. Harvard Business Review, July 06, 2017.
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  • (Article) Dell’Era, C., & Landoni, P. (2014). Living Lab: A methodology between user‐centred design and participatory design. Creativity and Innovation Management, 23(2), 137-154.
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  • (Article) Enkel, E., Perez‐Freije, J., & Gassmann, O. (2005). Minimizing market risks through customer integration in new product development: learning from bad practice. Creativity and Innovation Management, 14(4), 425-437.
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  • (Article) Franke, N., & Schreier, M. (2002). Entrepreneurial opportunities with toolkits for user innovation and design. International Journal on Media Management, 4(4), 225-234
  • (Article) Franke, N., Von Hippel, E., & Schreier, M. (2006). Finding commercially attractive user innovations: A test of lead‐user theory. Journal of Product Innovation Management, 23(4), 301-315.
  • (Article) Fuchs, C., & Schreier, M. (2011). Customer empowerment in new product development. Journal of Product Innovation Management, 28(1), 17-32.
  • (Article) Gassmann, O., Kausch, C., & Enkel, E. (2010). Negative side effects of customer integration. International Journal of Technology Management, 50(1), 43-62.
  • (Article) Greer, C. R., & Lei, D. (2012). Collaborative innovation with customers: A review of the literature and suggestions for future research. International Journal of Management Reviews, 14(1), 63-84.
  • (Article) Jeppesen, L.B., & Frederiksen, L. (2006). Why do users contribute to firm-hosted user communities? The case of computer-controlled music instruments, Organization Science, 17(1), 45-63
  • (Article) Leminen, Seppo, Mika Westerlund, and Anna-Greta Nyström. “Living Labs as open-innovation networks.” Technology Innovation Management Review 2.9 (2012).
  • (Article) Lilien, G. L., Morrison, P. D., Searls, K., Sonnack, M., & Hippel, E. V. (2002). Performance assessment of the lead user idea-generation process for new product development. Management Science, 48(8), 1042-1059.
  • (Article) McPhee, C., Leminen, S., Schuurman, D., Westerlund, M., & Huizingh, E. (2016). Living Labs and User Innovation (January 2016). Technology Innovation Management Review, 6(1), 3-6.
  • (Article) Morrison, P. D., Roberts, J. H., & Von Hippel, E. (2000). Determinants of user innovation and innovation sharing in a local market. Management Science, 46(12), 1513-1527
  • (Article) Mukerjee, K. (2013). Customer-oriented organizations: a framework for innovation. Journal of Business Strategy, 34(3), 49-56.
  • (Article) Paladino, A. (2007). Investigating the drivers of innovation and new product success: a comparison of strategic orientations. Journal of Product Innovation Management, 24(6), 534-553.
  • (Article) Parmentier, G., & Mangematin, V. (2014). Orchestrating innovation with user communities in the creative industries. Technological Forecasting and Social Change, 83, 40-53.
  • (Article) Piller, F. T., & Walcher, D. (2006). Toolkits for idea competitions: a novel method to integrate users in new product development. R&D Management, 36(3), 307-318.
  • (Article) Prahalad, C. K., & Ramaswamy, V. (2000). Co-opting customer competence. Harvard Business Review, 78(1), 79-90.
  • (Article) Raasch, C., Herstatt, C., & Balka, K. (2009). On the open design of tangible goods. R&D Management, 39(4), 382-393.
  • (Article) Sandmeier, P., Morrison, P. D., & Gassmann, O. (2010). Integrating customers in product innovation: lessons from industrial development contractors and in‐house contractors in rapidly changing customer markets. Creativity and Innovation Management, 19(2), 89-106.
  • (Article) Schreier, Martin, Stefan Oberhauser, and Reinhard Prügl. “Lead users and the adoption and diffusion of new products: Insights from two extreme sports communities.” Marketing Letters 18.1-2 (2007): 15-30.
  • (Article) Schweisfurth, T., & Raasch, C. (2015). ‘Embedded lead users-The benefits of employing users from corporate innovation’. Research Policy, 44, 168-180.
  • (Article) Slater, S. F., & Narver, J. C. (2000). Intelligence generation and superior customer value. Journal of the Academy of Marketing Science, 28(1), 120.
  • (Article) Urban, G. L., & Von Hippel, E. (1988). Lead user analyses for the development of new industrial products. Management Science, 34(5), 569-582.
  • (Article) Veryzer, R. W., & Borja de Mozota, B. (2005). The impact of user‐oriented design on new product development: An examination of fundamental relationships. Journal of Product Innovation Management, 22(2), 128-143
  • (Article) Von Hippel, E. (1986). Lead users: a source of novel product concepts. Management Science, 32(7), 791-805.
  • (Article) Von Hippel, E., & Katz, R. (2002). Shifting innovation to users via toolkits. Management Science, 48(7), 821-833.
  • (Article) Von Hippel, E. (2005). Democratizing innovation: The evolving phenomenon of user innovation. Journal für Betriebswirtschaft, 55(1), 63-78.
  • (Article) Wiertz, C., & de Ruyter, K. (2007). Beyond the call of duty: Why customers contribute to firm-hosted commercial online communities. Organization Studies, 28(3), 347-376.
  • (Article) Xu, Z., Frankwick, G. L., & Ramirez, E. (2016). Effects of big data analytics and traditional marketing analytics on new product success: A knowledge fusion perspective. Journal of Business Research, 69(5), 1562-1566.

Seeding new ventures: corporate venture capital

  • (Book) Landström, Hans, ed. Handbook of research on venture capital. Edward Elgar Publishing, 2007.
  • (Book) Maula, Markku VJ. Corporate venture capital and the value-added for technology-based new firms. Helsinki University of Technology, 2001.
  • (Video) Biopharma Health MIT Hackathon
  • (Video) Connecting Companies of All Sizes through Innovation by  Kuczmarski Innovation (on Vimeo)
  • (Video) The UBS Hackaton (on UBS website)
  • (Article) Arora, A., & Gambardella, A. (2010). Ideas for rent: an overview of markets for technology. Industrial and Corporate Change, 19(3), 775-803.
  • (Article) Basu, S., Phelps, C., & Kotha, S. (2011). Towards understanding who makes corporate venture capital investments and why. Journal of Business Venturing, 26(2), 153-171.
  • (Article) Becker, B., & Gassmann, O. (2006). Gaining leverage effects from knowledge modes within corporate incubators. R&D Management, 36(1), 1-16.
  • (Article) Belderbos, R., Jacob, J., & Lokshin, B., (2018). Corporate venture capital (CVC) investments and technological performance: Geographic diversity and the interplay with technology alliances, Journal of Business Venturing, 33(1), 20-34.
  • (Article) Block, Zenas, and Oscar A. Ornati. “Compensating corporate venture managers.” Journal of Business Venturing 2.1 (1987): 41-51.
  • (Article) Chesbrough, H. (2000). Designing corporate ventures in the shadow of private venture capital. California Management Review, 42(3), 31-49.
  • (Article) Chowdhury, J.. “Hacking health: bottom-up innovation for healthcare.” Technology Innovation Management Review 2.7 (2012): 31.
  • (Article) Covin, J.G., & Miles, M.P. (2007). Strategic use of corporate venturing. Entrepreneurship Theory and Practice, 31(2), 183-207.
  • (Article) Dushnitsky, G., & Lenox, M.J. (2005). When do incumbents learn from entrepreneurial ventures?: Corporate venture capital and investing firm innovation rates. Research Policy, 34(5), 615-639.
  • (Article) Dushnitsky, G., & Lenox, M.J. (2006). When does corporate venture capital investment create firm value?. Journal of Business Venturing, 21(6), 753-772.
  • (Article) Gompers, Paul, and Josh Lerner. “Venture capital distributions: Short‐run and long‐run reactions.” The Journal of Finance 53.6 (1998): 2161-2183.
  • (Article) Keil, T. (2004). Building external corporate venturing capability. Journal of Management Studies, 41(5), 799-825.
  • (Article) Keil, T., Maula, M., Schildt, H., & Zahra, S. A. (2008). The effect of governance modes and relatedness of external business development activities on innovative performance. Strategic Management Journal, 29(8), 895-907.
  • (Article) Knoben, J., & Bakker, R. M. (2019). The guppy and the whale: Relational pluralism and start-ups’ expropriation dilemma in partnership formation. Journal of Business Venturing 34(1), 103-121
  • (Article) Maula, M. V., Keil, T., & Zahra, S.A. (2013). Top management’s attention to discontinuous technological change: Corporate venture capital as an alert mechanism. Organization Science, 24(3), 926-947.
  • (Article) Maula, M., E. Autio, and G. Murray. “Prerequisites for the creation of social capital and subsequent knowledge acquisition in corporate venture capital.” Venture Capital 5.2 (2003): 117-134.
  • (Article) Miller, A., & Camp, B. (1985). Exploring determinants of success in corporate ventures. Journal of Business Venturing, 1(1), 87-105.
  • (Article) Puranam, P., Singh, H., & Zollo, M. (2006). Organizing for innovation: Managing the coordination-autonomy dilemma in technology acquisitions. Academy of Management Journal, 49(2), 263-280.
  • (Article) Puranam, P., & Srikanth, K. (2007). What they know vs. what they do: How acquirers leverage technology acquisitions. Strategic Management Journal, 28(8), 805-825.
  • (Article) Schildt, H. A., Maula, M. V., & Keil, T. (2005). Explorative and exploitative learning from external corporate ventures. Entrepreneurship Theory and Practice, 29(4), 493-515.
  • (Article) Shrader, Rodney C., and Mark Simon. “Corporate versus independent new ventures: Resource, strategy, and performance differences.” Journal of Business Venturing 12.1 (1997): 47-66.
  • (Article) Sykes, Hollister B. “Corporate venture capital: Strategies for success.” Journal of Business Venturing 5.1 (1990): 37-47.
  • (Article) Sykes, Hollister B. “The anatomy of a corporate venturing program: Factors influencing success.” Journal of Business Venturing 1.3 (1986): 275-293.
  • (Article) Titus, Varkey K., Jenny M. House, and Jeffrey G. Covin. “Resource stocks and needs as drivers of external corporate venturing.” Academy of Management Proceedings. Vol. 2014. No. 1. Academy of Management, 2014.
  • (Article) Wadhwa, A., Phelps, C., & Kotha, S. (2016). Corporate venture capital portfolios and firm innovation. Journal of Business Venturing, 31(1), 95-112.
  • (Article) Yang, Y., Narayanan, V. K., & De Carolis, D. M. (2014). The relationship between portfolio diversification and firm value: The evidence from corporate venture capital activity. Strategic Management Journal, 35(13), 1993-2011.

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