Publication Type
Journal Article
Version
acceptedVersion
Publication Date
2-2012
Abstract
Economic models suggest that firms use a simple cost-benefit calculation to evaluate customer requests for new product features, but an extensive organizational literature shows the decision to implement innovation is more nuanced. We address this theoretical tension by studying how firms respond to customer requests for incremental product innovations, and how these responses change when the requested innovation is complex. Using large sample empirical analyses combined with detailed qualitative data drawn from interviews, we find considerable variance in the relationship between customer demands, complexity, and investments in incremental innovations. The qualitative study revealed the importance of organization structures, competitive pressures, and incentives for resource allocation processes.
Keywords
innovation, customer focus, complexity, qualitative study, software industry
Discipline
Computer Sciences | Management Information Systems
Research Areas
Information Systems and Management
Publication
Strategic Management Journal
Volume
33
Issue
2
First Page
137
Last Page
161
ISSN
0143-2095
Identifier
10.1002/smj.947
Publisher
Wiley
Citation
ETHIRAJ, Sendil K.; RAMASUBBU, Narayanasamy; and Krishnan, M. S..
Does Complexity Deter Customer-Focus?. (2012). Strategic Management Journal. 33, (2), 137-161.
Available at: https://ink.library.smu.edu.sg/sis_research/1470
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1002/smj.947