Open innovation using Web 2.0 technologies

Abstract

Purpose – The internal resources of a firm should not be regarded as the only source of innovation; organizations need to look at the external sources which can contribute greatly. This can happen through the recent development in technologies and the emergence of social media; such advancements have empowered consumers to have social interaction with their peers in online communities. As a source of generation of innovative ideas, company-based communities have not received enough attention, although they are strong drivers for co-creation of value by customers. Easy online communication channels, facilitated through online communities, have developed open innovation as an attractive means of customer involvement in value creation. However, literature in this area is devoid of empirical research on the way consumers can participate in open innovation communities using Web 2.0 technologies. The paper aims to discuss these issues. Design/methodology/approach – This paper, therefore, looks at the opportunities offered by social media to firms for open innovation in the context of new product development (NPD). The study is based on social support theory and the concept of social media generating open innovation; a model for the research has thus been proposed. The model has been tested using partial least square through an online questionnaire. Findings – The results indicate that social media is a cost-efficient way for firms to look at external sources of innovation, specifically in NPD. Online communities, developed specifically for new products, can support the innovation process for the business sector. The paper discusses the results of this empirical research and has some practical implications for practitioners in this field. Originality/value – The study indicate that social media empower individuals to come online, get involved in social interaction and share their experiences about a new product with other peers in the network. Social media and informational support, as social capital of online communities, both have influence on participation of individuals in the online communities of open innovation for NPD.