OPENING UP THE INNOVATION PROCESS: OUTSIDE-IN INVOLVEMENT OF INNOVATIVE USERS AND ESTABLISHED FIRMS' INNOVATION PERFORMANCE

Abstract

Innovation outcome measures are an important indicator of the economic potential of user involvement. Therefore, this study assesses empirically the relationship between users' knowledge as an input factor to innovation and firms' innovation success. The results strongly support the hypotheses: (i) that users have the potential to essentially improve the innovative performance of firms; (ii) that the method of interaction during the innovation process and the characteristics of involved users matter as well. The more firms make use of emphatic design and interact with advanced and lead users, the stronger is the relationship between access to users' knowledge and firm innovation success measured in sales of innovative products.