This paper integrates findings from marketing and finance literature to increase our understanding of consumers' decisions to purchase innovative investment products. Two different surveys ...administered to individual investors examine the psychological and sociological drivers of dispositional innovativeness and its effects on adoption timing and range of adoption for five new investment products. Study 1 shows that consumer psychographics (e.g., market mavenism, product-category involvement, and ambiguity intolerance) rather than socio-demographics (e.g., age, education, and risk profile) explain dispositional innovativeness and that dispositional innovativeness strongly impacts time of adoption and ownership of new investment products. Study 2 cross-validates the results of Study 1 and investigates the indirect effects of dispositional innovativeness on adoption timing through consumers' perceptions of new investment products' complexity, riskiness, and visibility (exposure to and engagement in word-of-mouth). Individuals who score high on dispositional innovativeness adopt new investment products quickly because they perceive lower complexity and greater visibility,
not because they perceive lower risk. The combined results of Studies 1 and 2 show that individual investors' psychological and sociological roots systematically explain their innovative adoption behavior and indicate that — counter to standard finance predictions — they incorporate more than just risk-return trade-offs in their investment choices.
► We show how scenario analysis reduces the fuzziness of front-end NPD. ► We link the functions of scenario analysis to the innovation management problems. ► Innovation management problems relate to ...the management of ideas and attention. ► Two case studies explore if and how scenario analysis reduces these problems.
The front-end of new product development involves the identification and analysis of product or service opportunities, idea generation, and the selection of new product and service concepts. It is often referred to as non-routine, dynamic, and highly uncertain. Authors have made attempts to improve the manageability of this phase by proposing several methods and techniques. This paper explores the possible contribution of scenario analysis to increase the quality and effectiveness of the front-end of new product development process by linking a set of functions of scenario analysis as is recognized in the literature as possible solutions to various front-end problems. Two case studies are used to explore if and how the scenario analysis functions contribute to the front-end of new product development process in an empirical setting.
Disruptieve innovaties ontwrichten bestaande sectoren en industrieën. Om de gevolgen van zulke veranderingen op te kunnen vangen spelen bedrijfsreacties een belangrijke rol. Dit onderzoek toont dat ...de reacties van bedrijven binnen de Nederlandse muziekindustrie op de disruptieve werking van digitalisering drastisch verschillen, en dat hun uitgangssituatie (motivaties, competenties) in sterke mate bepaalt of deze reactie offensief dan wel defensief is.
Purpose
The paper aims to identify which factors determine (German) retail banking customers' intention to adopt a new remuneration system for financial advice. The new system is a pay‐per‐use ...advisory model that supersedes existing commission‐based advisory approaches.
Design/methodology/approach
The paper develops and tests a comprehensive conceptual framework that includes perceived innovation characteristics, relationship quality, and socio‐demographic and psychographic variables to explain adoption intentions of the new remuneration system. The data come from a survey among clients of a large German retail bank.
Findings
Perceived innovation characteristics (i.e. relative advantage) largely determine the intention to adopt the fee‐based advisory model. Consumer and relationship quality variables do not directly impact adoption intentions, but have an indirect effect through influencing perceived innovation characteristics and moderating their relative importance. Relationship quality indicators, such as satisfaction with the current service and trust in the bank or its employees, do not impact customers' intentions to switch to the new remuneration system.
Research limitations/implications
The paper describes a (case) study using data from a large German retail bank. Future research may investigate the findings' (international) generalizability using different datasets and also assess additional drivers of customers' intentions to adopt a fee‐based advisory model.
Practical implications
The results suggest that banks should always explain the relative advantage of financial service innovations to their clients, as existing satisfaction and trust levels are not sufficient to ensure adoption.
Originality/value
This is the first paper examining the adoption of a new remuneration system for financial advice in the retail banking industry. By assessing a variety of variables the authors increase understanding of why customers adopt or reject such complex and difficult to evaluate service innovations.
Coopetition may help firms to respond collectively to technological change, and compete against disruptive innovation. Yet, coopetition often creates tensions, as coopetitors need to engage in ...persistently contradictory activities. While existing research focuses on dyadic coopetition, we know much less about multilateral coopetition; specifically, how tensions in multilateral coopetition arise and how they are managed in response to disruptive innovation. We use an in-depth case study of nine Dutch firms, who respond to digital disruption by introducing a new digital music platform, to analyse how tensions evolve in a multilateral coopetition entity. Our findings reveal two coopetitive tensions: a novel multilateral generalist–specialist contribution tension, and the well-known value creation–capture tension. The generalist–specialist contribution is an actor-activity-based tension that originates from the variable contributions of different vertical and horizontal coopetitors over time. Coopetitors try to resolve or balance this tension constantly via commensuration and orchestration of individual coopetitors' contributions, but the tension remains dormant and therefore re-appears. The second tension appears to stabilize over time as the coopetitive entity manages to balance the value creation–capture tension through an iteration of cooperation-inducing, competition-inducing and attendance to redirecting external events. The tensions are interlinked: the generalist–specialist contribution tension triggers subgroup coalition formation, which spurs the value creation–capture tension. We contribute to the coopetition literature by explaining how tensions emerge and are managed in multilateral coopetition, pointing to a new tension inherent in multilateral coopetition. Furthermore, we show how disruptive innovation uniquely shapes multilateral coopetition by inducing cooperative behaviour.
•We study nine firms who respond to digital disruption via multilateral coopetition to introduce a new digital music platform•We show that two tensions emerge: a novel generalist-specialist contribution tension, and the value creation-capture tension•These tensions are interlinked: the generalist-specialist tension triggers the value creation-capture tension•We contribute to coopetition research by indicating the origin, management and dynamics of tensions in a multilateral context•We highlight how disruptive innovation uniquely shapes multilateral coopetition by inducing cooperative behaviour
Small and medium enterprise (SME) digitalisation involves the reinforcement, modification, and renewal of business models with the help of digital technologies. It is widely considered imperative for ...SMEs to stay relevant in the digital age. Yet, little is known about the conditions under which SME digitalisation improves the performance of SMEs in the IS literature. Guided by the SME literature, we postulate that the business value of SME digitalisation - based on its impact on improving financial firm performance - is dependent on two factors that are particularly relevant to SMEs due to their smallness and flexibility: radical orientation and organisational rigidity. Using data from multiple waves of surveys in 2019-2020 and archival financial data from Dutch SMEs, we demonstrate that the positive impact of SME digitalisation on performance improvement strongly depends on SME characteristics. SMEs who are oriented towards radical change and are more rigid are disadvantaged and attain lower returns on SME digitalisation.
Given the strategic importance of digital transformation, IS research pays meticulous attention to identifying its key drivers, including awareness, motivation, and capability. Nevertheless, the ...interaction and synergy among these drivers remain conceptually and empirically understudied. Our study tries to address this research gap. We first consider digital proactiveness as awareness, change commitment as motivation, and organizational flexibility as the capability driver of digital transformation. Drawing on systems theory, this study proposes the synergy of these three key drivers in steering digital transformation. Recent data from 206 Dutch firms support the existence of synergy, showing that digital proactiveness, change commitment, and organizational flexibility contribute jointly to digital transformation. Our analysis reveals that the effect of organizational flexibility on digital transformation is highest when digital proactiveness and change commitment are both at a high level. This study extends our understanding of the complementary and synergistic digital transformation drivers and broadens research in this tradition by considering the synergy of awareness, motivational, and capability drivers in driving digital transformation.
Artificial intelligence (AI) provides ample opportunities for enabling effective knowledge sharing among organizations seeking to foster open innovation. Past research often investigates the ...capability of AI to perform ‘human’ tasks in structured application fields. Yet, there is a lack of research that systematically analyzes when and how AI can be used for the more complex and unstructured tasks of open innovation (OI). We present a framework for leveraging AI-enabled applications to foster productive OI collaborations. Specifically, we create a 3x3 matrix by aligning the three OI stages (initiation, development, realization) with the three management functions of AI (mapping, coordinating, controlling). This matrix assists in identifying how various AI applications may augment or automate human intelligence, thereby helping to resolve prevailing OI challenges. It provides guidance on how organizations can use AI to establish, execute and govern exchanges across the OI stages. Finally, we lay out an agenda for future research.
This special issue focuses on digital knowledge engineering, where artificial intelligence (AI) emulates human judgment and behavior to create, organize, and implement knowledge bases. AI’s evolution ...from narrow applications to a versatile general-purpose technology (e.g., generative AI) marks a transformative era. This evolution reshapes industries, cultivates data-driven entities, and promises to revolutionize (business) relationships. Digital knowledge engineering precipitates a variety of outcomes: it affects individual practices, reshapes collaborative endeavors, and has the potential to contribute significantly to the advancement of a circular economy. However, companies must adeptly navigate digital knowledge engineering within their strategy development processes to realize these outcomes. They need to address challenges in the knowledge-creating process—data, technological, and informational aspects—and skillfully organize their design and governance. In this editorial, we integrate insights from the various research domains and the papers from this special issue, addressing the complexity of digital knowledge engineering. Furthermore, we present a comprehensive research framework and illuminate avenues for future exploration.
We adopt a dyadic, multi-referent trust perspective to assess the effects of franchisee–franchisor trust (in)congruence and franchisee trust in peers on franchisee network exit intentions, under ...varying levels of franchisee perceived network control. We observe a nuanced relationship between trust (in)congruence and exit intentions, revealing a negative and nonlinear effect for trust congruence, and, surprisingly, a negative effect for incongruence. The effects of trust congruence and trust in peers are distinctively moderated by perceived control; when franchisees perceive stronger control, the negative effect of trust congruence on exit intentions becomes stronger, whereas the insignificant effect of peer trust becomes positive.
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