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IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 67, NO.

3, AUGUST 2020 813

There’s More Than One Perspective to Take Into


Account for Successful Customer Integration Into
Radical New Product Innovation: A Framework and
Research Agenda
Fiona Schweitzer , Ellis A. Van den Hende, and Erik-Jan Hultink

Abstract—Over the past few decades, the impact of customer are likely to sell [3], [4]. The value of integrating customers is
integration on radical new product (RNP) innovation has been widely accepted for incrementally new products (INPs) [5], [6],
extensively investigated. To date, this important topic presents in- while it is less clear regarding radically new products (RNPs)
consistent empirical findings that must be converged. In this paper,
our systematic literature review addresses these inconsistencies by [7]–[10].
taking a consolidated view of customer integration’s effects on the Practitioners often claim that customers are too conservative
development of RNPs. This extensive review of 153 empirical pa- and lack the necessary skills and knowledge to contribute to the
pers has two main objectives. First, we provide the primary reasons successful development of RNPs [7], [11]. For example, Steve
for inconsistent findings by scrutinizing the operationalizations of Jobs allegedly built his most innovative products by ignoring the
customer types (i.e., current customers, potential customers, ordi-
nary users, or users with domain-specific skills) and RNPs (i.e., voices of current and potential customers allegedly based on his
technological innovativeness, or both technological and market belief that market research is unsuitable for RNPs [12]. Seagate,
innovativeness) used in the studies, as well as the different per- a dominate player on the 5.25-inch drive market in the 1970s
spectives on customer integration [i.e., customer-based idea evalu- and 1980s, briefly looked into the 3.5-inch drives market in the
ation, participation in direct and indirect idea generation, research
early 1980s, asked their current desktop customers whether they
and development (R&D) partnerships with customers, having a
customer orientation, and disseminating customer knowledge via found these drives attractive, received negative response, and
R&D-marketing collaborations]. Second, we present a synthesized abandoned the idea. They did not study the relevance of these
view on factors in the sphere of the innovating company and the drives for potential customers outside their current markets,
customer that influence customer integration’s success along three such as laptop manufacturers, and it turned out that the latter
phases of the radical innovation development process (i.e., dis- customers found the 3.5-inch drives attractive, and thus Seagate
covery, incubation, and acceleration). Finally, we present avenues
for future research and discuss managerial implications of our left tremendous growth opportunities to their competitors [13],
synthesized view. [14]. Together these examples foster the perception of customer
Index Terms—Cocreation, customer integration, customer ori- integration biasing RNP decision making and hampering the
entation, literature review, new product development, new product blossoming of the creative buds that make RNPs.
development (NPD), project success, radical innovation, radical However, there are also companies who have successfully
new product (RNP), user involvement. collaborated with customers for their RNPs, like 3M, who ap-
plied the lead user concept to cocreate technologically innova-
I. INTRODUCTION tive medical equipment [15]. Lego too, reached out for their
USTOMER integration into new product development community of dedicated adult Lego enthusiasts (i.e., users with
C (NPD) is a high-priority topic in the innovation manage-
ment field [1], [2]. Integrating customers into NPD is generally
domain-relevant technical skills), and these customers advised
Lego to use a larger selection of sensors in Lego Mindstorm
believed to provide vital information about customer needs and (i.e., a technological innovation) as this would allow more vari-
requirements because innovations that satisfy customer needs ability. Building on these customer insights contributed largely
to Mindstorm’s profitability [16].
An overview of the growing literature on customer integration
Manuscript received June 25, 2018; revised October 30, 2018 and December
26, 2018; accepted January 8, 2019. Date of publication February 13, 2019;
into RNP shows an equally divided picture. Some researchers
date of current version July 16, 2020. This work was supported in part by FH found that integrating customers into NPD contributes to RNP
OÖ. Review of this manuscript was arranged by Department Editor L. Santiago. performance [17], [18], while others found a negative relation-
(Corresponding author: Fiona Schweitzer.)
F. Schweitzer is with the Grenoble Ecole de Management, Univ Greno-
ship [19]–[21]. This inconsistency is troublesome as it is hard
ble Alpes ComUE, 38000 Grenoble, France (e-mail:, fiona.schweitzer@ to provide practitioners proper advice without a clear under-
grenoble-em.com). standing of the links between customer integration and RNP
E. A. Van den Hende and E.-J. Hultink are with the Delft University of Tech-
nology, 2628 CE Delft, The Netherlands (e-mail:,e.a.vandenhende@tudelft.nl;
performance. Researchers and practitioners alike need to bet-
H.J.Hultink@tudelft.nl). ter understand why customer integration in RNP development
Digital Object Identifier 10.1109/TEM.2019.2893060 works in some cases and fails in others.
0018-9391 © 2019 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission.
See https://www.ieee.org/publications/rights/index.html for more information.

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814 IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 67, NO. 3, AUGUST 2020

We shed light on this topic by taking in one sense a broader customer integration in radical innovation projects listed in
perspective on the phenomenon, and in another sense a narrower the EBSCO and the Science Direct databases, identifying 419
one than previous reviews [6], [22], [23]. Our approach is nar- papers.
rower because we limit our review to articles on RNPs. This Based on these papers’ abstracts, we divided them into three
focus is relevant because prior research has demonstrated that groups: one containing relevant papers (Group 1, 98 papers),
RNP development typically follows other rules and performance one considered irrelevant (Group 2, 237 papers), and one in
logics than the development of INPs [24]–[26]. which the abstract contained insufficient information to judge
Our approach is broader, as we draw on different literature whether or not a paper was relevant (Group 3, 84 papers). The
streams that discuss both customer integration methods (ranging key criterion for a study’s inclusion was that it dealt with cus-
from concept testing with customers, to customer idea genera- tomer integration into radical innovation as the major theme.
tion, to indirectly identifying needs via latent needs identifica- We limited our review to peer-reviewed academic journals and
tion, to R&D partnerships and similar partner networks between excluded conference papers, trade journals, or working papers,
manufacturers of b2b products and their customers) and organi- to ensure that the papers were of a sufficiently high quality.
zational customer integration strategies (i.e., having a customer Table II contains the selection criteria details.
orientation and disseminating customer knowledge in the or- In step 4, we read all papers in Group 3, and classified them
ganization via R&D-marketing collaborations), while previous into either Group 1 (41) or Group 2 (43) based on the afore-
literature reviews focused mainly on particular aspects such mentioned criteria. This screening resulted in our retaining 139
as the creative potential of customers [22], or a general cus- papers.
tomer orientation strategy of companies [6]. Furthermore, we Fifth, we used snowball sampling [32] to find additional rele-
use a systematic, qualitative approach [27], [28] to review em- vant papers, i.e., we read the papers in Group 1 and added refer-
pirical findings from quantitative as well as qualitative studies. enced papers (14 papers) to this group that we had not found in
Thus, for RNPs, we study the impact of different perspectives our initial database query. This procedure generated a final list
on customer integration (i.e., customer integration methods and of 153 empirical studies, which formed the core database for our
customer integration strategies) on the customer integration- analysis. The studies were published in 43 journals, of which
performance link. We define customer integration into the in- a substantial amount is listed in the Financial Times Research
novation process as all competences and activities required to Rank (FT.com, 2016), 35 have an impact factor above 1.34 in
directly or indirectly use customers’ input to create RNPs, and to 2017, and 39 have a score of 2 or higher in the 2018 Academic
appropriate value through these innovations. We use the generic Journal Guide from Chartered Association of Business Schools
term customer for any current/potential buyer/user of a prod- in U.K. See Table III for more details on listings and citation
uct/service as the reviewed papers predominantly used the term scores.
customer, and not user or consumer. For selecting and categoriz- We categorized the empirical papers according to common
ing papers, we followed the definition of RNPs as products that elements used in previous reviews (i.e., journal/year of publi-
are new concerning the applied technology and the target mar- cation, definition and operationalization of key terms, empirical
ket, incorporating high technological and market uncertainties method used data of the empirical setting such as industry back-
[24], [29]. ground and company size) [6], [23], [33]. For the definition
We will now describe the procedures that we applied to iden- and operationalization of the key terms, we captured customers,
tify and categorize the 153 papers, which we included in this employed customer integration perspective, RNP, and RNP per-
systematic review. Next, we systematically study the customer formance of customers in separate codes. Similar to other sys-
integration-performance link to understand why and when cus- tematic reviews that compared articles by building on a diverse
tomer integration was found to have a positive, negative, or range of influencing factors [34], we discuss these factors in
insignificant effect on RNP project success. The results from terms of an aggregated set of categorizations, which we used
our literature synthesis will highlight the relevance of scruti- when coding the papers. Detailed table available from the first
nizing the customer type on which the study focused, the focal author upon email request.
RNP operationalization, and the customer integration perspec- While meta-analytic statistical procedures provide reliable
tive studied. Based on these findings, we develop a frame- results with homogeneous data, qualitative meta-analytical ap-
work that depicts successful customer integration’s roles in proaches provide a structured and inductive method of inter-
three phases (i.e., discovery, incubation, and acceleration) of preting and synthesizing heterogeneous data [30], [35]. Since
the RNP development process. These synthesis sections also the identified studies varied in terms of customer integration
provide several promising avenues for future research and mul- perspectives, definitions of customers, definitions of RNPs, and
tiple implications for innovation managers aiming to develop RNP performance measurements, a qualitative approach was
successful RNPs. considered more appropriate to identify fine-grained differences
between conceptualizations and to deduce explanations for in-
consistent findings. Quantitative reviews tend to exclude po-
II. METHOD tentially relevant but rarely investigated factors if they do not
We established our research corpus in a five-step procedure meet threshold requirements for statistical analysis [35], [36].
described by [27] and [28]. First, we identified a range of The qualitative approach allowed us to investigate an as diverse
keywords (see Table I) to search for studies that deal with as possible set of potential influencing factors systematically,

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SCHWEITZER et al.: THERE’S MORE THAN ONE PERSPECTIVE TO TAKE INTO ACCOUNT FOR SUCCESSFUL CUSTOMER INTEGRATION 815

TABLE I
KEYWORD LIST FOR ARTICLE SEARCH

leading to more fine-grained insights into customer integration’s papers identified problems both in the customer sphere and
positive or negative effect on RNP performance. in the sphere of the innovating company that limit successful
customer integration. Key problems in the customer sphere in-
III. SYNTHESIS: CUSTOMER INTEGRATION AND RNP
clude the provision of inaccurate concept evaluation information
PROJECT SUCCESS
[46], [47] (i.e., inaccurate feedback on needs) as well as a fail-
From a strategic management perspective, the key goal of ure to provide innovative technological solutions information
any business activity is to create an appropriate value [37]– [48] (i.e., hampered creativity). Factors in the innovating com-
[39]. Value creation relates to the surplus a business activity pany’s sphere include shortcomings in the choice of customer
generates in terms of the positive difference between benefits integration method [49], the selection of customers [50], or the
for a customer and cost [40]. Value appropriation refers to the way in which the generated knowledge from customer integra-
portion of the created value that the company actually cap- tion activities is processed [51]. Table IV presents the reviewed
tures in terms of the profit generated through the value creating empirical studies’ findings concerning customer integration’s
offering [41]. effects on RNPs project success. This table groups the ways in
Developing and launching RNPs is one such business activity. which the empirical studies define RNP project success in three
Customer integration can contribute to this activity in three key categories: needs identification, innovativeness, and financial
ways. First, customers can provide insights into their needs and performance. Needs identification summarizes customer inte-
can provide feedback on the extent to which an RNP helps to gration’s ability to provide the innovating company with the
satisfy these needs [42], [43]. Second, customers can contribute necessary information to understand an RNP’s potential cus-
solutions information by providing their creativity and knowl- tomers’ needs. Innovativeness refers to customer integration’s
edge in the process of developing RNPs. Third, customers must contribution to increasing the innovating company’s ability to
eventually be willing to pay and adopt the RNP, once launched, come up with a radically new solution to a problem. Financial
at a price that allows the innovating company to appropriate performance measures the realized success of an RNP on the
value in the form of financial profits. While the third contribu- market as captured by an RNP’s relative sales, market share, or
tion only happens after the RNP has been launched, the inte- return on investment [52].
gration of customers into the innovation project as providers of Table IV provides ample evidence of the inconclusive em-
needs or solutions information may influence customers’ adop- pirical findings concerning customer integration, demonstrating
tion intentions. For instance, customers who are integrated from that customer integration can provide or fail to provide its in-
the outset of an RNP project may become active promoters of tended contribution of improving an RNP project’s success. At
these products after launch [44], [45]. the same time, these empirical findings motivated us to dis-
Yet, customers’ abilities for this threefold contribution to cover the reasons behind these inconsistencies. Our systematic
RNP projects’ success can be compromised. The reviewed review shows that the customer type selected for integration,

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816 IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 67, NO. 3, AUGUST 2020

TABLE II
PAPER SELECTION CRITERIA

the RNP operationalization, and the employed perspectives on Some studies only dealt with integrating an innovating com-
customer integration strongly impact the link between customer pany’s current customers into RNP development [14], [53].
integration and RNP project success. In this paper, we refer to current customers for studies that
conceptualize customer integration as integrating the view of
customers who currently buy from the innovating company. A
second group of studies included all potential customers who
IV. SYNTHESIS: THE CUSTOMER TYPE fall in the future target group for the RNP. As indicated in Fig. 1,
Fig. 1 presents the various customer types that the empirical these customers comprise current customers and a subgroup of
research has investigated. individuals who are currently noncustomers [45], [54].

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SCHWEITZER et al.: THERE’S MORE THAN ONE PERSPECTIVE TO TAKE INTO ACCOUNT FOR SUCCESSFUL CUSTOMER INTEGRATION 817

TABLE III
JOURNAL AND PAPER INFORMATION: RANKINGS, CITATIONS, AND PERSPECTIVES

Other studies focused on the role of integrating users with represent the broadest view on users. Integration of ordinary
domain-specific skills. These are skills that users possess in a users via online idea competitions is thus synonymous to unre-
specific area, enabling them to provide meaningful contributions stricted crowdsourcing approaches in the open innovation liter-
in this area [55]–[57]. Such individuals are rare and potentially ature. Ordinary users are, however, also often used in concept
difficult to identify (as indicated by small circles in Fig. 1) testing studies, where it is unclear whether the sample actually
and are either current customers, potential customers, or users comprises current customers, potential customers, or users with
who fall outside the target group for the RNP (as indicated by use experiences.
scattering the small circles in Fig. 1). The most prominently Analyzing the results of the empirical studies based on differ-
researched customer group in the domain-specific skills section ences in their definition of customer types, we find that studies
was lead users, (i.e., users who experience needs in a new and that understood customers as current customers tended to find a
important area earlier than the majority of customers, who negative effect of customer integration on RNP project success
benefit decisively from having this need satisfied) [15]. [19], [58] as opposed to those that studied potential customers
Finally, a group of studies focused on ordinary users. These [59], [60] and users with specific skills [61], [62].
studies investigate business-to-consumer (b2c) markets, and nei- A company’s current customer orientation is associated with
ther exclude current customers nor define criteria to ensure a responsive, short-term focus on these customers’ articulated
that these individuals are potential customers. Consequently, needs. It includes strategies to retain current customers, at
ordinary users are equivalent to consumers in general, and the detriment of opening up to potential customers [63], [64];

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818 IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 67, NO. 3, AUGUST 2020

TABLE IV
OVERVIEW OF EMPIRICAL FINDINGS ON CUSTOMER INTEGRATION’S POSITIVE AND NEGATIVE EFFECTS ON RNPS

Notes: + = positive effects, – = negative effects, x = insignificant, c = curvilinear effects.


Note for Tables IV–VI: The numbers in the table do not add up to number of reviewed papers, because some studies measured more than one RNP project
success indicator. Other studies measured the effects of different designs of a specific customer integration measure (e.g., responsive vs. proactive customer
orientation), showing that one design has a positive effect on RNP, while another has a negative effect. We added these studies into the list twice, once
with a “+” and once with a “-“.

Empirical studies that included users with domain-relevant


skills focused on their direct participation in idea and concept
development, and provided evidence of the value of such indi-
viduals as providers of solutions information. These individuals
may have specific skills, such as technical skills in areas distant
to the innovating company’s internal skills, helping the com-
pany to find innovative technical solutions to challenging prob-
lems [15], [78], [79]. Only a few studies attempted to identify
domain-specific skills beyond lead users [61], [80] and allude
to the relevance of additional domain-specific skills (e.g., emer-
gent nature, technological reflectiveness). These studies have
opened the field to future research into a variety of domain-
relevant skills sets that rigorously compares their contributions
to RNPs in various empirical settings. Domain-relevant skills,
Fig. 1. Different empirically investigated customer types. such as haptic information processing [81], or people’s tendency
to lose themselves in a story [82], could be relevant in this regard.
Our literature review also indicated that the superiority of
a myopic quest to maximize current profits via incremental either ordinary users or users with domain-specific skills may
innovations and low-risk projects [4], [65], and competence ex- depend on the problem type for which an innovating company is
ploitation and adaptive learning via the refinement and extension seeking solutions. When generating first rough ideas for RNPs,
of existing knowledge [63], [66]. ordinary users seem to be the key [17], [76]. When more mature,
Conversely, a company’s orientation toward potential cus- elaborated input on ways to realize a particular idea in the form
tomers is associated with a proactive observation of new mar- of a technically feasible prototype is needed, ordinary users tend
kets [54], [60], [67], [68], a long-term orientation [9], a focus to fail to deliver meaningful input [50], [83], while users with
on acquiring new customers [63], a readiness to cannibalize domain-specific skills deliver [79], [84].
existing products [69], and a readiness to challenge existing as- Moving from solution information as the contribution of users
sumptions about their markets [21], [70], [71]. This orientation in the RNP process to needs information, findings in the inves-
toward potential customers has been found to contribute to RNP tigated empirical papers are inconsistent. Considering product
project success, since it allows for the generation of new market category expertise as a domain-specific skill, some papers find
insights and the acquisition of new competences [72]–[74]. that users with strong product category expertise have superior
The compelling logic in these studies is that entering new knowledge of this product category and its trends, which makes
markets with new offerings by understanding future cus- their feedback to RNP concepts more reliable than that of or-
tomers’ potential needs inevitably provides more market growth dinary users [46]. Yet, drawing on prior experience can hinder
potential than catering to existing markets by better understand- comprehension and can generate wrong expectations regarding
ing current customer needs. Yet, some studies found that a cur- the ways RNPs should be used in cases where RNPs function in
rent customer orientation has positive effects on RNP project different ways than current market offerings [85]–[87]. In such
success [75]–[77]. A factor that influences the contributions of cases, the RNPs do not fit product experts’ domain-specific
current customers to RNP project success may be the attrac- knowledge structures, and ordinary users may provide more
tiveness of the current customer market, in terms of competitive useful unbiased needs information [88].
activity, market size, and market growth. Technology leaps that Studies that investigated customer integration in the form
allow companies to provide their current customers with more of R&D partnerships with corporate customers suggest that
attractive products may turn out to improve a company’s fi- companies benefit from partnering with current customers as
nancial performance more than catering to a new market with familiarity, or strong ties, facilitate the exchange of sticky,
potential customers, at least in the short and medium terms. tacit knowledge, but this may also reduce RNP project success

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SCHWEITZER et al.: THERE’S MORE THAN ONE PERSPECTIVE TO TAKE INTO ACCOUNT FOR SUCCESSFUL CUSTOMER INTEGRATION 819

TABLE V
OVERVIEW OF EMPIRICAL FINDINGS ON USER INTEGRATION’S POSITIVE AND NEGATIVE EFFECTS ON RNP DIVIDED BY USER TYPE AND RNP
OPERATIONALIZATION

Notes: + = positive effects; – = negative effects; x = insignificant; c = curvilinear effects (inverted u).

owing to knowledge redundancy [89], [90]. At the same time,


partnering with less familiar customers (or weak ties) increases
opportunities for generative learning [91], [92], allowing access
to distant knowledge. While both knowledge types are relevant
for radical innovation, no clear conclusion can be drawn from
the current empirical studies as to when to choose one customer
type or the other.
Table V provides an overview of findings organized for dif-
ferent user types. A major shortcoming of the extant empirical
studies is that many studies [93], [94] failed to provide clear
explanations of the studied customer type(s). The lack of rigor
in customer type definition may be responsible for some of the
inconsistent results across studies.

V. SYNTHESIS: RNP OPERATIONALIZATION Fig. 2. RNP operationalizations in investigated papers based on market and
technological newness.
We found that the definitions and operationalizations of an
RNP vary largely across the focal studies. Some studies [73],
[95], [96] captured RNPs as technologically radical products. [75], [105], [106]. The reasons for the positive link between the
Such products build on new technological principles that often current customer focus and RNP performance for technologi-
enable large performance enhancements. Other studies referred cally radical innovations may be that the closeness to these cus-
to RNPs as those high in both market newness and technological tomers facilitates the gathering of information about customers’
newness, using terms such as discontinuous innovations [47], tacit needs [107]. Furthermore, current customers’ indicated in-
[97], really new innovations [61], [98], [99], or breakthrough terest helps to gain the company-internal backing necessary for
innovations [100]–[102]. These innovations require potential investments in such projects [108].
customers to learn about the product and its functioning if they The studies that defined RNPs as products that score high
are to fully appreciate and embrace the RNP’s benefits. Fig. 2 on both technological and market innovativeness often found a
illustrates this difference. negative impact of current customer integration on RNP project
While the understanding of technological innovativeness was success, notably when RNPs failed to meet the current cus-
similar across the studies, the definitions of market innova- tomers’ immediate needs, requiring considerable relearning ef-
tiveness were heterogeneous. Some studies understood mar- forts from customers that rendered their prior investments in
ket innovativeness as delivering new benefits to customers knowledge, competences, and resources in current product op-
[103], while others stressed that market innovativeness is high tions obsolete [101], [109]. Such sunk costs, as well as RNPs
when customers need to interact with these products in ways that performed worse than current products on features rele-
that contradict the ways in which they used to interact with vant to them, are likely to negatively affect current customer
existing products, rendering prior knowledge futile or even integration endeavors. Under such circumstances, current cus-
counterproductive [104]. tomers are likely to reject RNP ideas when asked for their
The findings of studies that define RNPs as technologically opinions.
innovative products differ from those that capture radicalness Given the key role of the operationalization of radical inno-
by including technological and market innovativeness in their vativeness, it is surprising that many studies failed to provide
conceptualizations. RNPs that score high on technological in- detailed information on the operationalization of this construct
novativeness benefit from their closeness to current customers [67], [110]. Such studies asked respondents to indicate, for in-
and their in-depth understanding of these customers’ needs [65], stance, the “% of total sales from radical products introduced by

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820 IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 67, NO. 3, AUGUST 2020

your firm in the last three years (less than 5%, 5–10%, 11–15%, the innovating company seeks to gather company-external skills,
16–20%, >20%)” [67] without explaining to respondents what knowledge, and experiences in order to generate RNP ideas [17],
they understood by radical innovations. So, in these studies, in- [76], and to find technical solutions for realizing RNPs [111],
novations that are technically new, and those with high technical [120]. These studies largely find that customer integration has
and market newness may be included under radical innovation, a positive role, since it produces novel and original ideas [48],
blurring the differences between these two conceptualizations [76] that provide higher customer benefits [61] and sell better
in our paper. [118] than internally generated ideas. However, some studies
found a negative impact [83] of direct customer integration on
RNP project success, and propose that this is due to choosing
VI. SYNTHESIS: THE CUSTOMER INTEGRATION PERSPECTIVE the wrong customer types for the task (i.e., current customers).
We identified six “perspectives” on customer integration in The third perspective describes methods in which cur-
the included empirical papers. Four perspectives include spe- rent/potential customer integration indirectly serves idea or
cific customer integration methods, such as concept testing, lead concept generation. These studies use innovativeness, needs
user workshops, or ethnographies. Two perspectives are orga- identification, and financial performance as measures of the suc-
nizational perspectives (i.e., a customer orientation perspective, cess of an RNP. When using these methods, companies gather
and an R&D-marketing collaboration perspective). Our paper information on current and potential customers’ latent needs, for
shows that these perspectives are organizational prerequisites for instance, by observing current customers [42], [121], studying
the successful implementation of customer integration methods. use difficulties with existing products [44], and learning from
Thus, the combination of these (types of) perspectives provides potential customers’ early experimentation with prototypes
important reasons why customer integration for RNPs is some- [122]–[124]. Inspired by these insights, an NPD team generates
times beneficial and sometimes detrimental to RNP success. ideas and improves concepts for radical innovations that help
Most of the empirical studies studied customer integration to satisfy the identified latent needs. The reviewed papers also
from a single perspective. The few studies [44], [50], [110], found that customer integration through these methods helps to
[111] that included multiple perspectives are case studies that retrieve hard-to-obtain information from customers, which—in
described customer integration carried out throughout a spe- turn—positively contributes to RNP success.
cific radical innovation project. The identified perspectives do The fourth perspective in the literature focused on R&D part-
not aim to be mutually exclusive. Moreover, as can be seen in nerships with current customers, and included different cooper-
Table III, these perspectives resemble somewhat separate lit- ation types, such as networks, alliances, and other RNP-focused
erature streams. For instance, 24 out of 43 journals published co-development projects. These studies looked at innovative-
about one customer integration perspective just once or twice. ness and financial performance measures to assess R&D part-
Thus, 19 journals published about two or more different per- nerships’ contributions to the success of RNPs. These studies
spectives. To conclude, separate literature streams are present, empirically found that current customer integration positively
which demands integration. affects RNP performance, as long as the relevant knowledge is
The first perspective examined customer-based idea evalu- shared [96], [125] and opportunistic behavior, such as infringe-
ation using needs information as the key concept to measure ment on intellectual property [126] or prior customers becoming
its effect on the success of a radical innovation. These stud- future competitors [127] are held at bay. In addition, power rela-
ies discuss the challenges of gathering reliable feedback on tions, company size, and competition in an industry were found
current/potential customer preferences for radical innovations to impact R&D partnerships with current customers’ effects on
[112], [113]. For instance, these authors found that customers’ RNP success. A current customer’s high power over an innovat-
inability to categorize RNPs [87], [88] and to imagine future ing company can lead to strategic subservience and inflexibil-
product use if these products strongly deviate from available ity [128], [129], hampering RNP performance. Yet, studies of
market options [114], [115] leads to uncertainties when evaluat- entrepreneurial ventures found that integrating large corporate
ing RNPs [112], potential customers rejecting RNPs in concept companies who are first current customers on which a venture
tests [47], [112], and unstable preference statements in consec- is highly dependent can also be beneficial for RNP performance
utive concept tests [46]. INP concepts are less prone to such [95], [130]. Possibly, customer integration is successful despite
risks and uncertainties, performing better in concept tests than high dependency when powerful, big current customers reduce
RNP concepts. Thus, concept test results stimulate innovating market risk, for instance, by giving a new venture legitimacy
companies into continuing the development of INPs to the detri- and through assuring purchase of attractive quantities of the final
ment of RNPs, although the latter may find a market with more product. Indeed, it seems to be beneficial for young b2b ventures
growth and profit potential. In other words, such concept tests to turn one large company from a potential to a current customer
result in missed opportunities for successful RNPs [116], [117]. rather than seeking to please many potential customers [131].
The second perspective focused on users’ direct integration The fifth perspective is an organizational perspective on cus-
into idea and concept generation, and measured their effects on tomer orientation. It is understood as the strategic value that
radical innovations using innovativeness as an indicator. Em- a business unit, corporation, or NPD team assigns to customer
pirical studies have investigated ICT-enabled idea competitions insights [132]. Studies within this perspective investigated inno-
with users [118], in lead user workshops [62], [119], in creativity vativeness and financial performance measures to capture RNP
sessions with users [56], or in informal and occasional personal success, and present an inconsistent picture of customer in-
exchanges with potential customers [44]. With these methods, tegration’s effect on RNP success. In these studies, customer
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SCHWEITZER et al.: THERE’S MORE THAN ONE PERSPECTIVE TO TAKE INTO ACCOUNT FOR SUCCESSFUL CUSTOMER INTEGRATION 821

orientation’s impact on RNP success varies largely, depending A key weakness of these studies is that they seem to take for
on the specific customer orientation style and measure. Re- granted that 1) customers’ RNP evaluations in concept tests
sponsive customer orientation, which refers to retrieving needs are compromised due to customers’ inability to imagine RNPs
information from current customers, exerts a negative effect on and their future usage, and that 2) these negative concept test
financial performance. Proactive customer orientation, which evaluations led companies into sifting out RNPs while filling
refers to identifying latent needs of potential future customers the new product pipeline with INPs. Therefore, other empirical
and working with users with specific skills, shows a positive studies investigated ways to increase customers’ positive atti-
one relationship [133]–[135]. These studies also reveal that tudes toward RNPs in concept test situations via visualization
customer orientation positively affects the performance of an techniques [113], [114]. However, it remains unclear whether
RNP when it enables exploratory market learning (i.e., the these evaluations result in de facto launches of positively eval-
acquisition and use of knowledge from outside the organiza- uated RNPs, and whether the concept test resulted accurately
tion’s current customer and competitor boundaries), but not mirrored the eventual RNPs’ market receptions.
when it stimulates exploitative market learning (i.e., the acqui- The studies that investigated direct customer participation
sition and use of information within the firm’s current expertise) via idea and concept generation studied the participation at the
[70], [74]. project level and applied a diverse repertoire of research designs,
Finally, the sixth perspective entails R&D-marketing collab- including cross-sectional survey data, (longitudinal) case stud-
orations. This organizational perspective on customer integra- ies, and experiments. The studies that focused on indirect idea
tion investigates the dissemination of customer knowledge in or concept generation via customer interaction mainly applied
the organization via interaction between the R&D function and qualitative case study research. Many of these studies demon-
the marketing function, and its impact on RNP project suc- strated external validity in the form of de facto turnover data of
cess. These studies perceive R&D as the unit that receives RNPs generated via customer integration [118].
customer information indirectly via the marketing department. Empirical research into indirect methods of customer inte-
Marketers disseminate the acquired knowledge to R&D [136], gration in RNP idea and concept generation via latent needs
providing needs and solutions information, decreasing market identification also focused on the project level. This research
uncertainties regarding RNPs, and allowing current and poten- suffers from methodological one-sidedness, since all but one
tial customer needs to be translated into product specifications, study [143] were based on case evidence. Furthermore, the case
resulting in increased RNP success as measured by financial evidence mainly described the early stage of an RNP’s inno-
performance [25], [137], [138]. Most studies found that internal vation project, where latent needs information is gathered. The
R&D-marketing collaboration positively impacts RNP project methods that were used to transform the acquired information
success. Those studies that found a negative impact attribute this into a new product idea and an RNP (e.g., ranking, sorting,
to a short-term focus of the marketing department, which may and selection of various—potentially conflicting—latent needs)
lead to inter-departmental conflict [139], and the quest for prod- were not clearly discussed.
ucts that fit current customers, while ignoring potential future In studies of R&D partnerships with customers, data were
customers [9], [140]. gathered with qualitative and quantitative cross-sectional in-
Table VI reports in how far customer integration’s effects terviewing and surveying techniques at the company, business
on RNP project success varied based on the empirical paper’s unit, and project levels, focusing on perceptional insights from
customer integration perspective. Studies investigating the two key informants in the innovating company. The studies on
customer integration methods of direct customer participation R&D-marketing collaboration mainly applied cross-functional
in idea or concept generation and indirect idea or concept gen- quantitative survey data. Finally, the studies on customer orien-
eration via customer interaction largely found positive effects tation predominantly took a company-level or business unit per-
on RNP project success [76], [141], [142]. The studies that spective and used quantitative cross-sectional surveys to study
investigated customer-based evaluations of RNP ideas or con- customer integration’s impacts on RNP project success.
cepts often found negative effects [47], [112]. For the other Irrespective of the specific customer integration method in-
perspectives (i.e., R&D partnerships with customers, customer vestigated, most empirical studies of customer integration build
orientation, and disseminating customer knowledge in the or- on cross-sectional study designs and studied short-term conse-
ganization though R&D-marketing collaboration), a tendency quences of customer integration on RNP project success. Future
toward more positive effects was observed. research should examine how customers’ motivations to con-
tribute novel ideas evolve over time, how these contributions
relate to whether they feel appreciated rather than exploited or
VII. SYNTHESIS: STRENGTHS AND WEAKNESSES OF THE ignored, and how these contributions influence customer inte-
EMPIRICAL METHODS gration’s contributions to RNP project success. For instance, the
The extant empirical research on the different customer in- use of users as a cheap workforce could pay off in the short term,
tegration methods built on different empirical research designs. but may be detrimental from a longer term perspective. Users
Studies investigating idea and concept evaluation of RNP ideas who feel that an innovating company benefited excessively from
and concepts gathered information mainly at the project level their ideas without being appropriately compensated may turn
and via experimental studies (19 studies ran experiments). While their backs on the company, may actively campaign against the
these studies provide high internal validity, it is unclear to what company via social media channels, or may even channel their
extent their results can be reproduced in real-world settings. future ideas to competitors.
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822 IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 67, NO. 3, AUGUST 2020

TABLE VI
OVERVIEW OF EMPIRICAL FINDINGS ON CUSTOMER INTEGRATION’S POSITIVE AND NEGATIVE EFFECTS ON RNP DIVIDED
BY USER PERSPECTIVE

Notes: + = positive effects; – = negative effects; x = insignificant; c = curvilinear effects (inverted u).

Furthermore, the long-term behaviors of ordinary users who


propose ideas they wish to use themselves may differ from those
of expert users, who provide ideas because they expect to receive
a financial reward or peer recognition. The first customer group
may feel scorned if a company does not realize their ideas [144],
while the second group may turn their backs on the company
when they feel that they have not received fair compensation.
In this regard, companies’ behaviors in previous interactions
(e.g., explaining why a certain idea was not used, offering to
realize an idea as a customized product instead of develop-
ing a standardized product for the main target market, paying
contributing customers attractive, flexible, sales-based compen-
sations) can impact on contributing customers’ motivations to
repeatedly contribute useful ideas for RNPs. In this context, Fig. 3. Synthesized view on factors in the sphere of the innovating company
future studies would benefit from incorporating relational per- and the customer that have a positive or negative effect on the value of customer
integration in the three phases of RNP projects.
formance indicators (e.g., company-customer relationships) as
mediating measures for the links between customer integration
and RNP project success. studies along the three phases of an RNP project: discovery,
Furthermore, longitudinal studies could investigate the roles incubation, and acceleration [146], [147].
of customer integration along different RNP introduction pat- Fig. 3 captures the merged perspective along the three phases
terns. One pattern could be for companies to first target an and highlights the central influencing factors we identified. In
innovative customer niche with a radical prototype, and then to this framework, we view two of the six perspectives on cus-
further develop this prototype by learning from niche customers’ tomer integration as organizational prerequisites to successful
interactions and adapting the radical prototype for a better fit customer integration. Their execution influences 1) the type of
via incremental innovations, while extending to the mass market information that the innovating company looks for when relat-
slowly as the learning increases [145]. Another pattern could be ing to customers; and 2) the way the information is distributed
to plan the launch of a radical innovation in a longer term future and used inside the innovating company. The other four perspec-
while directly addressing the mass market with minor innova- tives focus on the way the data are retrieved when interacting
tions that customers understand, but preparing the market step- with customers, and their execution immediately impacts the
by-step to move up the ladder toward the radical innovation. type of information the company retrieves from the customer
Identifying such patterns would involve changing the radical interaction.
innovation’s perspective from a one-product-centric view to a In the discovery phase, an innovating company searches for
view that spans several product generations. Such longitudinal new business opportunities. To successfully navigate this phase,
studies also allow to look at market-based performance indica- the company needs exploratory skills and should employ ac-
tors, such as sales and market share, at different points in time, tivities that identify potential customer needs, understood as
for instance, one, five, or ten years after introduction. “problems in need of a solution” [147], [148]. In this phase,
customer integration methods include direct and indirect idea
generation methods. Our literature review indicates that current
VIII. SYNTHESIS: EMPIRICAL STUDIES ALONG DIFFERENT
customer integration is beneficial for technologically advanced
RNP PROJECT PHASES new products but detrimental for breakthrough innovations that
In this section, we merge the findings on customer types, score high on market newness as well. For the latter group
RNP operationalization, and customer integration perspectives. of RNPs, prior research found that orienting toward potential
To structure our synthesis, we map the findings of the empirical customers is essential. One explanation is that gathering in-

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SCHWEITZER et al.: THERE’S MORE THAN ONE PERSPECTIVE TO TAKE INTO ACCOUNT FOR SUCCESSFUL CUSTOMER INTEGRATION 823

sights from such new and unknown customers elicits generative innovating company may need different methods of motivating,
learning processes and competence exploration. Taken this fur- finding, and integrating them. For example, users with technical
ther would mean that user heterogeneity would be beneficial as skills may be more interested in having their need solved and
the diversity of their contributions spurs creativity. Yet, there getting early access to the RNP. External experts with technical
might be a tipping point, insights may become conflicting with skills might be more interested in building business relation-
one group of customers asking for something, while others ask ships and profiting financially from working with the innovating
for the opposite. Another downside of integrating too many het- company.
erogeneous potential customers in the discovery phase of break- Another proposition for the incubation phase is that ordinary
through innovations may be that the innovating company lacks customer integration for evaluating breakthrough innovations
trust and legitimacy in the eyes of these customers, resulting in is detrimental if the users’ ability to imagine the RNP is not
their reluctance to provide valuable insights. encouraged through specific concept test interventions (e.g.,
Furthermore, current customer integration may not be as fruit- narratives, simulation). While research so far focused on devel-
ful as integrating potential customers when certain context fac- oping and refining intervention methods that increase ordinary
tors prevent current customers from embracing RNPs. Such users’ understanding of an RNP, future studies could study the
context factors could be prior investment in solutions that are value of artificial intelligence and digital technology for concept
incompatible with the RNP, the need for unlearning existing test interventions, and explore if such interventions also work
practices in order to use the RNP, and high satisfaction with cur- for other user types (e.g., users with domain specific skills)
rent offerings. In such cases, current customers may be reluctant and other tasks (e.g., for gathering solution information). Ta-
to contribute to NPD. In a b2b context, such reluctance may be ble VIII captures the propositions and research questions for the
stronger than in b2c markets, as potential future users are typ- incubation phase.
ically competitors of current customers, and existing business The acceleration phase prepares a radical innovation for roll-
customers may have little interest in contributing to an RNP that out. In the acceleration phase, the company prepares its internal
their competitors already use. A stronger focus on the specifici- and external infrastructure and invests in the radical innovation’s
ties of customer integration on b2b markets could uncover such market launch. Companies carry out activities to ensure broad
influencing factors. market access and quick sales growth to win critical mass fast.
Our literature review also shows that ordinary customer inte- At the end of this phase, the RNP should provide substantiated
gration is beneficial in the discovery phase as it helps to uncover evidence that it can generate predictable revenues in a foresee-
their latent needs and gather inspirations for RNPs based on able future, can be managed via routinized and institutionalized
understanding these users and their needs better. It is unclear processes, and can compete with more incremental innovations
whether integration of users with specific-skills could outper- for internal resources [147], [151]. Speeding up this phase and
form ordinary customer integration. Lead-users, as one group scaling up quickly is pivotal for RNPs success [152].
of such users, may not do the right job here, because their be- Our synthesis identifies a gap within the customer integra-
havior and needs may not represent those of an attractive future tion literature for this phase. The studies that investigated cus-
market for the innovating company. This draws our attention to tomer integration at the project level predominantly zoomed in
the relevance of future research looking at other relevant skill on the first two phases of radical innovation projects, but inade-
sets users should have to be valuable contributors in the discov- quately captured customer integration’s roles in the acceleration
ery phase. Table VII provides an overview of propositions and phase. This is unfortunate since research found that companies
research questions for the discovery phase. have the most competences in the discovery phase, while they
The incubation phase develops initial ideas into business pro- struggle with the back-end of radical innovation [146]. We sug-
posals. In this phase, a company seeks to reduce the technical and gest that customer integration can play a vital role in this last
market uncertainties, and aims to develop a functional prototype phase, during which companies need to relate to customers in
and test its market acceptance. Customer integration methods order to address the most attractive markets, and must edu-
include direct and indirect concept generation methods, concept cate prospective customers about the innovation’s key benefits.
evaluation via concept testing, as well as R&D partnerships Thus, we call on researchers to focus on understanding the meth-
with corporate customers. We propose that the integration of ods, processes, and patterns in which customer integration can
users with domain-specific skills, notably technical skills that improve the efficient and effective management of the RNP’s
are distant to the innovating company’s existing skill set, al- acceleration phase.
low the innovating company access to solution information that Future research could explore the impact of user involve-
helps to address technical uncertainties in their concept. While ment in the earlier phases of the RNP innovation process on
customer integration studies univocally suggest this proposition the success of activities in the acceleration phase. For instance,
[62], [120], [142], [149], a question for future research is if users preliminary qualitative findings indicate that the integration of
with technical skills are superior to other company-external ex- employees from a customer company into the discovery and
perts. In lead user studies, there seems to be some overlap in incubation phases strengthen personal relationships and foster
definitions as lead users include problem solvers from analo- these employees’ identification with the innovating company
gous markets who are not part of the innovating company’s and their commitment to the innovation. Customers who are
potential future customers [62], [150]. Scrutinizing differences integrated in earlier stages of the NPD could thus turn into
and similarities between both groups is relevant, because the spokespeople who promote the innovation in their company and

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824 IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 67, NO. 3, AUGUST 2020

TABLE VII
PROPOSITIONS AND FUTURE RESEARCH QUESTIONS FOR THE DISCOVERY PHASE

TABLE VIII
PROPOSITIONS AND FUTURE RESEARCH QUESTIONS FOR THE INCUBATION PHASE

beyond [44], [45], thereby helping the RNP’s market diffusion. or ambassadors. In a b2c context, innovativeness and opinion
Little is known about the likelihood that different customer leader roles could matter the most.
integration activities could spark promotion activities, or the Future research on promotional effects may also study cus-
conditions under which customers can play effective ambas- tomer integration’s reputational effect. Prior research on INPs
sador roles in promoting an RNP [45], [106], [153]. It would be showed that customers who are not themselves involved in cus-
interesting to learn about the characteristics that customers re- tomer integration tasks have more positive feelings toward a
quire to become credible promoters. In a b2b context, customers company if they know that the product was cocreated with
who are market leaders or who are known for their innovative- users. Nonetheless, customer integration can also backfire; for
ness could have the required credibility to act as promoters instance, luxury fashion items are perceived as less prestigious

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SCHWEITZER et al.: THERE’S MORE THAN ONE PERSPECTIVE TO TAKE INTO ACCOUNT FOR SUCCESSFUL CUSTOMER INTEGRATION 825

TABLE IX
PROPOSITIONS AND FUTURE RESEARCH QUESTIONS FOR THE ACCELERATION PHASE

and less desirable if cocreated [154]–[156]. In an RNP context, better understanding of the organizational-level and individual-
integrating customers could contribute to building trust in the level prerequisites in the innovating company that influence the
new technology, but it could also backfire. Customer integra- extent to which customer integration is beneficial or detrimen-
tion may leave potential customers with the impression that a tal to RNP success. For example, understanding attitudes of
company “needs help” from others because it lacks own com- decision-makers toward the evaluation of user-generated ideas
petences. Hearing about a car manufacturer that is developing that look beyond the not-invented-here-syndrome [160], [161]
brakes with ordinary users may cause customers to believe that may play a pivotal role. Innovating companies that encourage
these brakes are inferior in comparison with professionally de- their decision makers to take a creative attitude toward user-
veloped ones. However, if an innovating company integrates its generated ideas understand such ideas as inspirations, combine
leading business customers as reference customers, this could different ideas, and build on them based on an improved under-
build trust in the technology, while integrating end customers standing of the latent needs engrained in user-generated ideas,
to generate technical solutions may have a negative reputational may profit more from integrating them than those who encour-
effect. In addition, the interplay of customer integration, RNPs age strict stop-go evaluations in rigorous internal Idea Evalua-
and governmental regulations requires future research. RNPs of- tion Committees as sifting out high amounts of user-generated
ten lack social and legal legitimacy. Customer integration could ideas may lead decision-makers to prefer the familiar [162].
facilitate an RNPs gain of such legitimacy [157]. For instance, To bring clarifications on these topics, future research should
working with potential customers on trials, such as test drives of look into ways in which potential customers’ RNP ideas need
autonomously driving prototypes by users in pilot cities, could to be gathered, presented, and interpreted to encourage their
make RNPs not only more appreciated by users but also pull uptake. This could result in not taking up and acting upon user
in governmental decision makers—certainly, only if the tech- insights that could potentially fuel RNP success. The last row in
nological functionality excels. To close the identified gap in the Tables VII–IX present research questions that were derived from
literature, Table IX presents several propositions and questions these propositions.
for future research on the acceleration phase.
Finally—and as an overarching issue for customer integra- IX. CONCLUSION
tion in all NPD phases—we propose that company’s customer This systematic literature review makes three important con-
orientation (i.e., the extent of responsive or proactive orienta- tributions to customer integration theory. First, it alludes to dif-
tion) and R&D-marketing collaboration influence the intensity ferences in user type definitions, RNP operationalizations, and
at which the customer view is incorporated, the choice of users customer integration perspectives explaining inconsistencies in
that are integrated, the ways user information is shared, and prior empirical findings. Second, it reconciles key findings
finally the extent to which such information is acted upon. In across empirical studies to derive at propositions on customer
line with the previous research [158], [159], we thus call for a integration success. Third, it indicates a gap in our knowledge

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826 IEEE TRANSACTIONS ON ENGINEERING MANAGEMENT, VOL. 67, NO. 3, AUGUST 2020

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Fiona Schweitzer received the Ph.D. degree in business administration from
functional integration of R&D, marketing, and manufacturing in radical
Vienna University of Economics and Business, WU Wien, Austria, in 2001.
and incremental product innovations and its effects on project effec-
She is a Professor of Marketing with the Grenoble Ecole de Management,
tiveness and efficiency,” J. Product Innovation Manage., vol. 28, no. 2,
Grenoble, France. She also lectures at FH OÖ. Her academic research focuses
pp. 251–269, Mar. 2011.
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develop radical innovation: Opportunity recognition and exploitation in
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innovation projects and new product development success: The moder- neering from Delft University of Technology, Delft, The Netherlands, in 2010.
ating effect of product innovativeness,” Int. J. Technol. Manage., vol. 26, She is an Assistant Professor of Marketing with the Product Innovation
nos. 5/6, pp. 442–464, 2003. Management Department, Faculty of Industrial Design Engineering, Delft Uni-
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and sustain engagement in virtual communities,” Calif. Manage. Rev., the new product development process of innovations, and consumer processing
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USA: Crown Business, 2011. Marketing, and Research-Technology Management.
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An exploratory study of the structural aspects of RI management systems Delft University of Technology, Delft, The Netherlands, in 1997.
in large established firms,” J. Product Innovation Manage., vol. 23, no. 6, He is a Professor of New Product Marketing and the Head of the Department
pp. 475–497, Nov. 2006. of Product Innovation Management, Faculty of Industrial Design Engineering,
[147] G. C. O’Connor, R. Leifer, A. S. Paulson, and L. S. Peters, Grabbing Delft University of Technology, Delft, The Netherlands. He was the Founder
Lightning: Building a Capability for Breakthrough Innovation. San Fran- and Director of the Master in Strategic Product Design with the Delft University
cisco, CA, USA: Jossey-Bass, 2008. of Technology, a program that was recently ranked by Business Week as one
[148] R. Leifer, C. M. McDermott, L. S. O’Connor, Gina Colarelli Peters, of the world’s top design schools. He is Co-Founder of the Dutch chapter of
and M. P. Rice, Radical Innovation: How Mature Firms Can Outsmart the Product Development and Management Association (PDMA). He regularly
Upstarts. Boston, MA, USA: Harv. Bus. School Press, 2000. consults companies on the topic of new product marketing. His research focuses
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