Download as pdf or txt
Download as pdf or txt
You are on page 1of 17

Journal of Business Research xxx (xxxx) xxx–xxx

Contents lists available at ScienceDirect

Journal of Business Research


journal homepage: www.elsevier.com/locate/jbusres

How to evaluate innovative ideas and concepts at the front-end?


A front-end perspective of the automotive innovation process
Marisa Dziallas
Innovation Economics, Technical University Berlin, Marchstraße 23, 10587 Berlin, Germany

A R T I C LE I N FO A B S T R A C T

Keywords: Despite growing research on front-end indicators, the understanding of the evaluation of innovative ideas in the
Front-end innovation evaluation early stages of the innovation process within a company remains limited. A reason for this might be a lack of data
Selecting innovative ideas on front-end evaluation. This paper investigates existing theoretical and new indicators in terms of their im-
Innovation indicators portance and practical applicability in the industry. This study follows a qualitative empirical research design,
Agile decision-making
using a new dataset based on 32 interviews with experts conducted in six international automotive original
Automotive industry
equipment manufacturers (OEMs). To improve generalization, the perspectives of volume, premium, and entry-
level manufacturers are included. The four most relevant indicators are high customer relevance, strategic fit,
high communication potential, and vision potential. The data suggest the need for more flexible and faster front-
end evaluation approaches. The findings enhance the quality of innovation decisions by presenting novel in-
sights into innovation evaluation at the front end.

1. Introduction large-scale failure and changing costs in the later stages of the devel-
opment. Therefore, using the right indicators and an efficient evalua-
Companies face the challenge of selecting suitable ideas very early tion approach at the front end leads to an improved innovation per-
in the innovation process—at the front end—because resource and formance (Martinusuo & Poskela, 2011). This may result in higher
budget constraints limit the pursuit of every proposed idea (Achiche, returns on investment (ROI) and research and development (R&D) cost
Appio, McAloone, & Di Minin, 2013; De Brentani & Reid, 2012; savings (Reid & de Brentani, 2004; Verworn, Herstatt, & Nagahira,
Frishammar, Florén, & Wincent, 2011; Kock, Heising, & Gemünden, 2008).
2015; Montoya-Weiss & O'Driscoll, 2000). The term front end refers to While the industrial importance of the subject grows, the research
the early stages of the innovation process, including idea generation, on innovation evaluation at the front end is also increasing (De Brentani
concept definition, opportunity recognition and evaluation1 (De & Reid, 2012; De Oliveira, Rozenfeld, Phaal, & Probert, 2015; Kock
Brentani & Reid, 2012; Khurana & Rosenthal, 1998; Mohan, Voss, & et al., 2015; Martinusuo & Poskela, 2011; Mohan et al., 2017; Van den
Jiménez, 2017). Many promising new ideas and concepts for innova- Ende, Frederiksen, & Prencipe, 2015). Scholars have recognized the
tions do not become products. This may be because companies often front end as a critical stage in the innovation process, one that creates
lack knowledge about appropriate evaluation approaches to identify value and sets the path for new product development success (see, for
the most relevant topics out of many good ideas. When combined with example, Koen et al., 2002; Reid & de Brentani, 2004). Therefore, the
the uncertainty that characterizes the front end, this lack of knowledge front end is perceived as an important driver for new product success
means that companies rarely dedicate enough resources for a structured (De Oliveira et al., 2015; Kock et al., 2015; Reid & de Brentani, 2004;
evaluation process (Dewangan & Godse, 2014; Edison, bin Ali, & Verworn et al., 2008; Zhang & Doll, 2001). Researchers have found that
Torkar, 2013; Kock, Heising, & Gemünden, 2016). Front-end evaluation a comprehensive evaluation positively influences front-end perfor-
approaches and indicators for new product development, however, mance (Mohan et al., 2017), which, in turn, influences new product
offer a solution to this problem. They help companies align idea se- development performance overall (Markham, 2013). Thus, an impoved
lection with their goals and resources. The use of indicators leads to evaluation approach at the front end is essential to maintain a com-
more transparent, traceable, and reliable innovation decisions, thus petitive advantage (Porter & Heppelmann, 2015).
reducing complexity at the front end of the innovation process. By Despite the large amount of existing research on innovation in-
making the right decisions early on, a company can reduce its risk of dicators at the front end, there remains a pressing need to further

E-mail address: marisa.dziallas@campus.tu-berlin.de.


1
Evaluation refers to making a decision about whether to further develop an idea and invest more resources in it.

https://doi.org/10.1016/j.jbusres.2018.05.008
Received 1 May 2017; Received in revised form 3 May 2018; Accepted 5 May 2018
0148-2963/ © 2018 Elsevier Inc. All rights reserved.

Please cite this article as: Dziallas, M., Journal of Business Research (2018), https://doi.org/10.1016/j.jbusres.2018.05.008
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

investigate front-end decisions and indicators. Research on innovation (Hart et al., 2003; Martinusuo & Poskela, 2011). Based on this in-
indicators typically emphasizes the later stages of the innovation pro- formation, the operational capability of a company helps to align
cess while neglecting the early stages. Thus, the majority of existing available resources to the overall company strategy and customer va-
research excludes deeper insights into the precise indicators that are lues. To apply an efficient evaluation approach and indicators, com-
applicable to the front end (Klenner, Hüsig, & Dowling, 2013), a subject panies require organizational agility, including adaptive capabilities
that consequently demands more clarification. In practice, efficient such as vigilance and open marketing. Section 4.5 describes how this
evaluation performance systems (Dewangan & Godse, 2014) and eva- required knowledge can be generated and how an agile method can be
luation strategies (Edison et al., 2013) are often defectively structured, implemented. Finally, this study is not merely descriptive (Hart et al.,
while the companies using them disagree about what should be mea- 2003). It also provides specific indicators that can be used in practice by
sured and how. Some researchers argue that it is unclear whether combining theoretical indicators with practical insights. Moreover, by
academic metrics and parameters are applicable to companies, sug- synthesizing the data and results, this study provides information on
gesting that the recommended innovation evaluation approach and how companies can implement front-end evaluation to improve future
indicators may be too theoretical (see, for example, Adams, Bessant, & innovation performance.
Phelps, 2006; Cruz-Cázares, Bayona-Sáez, & García-Marco, 2013). Ac- This paper will briefly review the existing literature on front-end
cordingly, there are no publications of expert industrial knowledge indicators. After describing the methods and data and presenting the
about front-end indicators and evaluation approaches. Another area results, the paper will discuss the findings of the study, focusing on
that requires more research is companies' organizational agility cap- managerial and theoretical implications.
abilities, which are needed to implement efficient evaluation indicators
(Roberts & Grover, 2012). The existing research lacks qualitative in- 2. Prior research
sights into front-end evaluation based on agile methods.
To close the research gap, this study delivers a new dataset that The term innovation has been defined differently in theory and in
presents industrial experts' views on front-end indicators and evalua- practice. This paper uses the acknowledged definition based on the
tions. The analysis augments the understanding of innovation evalua- OECD that defines innovation as the implementation of a new or sig-
tion in practice, validating existing indicators and offering new indexes. nificantly improved product, process or service (2005). This definition
This leads to the following research questions: also includes the commercialization of an innovation (see also
Dewangan & Godse, 2014). This study focuses on incremental innova-
1. Are front-end innovation indicators and evaluation approaches ap- tions such as the technical improvement of a product or service related
plied in industry, and is their application considered an efficient to, for example, user experience, autonomous driving, human-machine
evaluation performance approach? interfaces, or driver assistance systems. Incremental innovations are the
2. Is the existing scientific literature on front-end innovation indicators focus of this study, because most innovation projects include im-
consistent within the industrial application? provements to existing products rather than entirely new inventions (or
3. Which specific evaluation indicators are suitable for industrial ap- radical innovations). This distinction is important because incremental
plication at the front end? and radical innovations require different evaluation processes (Aarikka-
Stenroos & Lehtimäki, 2014; Bessant, Stamm, Moesleon, & Neyer, 2010;
Specificially, this study presents innovation experts' views on 25 Eling, Griffin, & Langerak, 2016; Holahan, Sullivan, & Markham, 2014;
front-end innovation indicators and front-end evaluation. The dataset Verworn et al., 2008). For radical innovations, for example, a manager's
includes 32 interviews with experts from six internationally operating support and belief in the potential for new markets might be more
automotive original equipment manufacturers (OEMs). Thus, it in- important than evaluation indicators (Leifer, O'Connor, & Rice, 2001).
cludes the perspectives of experts from volume, premium, and entry- Another important term for this study is indicator. An indicator is a
level manufacturers. The indicators investigated in the study were de- measured value that provides information about the status quo and
veloped from an extensive literature review and supplemented by the which can be used to detect problems in an innovation system (Borrás &
information collected from the surveyed innovation experts. In addition Edquist, 2013).
to the indicators, the data suggest more flexible and faster front-end
evaluation (see, for example, Cooper & Sommer, 2016b). The findings 2.1. Literature review
emphasize the high relevance of front-end innovation indicators as
demonstrated by the 100% response rate to the interview requests. In recent years, considerable efforts have been made to study in-
The contributions of this study are threefold: First, since there is a novation indicators throughout the innovation process (Cooper &
lack of information on front-end indicators in practice in the research, Kleinschmidt, 1987; Hart et al., 2003) and innovation success factors
this study delivers novel insights into front-end indicators and evalua- (Evanschitzky, Eisend, Calantone, & Jiang, 2012). For instance,
tion approaches based on the experiences of internationally operating Krishnan and Ulrich (2001) conducted a review of product develop-
companies. This study could benefit from the practitioner research ment decisions. Research has also confirmed that the front-end is highly
principles by working on innovation projects and having access to in- relevant to a company's product performance (see, for example,
ternal reports and confidential contact with experts (Jupp, 2006). Markham, 2013). Front-end evaluation requires different indicators
Therefore, valuable insights into the front-end of the innovation process than the evaluation of innovations that have already been introduced to
could be gained, which are usually not or only hardly open to external the market. It is more difficult to estimate an idea's potential at the front
partners. Second, the study has strategic value, as the examined in- end than in the later stages because the more the process progresses, the
dicators are linked to the strategic and operational capabilities of broader the availability of relevant information becomes. This might be
companies (Hart, Hultink, Tzokas, & Commandeur, 2003). A company's the reason why the later stages of innovation have been more re-
strategic capability should allow for high innovation performance so searched than the early stages (Barczak, Griffin, & Kahn, 2009; Cooper,
that the company can gain and maintain a competitive advantage. The 2008; Hart et al., 2003).
industrial application of the indicators identified in this study helps Different methods for studying innovation indicators have been used
companies improve their evaluation of ideas; in other words, the results in the literature. Hart et al. (2003) used a questionnaire and examined all
of this study enhance the research relating to indicators to improve phases of the innovation process in Dutch and British companies that
future innovation performance. From an operational viewpoint, the develop and manufacture industrial goods. By analyzing twenty in-
indicators show which data, knowledge, tasks, or competencies should dicators, they identified four front-end indicators: technical feasibility,
be created at the front end to develop ideas into products or services intuition, market potential, and product uniqueness.

2
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Carbonell-Foulquié, Munuera-Alemán, and Rodrıguez-Escudero 2.2. Innovation indicators used in this study
(2004) also identified four front-end indicators—strategic fit, technical
feasibility, customer acceptance, and market opportunity—by using a The innovation indicators used in this analysis are based on an ex-
questionnaire and conducting interviews with experts involved in the tensive literature review of innovation indicators from 1980 to 2015.2
development and launch of innovative products in Spanish manu- The indicators that are most significant for front-end evaluation were
facturing companies in medium- to high-technology industries (me- selected for this study based on the knowledge of experts working in the
chanical, electronic, or computer equipment; electrical machinery; innovation management department of Company I. Additional in-
measurement instruments; motor vehicles; and other transportation). In dicators were added based on the experience of the author of this paper.
total, the authors analyzed sixteen indicators. Table 1 shows the identified indicators.
Martinusuo and Poskela (2011) used a cross-sectional questionnaire
and focused on ideas and concept evaluation in Finish industrial com- 2.3. Agile development methods and capabilities
panies. The researchers identified front-end indicators similar to those
highlighted in earlier research, such as strategic, market, and technical Recent research discusses the use of Agile–Stage-Gate hybrid models
criteria. Their results confirmed that the use of evaluation indicators is to increase the success rate of a new product (Cooper & Sommer,
significant for aligning the front end of innovations with business po- 2016b). Agile development methods are usually applied in software
tential. Furthermore, Martinusuo and Poskela emphasized the need for development, but new studies demonstrate that they can be integrated
a holistic and informal evaluation system that should be aligned with a into the traditional predevelopment processes of manufacturing com-
company's development goals. panies (Cooper, 2016; Cooper & Sommer, 2016b). The shift to digiti-
In contrast, Evanschitzky et al. (2012) conducted a meta-analysis on zation may lead to changes in user behavior and rebound effects that
the success factors of product innovations based on Henard and Szy- require shorter and faster iterations (Cooper, 2016). For instance, cus-
manski's meta-analysis (2001). The authors highlighted the importance tomers' shopping-related tasks may change based on digital technology.
of considering national culture as a factor to better understand suc- This research shows the advantages of agile processes, including im-
cessful new product development. proved communication and coordination, a better ability to cope with
Magnusson, Netz, and Wästlund (2014) used quantitative (survey) uncertainty, quicker product releases, and faster responses to changing
and qualitative (thinking out loud) studies to analyze idea screening in market and customer requirements (Begel & Nagappan, 2007). Will
the telecommunication sector in Europe. They identified six front-end experts in the manufacturing industry agree on the need for more agile
indicators: originality, user value, producibility, intuitive assessment, and flexible evaluation approaches?
strategic fit, and profitability. Frederiksen and Knudsen (2017) con- The application of appropriate evaluation indicators also requires
ducted a case study and used an assessment by students and industrial organizational agility capabilities. Researchers argue that agile com-
experts in Denmark to analyze idea selection, identifying novelty, panies tend to be more successful than those that are not agile (Roberts
usefulness, and market potential as useful front-end indicators. & Grover, 2012). Despite the importance of agility, little research has
Overall, the literature on front-end evaluation discusses diverse, been done on the topic, especially as it relates to automotive manu-
important, and useful indicators and shows that different indicators can facturing companies. The term organizational agility refers to a compa-
be linked to the front end. However, the question of which specific ny's ability to respond quickly and flexibly to its environment and to
indicators can be applied to the evaluation of ideas at the front end of meet emerging challenges with innovations (Bessant, Francis, Meredith,
the innovation process remains. Moreover, a systematic overview of & Kalinsky, 2001; Day, 2000). Organizational agility requires strong
practical front-end indicators is missing. dynamic capabilities to understand the deep uncertainty associated
Prior research criticized the lack of evaluation approaches based on with innovations (Teece, Peteraf, & Leih, 2016).
the perceived importance of innovation criteria (Hart et al., 2003), yet Researchers have shown that a company's customer agility (sense
it remains unclear which theoretical indicators are applicable at the and response capabilities) is also important for its success (Roberts &
front end and which indicators are interesting from companies' per- Grover, 2011). The term customer agility is defined as the “degree to
spectives. Information about how experts evaluate ideas in practice is which a firm is able to sense and respond quickly to customer-based
not available, while the understanding of practical front-end indicators opportunities for innovation and competitive action” (Roberts &
remains incomplete. Furthermore, quantitative research on indicators Grover, 2011, p. 580). Day (2011) argued that adaptive capabilities are
has been conducted, but qualitative research is also needed to gain closely linked to agility and are important for innovations as well. Day
deeper insights. As the literature review makes clear, analyses of front- (2011) identified three adaptive capabilities: vigilant market learning
end indicators in the automotive industry have been neglected thus far. to improve market insights with a warning system to anticipate market
Front-end indicators have likely been insufficiently addressed in the changes and unmet needs, adaptive market experimentation to con-
literature due to a deficiency of data. Companies avoid publishing in- tinuously learn, and open marketing using new media and social net-
sights into their front-end processes for nondisclosure and competitive working technologies. In order to realize its adaptive capabilities, a
reasons. The combination of uncertainty and vagueness—due to the company must be resilient and have vigilant leadership with more
lack of reliable and tangible data—impedes a clear assessment of an adaptive business models (Day, 2011).
innovation’s potential (Poskela & Martinsuo, 2009). Another challenge
concerning the evaluation of innovative ideas lies in the fact that the
idea needs to be evaluated at the point of market entry, which, in the 3. Methodology
automotive industry, is likely five years in the future. In order to make
more successful innovation investment decisions, companies use me- This section describes the data gathering process, the data used for
trics such as the internal rate of return (IRR) (Magni, 2010). However, this analysis, and the innovation process. Following Cooper and
this metric is based on numbers that are often unavailable or vague in
the early stages of the innovation process. This means that the identi- 2
The extensive literature review is based on the working paper: “Dziallas, M. and
fication of the most promising ideas remains difficult. Moreover, based Blind, K. (2017). Innovation indicators throughout the innovation process: An extensive
on the fuzziness that characterizes the front end, researchers argue that literature analysis.” Within the literature review, indicators of the innovation manage-
ment literature from 1985 to 2015 have been consolidated. The review is based on the
further investigation is needed to better understand the early stages of
framework of Becheikh et al. (2006 published in Technovation) indicating internal and
the innovation process and to improve new product development and contextual factors and innovation related findings (e.g., type of innovation). The work of
performance (Eling & Herstatt, 2017). Dziallas and Blind has been presented at the OECD Blue Sky III Forum in Ghent,
September 2016.

3
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Fig. 1. Innovation in the context of the product development process. The illustration is the author's own, based on Cooper, 1990 and Hart et al., 2003.

Schindler (2013), this study uses an empirical qualitative research ap- (Sharmelly, 2016). It also faces the challenge of combining hardware
proach to explore expert opinions about front-end innovation indicators and software developments with different development times and life
in the manufacturing industry. The study's goal is to gain deep, high- cycles that might require agile processes (Cooper, 2016).
quality insights into the complex organizational processes behind in- The international automotive companies featured in this study in-
novation evaluation rather than generalize statistical results (Yin, clude four volume manufacturers, one premium manufacturer, and one
2003). The analysis is based on in-depth individual interviews with entry-level manufacturer. These companies were chosen because of
experts who work in six internationally operating companies. The their wide variety of innovative solutions. The variety of products and
analysis was first conducted for Company I, a volume manufacturer services they provide is combined with numerous innovative ideas at
with a large number of ideas for innovations that require a front-end the front end, increasing the complexity of integrating new develop-
decision about wether to move forward. Then, to ensure general- ments into products and necessitating a clear evaluation process. The
izability, the same analysis was conducted with data from additional companies all belong to a publicly traded group. This corporation is one
volume, premium, and entry-level manufacturers. The sample is cross- of the largest internationally operating OEMs in the automotive in-
sectional, with a multi-perspective scope of the research population dustry. The companies follow an innovation process that is based on the
(Cooper & Schindler, 2013). Stage-Gate system (Cooper, 1990). Each of the experts surveyed con-
The automotive industry is suitable for this analysis, as it experi- tributes decisively to the companies' integration of innovative vehicle
ences immense changes and promotes numerous innovations per year ideas. The experts' impact on the innovation process is shown in Fig. 1.

Table 1
Innovation indicators identified as relevant for the study based on an extensive literature review.
Indicator References

Communication potential cf. Yang et al. (2015), based on innovation management experts
Customer orientation e.g., Cooper (1999), Lenfle (2008), Suwannaporn and Speece (2010), Caird et al. (2013), Dewangan and Godse (2014)
Customer satisfaction Astebro and Michela (2005), Enkel et al. (2005), Chiesa et al. (2009), Sawang (2011), De Felice and Petrillo (2013), Dewangan and
Godse (2014), Fleuren et al. (2014)
Degree of innovation De Brentani (2001)
Degree of novelty for the company Cooper (1981)
Ease of use for customer Cooper (1981); Astebro and Michela (2005)
Economic efficiency (potential) Czarnitzki and Kraft (2004), Flor and Oltra (2004), Palmberg (2006), Chiesa et al. (2009), Sawang (2011), Idris and Tey (2011), Caird
et al. (2013), De Felice and Petrillo (2013), Ivanov and Avasilcăi (2014), Dewangan and Godse (2014), Kim (2014), Hittmar et al.
(2015)
Extension of product portfolio e.g., Adams et al. (2006), Kim (2014)
Future product lifetime Astebro and Michela (2005)
Innovation design Alcaide-Marzal and Tortajada-Esparza (2007), Yang et al. (2015)
Innovation quality Griffin and Page (1993), Sawang (2011), De Felice and Petrillo (2013), Edison et al. (2013), Mendes Luz et al. (2015)
Number of innovative ideas Chiesa et al. (2009), Hittmar et al. (2015)
Patents and standards Chiesa et al. (2009), Makkonen and van der Have (2013), Rocha et al. (2015), Roper and Hewitt-Dundas (2015)
Service potential De Brentani (2001), Astebro and Michaela (2005), Schmoch and Gauch (2009), De Felice and Petrillo (2013), Yang et al. (2015)
Sustainability Kobayashi (2006), van Hoof et al. (2014)
Synergy potential with other innovations Griffin and Page (1993), Astebro and Michela (2005)
Technical feasibility cf. Chiesa et al. (2009)
Time to market Tipping et al. (1995)
Trend-setting e.g., Littell (1994)
Unique selling proposition potential Cooper (1981, 1999), Astebro and Michela (2005)
Brand defining Included in the analysis based on innovation management experts
Degree of maturity Included in the analysis based on innovation management experts
Installation rate potential Included in the analysis based on innovation management experts
Package potential Included in the analysis based on innovation management experts
Resistance of the innovation Included in the analysis based on innovation management experts

4
M. Dziallas

Table 2
Interviews with innovation experts from Company I.
Department of respondent Management role Interview no. Transcribed pages Interview length Working experience

Innovation management Innovation manager 1 22 01:10:54 > 10 years


Innovation management Innovation manager 2 11 00:59:10 > 10 years
Strategy and technology management (Top) executive 3 19 02:25:56 > 10 years
Strategy and technology management Market experts 4 8 01:09:49 > 10 years
Project controlling: controlling of predevelopment projects Financial expert 5 17 02:32:52 > 10 years
Project controlling: controlling of predevelopment projects Financial expert 6 13 01:36:48 < 5 years
Group IT: new IT solutions (Top) executive 7 10 00:54:11 5–10 years
Group IT: evaluation new ventures (Top) executive 8 6 00:29:43 > 10 years
Futurology and trend transfer: early detection and communication Executive 9 15 01:22:41 > 10 years
Procurement: collaboration on innovation topics Executive 10 8 00:51:17 > 10 years
Procurement: innovation management Procurement expert 11 11 01:09:00 5–10 years
Business Development: development new business solutions (Top) executive 12 11 01:01:36 > 10 years

5
Predevelopment user experience: development of ideas and concepts for innovations (Top) executive 13 10 00:45:34 > 10 years
Predevelopment construction: development of ideas and concepts for innovations Predevelopment expert 14 9 00:49:16 < 5 years
Sales and marketing: innovation management Marketing innovation expert 15 9 00:39:28 > 10 years
Sales and marketing: innovation marketing (Top) executive/product marketing expert 16 15 00:45:19 > 10 years
Sales and marketing: trend and consumer research for innovations Brand management and consumer insights expert 17 5 00:27:24 > 10 years
Sales and marketing: strategic communication of innovations (Top) executive/brand management expert 18 20 01:23:16 > 10 years
Sales and marketing: strategic price planning for innovations, innovative price approaches Innovation sales experts 19 25 01:16:21 5–10 years
Sales and marketing: innovation analyses (Top) executive/brand management and consumer insights 20 8 00:50:36 > 10 years
Digitalization: development of ideas and concepts for mobility solutions (Top) executive/smart mobility expert 21 9 00:38:23 > 10 years
Digitalization: development of ideas and concepts for mobility solutions Product and service experts 22 11 00:54:58 > 10 years
Sales and marketing: customer monitoring and analyses (Top) executive/brand management and consumer insights 23 12 00:57:41 > 10 years
Futurology and trend transfer: early detection and communication (Top) executive 24 5 00:28:13 > 10 years
Predevelopment chassis: development of ideas and concepts for innovations (Top) executive 25 10 00:46:37 > 10 years

Note: All names are pseudonymized.


The work experience of the expert within the company is categorized as < 5 years, 5–10 years, > 10 years.
Journal of Business Research xxx (xxxx) xxx–xxx
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Table 3
Interviews with innovation experts from Companies II–V.
Company no. Department of respondent Management role Interview no. Transcribed pages Interview length Working experience

II Innovation management Innovation manager/(top) executive 26 15 01:10:54 > 10 years


III Innovation management Innovation manager 27 12 01:00:56 5–10 years
IV Product marketing and strategy Senior innovation specialist 28 9 00:52:11 > 10 years
V Digitalization Innovation consultant 29 8 01:02:24 5–10 years
V Innovation management (Top) executive 30 7 00:45:36 > 10 years
V Innovation management Executive 31 6 00:35:41 > 10 years
VI Project management Project innovation management expert 32 10 00:54:12 > 10 years

Note: All names are pseudonymized.


The work experience of the expert within the company is categorized as < 5 years, 5–10 years, > 10 years.

In this study, the industrial innovation process is structured into six (Voicu, 2011). This strategy was chosen because it allowed for the in-
phases and corresponds to the Stage-Gate process of Cooper (1990) and clusion of a high number of experts working on different aspects of
Hart et al. (2003). Although this process appears to be a linear one, it is innovation decisions. The surveyed experts were managers and em-
important to note that the linear portrayal is quite dynamic and itera- ployees with decision-making roles in the innovation process. In the
tive, with diverse feedback loops to adapt to market requirements first round of interviews, experts from the innovation management
(Frederiksen & Knudsen, 2017; Kline & Rosenberg, 1986). The futur- department were interviewed. In the second round, innovation profes-
ology and trend department uses a timeline of about 10–20 years and sionals from the departments responsible for predevelopment, digita-
transfers future trends and customer needs to the present to develop lization, technology, and strategy were consulted. For the third round,
new new solutions. The other departments work within the product innovation experts were recruited for the study based on the advice of
development process and use a timeline of about 5–8 years. In the first the experts interviewed in the second round in order to ensure that the
phase, the strategy phase, the long-term positioning of innovations is information included in the analysis was complete and relevant. The
determined based on company goals and trends, as well as brand con- experts chosen for the third round of interviews belonged to the sales
cept and product strategy (strategy and technology management de- and marketing, procurement, and IT divisions, as well as the finance,
partment). In the second phase, the product is defined and ideas are futurology, and trend transfer departments. Finally, innovation experts
generated by the predevelopment department and evaluated with the from five other companies were also interviewed. The interviewees'
help of the innovation management. At this time, the digitization and perception and interpretation of the indicators were of primary interest
business development departments work on new mobility and service in the interviews.
solutions. In the third phase, the product is conceptualized according to Therefore, their different backgrounds were beneficial for building
the product definition. Potential costs and required resources are esti- an understanding of innovation decisions (Yin, 2014). All interviews
mated based on business case calculations by the finance department. were conducted face-to-face at a location in the expert's company. Ex-
In the fourth phase, the validation phase, prototypes are built and perts working for companies outside of Germany were interviewed via
tested. Ideally, in the fifth phase, the innovative concepts are integrated video conference.
into the vehicle projects and produced in high volumes. In the sixth To analyze the data gathered from the interviews, an inductive
phase, the manufactured products are introduced to the market by the approach was chosen—findings were derived from detailed readings of
sales and marketing department using a communication and marketing the raw data (Thomas, 2006). This qualitative approach reveals es-
strategy in order to achieve the highest sales figures possible. From an sential particularities of the data that might otherwise go unnoticed.
innovation perspective, the procurement department serves as the link The author's conclusions were drawn and validated in repeated dis-
to suppliers who deliver innovative ideas. The information technology cussions with the experts (Thomas, 2006). Thus, the author was able to
(IT) department contributes to the overall process with IT solutions. distinguish more general phenomena from those specific to individual
The data in this study was gathered through 32 formal semi-struc- companies.
tured interviews, each with a duration of 60 to 90 min (see Tables 2 and The interviews were recorded with the interviewees' permission. At
3). These interviews resulted in 33 h of recording. the same time, they were transcribed using the program f4transkript.
As outlined in Tables 2 and 3, the position and work experience of This resulted in 366 transcribed pages. For the transcript coding and
the interviewees qualified them to appropriately validate front-end analysis, the software f4analyse was used. The necessary structural
innovation indicators and provide well-informed answers to the inter- coding was based on the interview question structure (Saldana, 2009).
view questions (cf. Hart et al., 2003; Markham, 2013). After the interviews were coded, the established categories were revised
The study employed a questionnaire with open- and closed-ended in one feedback loop to increase the reliability of the coding and de-
questions to further explore specific opinions and responses (Bogner & termine the most relevant innovation indicators (Thomas, 2006).
Menz, 2009). The interview guidelines were created based on the re- Therefore, the data was checked several times to ensure that the es-
searcher's in-depth analysis of the academic literature dealing with sential findings were identified. Quantitative aspects of indicator eva-
innovation indicators and review of expert feedback in order to ensure luations based on qualitative methods were included in the analysis.
the consistency and reliability of the analysis. Test surveys were con- The results were translated into English.
ducted in three rounds to guarantee a clear understanding of the As the author of this paper works for one of the companies included
question and answer categories (Hart et al., 2003). The interviews were in the study, this analysis benefited from the practitioner's research
structured in three parts: evaluation of existing innovation within the principles (McCall & Simmons, 1969), generating a new dataset to
company, evaluation of existing indicators, and evaluation of innova- enhance the understanding of evaluation processes with insights from
tion process. The 25 innovation indicators used for this analysis were project work, expert knowledge, and internal reports. These conditions
selected based on the extensive literature review (see Table 1) and were facilitated the research, helping to gain crucial insights into the eva-
then validated in terms of importance and applicability. For the analysis luation of innovative ideas at the front end and implement an efficient
of the indicators, the interviewees completed a questionnaire. data collection process.
After an approval procedure, the interviews were done between
September 2016 and September 2017 using the snowball strategy

6
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Table 4
The importance of innovation indicators for the front end of the innovation process.

Note: Three of the experts have not sent back the evaluation sheets. Therefore, they have been excluded in this graphic.

4. Analyses and results in relation to Company I. The subsequent section, 4.3, presents the
indicator applicability levels of all the companies, while Section 4.4
The surveyed experts were asked to describe their understanding of presents the indicator results based on a cockpit of indicators. Finally,
the term innovation. They defined a product or service innovation as “a Section 4.5 discusses approaches for improving the front-end innova-
novel solution that solves a customer problem or need which is suc- tion decision-making processes for Companies I to VI.
cessfully introduced to the market and perceived at the time of market
entry as subjectively new” (strategy expert, Interviewee 28). Further,
4.1. Front-end innovation indicators in practice
they noted that an innovation “creates an added value and a willingness
to pay an additional amount of money” (innovation sales expert,
The interviews focused on idea selection, the phase during which
Interviewee 15). The surveyed strategy and marketing experts argued,
innovative ideas and concepts have already been established. The aim
“We need to think about how we can evaluate customer problems in the
of this phase is to decide which of the proposed projects should be
early stages, how relevant is the problem, and how does the solution
developed and finalized as a product that will be available to the
address the problem. Many practitioners fail to implement this cor-
market. It should be noted that the need for creativity does not end with
rectly” (Interviewee 28).
this stage and should be pursued further. With this in mind, the fol-
Section 4.1 presents a view of the innovation indicators and in-
lowing excerpts from the interviews show how the experts assess the
novation evaluation conducted in Companies I to VI. Section 4.2 fea-
value of front-end evaluation.
tures an evaluation of the indicator results for all the companies, which
When asked about front-end evaluation indicators, one expert stated
includes the presentation of novel indicators. Sections 4.2.1 and 4.2.2
that they are “absolutely relevant. The so-called knockout indicators are
present a more specific view of Company I, as well as Companies II to VI
the most important ones in the early stages for the evaluation. To see

7
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Table 5 14). It appears that “it is difficult to get the information, which is re-
New front-end innovation indicators and evaluation-related questions. The in- quired to evaluate the innovative idea, from the respective depart-
dicators are arranged from the easiest to apply in practice to hardest. ments” (brand management and consumer insights, Interviewee 18).
Indicators and Evaluation-Related Surveyed Experts According to an innovation management expert, “We conduct innova-
Questions tion evaluation within the process using such indicators as brand de-
fining, innovation degree, customer benefit, the degree of maturity, and
High customer relevance Sales and marketing, strategy,
campaign potential, but this is also rather subjective instead of having
Is this solving a customer problem? innovation management, innovation
Is this suitable for everyday use? procurement, and predevelopment weekly or monthly evaluation rounds” (Interviewee 1). Other indicators
experts used to evaluate innovations are search fields, strategic fit for a com-
High comfort and user pany, product cycle plan, budget, package, characteristics, and tech-
experience
nology.
Will the product be more
ergonomic or attractive for the
To summarize the experts' view, innovative ideas are already eval-
customer? uated at the front end, but there is still room for improvement. A
structured front-end indicator system to improve future innovation
Strategic fit (meeting the performance is needed. Some interviewees even argued that innova-
company’s strategy, vision,
tions are evaluated subjectively instead of using consistent indicators.
aims, and future scenarios)
Is the idea intelligent and Small companies are more likely to apply an indicator scheme for all
prestigious? ideas, perhaps due to the smaller number of innovations they evaluate.
Does it have situational relevance?
Does it have the potential to
4.2. Front-end innovation indicators from the literature
engender enthusiasm?

Relevance at the time of market The innovation indicators identified in the literature with the
entry highest importance for front-end evaluation were selected for this study
Can the idea be subjectively based on the expert opinion of the innovation management department
perceived as new and original?
of Company I. Additional indicators were added based on the author's
Does it support digital products or
have the ability to be updated? industrial experience (see Table 1).
Can the innovation be sold through Table 4 shows the importance of indicator evaluation according to
a free activation rate? the surveyed experts. The values range from one to ten, with one in-
How many potential customers are dicating the lowest importance and ten the highest. The indicators are
there?
What is their future frequency of
arranged according to the mean value of their importance, starting with
use? the indicator of the highest importance. The experts' backgrounds can
Is the idea multifunctional and be found in the second row of Table 4.
marketable? Table 4 indicates that although different experts have different
Would the customer be willing to
understandings of innovation indicators, a consensus nonetheless ex-
pay an additional charge?
Will the idea have a pricing ists—especially within the same functional areas. The data suggest that
potential? some indicators are more important than others at the front end. Each
department emphasizes the indicators that are most important to it.
According to the expert interviews, unique selling proposition
the right idea just in time that is the most important thing” (pre- (USP), ease of use for the customer, communication potential, economic
development chassis, Interviewee 25). A digitalization expert agreed efficiency, service potential, and customer satisfaction are the most
that front-end evaluation and its indicators are “necessary”. He ex- important innovation indicators based on the mean values. The in-
plained, “In my opinion, it is very important that you start these things dicators with the highest numbers of values = 10 are USP, technical
to operationalize front-end innovation evaluation and make it mea- feasibility, communication potential, customer satisfaction, ease of use
surable … and we don't do that today professionally … such indicators for the customer, economic efficiency, and customer orientation.
sets combined with evaluation rounds are a common way to do this The number of innovative ideas and package potential are not
(Interviewee 21). considered as important as the aforementioned indicators. The degree
Some of the experts differentiated between two innovation types: of novelty for the company, the idea's maturity, resistance of innova-
incremental and radical innovation. Incremental ideas require clear tion, future product lifetime, and extension of the product portfolio are
innovation fields, whereas radical innovations require a higher level of considered the least important indicators. Based on the mean values,
self-determination and a broader perspective. However, it is remarkable these indicators seem unsuitable for a front-end evaluation.
that every expert argued that the front-end evaluation of innovative When the experts were asked for additional important front-end
ideas is highly important. indicators, they named the indicators listed in Table 5.
When asked whether they actually conduct innovation evaluation,
12 of the 32 experts said that they did. One replied: 4.2.1. Evaluation of Company I
“Yes, we conduct innovation evaluation. It is a classic innovation- Fig. 2 highlights the most important innovation indicators cate-
funnel and we ask at each of the gates ‘do we have to go to the next gorized by the departments of Company I. The results demonstrate that
gate with this innovation project?’ because of the large number of customer, market, and strategic indicators are regarded as most im-
ideas that have to be reduced on the way to the customer product. portant, followed by technical, product-related, and economic in-
However, we are in the process of setting the process so that we do dicators.
not decide about the innovation's future based on intuition only” The numbers in the knots display the indicators (see legend). Those
(Interviewee 21). in the white knots symbolize the departments of Company I. The
At the moment, “we use Excel files or one-pagers to assess ideas that proximity of the indicator knots (1–25) to the department knots (a–j)
deserve further adaptions” (Interviewee 26). demonstrates the importance of the respective indicator to the depart-
ment (the closer the knots, the more important the indicator to the
A predevelopment expert explained, “Innovative ideas have been department). The size of the knots suggests the overall importance of
evaluated in terms of time, money, trends and intuition” (Interviewee the indicators. The more important the indicator, the bigger the knot

8
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Fig. 2. Important indicators from the department's view of Company I. Note: The applicability values are counts indicating how often experts evaluated the respective
indicator as easy, middle or difficult.

(based on the mean value shown in Table 4). The width of the lines also indicator in practice (for example, the information to apply this in-
indicates the importance of the indicators to the respective department dicator is available) according to the interviewed experts. The applic-
(the thicker the line, the more important the indicator). The color of the ability counts are presented in Table 6 (Appendix A). The applicability
knots shows the applicability of the indicator in practice (see the legend values in Fig. 2 were calculated by substracting the number of difficult
for Fig. 2). The darker the color, the easier the applicability of the applicable values for each indicator from the number of easy applicable

9
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Table 7 decisions.
Company profiles of interviewed experts. Fig. 3 highlights the most important indicators, categorized by
Company number Country Segment company. This figure is structured in the same way as Fig. 2.
Fig. 3 shows the following results for the volume manufacturers (see
I Germany Volume also Table 4): The experts at Company II value USP, communication
II Czech Republic Volume
potential, customer satisfaction, time to market, synergy potential, and
III Spain Volume
IV United States of America Volume
brand defining as important. Thus, the experts of Company I and II
V Germany Premium agreed on the importance of USP, communication potential, and cus-
VI Brazil Entry-level tomer satisfaction. They also agreed on the not important indicators.
Likewise, Company III views customer-oriented indicators as im-
portant, while also emphasizing those indicators related to the brand
values. image. The experts at Company III rated the following indicators as
The indicators on which all the experts of Company I agreed can be unimportant with regard to the front-end: synergy potential, extension
classified into five categories: of product portfolio, degree of novelty for the company, patents and
standards, and resistance of innovation.
- Customer-related indicators such as customer orientation, satisfac- Synergy potential was deemed unimportant because “it is actually
tion, and ease of use very good if the innovative project is detached from other projects
- Company-related indicators such as brand defining, trend-setting, because in the best case, old techniques can be replaced. Only then we
and USP can make technical jumps” (Interviewee 26). One expert stated that the
- Product-related indicators such as technical feasibility, innovation “degree of novelty for the company is not as important as other in-
degree, patents and standards related to the product, synergy po- dicators because we should evaluate innovative projects more from the
tential, communication and service potential, innovation design, perspective of customers” (Interviewee 26).
and sustainability (although sustainability focuses on different as- Company II and III rated trend-setting as unimportant for the early
pects such as strategy) stages because “this indicator might be more important for trend-setters
- Process-related indicators such as the time to market and not for a volume producer” (Interviewee 27).
- Financial-related indicators such as installation rate potential and In contrast, Company IV rated customer satisfaction as highly im-
economic efficiency potential. portant for the front end. One expert explained, “We need to evaluate
innovative projects with the question: ‘Do we address a customer pro-
The data demonstrate that those indicators with a low level of im- blem and how intense is it?’ to be able to launch successful innova-
portance are degree of maturity, extension of product portfolio, future tions”. The expert continued, “As customer satisfaction is reached
product lifetime, package and synergy potential, degree of novelty, through the elimination of a problem, this indicator should rather be
innovation quality, number of ideas, and resistance of innovation. called ‘addressing of a customer problem’, which is very important” ...
Interestingly, the only departments that rated time to market as very Service potential is highly important because this indicator is really
important were the finance and procurement departments. This may be differentiating” (Interviewee 28). The expert argued:
because an innovative idea related to time to market could influence
the financial performance of the product and competitive advantage of “The installation rate potential is important for the economic con-
the company. Other experts argue, “This indicator is useful for the sideration but inappropriate for the evaluation in the early stages.
strategic orientation, but rather in order to categorize the innovative Especially in the USA, this indicator would not be a good indicator
idea, not to decide whether one does or does not implement the idea.” because the customers go to distributors and buy a vehicle, as also
(Interviewee 23). happens in China. The installation rates are predefined. So this rate
An innovation manager rated degree of maturity as important be- is not influenced by the customer.”
cause it is a “precondition for realizing the idea” (Interviewee 2). A The premium Company V rejected the number of innovative ideas as
consumer insight expert agreed, adding that technical feasibility is a front-end indicator and deemed future product lifetime and package
mandatory for the implementation of an idea (Interviewee 23). In potential equally unimportant. Company V rated USP, customer or-
contrast, other financial experts stated that technical feasibility “is a ientation and satisfaction, and communication potential very highly.
very basic requirement, which must not appear at the front end” One expert argued, “Everything that cannot be explained to the cus-
(Interviewee 6). A sales team expert noted, “The predevelopment is tomer is not an innovation, because the customer cannot perceive it”.
responsible for this necessary condition, which refers to technical fea- He continued, “Some innovations do not require a campaign, others
sibility (Interviewee 19). do”. Furthermore, “the service potential is increasingly important in the
Future product lifetime and extension of product portfolio are im- digital world” (Interviewee 30).
portant indicators from the futurologist and technical perspective, but The entry-level Company VI called customer satisfaction, sustain-
other experts argued that “the portfolio is not as important as an in- ability, and patents and standards unimportant for the front end.
dicator, because it relates to the company strategy” (Interviewees 19), However, the design of the product plays an important role for
whereas “the customer view might be more important instead of what is Company VI, which is located in Brazil, for instance (see Table 4). In
new for the company” (Interviewee 4). addition, Company VI also places a high value on synergy potential
The findings indicate that brand defining and trend-setting are because it aims to launch innovations that are affordable for numerous
considered less important for the front end than some of the other in- customers. Lastly, the indicators communication potential and degree
dicators: “Whether the innovation will be trend-setting or brand de- of novelty are of high importance for Company VI. These indicators are
fining is decided in the future” (Interviewee 29). However, trend-setting important to the experts of the other companies as well.
should not be neglected (IT, Interviewee 8). Comparing the evaluation processes for Companies I to VI illumi-
nates the need for different approaches. Smaller companies, which have
4.2.2. Evaluation of Companies II to VI, compared to Company I fewer ideas to evaluate, tend to show less of a need for decision im-
In order to generalize the results of the analysis of Company I, the provements than companies with more ideas per year. The companies
perspectives of experts from other international automotive companies that wanted to improve their innovation decisions—Company I and
were included in the dataset. Table 7 presents some of the character- Company V—have a full range of products into which innovations must
istics of these companies, including the perspective on front-end be integrated, as compared to the smaller companies, which have fewer

10
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Fig. 3. Important indicators from the company's view and applicability of indicators.

products and ideas. More ideas, combined with a full range of products, 4.3. Practical applicability of front-end indicators
are more difficult to manage at the front end than a few ideas combined
with a limited range of products. Therefore, volume companies with a Because the existing literature criticizes the practicability of theo-
high number of innovation projects and a full range of products (e.g., retical indicators, this analysis also investigates the ease of application
small vehicles to premium vehicles), in particular, need to invest in the of the indicators within the companies. Interviewees were asked to rate
front end of the innovation process more than small companies. each indicator according to three applicability levels: easy, middle,
Nevertheless, all of the companies included in this study identified a difficult. These levels indicate the ease of applying the indicators when
need for front-end decision processes. evaluating innovation. Applicability is also related to the availability of
data. Figs. 2 and 3 show the applicability level of the indicators as

11
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Fig. 4. Innovation evaluation cockpit for the front end. The indicators can be applied with a five-point Likert scale.
The illustration is the author's own, based on above-mentioned literature and expert statements.

evaluated by the experts (see also Table 6 in Appendix A). The experts Griffin, 2015; Khurana & Rosenthal, 1998). The decision-making pro-
argued that some indicators are easy to apply, while others that are cess should be multilevel, meaning that it includes central innovation
based on financial or technical numbers are more difficult to use. Ac- managers from different departments. An interdisciplinary and self-
cording to the experts, important indicators that are easy to apply at the organized innovation team should filter ideas in terms of go/no-go in-
front end are communication potential, ease of use, and USP. dicators. Intense discussions among colleagues testing the value of ideas
Those that are difficult to apply are economic efficiency potential, are also helpful. Moreover, a micro-targeting (project) perspective
service potential, and customer satisfaction. should be followed to achieve a specific innovation goal (Cooper,
The experts also identified number of innovative ideas, product 2016), in line with the agile approach to innovation processes. An
portfolio extension, and technical feasibility as easy to apply. The data overall evaluation by all departments is required to integrate expert
show that trend-setting and service potential are rather difficult to knowledge. Improved coordination and cooperation, combined with
apply. Based on this analysis, it seems that estimating the potential sprint processes (Cooper, 2016), helps experts to evaluate ideas quickly
service-related characteristics of an idea is rather difficult for experts. It and react rapidly to market changes.
is also apparent that customer-related indicators are difficult to eval- The innovation experts at Companies I to VI argued that “agile
uate in the early stages of innovation. This might indicate the need for methods are required to achieve faster validations and burying of non-
higher customer integration and more agile processes at the front end. promising ideas at the front end. ... However, these methods should be
aligned to the entire innovation process” (Interviewee 30). The need for
more flexible processes actually depends on the type of company.
4.4. Synthesis of results: Indicator cockpit
Companies that deal with many ideas each year (such as Company I or
Company VI) require an improved evaluation process, while companies
This section of the paper combines the existing indicators with new
that have fewer ideas per year (like Companies II or III) do not. This
data aligned with the automotive industry. The resulting indicators
may be an indication of the need to implement agile pilot projects at
present an innovation evaluation system or cockpit (Fig. 4). These in-
large companies with traditional manufacturing processes because the
dicators are the results of the previous analysis, confirmed in a second
large number of ideas requires a high degree of synchronizing and co-
validation round with innovation experts of Companies I and V. The
operation efforts. Innovation search fields are required to align in-
indicators are based on the literature review and the expert experience
novation goals with company goals and customer requirements. Based
provided in the interviews. The novel indicators include higher com-
on the expert opinions gathered for this study, top innovations and
fort, improved experience, high future frequency of use, support of
innovative ideas must fit the companies’ automotive products. Like the
digital products, or higher willingness to pay.
ex-ante evaluation, i.e., an evaluation of the idea in the front-end of the
Fig. 4 presents suitable indicators for industrial applications, as well
innovation process, an ex-post evaluation, i.e., the evaluation of the
as potential questions related to those indicators. The findings are in
innovation performance after the idea’s commercialization, is very
line with Cooper (2011), who grouped “go” and “no-go” indicators into
important, according to the experts: the number of innovations in-
the categories of strategic fit, technical feasibility, customer acceptance,
tegrated successfully into a product should be tracked.
market opportunity, and financial performance (Cooper, 2011). How-
ever, Fig. 4 presents some new indexes, as well as related questions and
a prioritized set of existing indicators based on a new dataset. It shows
5. Discussion
that businesses must invest enough time in defining their vision and
strategy to be able to directly align these with their innovation goals.
The study was designed to investigate front-end innovation deci-
sions based on indicators in the manufacturing industry. The qualitative
4.5. Front-end evaluation approach analysis and novel dataset reveal a need for front-end indicators, as well
as structured and manageable decision-making processes related to
This section describes how evaluation approaches can be im- innovative ideas and concepts.
plemented in the context of flexible front-end innovation decisions. The The findings of this study are in line with the existing research,
literature argues that a perception-based assessment must be applied to which outlines the evaluation of innovative ideas at the front end (De
evaluate innovative ideas (Bertels, Kleinschmidt, & Koen, 2011; Oliveira et al., 2015; Kock et al., 2015; Mohan et al., 2017; Van den
Shenhar, Dvir, Levy, & Maltz, 2001). Expert evaluation (based on Ende et al., 2015). The data confirm that specific indicators are re-
subjective human reasoning) can be used for innovation decision- quired to manage the early stages and to enhance innovation decisions,
making at the front end to reduce uncertainty (Chang, Wei, & Lin, echoing the previous studies that highlight the necessity of specific
2008). At this point, the knowledge and experience provided by these indicators (Birchall, Chanaron, Tovstiga, & Hillenbrand, 2011). Experts
experts must be used for the evaluation because concrete numbers agree that the industrial front end of innovation processes faces the
about the innovative idea in these early stages do not exist yet. How- challenges of complexity and uncertainty. This study shows that the
ever, the intuitive evaluation of ideas within a structured process can be front end should be structured to reduce this complexity and increase
beneficial for the decision-making process because it leads to a more the success of new product development (De Oliveira et al., 2015; Kock
strategic view (Eling, Griffin, & Langerak, 2014; Eling, Langerak, & et al., 2015; Verworn et al., 2008; Zhang & Doll, 2001).

12
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Markham (2013) argued that companies should actively manage the required to improve decision-making. It therefore seems reasonable to
flow of ideas from the front end into more formal development pro- suggest that front-end evaluation teams working with soft indicators in
cesses, which demonstrates the need for indicators. Kock et al. (2015) an agile way achieve quicker results (see, for example, Cooper &
confirmed the necessity of a formalized evaluation process, supporting Sommer, 2016b). To avoid hindering the evaluation, the decision-
the opinion of the experts interviewed for this study. However, this making process should be conducted efficiently. The ability to react
decision should be flexible and fast. If the speed of the evaluation flexibly to customer changes and market variations also requires an
process can be increased, efficiency can be improved, which may lead available budget. Although the budget approval is a procedure that
to greater front-end success (Brown & Eisenhardt, 1995; Kock et al., takes a long time in the automotive industry, agile developments re-
2015; Reinertsen, 1999; Verworn et al., 2008). quire a flexible and faster budget procedures.
This study presents front-end indicators that demonstrate an idea's The results of this study apply to the premium, volume, and entry-
value for customers and the company. The experts surveyed for this level manufacturers at which the data was collected. The experts mostly
project confirmed the high relevance of a strategic perspective of front- agree on the results, although they differ in terms of experience and
end innovation decisions, thereby confirming the research by Birchall functions. Their varying backgrounds were beneficial in expanding the
et al. (2011). The data suggest the need for a strong customer focus, understanding of the indicators; however, the results were also de-
which is in line with the existing research (see, for example, Cooper, pendent on the character of each individual expert. For example, some
2011). Customers should be integrated into the innovation process al- experts frequently rated indicators with the top possible score, while
ready in the prelaunch stages (Cui & Wu, 2017) to test their acceptance others rarely used values indicating high importance.
for the innovation (early reality check) (Ommen, Blut, Backhaus, & Although the data from each of the six companies is congruous, the
Woisetschläger, 2016). It can be assumed that customer-related in- contingency approach must still be taken into account (Kock & Gemünden,
dicators were highly rated by the experts because they suggest potential 2016). According to the contingency approach, there is no generally ap-
customer acceptance, which is critical for innovation success. These plicable principle to manage a company (or, in this case, to manage in-
results reaffirm the previous research outlined in Section 2 of this novations) because each company faces different situations, structures, and
paper. In this study, the customer and business perspectives are struc- leadership. In other words, there is no one-size-fits-all method for managing
tured into indicators (as shown in Fig. 4). The order of importance for the innovation process (Kok & Biemans, 2009). Therefore, each company
the indicators is slightly different in the data than in the literature; must decide individually which indicators are most relevant to it.
overall, however, the data and literature are similar. When evaluating ideas, the internal structure of a business plays an
Further indicators are required to make decisions more transparent important role because the way in which the relevant departments
and traceable. Martinusuo and Poskela's (2011) results underline the collaborate at the front end of the product development process influ-
need for a holistic but informal evaluation process aligned with a ences the decision-making process. Furthermore, the success of in-
company's objectives. This research also identified the need for more novations depends on organizational ambidexterity, or a company’s
flexible and agile processes, which are integrated into the innovation ability to efficiently manage today’s business while setting the path for
process. Indicators help to enhance the understanding of the complexity tomorrow. For innovation management, a company must exploit (in-
of innovation and to derive strategic actions from it (Hart et al., 2003). cremental innovation) and simultaneously explore (radical innovation)
Perhaps it is not the evaluation itself that improves the innovation its products in order to be successful (e.g., Gupta, Smith, & Shalley,
performance, but the improved understanding that results from the 2006; Tushman & O’Reilly, 1996). The surveyed experts confirmed the
evaluation (Martinusuo & Poskela, 2011). need for different processes for the evaluation and implementation of
The indicators used to evaluate innovations are soft rather than radical and incremental ideas.
hard, due to the lack of fixed values (i.e., sales figures or installation This study provides useful implications for practitioners. First, the
rates) at the front end,3 Hart et al. (2003) underlined the need for in- results underline the need for managers to pay more attention to in-
formal evaluation indicators to better make decisions and prevent novation evaluation at the front end. Especially in the current time of
managers from failing in decision-making regarding innovative ideas. disruptive change facing automotive companies, managers must be able
The decision transparency provided by the innovation indicators can to make agile innovation decisions that are future- and customer-or-
enhance agility and the quality of the decision-making (Cooper & iented. Managers can benefit from understanding and utilizing in-
Sommer, 2016b). It also helps a company to be more responsive to novation indicators because an improved quality of decisions positively
external changes (Kock & Gemünden, 2016). influences innovation and company performance (Kock et al., 2015).
Apart from evaluation indicators, the experts confirmed that intui- Second, the application of innovation indicators has various ad-
tion plays a crucial factor in innovation decision-making. Research also vantages for companies. It helps managers cancel projects in a timely
recommends intuition as a front-end indicator to evaluate innovative manner to avoid wasting resources. Decisions on project termination
ideas (Magnusson et al., 2014). can achieve a higher strategic fit in the organizational product portfolio
It is evident that customer value plays an important role in the (Unger Kock, Gemünden, & Jonas, 2012). However, the cockpit should
success of new products and should, therefore, be integrated into the not be the sole basis for such an evaluation, though it can help auto-
innovation process as early as possible (Cooper & Sommer, 2016a). The motive managers better survey front-end innovative ideas and identify
experts interviewed for this study agreed on the crucial role of custo- the most promising ones.
mers in the selection of ideas. To better integrate the customer per- Finally, companies can trigger the use of those indicators that are
spective, they referred to the “toothbrush test”, which Google's CEO, the most important but difficult to apply, such as service potential, by
Larry Page, uses to make acquisition decisions. When thinking about an supporting incentives, organizational prerequisites, or initiatives. This
innovation, Page asks, “Is this something you will use once or twice a support may motivate different parties within the company to learn
day, and does it make your life better?”.4 enough about a topic to apply an indicator. Artificial intelligence (AI)
This logic allows for fast and agile decision-making processes. The may also be helpful for the decision-making process; however, it re-
results of this study confirm recent observations that agile processes are quires sufficient data for analysis and experts who can use AI methods.
Managers can follow an innovation strategy to better align in-
novation decisions with company goals (Kock et al., 2015). This
3
In addition, the estimate of future values regarding the respective innovation is in-
strategy should include strong customer (market pull) and technolo-
accurate.
4
J. D’Onfro, “Here’s the Toothbrush Test Google’s CEO Uses to Make Acquisition
gical (technology push) perspectives that are in line with search fields
Decisions,” Aug. 18, 2014, http://www.businessinsider.com/larry-page-toothbrush-test- displaying potentially successful innovation areas (Kock et al., 2015).
google-acquisitions-2014-8?IR=T (accessed Oct. 11, 2017). With a defined innovation strategy, high-quality decisions can be made

13
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

(Cooper, 2011), and managers can ensure formal clarity about in- 7. Limitations and future research
novation evaluation processes in order to increase the probability of
front-end success. Furthermore, companies can foster radical innova- The study is not without limitations, as the investigation covers a
tion by differentiating between incremental and radical innovation in limited timeframe. Next to cross-sectional data, a longitudinal research
the budget allocation process and providing a separate budget for ra- design (panel data) could have been used. This would have taken the
dical innovations. This could be done to ensure that radical projects are time lag between innovation input and innovation success into account.
implemented rather than tabled because of their high risk. An exploratory factor analysis might also have been useful for analyzing
Another important finding from the study is that improving commu- several evaluation indicators. This analysis would require a higher
nication at the front end strengthens the customer’s perspective and the number of the observation unit. Future research is necessary to test the
visibility of an innovation in the market (Lee, Lee, & Schumann, 2002). This practicability of the relevant indicators and to elaborate on the success
view is strongly confirmed by the experts interviewed for the study. of the front-end innovation portfolio (Kester, Hultink, & Griffin, 2014).
Such research could emphasize focus groups and workshops to gather
deeper insights. Corporate foresight methods and additional surveys
6. Conclusion will require further investigation to better integrate the customer view
(Rohrbeck & Gemünden, 2011).
The aim of this research was to identify a broad range of expert This analysis revealed deep insights into the complex and difficult
opinions on front-end innovation indicators and evaluation approaches field of innovation evaluation. Although the study encompasses mul-
using agile methods. The resulting indicator cockpit and evaluation tiple segments within the automotive industry and various countries,
approach have been shown to improve future innovation performance. the experts' views on innovation indicators may not be transferable to
The indicators investigated in this study are based on a systematic lit- other industries. Various industrial and cultural aspects may have dif-
erature review and expert knowledge. By analyzing existing and novel ferent influences on the innovation evaluation (cf. Ali & Park, 2016;
indicators in terms of their importance and practical applicability at the Cleveland, Rojas-Méndez, Laroche, & Papadopoulos, 2016). It is likely
front end, the author pinpointed the most relevant indicators. that other industries that launch several innovations per year face
The data suggest that the most relevant indicators for the front end comparable challenges with regard to front-end decisions.
are high customer relevance, strategic fit, high communication poten- The results of this study only explain the evaluation phenomena of
tial, and vision potential. Other indicators such as resistance to the several volume manufacturers, one premium producer, and one entry-level
product, innovation quality, number of innovative ideas, future product manufacturer. A subsequent research step would be to further differentiate
duration, and extension of product portfolio are of only minor im- between these types of producers. It might be reasonable, for example, to
portance for front-end decisions for innovations. analyze the importance of indicators for a luxury producer that focuses on a
The findings demonstrate that front-end indicators are extremely different innovation strategy than a volume manufacturer, for example.
necessary in practice and that experts indicate a need for more flexible Additional volume producers also need to be analyzed in relation to pre-
and agile evaluation within the structured front end of the innovation mium and entry-level manufacturers to validate the results of the present
process. This means that agile methods are required to improve the study. Future research is advised to elaborate front-end decisions in com-
front-end evaluation of ideas. This, in turn, underlines the research that panies dealing with many ideas. Thus, the generalization of the results from
argues that companies should have organizational agility, including this study should be further explored.
adaptive and strong dynamic capabilities, to be successful (e.g., Day, The results do not shed light on the relationship between front-end
2011; Roberts & Grover, 2011; Teece et al., 2016). Furthermore, this evaluation and innovation success because the interplay of early cus-
research confirms the need for a stronger front-end focus on the cus- tomer orientation and innovation sales rates requires further in-
tomer in order to meet customer needs and market trends. This requires vestigation. Likewise, the agile view of front-end indicators deserves
customer agility, including sense and response capabilities (Roberts & further investigation to validate the results of this study. There is also a
Grover, 2011). To apply the indicators, an innovation strategy that need to explore the front-end decision-making process for radical in-
defines the company's and the innovation's aims is required. Overall, novations in comparison to incremental innovations.
the research shows that companies require strategic as well as opera- Despite these limitations, the findings presented in this paper serve
tional capabilities to apply the indicators (Hart et al., 2003). as the basis for further investigation of the characteristics of successful
This study provides the first qualitative and systematic demonstra- innovations. Which types of innovative ideas are most likely to be in-
tion of front-end indicators based on the experience of innovation ex- tegrated into products? To answer this question, future studies should
perts from volume, premium, and entry-level manufacturers. quantitatively explore the method of innovation tracking to analyze the
Differences between these companies appear in the need for evaluation types of innovations that have been successful and the ones that have
approaches. Specificially, companies with fewer ideas per year (smaller not. This knowledge can be used to select the right evaluation in-
companies) tend to have a smaller need for evaluation improvements dicators. A next step would be to evaluate the innovation portfolios of
than companies with more ideas per year (large companies). This may different companies with the identified indicators and measure in-
be because a large number of ideas, combined with a full range of novation and business performance over time (panel data), which could
products and services, is more difficult to manage at the front end than validate quantitatively the results of this research.
a small number of ideas, combined with a low range of products and
services. Therefore, volume companies with a high number of innova- Acknowledgements
tion projects and a full range of products need to invest more effort into
the front end of the innovation process than other types of companies. The author is grateful to the experts who have participated in the
This research deepens the understanding and quality of front-end interviews for their willingness to contribute and discuss their knowl-
innovation indicators and evaluation. It helps to reduce the lack of edge. The author also thanks two anonymous reviewers for their helpful
knowledge about the practical innovation selection process, identified comments to improve the manuscript significantly. All remaining
by Hart et al. (2003). shortcomings are in her sole responsibility.

14
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Appendix A

Table 6
Practical applicability of indicators based on experts, median value used.

Indicator Easily applicable indicators Middle applicable indicators Difficult applicable indicators

Ease of use for customer 20 1 4


Communication potential 19 1 4
Number of innovative ideas 16 1 3
Degree of novelty for the company 16 – 7
Extension of product portfolio 15 2 8
Unique selling proposition 15 2 8
Technical feasibility 14 2 6
Innovation quality 13 2 7
Patents and standards 13 1 7
Degree of maturity 11 2 8
Synergy potential 11 3 9
Future product lifetime 11 – 10
Brand defining 10 4 9
Degree of innovation 10 3 10
Innovation design 10 1 12
Resistance of innovation 9 2 8
Sustainability 8 5 5
Installation rate potential 8 5 11
Time to market 8 2 11
Service potential 7 2 12
Economic efficiency 7 3 13
Trend-setting 7 1 14
Customer orientation 6 5 10
Customer satisfaction 6 2 12
Note: The applicability values are counts indicating how often experts evaluated the respective indicator as easily, middle or difficult applicable.

References
findings, and future directions. Academy of Management Review, 20(2), 343–378.
Caird, S., Hallett, S., & Potter, S. (2013). The Open2-Innova8ion Tool—A software tool for
Aarikka-Stenroos, L., & Lehtimäki, T. (2014). Commercializing a radical innovation:
rating organisational innovation performance. Technovation, 33(10-11), 381–385.
Probing the way to the market. Industrial Marketing Management, 43(8), 1372–1384.
Carbonell-Foulquié, P., Munuera-Alemán, J. L., & Rodrıguez-Escudero, A. I. (2004).
Achiche, S., Appio, F. P., McAloone, T. C., & Di Minin, A. (2013). Fuzzy decision support
Criteria employed for go/no-go decisions when developing successful highly in-
for tools selection in the core front end activities of new product development.
novative products. Industrial Marketing Management, 33(4), 307–316.
Research in Engineering Design, 24(1), 1–18. http://dx.doi.org/10.1007/s00163-012-
Chang, H., Wei, C., & Lin, R. (2008). A model for selecting product ideas in fuzzy front end.
0130-4.
Thousand Oaks: SAGE Publications.
Adams, R., Bessant, J., & Phelps, R. (2006). Innovation Management measurement: A
Chiesa, V., Frattini, F., Lazzarotti, V., & Manzini, R. (2009). Performance measurement in
review. International Journal of Management Reviews, 8(1), 21–47.
R&D: Exploring the interplay between measurement objectives, dimensions of per-
Alcaide-Marzal, J., & Tortajada-Esparza, E. (2007). Innovation assessment in traditional
formance and contextual factors. R&D Management, 39(5), 488–519.
industries. A proposal of aesthetic innovation indicators. Scientometrics, 72(1), 33–57.
Cleveland, M., Rojas-Méndez, J. I., Laroche, M., & Papadopoulos, N. (2016). Identity,
Ali, M., & Park, K. (2016). The mediating role of an innovative culture in the relationship
culture, dispositions and behavior. A cross-national examination of globalization and
between absorptive capacity and technical and non-technical innovation. Journal of
culture change. Journal of Business Research, 69(3), 1090–1102. http://dx.doi.org/10.
Business Research, 69(5), 1669–1675. http://dx.doi.org/10.1016/j.jbusres.2015.10.
1016/j.jbusres.2015.08.025.
036.
Cooper, R. G. (1981). An empirically derived new product project selection model. IEEE
Astebro, T., & Michaela, J. L. (2005). Predictors of the survival of innovations. Journal of
Transactions on Engineering Management, EM-28(3), 54–61.
Product Innovation Management, 22(3), 322–335.
Cooper, R. G. (1990). Stage-gate systems: A new tool for managing new products. Business
Barczak, G., Griffin, A., & Kahn, K. B. (2009). Perspective: trends and drivers of success in
Horizons, 33(3), 44–54.
NPD practices: results of the 2003 PDMA best practices study. Journal of Product
Cooper, R. G. (1999). From experience: The invisible success factors in product innova-
Innovation Management, 26(1), 3–23.
tion. Journal of Product Innovation Management, 16(2), 115–133.
Begel, A., & Nagappan, N. (2007, September). Usage and perceptions of agile software
Cooper, R. G. (2008). Perspective: The Stage-Gate® idea-to-launch process—Update,
development in an industrial context: An exploratory study. Empirical Software
what's new, and NexGen systems. Journal of Product Innovation Management, 25(3),
Engineering and Measurement, 2007. ESEM 2007. First International Symposium on (pp.
213–232.
255–264). IEEE.
Cooper, R. G. (2011). Perspective: The innovation dilemma - How to innovate when the
Bertels, H. M. J., Kleinschmidt, E. J., & Koen, P. A. (2011). Communities of practice versus
market is mature. Journal of Product Innovation Management, 28(S1), 2–27.
organizational climate: Which one matters more to dispersed collaboration in the
Cooper, R. G. (2016). Agile-Stage-Gate Hybrids: The next stage for product development.
front end of innovation? Journal of Product Innovation Management, 28, 757–772.
Research-Technology Management, 59(1), 21–29.
Bessant, J., Francis, D., Meredith, S., Kaplinsky, R., & Brown, S. (2001). Developing
Cooper, R. G., & Kleinschmidt, E. J. (1987). Success factors in product innovation.
manufacturing agility in SMEs. International Journal of Technology Management, 22(1-
Industrial Marketing Management, 16, 215–223.
3), 28–54.
Cooper, D. R., & Schindler, P. S. (2013). Business research methods (12th ed.). New York:
Bessant, J., Von Stamm, B., Moeslein, K. M., & Neyer, A. K. (2010). Backing outsiders:
McGraw-Hill Irwin.
selection strategies for discontinuous innovation. R&D Management, 40(4), 345–356.
Cooper, R. G., & Sommer, A. F. (2016a). Agile-Stage-Gate. New idea-to-launch method for
Birchall, D., Chanaron, J.-J., Tovstiga, G., & Hillenbrand, C. (2011). Innovation perfor-
manufactured new products is faster, more responsive. Industrial Marketing
mance measurement: Current practices, issues and management challenges.
Management, 59, 167–180. http://dx.doi.org/10.1016/j.indmarman.2016.10.006.
International Journal of Technology Management, 56(1), 1–20.
Cooper, R. G., & Sommer, A. F. (2016b). The Agile-Stage-Gate Hybrid Model. A promising
Bogner, A., & Menz, W. (2009). The theory-generating expert interview: epistemological
new approach and a new research opportunity. Journal of Product Innovation
interest, forms of knowledge, interaction. Interviewing experts (pp. 43–80). London:
Management, 33(5), 513–526. http://dx.doi.org/10.1111/jpim.12314.
Palgrave Macmillan.
Cruz-Cázares, C., Bayona-Sáez, C., & García-Marco, T. (2013). You can't manage right
Borrás, S., & Edquist, C. (2013). The choice of innovation policy instruments.
what you can't measure well. Technological innovation efficiency. Research Policy,
Technological Forecasting and Social Change, 80(8), 1513–1522.
42(6–7), 1239–1250. http://dx.doi.org/10.1016/j.respol.2013.03.012.
Brown, S. L., & Eisenhardt, K. M. (1995). Product development: Past research, present

15
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

Cui, A. S., & Wu, F. (2017). The impact of customer involvement on new product de- Klenner, P., Hüsig, S., & Dowling, M. (2013). Ex-ante evaluation of disruptive suscept-
velopment: Contingent and substitutive effects. Journal of Product Innovation ibility in established value networks—When are markets ready for disruptive in-
Management, 34(1), 60–80. novations? Research Policy, 42(4), 914–927. http://dx.doi.org/10.1016/j.respol.
Czarnitzki, D., & Kraft, K. (2004). Innovation indicators and corporate credit ratings: 2012.12.006.
Evidence from German firms. Economics Letters, 82, 377–384. Kline, S. J., & Rosenberg, N. (1986). An overview of innovation. In R. Landau, & N.
Day, G. S. (2000). Managing market relationships. Journal of the Academy of Marketing Rosenberg (Eds.). The positive sum strategy: Harnessing technology for economic growth.
Science, 28(1), 24–30. Washington: National Academy Press.
Day, G. S. (2011). Closing the marketing capabilities gap. Journal of Marketing, 75(4), Kobayashi, H. (2006). A systematic approach to eco-innovative product design based on
183–195. life cycle planning. Advanced Engineering Informatics, 20, 113–125.
De Brentani, U. (2001). Innovative versus incremental new business services: Different Kock, A., & Gemünden, H. G. (2016). Antecedents to decision-making quality and agility
keys for achieving success. Journal of Product Innovation Management, 18, 169–187. in innovation portfolio management. Journal of Product Innovation Management,
De Brentani, U., & Reid, S. E. (2012). The fuzzy front-end of discontinuous innovation. 33(6), 670–686. http://dx.doi.org/10.1111/jpim.12336.
Insights for research and management. Journal of Product Innovation Management, Kock, A., Heising, W., & Gemünden, H. G. (2015). How ideation portfolio management
29(1), 70–87. http://dx.doi.org/10.1111/j.1540-5885.2011.00879.x. influences front-end success. Journal of Product Innovation Management, 32(4),
De Felice, F., & Petrillo, A. (2013). Key success factors for organizational innovation in the 539–555. http://dx.doi.org/10.1111/jpim.12217.
fashion industry. International Journal of Engineering Business Management, 5(27), Kock, A., Heising, W., & Gemünden, H. G. (2016). A contingency approach on the impact
1–11. of front-end success on project portfolio success. Project Management Journal, 47(2),
De Oliveira, M. G., Rozenfeld, H., Phaal, R., & Probert, D. (2015). Decision making at the 115–129.
front end of innovation: The hidden influence of knowledge and decision criteria. R& Koen, P. A., Ajamian, G. M., Boyce, S., Clamen, A., Fisher, E., Fountoulakis, S., ... Seibert,
D Management, 45(2), 161–180. R. (2002). Fuzzy front end: Effective methods, tools, and techniques. In P. Bellviav, A.
Dewangan, V., & Godse, M. (2014). Towards a holistic enterprise innovation performance Griffin, & S. Somemeyer (Eds.). The PDMA tool-book for new product development (pp.
measurement system. Technovation, 34(9), 536–545. http://dx.doi.org/10.1016/j. 5–36). New York: John Wiley & Sons.
technovation.2014.04.002. Kok, R. A., & Biemans, W. G. (2009). Creating a market-oriented product innovation
Edison, H., bin Ali, N., & Torkar, R. (2013). Towards innovation measurement in the process: A contingency approach. Technovation, 29(8), 517–526.
software industry. Journal of Systems and Software, 86(5), 1390–1407. http://dx.doi. Krishnan, V., & Ulrich, K. T. (2001). Product development decisions: A review of the
org/10.1016/j.jss.2013.01.013. literature. Management Science, 47(1), 1–21.
Eling, K., Griffin, A., & Langerak, F. (2014). Using intuition in fuzzy front-end decision- Lee, E. J., Lee, J., & Schumann, D. W. (2002). The influence of communication source and
making: A conceptual framework. Journal of Product Innovation Management, 31(5), mode on consumer adoption of technological innovations. Journal of Consumer
956–972. Affairs, 36(1), 1–27.
Eling, K., Griffin, A., & Langerak, F. (2016). Consistency matters in formally selecting Leifer, R., O'Connor, G. C., & Rice, M. (2001). Implementing radical innovation in mature
incremental and radical new product ideas for advancement. Journal of Product firms. The role of hubs. Academy of Management Executive, 15(3), 102–113. http://dx.
Innovation Management, 33(1), 20–33. http://dx.doi.org/10.1111/jpim.12320. doi.org/10.5465/AME.2001.5229646.
Eling, K., & Herstatt, C. (2017). Managing the front end of innovation—Less fuzzy, yet Lenfle, S. (2008). Exploration and project management. International Journal of Project
still not fully understood. Journal of Product Innovation Management, 34(6), 864–874. Management, 26, 469–478.
Eling, K., Langerak, F., & Griffin, A. (2015). The performance effects of combining ra- Littell, C. (1994). Innovation in medical technology: Reading the indicators. Health
tionality and intuition in making early new product idea evaluation decisions. Affairs, 13(3), 226–235.
Creativity and Innovation Management, 24(3), 464–477. Magni, C. A. (2010). Average internal rate of return and investment decisions: a new
Enkel, E., Perez-Freije, J., & Gassmann, O. (2005). Minimizing market risks through perspective. The Engineering Economist, 55(2), 150–180.
customer integration in new product development: Learning from bad practice. Magnusson, P. R., Netz, J., & Wästlund, E. (2014). Exploring holistic intuitive idea
Creativity and Innovation Management, 14(4), 425–437. screening in the light of formal criteria. Technovation, 34(5–6), 315–326.
Evanschitzky, H., Eisend, M., Calantone, R. J., & Jiang, Y. (2012). Success factors of Makkonen, T., & van der Have, R. (2013). Benchmarking regional innovative perfor-
product innovation. An updated meta-analysis. Journal of Product Innovation mance: Composite measures and direct innovation counts. Scientometrics, 94,
Management, 29(3), 21–37. http://dx.doi.org/10.1111/j.1540-5885.2012.00964.x. 247–262.
Fleuren, M., Paulussen, T., Dommelen, P., & van Burren, S. (2014). Towards a mea- Markham, S. K. (2013). The impact of front-end innovation activities on product per-
surement instrument for determinants of innovations. International Journal for Quality formance. Journal of Product Innovation Management, 30(4), 77–92. http://dx.doi.org/
in Health Care, 26(5), 501–510. 10.1111/jpim.12065.
Flor, M. L., & Oltra, M. J. (2004). Identification of innovating firms through technological Martinusuo, M., & Poskela, J. (2011). Use of evaluation criteria and innovation perfor-
innovation indicators: an application to the Spanish ceramic tile industry. Research mance in the front end of innovation. Journal of Product Innovation Management, 28,
Policy, 33, 323–336. 896–914.
Frederiksen, M. H., & Knudsen, M. P. (2017). From creative ideas to innovation perfor- McCall, G. J., & Simmons, J. L. (1969). Issues in Participant Observation: A Text and Reader.
mance: The role of assessment criteria. Creativity and Innovation Management, 26(1), New York: Random House.
60–74. Mendes Luz, L., Carlos de Francisco, A., & Piekarski, C. (2015). Proposed model for as-
Frishammar, J., Florén, H., & Wincent, J. (2011). Beyond managing uncertainty: Insights sessing the contribution of the indicators obtained from the analysis of life-cycle
from studying equivocality in the fuzzy front end of product and process innovation inventory to the generation of industry innovation. Journal of Cleaner Production, 96,
projects. IEEE Transactions on Engineering Management, 58(3), 551–563. 339–348.
Griffin, A., & Page, A. L. (1993). An interim report on measuring product development Mohan, M., Voss, K. E., & Jiménez, F. R. (2017). Managerial disposition and front-end
success and failure. Journal of Product Innovation Management, 10, 291–308. innovation success. Journal of Business Research, 70, 193–201. http://dx.doi.org/10.
Gupta, A. K., Smith, K. G., & Shalley, C. E. (2006). The interplay between exploration and 1016/j.jbusres.2016.08.019.
exploitation. Academy of Management Journal, 49(4), 693–706. http://dx.doi.org/10. Montoya-Weiss, M. M., & O'Driscoll, T. M. (2000). From experience: Applying perfor-
5465/AMJ.2006.22083026. mance support technology in the fuzzy front end. Journal of Product Innovation
Hart, S., Hultink, E. J., Tzokas, N., & Commandeur, H. R. (2003). Industrial companies' Management, 17, 143–161.
evaluation criteria in new product development gates. Journal of Product Innovation Ommen, N. O., Blut, M., Backhaus, C., & Woisetschläger, D. M. (2016). Toward a better
Management, 20(1), 22–36. http://dx.doi.org/10.1111/1540-5885.201003. understanding of stakeholder participation in the service innovation process: More
Hittmar, S., Varmusa, M., & Lendela, V. (2015). Proposal of evaluation system for suc- than one path to success. Journal of Business Research, 69(7), 2409–2416.
cessful application of innovation strategy through a set of indicators. Procedia Palmberg, C. (2006). The sources and success of innovations – Determinants of com-
Economics and Finance, 26, 17–22. mercialisation and break-even times. Technovation, 26, 1253–1267.
Holahan, P. J., Sullivan, Z. Z., & Markham, S. K. (2014). Product development as core Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are trans-
competence: How formal product development practices differ for radical, more in- forming companies. Harvard Business Review, 93(10), 96–114.
novative, and incremental product innovations. Journal of Product Innovation Poskela, J., & Martinsuo, M. (2009). Management control and strategic renewal in the
Management, 31(2), 329–345. front end of innovation. Journal of Product Innovation Management, 26(6), 671–684.
Idris, A., & Trey, L. (2011). Exploring the motives and determinants of innovation per- http://dx.doi.org/10.1111/j.1540-5885.2009.00692.x.
formance of Malaysian offshore international joint ventures. Management Decision, Reid, S. E., & de Brentani, U. (2004). The fuzzy front end of new product development for
49(10), 1623–1641. discontinuous innovations: A theoretical model. Journal of Product Innovation
Ivanov, C. I., & Avasilcăi, S. (2014). Measuring the performance of innovation processes: Management, 21, 170–184.
A Balanced Scorecard perspective. Procedia - Social and Behavioral Sciences, 109, Reinertsen, D. G. (1999). Taking the fuzziness out of the fuzzy front end. Research-
1190–1193. Technology Management, 42(6), 25–31.
Jupp, V. (2006). The SAGE dictionary of social research methods. Thousand Oaks, Roberts, N., & Grover, V. (2012). Investigating firm's customer agility and firm perfor-
California: SAGE Publications. mance: The importance of aligning sense and respond capabilities. Journal of Business
Kester, L., Hultink, E. J., & Griffin, A. (2014). An empirical investigation of the ante- Research, 65(5), 579–585.
cedents and outcomes of NPD portfolio success. Journal of Product Innovation Rocha, A., Quintella, C., & Torres, E. (2015). Biodiesel in Brazil: Science, technology and
Management, 31(6), 1199–1213. innovation indicators. International Journal of Technology Management, 69(3/4),
Khurana, A., & Rosenthal, S. R. (1998). Towards holistic “front-ends” in new product 246–260.
development. Journal of New Product Development, 15(1), 57–74. Rohrbeck, R., & Gemünden, H. G. (2011). Corporate foresight: Its three roles in enhancing
Kim, S.-K. (2014). Explicit design of innovation performance metrics by using analytic the innovation capacity of a firm. Technological Forecasting and Social Change, 78(2),
hierarchy process expansion. International Journal of Mathematics and Mathematical 231–243.
Sciences, 2014, 1–7. Roper, S., & Hewitt-Dundas, N. (2015). Knowledge stocks, knowledge flows and

16
M. Dziallas Journal of Business Research xxx (xxxx) xxx–xxx

innovation: Evidence from matched patents and innovation panel data. Research project portfolios by project termination: An empirical study on senior management
Policy, 44, 1327–1340. involvement. International Journal of Project Management, 30(6), 675–685.
Saldana, J. (2009). The coding manual for qualitative researchers. London, England: SAGE. Van den Ende, J., Frederiksen, L., & Prencipe, A. (2015). The front end of innovation.
Sawang, S. (2011). Key performance indicators for innovation implementation: Organizing search for ideas. Journal of Product Innovation Management, 32(4),
Perception vs. actual usage. Asia Pacific Management Review, 16(1), 23–29. 482–487. http://dx.doi.org/10.1111/jpim.12213.
Schmoch, U., & Gauch, S. (2009). Service marks as indicators for innovation in knowl- Van Hoof, G., Weisbrod, A., & Kruse, B. (2014). Assessment of progressive product in-
edge-based services. Research Evaluation, 18(4), 323–335. novation on key environmental indicators: Pampers® Baby Wipes from 2007-2013.
Sharmelly, R. (2016). Innovation for Emerging Markets Confronting Institutional Sustainability, 6, 5129–5142.
Environment Challenges: Perspectives from Visionary Leadership and Institutional Verworn, B., Herstatt, C., & Nagahira, A. (2008). The fuzzy front end of Japanese new
Entrepreneurship. International Journal of Business and Management, 11(6), 108. product development projects: Impact on success and differences between incre-
Shenhar, D., Dvir, D., Levy, O., & Maltz, A. C. (2001). Project success: A multidimensional mental and radical projects. R&D Management, 38(1), 1–19.
strategic concept. Long Range Planning, 34(6), 699–725. Voicu, M.-C. (2011). Using the snowball method in marketing research on research on
Suwannaporn, P., & Speece, M. W. (2010). Assessing new product development success hidden populations. Challenges of the Knowledge Society, 1, 1341–1351.
factors in the Thai food industry. British Food Journal, 112(4), 364–386. Yang, C., Zhang, Q., & Ding, S. (2015). An evaluation method for innovation capability
Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility. based on uncertain linguistic variables. Applied Mathematics and Computation, 256,
California Management Review, 58(4), 13–35. 160–174.
Thomas, D. R. (2006). A General Inductive Approach for Analyzing Qualitative Yin, R. K. (2003). Case study research: Design and methods (third ed.). Beverly Hills, CA:
Evaluation Data. American Journal of Evaluation, 27, 237–246. SAGE Publications.
Tipping, J. W., Zeffren, E., & Fusfeld, A. R. (1995). Assessing the value of your tech- Yin, R. K. (2014). Case study research: Design and methods (13th ed.). Thousand Oaks,
nology. Research-Technology Management, 38(5), 22–39. California: SAGE.
Tushman, M. L., & O'Reilly, C. A., III (1996). Ambidextrous organizations: Managing Zhang, Q., & Doll, W. J. (2001). The fuzzy front end and success of new product devel-
evolutionary and revolutionary change. California Management Review, 38(4), 8–29. opment: A causal model. European Journal of Innovation Management, 4(2), 95–112.
Unger, B. N., Kock, A., Gemünden, H. G., & Jonas, D. (2012). Enforcing strategic fit of

17

You might also like