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Transforming lead user innovations into new corporate ventures: a matter of information asymmetry?

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  • Barbara Fuchs

Abstract

This paper analyses factors influencing the transformation of a lead user generated product concept into a new corporate venture. The main proposition is that there are information asymmetries specific to the integration of lead users at the fuzzy front end resulting in conflict and rejection of proposed ideas and concepts. The proposition is investigated based on an ethnographic study of one lead user project carried out by a large telecommunications provider. The findings of the study strongly suggest that information asymmetries exist because of interdisciplinary project teams, latency of needs and early prototyping efforts by lead users. Implications for corporate entrepreneurship research and entrepreneurial actions by innovation managers are discussed.

Suggested Citation

  • Barbara Fuchs, 2011. "Transforming lead user innovations into new corporate ventures: a matter of information asymmetry?," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 14(1), pages 80-95.
    • Handle: RePEc:ids:ijeima:v:14:y:2011:i:1:p:80-95
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    Cited by:

    1. Ghasemzadeh, Khatereh & Bortoluzzi, Guido & Yordanova, Zornitsa, 2022. "Collaborating with users to innovate: A systematic literature review," Technovation, Elsevier, vol. 116(C).

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