The role of digital artefacts in early stages of distributed innovation processes

EFFECTS OF USER COMMUNITY SENSING CAPABILITY IN DIGITAL PRODUCT INNOVATION: EVIDENCE FROM THE VIDEO GAME INDUSTRY

Digital technology continues to extend the co-creative role of users and user communities as sources of innovation-conducive knowledge. While the potential of user communities in this context is well established, little is known about the capabilities needed to successfully manage the interface with virtual user communities. The paper investigates User Community Sensing (UCS) capability as a measure of firms’ ability to anticipate changes and opportunities for innovation by interfacing with relevant user communities. Based on existing research and data from 173 product innovation projects, the study employs structural equation modelling to test the hypothesised effects of this capability on product innovation performance and product innovation speed. The results indicate that UCS capability affects performance positively and indirectly by increasing knowledge about users but has no significant effect on speed. As well as contributing to the literature on innovation management, the study has a number of implications for practitioners.