Low-end Innovations: An Investigation of Key Individuals and Organizational Ecosystems

• Applicant: Professor Dr. Gianfranco Walsh
• Subject Area: Accounting and Finance
• Term: from 2018 to 2023
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 392814786

Low-end innovations enable firms to disrupt markets, foster growth and generate profits; they satisfy the need of consumers for new products that are also affordable; and they contribute to providing access to affordable healthcare, housing, and education to help solve Grand Challenges for societies.Previous research on new product development and innovation generated a comprehensive body of knowledge that supports firms in systematically developing and diffusing new products. However, this body of knowledge primarily focuses on high-end innovation. Insights into the systematic management of low-end innovation are much scarcer, which has significant effects on firms and markets.Issues in developing and diffusing low-end innovations arise because managing low-end innovation differs from managing high-end innovation. Previous research points to two interdependent areas that deserve further attention: the individual in the innovation process and the organizational ecosystem for low-end innovation. Analyzing individual decision makers, our previous research has revealed an irrational preference for high-end innovation projects over low-end ones (i.e., a high-end bias). On the organizational level, we found that the organizational ecosystem of firms that successfully commercialize low-end innovations differ substantially with regard to culture, processes and capabilities. Thus, individual-level biases and the organizational ecosystem for innovation require a management approach that minds these low-end idiosyncrasies.Specifically, there is a considerable gap in the research on low-end innovation. While we know increasingly more about how to manage low-end innovation processes, we know virtually nothing about the individuals who are driving low-end innovation in firms; there is no research that describes their profile, motivation, or capabilities. In addition, only limited knowledge exists about the interaction between these individuals and the firm´s innovation ecosystem, and we have no evidence on the effectiveness of low-end innovation ecosystem strategies in firms.Therefore, we specifically focus on low-end innovation, especially low-end innovators in a series of five studies that empirically investigate the characteristics and capabilities of low-end innovators, develop a scientifically valid measurement instrument for low-end innovation preference, analyze the effect of contextual factors, and examine the role of individuals and the effectiveness of strategies that foster an organizational low-end innovation ecosystem.

• DFG Programme: Research Grants
• International Connection: Switzerland
• Cooperation Partner: Professor Dr. Sebastian Gurtner