Impact of co-creation on innovation capability and firm performance: a structural equation modeling

Main Article Content

Fatemeh Hamidi Naser Shams Gharneh

Abstract

Traditional firms used  to design products, evaluate marketing messages  and control product distribution channels with no costumer  interface. With the advancements  in interaction technologies,  however, users can easily make impacts on firms; the interaction between  costumers and firms is now in peak condition in comparison  to the past and is no longer controlled by firms. Customers  are playing two roles of value creators and consumers simultaneously. We examine the role of co-creation  on the influences of innovation capability and firm performance. We develop hypotheses  and test them using researcher survey data. The results suggest that implement of co-creation  partially mediate  the effect of process innovation capability. We discuss the implications  of these findings for research  and practice on the depict and implement of unique value co-creation model.

Downloads

Download data is not yet available.

Article Details

How to Cite
HAMIDI, Fatemeh; GHARNEH, Naser Shams. Impact of co-creation on innovation capability and firm performance: a structural equation modeling. AD-minister, [S.l.], n. 30, p. 73-90, feb. 2017. ISSN 2256-4322. Available at: <http://publicaciones.eafit.edu.co/index.php/administer/article/view/4616>. Date accessed: 19 nov. 2017. doi: https://doi.org/10.17230/ad-minister.30.4.
Keywords
Co-creation; Innovation Capability; Firm Performance; SEM.
Section
Research Articles

References

Adcock, A. & Collier, D. (2001) Measurement validity: A shared standard for qualitative and quantitative research. American Political Science Review 95(03), 529-546.

Akin, M., Bloemhof-Ruwaard, J.M., Wynstra, J.Y.F. & Raaij, E.M. van (2009). The impact of supply chain-related factors on the environmental performance of manufacturing firms in Turkey. In Supply Management - Towards an Academic Discipline?, Proceedings of 18th Annual IPSERA conference.

Aravind, D, Damanpour, F. and Devece, C. (2013). Environmental Performance: Interplay Between the Roles of Process Innovation Capability and Managerial Innovation Implementation. Springer Proceedings in Business and Economics.

Balan, P., Lindsay, N., & O'Connor, A. (2009). Innovation capability: Contrasting a service industry with the manufacturing sector. Paper presented at the 6th AGSE International Entrepreneurship Research Exchange 2009.

Balan, P., & Lindsay, N. (2010). Innovation Capabiliy, Entrepreneurial Orientation and Performance in Australian Hotels: An emparical study: Sustainable Tourism Cooperative Research Centre.

Chathotha, P., Altinay, L., Harrington, R., Okumus, F., & Chane, E. (2012). Co-production versus co-creation: A process based continuum in the hotel service context. International Journal of Hospitality Management. 32, 11–20. D.

Chen, L., & Xu, Q. (2009). The Mechanism of Innovation Capability Leveraging via Strategy in SMEs. Paper presented at the Industrial Engineering and Engineering Management (IEEM), International Confrence on, Hong Kong.

Camisón, C. and Villar-López, A. (2013). Organizational innovation as an enabler of technological innovation capabilities and firm performance. Journal of Business Research, 67(1) 2891-2902.

Damanpour, F., and Aravind, D. (2011). Managerial innovation: Conceptions, processes, and antecedents. Management and Organization. Retrieved from http://dx.doi.org/10.1111/j.17408784.2011.00233.x.

Damanpour, F., and Evan, W. M. (1984). Organizational innovation and performance: The problem of organizational lag. Administrative Science Quarterly, 29, 392–409.

Francis, D. (2005). A Reference Model of Innovation Capability and Implications for Organisational Development, CINet, Brighton, UK.

Garcia, R. and Calantone, R. (2002). A critical look at technological innovation typology and innovativeness terminology: a literature review. Full publication history,19(2),110–132.

Harrison, J.S. and Wicks, A, C. (2013). Stakeholder Theory, Value, and Firm Performance. Business Ethics Quarterly ,23(1),97-124.

Hoyer, W. D., Chandy, R., Dorotic, M., Krafft, M., & Singh, S. S. (2010). Consumer co-creation in new product development. Journal of Service Research,13(3), 283-296.

Ind, N., & Coates, N. (2013). The meanings of co-creation. European Business Review, 25(1), 86-95.

Johnson, S.P., Menor, L.J., Roth, A.V. and Chase, R.B. 2000. A critical evaluation of the new service development process: integrating service innovation and service design, In: Fitzsimmons, J.A., Fitzsimmons, M.J. (Eds.), New Service Development- Creating Memorable Experiences. Sage Publications, Thousand Oaks, CA 1-32.

Joshi, A.W. & Sharma, S. (2004). Customer knowledge development: antecedents and impact on new product performance. Journal of Marketing, 68(1), 47-59.

Kirah, A. (2009). Co-creation: A New Way of Doing Business in an Age of Uncertainty. Open Source Business Resource, 29-32.

Khajeheian, D. (2016a). Audience Commodification: A Source of Innovation in Business Models. Technology Innovation Management Review, 6(8), 40-47.

Khajeheian, D (2016b), “Telecommunication Policy: Communication Act Update”, Global Media Journal-Canadian Edition, 9(1) 135-141.

Khajeheian, D. (2014), A Perspective on Media Entrepreneurship Policy: Globalization Of Knowledge And Opportunities For Developing Economies. Journal of Globalization Studies, 5(2), 174-187.

Kumar, V. and Petersen, J.A. (2013). Using a Customer-Level Marketing Strategy to Enhance Firm Performance: A Review of Theoretical and Empirical Evidence. Journal of the Academy of Marketing Science, 33(4), 504-519.

Lawson, B., Samson, D. (2001). Developing innovation capability in organizations: a dynamic capabilities approach. International Journal of Innovation Management, 2(4), 154-178.

Lamberti, L., & Noci, G. (2009). Online experience as a lever of customer involvement in NPD:An exploratory analysis and a research agenda. EuroMed Journal of Business, 4(1), 69-87.

Lin, M.J. J., & Huang, C.H. (2013). The impact of customer participation on NPD performance: the mediating role of inter-organisation relationship. Journal of Business & Industrial Marketing, 28(1), 3-15.

Lundkvist, A., &Yakhlef, A. (2004). Customer involvement in new service development: A conversational approach. Managing Service Quality, 14, 249-257.

Lusch, R.F., Vargo, S.L. & O’Brien, M. (2007), “Competing through service: insights fromservice-dominant logic”, Journal of Retailing, 83(1), 5-18.

Lusch, R.F. & Webster Jr, F.E. (2011). A Stakeholder-Unifying, Cocreation Philosophy for Marketing. Journal of Macro marketing, 31(2) 129-134.

Lugosi, P., Janta, H. and Watson, P. (2012). Investigative management and consumer research on the internet. International Journal of Contemporary Hospitality Management, 24(6).

Menguc, B., Auh, S. and Yannopoulos, P. (2014). Customer and Supplier Involvement in Design: The Moderating Role of Incremental and Radical Innovation Capability. The journal of Product innovation management, 31(2), 313–328.

Macdonald, E.K., Wilson, H., Martinez, V.& Toossi, A. (2011). Assessing value-in-use: a conceptual framework and exploratory study. Industrial Marketing Management, 40(5), 671-682.

Magnusson, P.R., Matthing, J. & Kristensson, P. (2003). Managing user involvement in service innovation: experiments with innovating end users. Journal of Service Research, 6(2), 111-124.

Maklan, S., Knox, S. and Ryals, L. (2008). New trends in innovation and customer relationship management. International Journal of Market Research, 50(2), 221-240.

Nunnally, J. (1978). Psychometric theory. New York: McGraw-Hill.

Nicolajsen, H. W., & Scupola, A. (2011). Investigating issues and challenges for customer involvement in business services innovation. Journal of Business & Industrial Marketing, 26(5), 368–376.

Payne, A. F., Storbacka, K., & Frow, P. (2008). Managing the co-creation of value. Journal of the Academy of Marketing Science, 36(1), 83-96.

Piller, F., Ihl, C., & Vossen, A. (2010). A typology of customer co-creation in the innovation process. Retrieved from http://tim.rwth-aachen.de/piller.

Plötner, O., Lakotta, J. & Jacob, F. (2013). Differentiating market offerings using complexity and co-creation implications for customer decision-making uncertainty. European Business Review, 25(1), 65-85.

Prahalad, C. K., & Ramaswamy, V. (2004a). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 5-14.

Prahalad, C.K. & Ramaswamy, V. (2004b). Co-creating unique value with customer. Strategy & Leadership, 32(3), 4-9.

Prahalad, C.K. & Ramaswamy, V. (2004c). The Future of Competition: Co-Creating Unique Value with Customers. Harvard Business School Press. Boston, MA.

Prahalad, C.K. & Krishnan, M.S. (2008). The New Age of Innovation: Driving Co-created Value through Global Networks. Maidenhead. McGraw-Hill.

Roser, T., DeFillippi, R., & Samson, A. (2013). Managing your co-creation mix: co-creation ventures in distinctive contexts. European Business Review, 25(1), 20-41.

Russo-Spena, T., & Mele, C. (2012). “Five Co-s” in innovating: a practice-based view. Journal of Service Management, 23(4), 527-553.

Santos, J.B., and Brito, L.A.L. (2009). Toward a Measurement Model for Firm Performance Autoria. IV Encontro de Estudos em Estrategia. Recife/PE.

Slater, S.F., Mohr, J.J. and Sengupta, S. (2014). Radical Product Innovation Capability: Literature Review, Synthesis, and Illustrative Research Propositions. The journal of Product innovation management, 31(3), 552–566.

Saarijarvi, H., & Kannan, P.K. (2013). Value co-creation: theoretical approaches and practical implications. European Business Review, 1, 6-19.

Sawhney, M. (2006). Going beyond the product: defining, designing, and delivering customer solutions. in Vargo, S.L. and Lusch, R.F. (Eds), The service-dominant Logic of Marketing: Dialog, Debate, and Directions, M.E. Sharp, Armonk, NY.

Silva, F.J., Camacho, M.A., & Vázquez, M. (2013). Heterogeneity of customers of personal image services: a segmentation based on value co-creation. International Entrepreneurship Management Journal. 9, 619-630.

Sjodin, C., Kristensson, K. (2012). Customers’ experiences of co-creation during service innovation. International Journal of Quality and Service Sciences, 2, 189-204.

Skiba, F., & Herstatt, C. (2009). Users as sources for radical service innovations: opportunities from collaboration with service lead users. International Journal of Services Technology and Management, 12, 317–337.

Szeto, E. (2000). Innovation capacity: working towards a mechanism for improving innovation within an inter-organizational network. The TQM Magazine, 12(2), 149 – 158.

Tanha, D., Salamzadeh, A., Allahian, Z., & Salamzadeh, Y. (2011). Commercialization of university research and innovations in Iran: obstacles and solutions. Journal of Knowledge Management. Economics and Information Technology, 1(7), 126-146.

Tenenhaus, M., Esposito Vinzi, V., Chatelin, Y., and Lauro, C. (2005). PLS path modeling. Computational Statistics and Data Analysis, 48, 159–205.

Tijmes, A.H. (2010). Co-creation and firm performance: innovation success enhancing effects of and motives for customer involvement. Msc. In business administration, specialization track in innovation and entrepreneurship university of twent, the Netherland.

Vargo, S.L. & Lusch, R.F. (2008). Service-dominant logic: continuing the evolution. Journal of the Academy of Marketing Science, 36, 1-10.

Von Hippel, E. (2005). Democratizing Innovation: The Evolving Phenomenon of User Innovation. Journal für Betriebswirtschaft. Based on Chapter 1 of Eric von Hippel, (2005). Democratizing Innovation, MIT Press.

Wandahl, S., Jacobsen, A., Lassen, A. H., Poulsen, S. B., Denmark, A., & Sørensen, H. (2011). User-driven innovation in a construction material supply network. Construction Innovation, 11(4), 399-415.

Witell, L., Kristensson, P., Gustafsson, A. & Lo¨fgren, M. (2011). Idea generation: customer co-creation versus traditional market research techniques. Journal of Service Management, 22(2), 140-159.

Woodruff, R.B. and Flint, D.J. (2006). Marketing’s service-dominant logic and customer value. in Lusch, R.F. and Vargo, S.L. (Eds), The Service Dominant Logic of Marketing: Dialog, Debate and Directions, M.E. Sharpe, Armonk, NY, pp. 183-95.

Zwass, V. (2010). Co-creation: Toward a taxonomy and an integrated research perspective. International Journal of Electronic Commerce, 15(1), 11-48.