Impact of co-creation on innovation capability and firm performance: a structural equation modeling
| Autor | Fatemeh Hamidi - Naser Shams Gharneh |
| Cargo | PhD Candidate at the Faculty of Industrial engineering and management systems - Associate Professor at Amirkabir University of Technology |
| Páginas | 73-90 |
73
AD-MINISTER
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.
KEYWORDS
Co-creation; Innovation Capability; Firm Performance; SEM.
RESUMEN
Las empresas tradicionales solían diseñar productos, evaluar mensajes de mercadeo y controlar los
canales de distribución de producto sin una interfaz del cliente. Con los avances en las tecnologías de
la interacción, sin embargo, los usuarios pueden fácilmente tener un impacto sobre las empresas: la
interacción entre los clientes y las empresas se encuentra en este momento en su punto máximo en
comparación con el pasado y ya no es controlada por las empresas. Los clientes están desempeñando
dos roles actualmente: creadores de valor y clientes, al mismo tiempo. A diferencia de los clientes
tradicionales, que no tienen ningún rol en la innovación de los productos o los servicios, los clientes de
hoy han alcanzado una posición de influencia que les permite ser innovadores y co-creadores. En otras
palabras, ya no son solamente compradores, usuarios o defensores leales de un producto. Examinamos
el rol de la co-creación sobre las influencias de la capacidad de innovación y desempeño de la empre-
sa. Desarrollamos hipótesis para evaluarlas utilizando datos de la encuesta de los investigadores. Los
FATEMEH HAMIDI
NASER SHAMS GHARNEH
JEL: O, L
Received: 7/08/2016
Modified: 9/11/2016
Accepted: 8/12/2016
DOI: 10.17230/ad-minister.30.4
www.eafit.edu.co/ad-minister
Creative Commons (CC BY-NC- SA)
IMPACT OF CO-CREATION ON INNOVATION CAPABILITY AND
FIRM PERFORMANCE: A STRUCTURAL EQUATION MODELING
EL IMPACTO DE LA CO-CREACIÓN EN LA CAPACIDAD DE INNOVACIÓN Y EL DESEMPEÑO DE LAS EMPRESAS: UN
MODELADO DE ECUACIONES ESTRUCTURALES
1 PhD Candidate at the Faculty of Industrial engineering and management systems, Amirkabir Univer-
sity of Technology, while she studied one year of her Ph.D. program in Ljubljana University, Slovenia.
She was graduated in MBA from Jamia Hamdard University in New Delhi, India. Her main areas of
interest are: New Product Development, Management Systems and Marketing. For the time being she
is studying in Co-creation area. Institutional Email Address: hamidi135@aut.ac.ir
2 Associate Professor at Amirkabir University of Technology. He earned his PhD in management and
productivity from Manchester Business School. Over the last 30 years he has been involved in many
managerial, cultural, social and scientific activities at national and international levels. He has published
8 books and more than 80 papers both in Persian and English in top academic and research journals. He
is now the Director of Industrial Engineering and Productivity Research Centre at Amirkabir University
of Technology, as well as being a member of several scientific societies and editor and reviewer of sev-
eral research journals. Institutional Email Address: nshams@aut.ac.ir
AD-minister Nº. 30 january-june 2017 pp.73 - 90 · ISSN 1692-0279 · eISSN 2256-4322
74
AD-MINISTER
Fatemeh Hamidi · Naser Shams Gharneh
Impact of co-creation on innovation capability and firm performance: a structural equation modeling
resultados sugieren que implementar la co-creación logra mediar parcialmente el efecto de la capacidad de
innovación. Discutimos las implicaciones de estos hallazgos para la investigación y la práctica e implementamos
un modelo de co-creación de valor único.
PALABRAS CLAVE
Co-creación; capacidad de innovación; desempeño de las empresas; SEM.
INTRODUCTION
The organization of the twenty first century industries is changing from firm level
into customer level (Kumar and Petersen, 2013). Going into competition with
traditional methods has become increasingly challenging and firms need to adjust
their marketing strategies to customer-level organizations to win competitions
(Lamberti and Noci, 2009). With this evolution, companies have to reconsider their
marketing strategies to succeed in the competitive environment and to maximize
their profitability (Hoyer et al. 2010). With the emergence of customer level marketing,
the traditional lines between marketing and finance have vanished (Johnson et al.,
2000; Joshi and Sharma, 2004; Lin and Huang, 2013). Therefore, an important change
that most firms have gone through is to build an interface between their marketing
and finance departments (Lusch and Webster, 2011). Customers are now demanding
customized and personalized products and services to feel unique and stand out
from crowd, so marketing has changed its focus from the features of products to
customer benefits. (Joshi and Sharma, 2004). Despite the vast and rapid change in
the market, most firms still depend on firm-level organizations for designing their
marketing strategies (Lundkvist and Yakhlef, 2004). Firms that create new products
and customize current products are doomed to failure if they do not take into the
account the cost implications of marketing and the price change of their products
and services (Lusch and Webster, 2011; Lundkvist and Yakhlef, 2004; Lusch, Vargo
and O’Brien, 2007; Tanha et al., 2011).
This paper aims to address the abovementioned issues by examining the impact
of co-creation and innovation capability on firm performance. Co-creation refers
to the practices a company uses to collaborate with its stakeholders during the
design, development and deployment of its products and services (Kirah, 2009).
We extend and expand the existing research by proposing a subtler model on the
eects of co-creation and innovation capability on firm performance for making
two important contributions: (1) to compound to the rare empirical research on
performance implications of the co-creation and innovation; and (2) to develop
a conceptual model that better highlights the interplay between co-creation and
innovation on influencing performance. In particular, we address three research
questions: (1) does the co-creation aect firm performance; (2) does the innovation
capability mediate the relationship co-creation and firm performance; and (3) does
innovation capability aect firm performance?
Para continuar leyendo
Solicita tu prueba