Interdependency, dynamism, and variety (IDV) network modeling to explain knowledge diffusion at the fuzzy front-end of innovation

a r t i c l e i n f o Using network theory this research explains innovation as an interactional, networked, systemic phenomenon. The proposed interdependency, dynamism, variety (IDV) model attempts to detail actors' roles in intra-and in-terfirm knowledge diffusion during the fuzzy front-end of innovation (FFEI). Based on in-depth interviews, the results reveal that actors at the FFEI use their core competencies and knowledge diffusion in developing new products satisfying real-world requirements. Industry actors engage public research labs when the patented product demonstrates economic feasibility. The dynamic nature of FFEI prompts actors to seek external validation. Resource availability and knowledge diffusion do not necessarily lead to positive economic outcomes, but actors who demonstrate successful prototypes gain value through this collaboration. To reduce equivocality, networked actors should discuss the meaning and plausible uses of the discordant information, though equivocal information also can lead to innovation. Finally, early releases of patent information can distract actors if the patent is misused. Marketing managers generally are familiar with later innovation stages, characterized by defined activities and processes, clear procedures, and documented responsibilities that culminate in the commercialization of the innovation. Yet, Gassmann and Schweitzer (2014) note that the real benefits of new ideas emerge from the so-called fuzzy front-end of innovation. This stage occurs between opportunity recognition and the initiation of serious effort to develop In this context, innovation refers to research and development (R&D) activities, coordinated among actors who use available resources to introduce new, economically viable products. In their pursuit of being first to market, many companies speed up innovation diffusion, which can lead to expensive failures, recalls, and changes. These companies also are responsible for system integration and can effectively outsource research activities to network partners, such as universities, internal R&D departments, a network partner's R&D lab, or public research laboratories (PRLs). The latter receive funding from government entities but also must generate funds by contracting with or selling patents to industry and government actors. They often function at the fuzzy front-end of innovation (FFEI) and tend to be staffed by skilled, knowledgeable actors. They require various internal and external resources and have capacities to develop ideas 2013), such that PRLs engage actors from various disciplines and network with other research institutions as required. Anderson, Håkansson, and Johanson (1994) propose a model including actors, resources , and activities (ARA) to capture this network connectedness. Thus, a focal firm cooperates …