Using users: When does external knowledge enhance corporate product innovation?

Prior research on corporate innovation highlights the importance of accessing external knowledge from other firms and universities. However, survey evidence indicates that product users are perhaps the most important source of external knowledge. We build on existing theory to identify the condition...

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Bibliographic Details
Published in:Strategic management journal 2014-10, Vol.35 (10), p.1427-1445
Main Authors: Chatterji, Aaron K., Fabrizio, Kira R.
Format: Article
Language:English
Subjects:
Business entities
Business innovation
Collaboration
Educational innovation
health care strategy
Innovation
innovation strategy
Innovations
intellectual property strategy
Inventions
Knowledge
Knowledge management
knowledge sourcing
Management science
Medical device industry
New technology
Open innovation
Panel data
Physicians
Product innovation
Studies
Surveys
Technological change
Technological innovation
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Summary:Prior research on corporate innovation highlights the importance of accessing external knowledge from other firms and universities. However, survey evidence indicates that product users are perhaps the most important source of external knowledge. We build on existing theory to identify the conditions under which user knowledge contributes to corporate innovation and when the benefits will be greatest. Using a panel dataset of medical device companies and their collaborative efforts with innovative physicians, we find evidence that inventive collaborations with users enhance corporate product innovation and that the benefits are greatest in new technology areas and in the generation of radical innovations.
ISSN:0143-2095
1097-0266
DOI:10.1002/smj.2168