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Strategic change and innovation reputation: Opening up the innovation process

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  • Morgan, Todd
  • Obal, Michael
  • Jewell, Robert D.

Abstract

As more firms begin to co-create new products with customers, a key question is, “Will opening the innovation process to customers always be beneficial?” This research examines how strategic change (e.g., closed to open innovation strategy) impacts the attitudes of the periphery of customers (i.e., customers not involved in the innovation process); and it further explores how a firm's innovation reputation can affect strategic change efforts. The results of two studies show that attitudes toward the firm improve when it moves from a closed to more open innovation strategy. This relationship is contingent on a firm's innovation reputation. When a firm has a high reputation for innovation, it should continue with its current strategy, whether open or closed. Conversely, having a low reputation for innovation indicates that any change of strategy is good in order to try to overcome negative perceptions of the firm's reputation.

Suggested Citation

  • Morgan, Todd & Obal, Michael & Jewell, Robert D., 2021. "Strategic change and innovation reputation: Opening up the innovation process," Journal of Business Research, Elsevier, vol. 132(C), pages 249-259.
    • Handle: RePEc:eee:jbrese:v:132:y:2021:i:c:p:249-259
    DOI: 10.1016/j.jbusres.2021.03.055
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    References listed on IDEAS

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    1. Morgan, Todd & Anokhin, Sergey Alexander & Wincent, Joakim, 2019. "New service development by manufacturing firms: Effects of customer participation under environmental contingencies," Journal of Business Research, Elsevier, vol. 104(C), pages 497-505.
    2. Dennis A. Gioia & Kumar Chittipeddi, 1991. "Sensemaking and sensegiving in strategic change initiation," Strategic Management Journal, Wiley Blackwell, vol. 12(6), pages 433-448, September.
    3. Morgan, Todd & Obal, Michael & Anokhin, Sergey, 2018. "Customer participation and new product performance: Towards the understanding of the mechanisms and key contingencies," Research Policy, Elsevier, vol. 47(2), pages 498-510.
    4. C. S. Richard Chan & Annaleena Parhankangas, 2017. "Crowdfunding Innovative Ideas: How Incremental and Radical Innovativeness Influence Funding Outcomes," Entrepreneurship Theory and Practice, , vol. 41(2), pages 237-263, March.
    5. Gruner, Kjell E. & Homburg, Christian, 2000. "Does Customer Interaction Enhance New Product Success?," Journal of Business Research, Elsevier, vol. 49(1), pages 1-14, July.
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    Cited by:

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    2. Li, Yunjian & Chen, Jiawen & Li, Li & Huang, Xiaojun, 2024. "Government innovation awards, innovation funds acquisition and enterprise innovation," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 846-864.
    3. Purdy, Lauren & Eslami, Hadi & Eshghi, Kamran & Rod, Michel, 2023. "Technology sourcing and the dark side of open innovation: Evidence from the biopharmaceutical sector," Technovation, Elsevier, vol. 119(C).
    4. Anokhin, Sergey & Morgan, Todd & Schulze, William & Wuebker, Robert, 2022. "Is a reputation for misconduct harmful? Evidence from corporate venture capital," Journal of Business Research, Elsevier, vol. 138(C), pages 65-76.
    5. Gloria Janeth Murillo-Aviña & Sialia Karina Mellink-Méndez & Josué Aarón López-Leyva & Víctor Manuel Ramos-García, 2022. "Challenges and Opportunities Post Pandemic of Organizational Ergonomics to Promote the Social Sustainability in Cultural and Creative Industries: A Critical Review and Future Research Agenda," Sustainability, MDPI, vol. 14(22), pages 1-16, November.

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