The Effect of Toolkits Usage on Firms’ Co-Creation and Innovation: An Empirical Study on Malaysian Manufacturing Firms
DOI:
https://doi.org/10.15282/ijim.9.0.2021.5950Keywords:
Innovation Co-creation Toolkits Usage Malaysia, Innovation, Co-creation, Toolkits usage, MalaysiaAbstract
Organizations aim to create products that accomplish customer needs. Fulfilling customer needs through customer involvement in the product innovation process via toolkits usage has seen favorable outcomes for firms. Consequently, the intention of this study is to analyze the impact of toolkits usage on co-creation and innovation, respectively. To achieve the research objectives, we propose a model that develops based on literature to examine the relationship among toolkits usage and co-creation, as well as innovation. The model was examined utilizing survey data from the manufacturing organizations. This study includes a survey of 393 manufacturing firms in Malaysia. The survey questionnaire was distributed personally and online (google link), respectively. Results confirm the effective use of toolkits on co-creation and innovation hence reinforcing the importance of openness in co-creation and innovation theory. The results assert important implications for practitioners wanting to reap benefits from individualized products through toolkits usage. In sum, manufacturers can gamer value from toolkits usage within the context of an emerging economy, like Malaysia.
References
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Pallant, J. (2016). SPSS Survival Manual: A Step by Step Guide to Data Analysis using SPSS UK: McGraw-Hill International.
Piller, F. T., Ihl, C., & Vossen, A. (2010). A typology of customer co-creation in the innovation process. SSRn Electronic Journal, December, Retrieved from https://www.researchgate.net/publication/228197334.
Piller, F. T., Vossen, A., & Ihl, C. (2012). From social media to social product development: the impact of social media on co-creation of innovation. Die Unternehmung, 65(1).
Piller, F.T. & Walcher, D. (2006) Toolkits for idea competitions: a novel method to integrate users in new product development. R&D Management, 36(3), 307-318.
Piller, F.T., Moeslein, K. & Stotko, C.M. (2005). Does mass customization pay? An economic approach to evaluate customer integration. Production Planning & Control, 15(4), 435-444.
Piller, F.T., Schubert, P., Koch, M., & Möslein, K. (2005). Overcoming mass confusion: collaborative customer co-design in online communities. Journal of Computer Mediated Communication, 10(4).
Pletikosa, I. & Michahelles, F. (2011). The toolkit approach for end-user participation in the Internet of Things. Retrieved from https://www.researchgate.net/publication/227244683.
Prugl, R. & Schreier, M. (2006). Learning from leading-edge customers at The Sims: Opening up the innovation process using toolkits. R&D Mangement, 36(3), 237-250.
Ramaswamy, V. (2008). Co-creating value through customer’s experiences: The Nike case. Strategy & Leadership, 36(5), 9-14.
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Singh, S. K. G., Jayasingam, S. & Klobas, J. (2016). Open innovation: Do inbound and outbound practices affect firm performance? The 30th Australian and New Zealand Academy of Management Conference, ANZAM, Queensland University of Technology, Brisbane, Australia, 6-9 Dec 2016, 1-23. Retrieved from http://www.anzam.org/past-event-material/past-conference-papers/.
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Stelloo, J. (2011). How do companies compose their toolkits for customer co-design? Differences, similarities and relationships. (Masters thesis, University of Amsterdam, 2011).
Sun, H. (2012). Understanding user revisions when using information system features: Adaptive system use and triggers. MIS quarterly, 453-478.
Thomke, S. & von Hippel, E. (2002). Customers as innovators: A new way to create value. Harvard Business Review, 80(4), 74-81.
Tschimmel, K. (2012). Design Thinking as an effective Toolkit for Innovation. In ISPIM Conference Proceedings (p. 1). The International Society for Professional Innovation Management (ISPIM).
van de Vrande, V., De Jong, J. P., Vanhaverbeke, W., & De Rochemont, M. (2009). Open innovation in SMEs: Trends, motives and management challenges. Technovation, 29(6-7), 423-437.
von Hippel, E. (2001). User toolkits for innovation. Journal of Product Innovation Management, 18(4), 247-257.
von Hippel, E. 2005. Democratizing Innovation, Cambridge, MA: MIT Press.
Walsh, J. P., Lee, Y-N., & Nagoaka, S. (2016). Openness and innovation in the US: Collaboration form, idea generation and implementation. Research Policy, 45, 1660-1671.
Wang, C-H., Chang, C-H., & Shen, G. C. (2015). The effect of inbound open innovation on firm performance: Evidence from high-tech industry. Technological Forecasting & Social Change, 9, 222-230.
Wikström, P., & Ellonen, H. K. (2012). The impact of social media features on print media firms’ online business models. Journal of Media Business Studies, 9(3), 63-80.
Yadav, M., Kamboj, S., & Rahman, Z. (2016). Customer co-creation through social media: The case of ‘Crash the Pepsi IPL 2015’. Journal of Direct, Data and Digital Marketing Practice, 17(4), 259-271.
Ye, H., & Kankanhalli, A. (2018). User Service Innovation on Mobile Phone Platforms: Investigating Impacts of Lead Userness, Toolkit Support, and Design Autonomy. MIS quarterly, 42(1).
Zipkin, P. (2001). The limits of mass customization. Sloan Management Review, 42(3), 81-87.
Chatzoglou, P., & Chatzoudes, D. (2018). The role of innovation in building competitive advantages: an empirical investigation. European Journal of Innovation Management, 21(1), 44-69.
Chesbrough, H. W. (2003a). Open innovation: The new imperative for creating and profiting from technology. Harvard Business Press.
Cui, A. S., & Wu, F. (2016). Utilizing customer knowledge in innovation: antecedents and impact of customer involvement on new product performance. Journal of the academy of marketing science, 44(4), 516-538.
Dahan, E., & Hauser, J. R. (2002). The virtual customer. Journal of Product Innovation Management, 19(5), 332-353.
Ebner, W., Leimeister, J. M., & Krcmar, H. (2009). Community engineering for innovations: the ideas competition as a method to nurture a virtual community for innovations. R&d Management, 39(4), 342-356.
Fernandes, T., & Remelhe, P. (2016). How to engage customers in co-creation: customers’ motivations for collaborative innovation. Journal of Strategic Marketing, 24(3-4), 311-326.
Franke, N., & Piller, F. (2004). Value creation by toolkits for user innovation and design: The case of the watch market. Journal of Product Innovation Management, 21(6), 401-415.
Franke, N., & Von Hippel, E. (2003). Satisfying heterogeneous user needs via innovation toolkits: the case of Apache security software. Research policy, 32(7), 1199-1215.
Franke, N., Keinz, P., & Schreier, M. (2008). Complementing mass customization toolkits with user communities: How peer input improves customer self-design. Journal of Product Innovation Management, 25(6), 546-559.
Gambardella, A., Raasch, C., & von Hippel, E. (2017). The user innovation paradigm: impacts on markets and welfare. Management Science, 63(5), 1450-1468.
Gharghan, S. K., Nordin, R., & Ismail, M. (2014). A survey on energy efficient wireless sensor networks for bicycle performance monitoring application. Journal of Sensors, 2014, 1-16.
Ghazawneh, A., & Henfridsson, O. (2013). Balancing platform control and external contribution in third-party development: The boundary resources model. Information Systems Journal, 23(2), 173–192.
Goforth, C. (2015). Using and Interpreting Cronbach’s Alpha. Retrieved from http://data.library.virginia.edu/using-and-interpreting-cronbachs-alpha/.
Grabher, G., & Ibert, O. (2018). Co-creation of Value: Open Firms and Active Customers. The New Oxford Handbook of Economic Geography, 286.
Grawe, S. J., Chen, H., & Daugherty, P. J. (2009). The relationship between strategic orientation, service innovation, and performance. International Journal of Physical Distribution & Logistics Management, 39(4), 282-300.
Hair Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis. New Jersey, NJ: Prentice Hall.
Hair Jr., J. F., Money, A. H., Samouel, P., & Page, M. (2007). Research methods for business. West Sussex: John Wiley & Sons, Ltd.
Hair, J. F., William, C. B., Barry, J. B., & Rolph, E. A. (2014). Multivariate Data Analysis. Englewood Cliffs, NJ: Prentice Hall.
Hein, A., Weking, J., Schreieck, M., Wiesche, M., Böhm, M., & Krcmar, H. (2019b). Value Co-Creation Practices in Business-to-Business Platform Ecosystems. Electronic Markets, 29(3), 503–518.
Helminen, P., & Ainoa, J. (2009). User innovation toolkits in product development: Qualitative study in shopping center design. International Conference on Engineering Design, ICED’09. Stanford University, Stanford, CA USA, 265-274.
Jeppesen, L. B. (2005). User toolkits for innovation: Consumers support each other. Journal of Product Innovation Management, 22(4), 347-362.
Kalantari, H. D., & Johnson, L. W. (2019). Willingness to pay and wait for mass customised products. International Journal of Mass Customisation, 5(2), 111-129.
Kankanhalli, A., Ye, H. J., and Teo, H. H. 2015. Comparing Potential and Actual Innovators: An Empirical Study of Mobile Data Services Innovation, MIS Quarterly 39(3), 667-682.
Khalid, H.M., & Helander, M.G. (2001). Facilitating Mass Customization and Web-based Do-It-Yourself Product Design, in M.M. Tseng & F.T. Piller (Eds.) Proceedings of the World Congress on Mass Customization and Personalization MCPC 2001, Hong Kong.
Lakulu, M. M., Abdullah, R., & Zidan, A. A. (2017). An evaluation of a KMS framework for an open source software development in a collaborative environment. Science International, 29(2), 137.
Loh, B. C. S., & Then, P. H. H. (2015). Mobile imagery eXchange (MIX) toolkit: Data sharing for the unconnected. Personal and Ubiquitous Computing, 19, 723-740.
Lusch, R. F., & Nambisan, S. (2015). Service innovation: A servicedominant logic perspective. MIS Quarterly, 39(1), 155–175.
Mansor, Y. & Ramdzan, E. (2014). RDA perceptions among Malaysian catalogers. Library Review, 63(3), 176-188.
Naqshbandi, M. M. & Kaur, S. (2014). Do managerial ties support or stifle open innovation? Industrial Management & Data Systems, 114(4), 652-675.
Naqshbandi, M.M. & Kaur, S. (2011). Factors affecting open innovation: Evidence from Malaysia. Australian Journal of Basic and Applied Science, 5(12), 2783-2795.
Ng, I. C., Nudurupati, S. S., & Tasker, P. (2010). Value co-creation in the delivery of outcome-based contracts for business-to-business service. Retrieved from https://ore.exeter.ac.uk/repository/bitstream/handle/10036/99859/valueB2Bservices.pdf?sequence=1&isAllowed=y.
Nunnally, J. C., & Berstein, I. (1994). Psychometric theory (3rd ed.). New York: McGraw-Hill.
Ogawa, S. & Piller, F.T. (2006). Reducing the Risks of New Product Development. MIT Sloan Management Review, 47(2), 65-71.
Oon, Y. B., & Khalid, H. M. (2001). Usability of Design by Customer Web Sites for Mass Customization. In M.M. Tseng & F.T. Piller (Eds.) Proceedings of the World Congress on Mass Customization and Personalization MCPC 2001, Hong Kong.
Palacios-Marqués, D., Merigó, J. M., & Soto-Acosta, P. (2015). Online social networks as an enabler of innovation in organizations. Management Decision, 53 (9), 1906–1920.
Pallant, J. (2016). SPSS Survival Manual: A Step by Step Guide to Data Analysis using SPSS UK: McGraw-Hill International.
Piller, F. T., Ihl, C., & Vossen, A. (2010). A typology of customer co-creation in the innovation process. SSRn Electronic Journal, December, Retrieved from https://www.researchgate.net/publication/228197334.
Piller, F. T., Vossen, A., & Ihl, C. (2012). From social media to social product development: the impact of social media on co-creation of innovation. Die Unternehmung, 65(1).
Piller, F.T. & Walcher, D. (2006) Toolkits for idea competitions: a novel method to integrate users in new product development. R&D Management, 36(3), 307-318.
Piller, F.T., Moeslein, K. & Stotko, C.M. (2005). Does mass customization pay? An economic approach to evaluate customer integration. Production Planning & Control, 15(4), 435-444.
Piller, F.T., Schubert, P., Koch, M., & Möslein, K. (2005). Overcoming mass confusion: collaborative customer co-design in online communities. Journal of Computer Mediated Communication, 10(4).
Pletikosa, I. & Michahelles, F. (2011). The toolkit approach for end-user participation in the Internet of Things. Retrieved from https://www.researchgate.net/publication/227244683.
Prugl, R. & Schreier, M. (2006). Learning from leading-edge customers at The Sims: Opening up the innovation process using toolkits. R&D Mangement, 36(3), 237-250.
Ramaswamy, V. (2008). Co-creating value through customer’s experiences: The Nike case. Strategy & Leadership, 36(5), 9-14.
Ruzegea, M. (2011). The usability of OPAC interface features: The perspective of postgraduate students at International Islamic University Malaysia (IIUM). Library Philosophy and Practice, 1.
Schreier, M. (2004). Toolkits for user innovation and design. In C. Herstatt & J. G. Sander. (Eds.), Product development with virtual communities (pp. 199-219). Wiesbaden, Germany: Gabler Verlag Springer.
Scuotto, V., Del Giudice, M., Della Peruta, M. R., & Tarba, S. (2017). The performance implications of leveraging internal innovation through social media networks: An empirical verification of the smart fashion industry. Technological Forecasting and Social Change, 120, 184-194.
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill Building Approach (7th ed.). Chichester, West Sussex: John Wiley & Sons, Inc.
Shah, S., Winston Smith, S., & Reedy, E. J. (2012). Who are user entrepreneurs? Findings on innovation, founder characteristics, and firm characteristics (The Kauffman Firm Survey). Findings on Innovation, Founder Characteristics, and Firm Characteristics (The Kauffman Firm Survey)(February 2012).
Shaluf, I. M., & Ahamadun, F-R. (2006). Technological emergencies expert system. Disaster Prevention and Management, 15(3), 414-424.
Sharma, A., & Sheth, J. N. (2004). Web-based marketing: The coming revolution in marketing thought and strategy. Journal of Business Research, 57(7), 696-702.
Singh, S. K. G., Jayasingam, S. & Klobas, J. (2016). Open innovation: Do inbound and outbound practices affect firm performance? The 30th Australian and New Zealand Academy of Management Conference, ANZAM, Queensland University of Technology, Brisbane, Australia, 6-9 Dec 2016, 1-23. Retrieved from http://www.anzam.org/past-event-material/past-conference-papers/.
Statistics-Solutions. (2017). Structural Equation Modelling. Retrieved from http://www.statisticssolutions.com/structural-equation-modeling/.
Stelloo, J. (2011). How do companies compose their toolkits for customer co-design? Differences, similarities and relationships. (Masters thesis, University of Amsterdam, 2011).
Sun, H. (2012). Understanding user revisions when using information system features: Adaptive system use and triggers. MIS quarterly, 453-478.
Thomke, S. & von Hippel, E. (2002). Customers as innovators: A new way to create value. Harvard Business Review, 80(4), 74-81.
Tschimmel, K. (2012). Design Thinking as an effective Toolkit for Innovation. In ISPIM Conference Proceedings (p. 1). The International Society for Professional Innovation Management (ISPIM).
van de Vrande, V., De Jong, J. P., Vanhaverbeke, W., & De Rochemont, M. (2009). Open innovation in SMEs: Trends, motives and management challenges. Technovation, 29(6-7), 423-437.
von Hippel, E. (2001). User toolkits for innovation. Journal of Product Innovation Management, 18(4), 247-257.
von Hippel, E. 2005. Democratizing Innovation, Cambridge, MA: MIT Press.
Walsh, J. P., Lee, Y-N., & Nagoaka, S. (2016). Openness and innovation in the US: Collaboration form, idea generation and implementation. Research Policy, 45, 1660-1671.
Wang, C-H., Chang, C-H., & Shen, G. C. (2015). The effect of inbound open innovation on firm performance: Evidence from high-tech industry. Technological Forecasting & Social Change, 9, 222-230.
Wikström, P., & Ellonen, H. K. (2012). The impact of social media features on print media firms’ online business models. Journal of Media Business Studies, 9(3), 63-80.
Yadav, M., Kamboj, S., & Rahman, Z. (2016). Customer co-creation through social media: The case of ‘Crash the Pepsi IPL 2015’. Journal of Direct, Data and Digital Marketing Practice, 17(4), 259-271.
Ye, H., & Kankanhalli, A. (2018). User Service Innovation on Mobile Phone Platforms: Investigating Impacts of Lead Userness, Toolkit Support, and Design Autonomy. MIS quarterly, 42(1).
Zipkin, P. (2001). The limits of mass customization. Sloan Management Review, 42(3), 81-87.
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Published
2021-01-03
How to Cite
Saha, R. K., Singh, S. K. G., Taha, A. Z., & Seng, T. L. (2021). The Effect of Toolkits Usage on Firms’ Co-Creation and Innovation: An Empirical Study on Malaysian Manufacturing Firms. International Journal of Industrial Management, 9, 15–24. https://doi.org/10.15282/ijim.9.0.2021.5950
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Vol 9 2021
