Effectuation Logic and Early Innovation Success: The Moderating Effect of Customer Co‐creation

Abstract

This research examines whether and how customer co-creation activities moderate the relationship between effectuation logic and performance in the early stage of the innovation process. Effectuation logic is a promising decision-making logic for innovation success, but the tools that help translate this approach into innovation performance are underresearched. Three key dimensions of effectuation logic are examined: means-driven, partnerships and control. The results of a large-scale survey-based study indicate a varied and nuanced role of co-creation as a means to enhance the contribution of effectuation logic to early innovation success. This research helps increase our understanding of the often abstract principles of effectuation logic by examining its manifestation within the context of innovation and by showing how specific firm practices, here customer co-creation activities, can accentuate the contribution of effectuation logic to early innovation performance.

Interlinkages Between Digital-Social Entrepreneurship and Technological Capabilities for Sustainable Value Creation

“…Studies in the past have highlighted that effectual logic can lead to the financial growth of new enterprises, improvement in the innovation capabilities of the enterprise, and risk performance (Karami & Tang, 2022). Effectual logic is categorized into four subdimensions viz., experimentation (through unstructured and unguided searches), affordable loss (in terms of dealing with change and unpredictability), flexibility (responding speedily to seize market opportunities), and precommitment (as it plays a critical role in guiding action) (Chandler et al, 2011;Ko et al, 2022).…”