For our series of featured research on open innovation and mass customization, today — in another act of shameless self-promotion — a new paper from our group at RWTH Aachen University in which we discuss the impact of social media on co-creation of innovation.
From Social Media to Social Product Development: The Impact of Social Media on Co-Creation of Innovation
By Frank Piller, Alexander Vossen, Christoph Ihl (RWTH Aachen University)
In this paper, my fellow researchers Alexander Vossen and Christoph Ihl discuss with me the impact of social media on customer co-creation in the innovation process.
Customer cocreation denotes an active, creative and social collaboration process between producers and customers (users), facilitated by a company, in the context of new product or service development. We propose a typology of co-creation activities in order to develop conceptual arguments how social media can impact the relationships among customers involved in co-creation as well as the relationship between customers and the hosting firm.
Interestingly, the impact of social media on customer co-creation may be two-sided: Social media can make economic- exchange relations more collaborative and social, but may also turn relations formerly based on social-exchange into “money markets” with strong competition among actors.
As a result of this paradox, we develop a set of questions that can lead future research in these regards. Read the article for our full argument.