Motivation in Open Innovation - An Exploratory Study on User Innovators

Table of Contents

1 Introduction

1.1 Motivation

1.2 Structure

2 From Closed to Open Innovation

2.1 Definition of Innovation

2.2 The Implementation of Innovation

2.2.1 The Innovation Process

2.2.2 Closed Innovation

2.2.3 Open Innovation

2.3 Reasons for the Emergence of Open Innovation

2.3.1 Manufacturer-Based View

2.3.2 User-Based View

2.4 Integration of Open Innovation

2.4.1 User Tool Kits

2.4.2 Lead User Search

3 Fundamentals of Motivation

3.1 Definition of Motivation

3.2 Classification of Motives

3.2.1 Intrinsic Motives

3.2.2 Extrinsic Motives

3.2.3 Social Motives

3.3 Theories of Motivation

3.3.1 Content Theories

3.3.2 Process Theories

4 Costs in the Innovate-or-Buy Decision

4.1 Transaction Costs

4.2 Agency Costs

4.3 Opportunity Costs

4.3.1 Opportunity Costs of Innovating

4.3.2 Opportunity Costs of Not Innovating

5 Motivation in Open Source Software

5.1 Motives of Open Source Software Programmers

5.1.1 Intrinsic Motives

5.1.2 Extrinsic Motives

5.1.3 Social Motives

5.2 Economics of Open Source Model by LERNER/TIROLE

5.3 Investors and Donators Model by FRANCK/JUNGWIRTH

6 Exploratory Empirical Study

6.1 Study Design

6.2 Sources of Data

6.2.1 User Tool Kits: The Case of Spreadshirt

6.2.2 Lead User Search: The Case of Threadless

6.3 Data Generation

6.3.1 Research Approach

6.3.2 Outcome

6.4 Analysis of Motives

6.4.1 Intrinsic Motives

6.4.1.1 Enjoyment

6.4.1.2 Freedom and Control

6.4.1.3 Learning and Intellectual Stimulation

6.4.1.4 Summary

6.4.2 Extrinsic Motives

6.4.2.1 Own Use

6.4.2.2 Monetary Compensation

6.4.2.3 Job Opportunities

6.4.2.4 Summary

6.4.3 Social Motives

6.4.3.1 Community Affiliation

6.4.3.2 Reputation

6.4.3.3 Feedback

6.4.3.4 Summary

6.5 Costs in the Innovate-or-Buy Decision

6.5.1 Transaction Costs

6.5.2 Agency Costs

6.5.3 Opportunity Costs

6.6 Application of Theoretical Models from Open Source Software

6.6.1 Economics of Open Source Model by LERNER/TIROLE

6.6.1.1 Immediate Benefits

6.6.1.2 Immediate Costs

6.6.1.3 Delayed Benefits

6.6.1.4 Delayed Costs

6.6.1.5 Summary

6.6.2 Investors and Donators Model by FRANCK/JUNGWIRTH

6.6.2.1 Investors

6.6.2.2 Donators

6.7 Discussion of Results

7 Conclusion

Objectives and Core Themes

This thesis explores the motivational profiles of user innovators in open innovation ecosystems, investigating why individuals contribute their time and effort to new product development. By adopting a manufacturer’s perspective, the study addresses the gap in existing research which has primarily focused on open source software, aiming to understand how companies can effectively integrate user-led innovations.

• Analysis of motivational factors (intrinsic, extrinsic, and social motives) for user innovators.
• Evaluation of user costs in the "innovate-or-buy" decision-making process (transaction, agency, and opportunity costs).
• Case study research on two distinct business models: Spreadshirt (user tool kits) and Threadless (lead user search).
• Application of theoretical motivational models from the open source domain to general user innovation.
• Derivation of management implications for companies aiming to integrate user innovations.

Book Excerpt

Summary of Chapters

1 Introduction: Provides the context for user innovation and states the objective of identifying motivational profiles for manufacturers.

2 From Closed to Open Innovation: Outlines the shift from internal R&D to open innovation, highlighting the role of tool kits and lead user search.

3 Fundamentals of Motivation: Reviews theories of human motivation, categorizing drivers into intrinsic, extrinsic, and social factors.

4 Costs in the Innovate-or-Buy Decision: Discusses the economic costs—transaction, agency, and opportunity costs—that influence user innovation decisions.

5 Motivation in Open Source Software: Analyzes existing motivational frameworks applied to open source projects, including models by LERNER/TIROLE and FRANCK/JUNGWIRTH.

6 Exploratory Empirical Study: Details the qualitative research conducted on user innovators at Spreadshirt and Threadless, applying the theoretical models to real-world data.

7 Conclusion: Summarizes key findings and provides actionable advice for manufacturers to incentivize and integrate user contributors effectively.

Keywords

Open Innovation, User Innovators, Motivation, Intrinsic Motives, Extrinsic Motives, Social Motives, Spreadshirt, Threadless, Transaction Costs, Opportunity Costs, Lead User, Tool Kits, Self-Actualization, Case Study, Product Development

Frequently Asked Questions

What is the core focus of this thesis?

This thesis examines the motivational factors driving individuals to innovate outside of traditional firm boundaries, specifically within open innovation settings, from the perspective of the manufacturing company.

What are the primary themes investigated?

The work focuses on categorizing user motives, understanding the "innovate-or-buy" cost structure for users, and analyzing how different business models (tool kits vs. lead user search) impact user behavior.

What is the central research goal?

The primary goal is to provide a comprehensive understanding of user innovator motivations to enable companies to design better incentive systems for user participation in new product development.

Which research methodology was employed?

The author conducted a qualitative exploratory empirical study involving semi-structured e-mail interviews with user innovators associated with Spreadshirt and Threadless.

What topics does the main body cover?

It covers motivational theory, the economics of innovation costs, a review of open source motivation, and an empirical analysis comparing tool kit users with lead users.

Which keywords best describe this work?

Key terms include Open Innovation, User Innovators, Motivational Profiles, Lead Users, Tool Kits, Transaction Costs, and Collective Innovation.

How do Spreadshirt and Threadless differ in their user integration strategy?

Spreadshirt provides a web-based "confomat" tool kit enabling users to design products, whereas Threadless employs a lead user search strategy based on open design competitions and community rating.

Are the "Investors and Donators" models applicable to these companies?

The study concludes that the Investors and Donators model is largely irrelevant to these cases because, unlike in the ideological open source community, the users here do not exhibit purely altruistic "donator" behavior.