Establishing and Sustaining Co-Creation of Innovation

Nathali Kaster & Maja Stockholm Lindhardt

Student thesis: Master thesis


The access to information and knowledge has improved. Customers are no longer isolated, unaware, and passive, they have become connected, informed and active. The role of the customer has changed, and likewise has the relationship between the customer and the firm. Following this, co-creation of innovation is increasingly emerging in society, as it has the potential to provide firms with a competitive advantage. Prahalad and Ramaswamy (2004b) explain how it is necessary for firms to move towards co-creation as “[t]he future of competition… lies in an altogether new approach to value creation, based on an individual-centered co-creation of value between consumers and companies” (p. 5). However, the opportunity for firms to embrace this new approach and do co-creation of innovation is not always seized. More specifically, the primary focus has been to investigate how the processes of innovative organization can enrich the concept of co-creation of innovation. We are of the conviction that there is an opportunity for improving the concept of co-creation of innovation. Supporting this, we defined a secondary research question, which built on the findings of the primary research question and allowed for an exploration of how information management practices can enable and support the integration of the enriched concept of co-creation of innovation in innovative organizations. The methodological approach to answering these research questions has been to develop a theoretical framework founded in a literature review. Based on our theoretical framework, we investigated co-creation of innovation within three innovative organizations in the IT sector. This was done to uncover how co-creation of innovation unfolded in real life settings. From our findings we developed an empirical framework. Developing the theoretical and empirical frameworks enabled us to continue the investigation by analyzing and comparing the frameworks. This enabled us to develop a final, enriched framework. Our final framework provides adequate findings and answers to how the concept of co-creation of innovation can be established and sustained. We conclude that the drivers, establishing an environment, capturing ideas, and involving customers, provide new insights to the concept of co-creation of innovation. Furthermore, we conclude that an alignment of three integrating elements, social cohesion, system, and context, are significant when establishing co-creation of innovation, and the drivers are important when wanting to sustain co-creation of innovation. We consider these two areas as contributing to the concept of co-creation of innovation, as these particular areas have been neglected in the literature. After having developed our final framework of co-creation of innovation, we present the potential of human-computer interaction as a suitable information management practice for co-creation of innovation. We argue that the ISO 13407 human-centered design lifecycle model and tools such as blogs, wikis, and intranets could be integrated within innovative organizations, to enable and support the integration of our final, enriched framework.

EducationsMSc in Business Administration and Information Systems, (Graduate Programme) Final Thesis
Publication date2012
Number of pages246