The document discusses various theoretical topics related to accelerating innovation, including entrepreneurial marketing, branding, effectuation, creation theory, social commerce, business modeling, and experimentation. It provides overviews and summaries of key concepts within each topic, along with examples and seminal works. The topics are discussed at a high-level to help understand acceleration approaches to innovation.

1. Accelerating innovation
Related theory discussions &
business literature models
Tiina Apilo, VTT (tiina.apilo@vtt.fi )
Thanks to the partners of Accelerate-project for contributing to the
content of these slides

2. Entrepreneurial marketing 4
Branding 5
Effectuation 10
Creation theory 15
Social commerce 17
Business modelling 18
Experimentation 21
User driven approach 23
Networked innovation 24
.. and other topics to help understand acceleration approach 26
Theoretical discussions related to acceleration of innovation
includes topics:

3. Theoretical discussions related to acceleration of innovation

4. Entrepreneurial marketing
School of thought Concept Seminal works
EM as entrepreneurship
in marketing
Different way of doing marketing
Creates value by exploring anticipated and latent needs and
satisfying them
Entrepreneurship enables a firm to create radical
innovations (new uses for existing products, new products,
new markets) through opportunity discovery, assessment
and exploitation
Hills 1981, Dickson & Giglieraro
1986, Miles and Arnold 1991,
Hills & LaForge 1992, Becherer &
Maurer 1997, Morris et al. 2002
EM as relationship and
network marketing in
SMEs
SMEs conduct business and marketing in a fundamentally
different way than large corporation
Owner-manager viewpoint
Network integration into SME marketing
CRM activities through personal networking and face-to-face
interaction (versus formal software-driven CRM)
Adoption of social media
Birley 1982, Carson 1985, Carson
& Cromie 1989, Grönroos 1990,
Coviello et al. 1999, Coviello &
Brodie 1998, Hultman 1999,
Hultman & Shaw 2003, Read et
al. 2009, O’Dwyer et al. 2009,
Harrigan et al. 2008, 2011, 2012
EM as marketing in
entrepreneurship
Marketing tactics as a function of opportunity-seeking
strategic management
Based on understanding of customers, competitors,
suppliers and business environment
Need for appropriate organisational culture
Murray 1982, Morris & Paul
1987, Covin & Covin 1990, Covin
et al. 1994, McDougall et al.
1994, Schindehutte et al. 2008,
Webb et al. 2011
Entrepreneurial marketing schools (adapted from Miles et al. 2014)

5. Branding
Brands can be seen for the company as
• markers for the offerings
• metrics for measuring effectiveness of marketing activity
• financial asset
Consumption
model
Motivation
Functional •reducing effort or money
•gaining tacit knowledge
Emotional •alleviatingpersonal problems or situation
•feeling privileged, recognised and valued by a brand
Self-oriented •self-actualization
•enhancing self-perception
•self-branding
Social •changing experience
•attaching community
•building links
•social interaction
Relational •co-creation of the service offering
•the desire for personalized brand interaction
•the desire to know real people behind the brand
Brand consumption
• is increasingly carried out in
social media
• Has became the social co-
production of shared meanings
Davis, R., Piven, I., & Breazeale, M. (2014). Conceptualizing the
brand in social media community: The five sourcesmodel. Journal
of Retailingand Consumer Services, 21(4),468-481
Five core drivers of brand consumption (adapted from Davis et al. 2014)

6. Branding
Although brands are mainly build on product base, in the marketing management research, branding
of new products is seen only as a way of brand extension.
• e.g. how brand extensions strengthen parent brand association.
Common research topics
• brand positioning
• brand intangibles
• brand personality
• brand relationships
• brand experience
• corporate image and reputation
• strategically managing of brands
• integrating bran elements and marketing
• assessing brand performance in a large company with wide consumer product portfolio

7. Branding
Research
• Focus on B2C market
• B2B
• two different acceleration approaches through branding (Kotler and Pfoertsch 2006):
• suggest customer-based brand equity pyramid (CBBE)
• brand strategy model, which emphasize values and association, not only a product itself
Kotler, P., & Pfoertsch, W. (2006).B2B brand
management Springer Science & Business
Media.Kraus,S., Harms, R., & Fink, M. (2010).
Entrepreneurialmarketing: Moving beyond
marketing in new ventures. InternationalJournal
of Entrepreneurshipand Innovation
Management, 11(1), 19-34.

8. Branding
• 5 step brand building process Clancy K. J., & Krieg P. C. (2000)
For start-ups, new ventures or new identity building
Clancy K. J., & Krieg P. C. (2000),CounterintuitiveMarketing Achieving Great ResultsUsing
Common Sense, Free Press, New York 2000.
Inspirational vision
Transformational
strategy
Model-based
marketing
planning
Obsessive
implementation
Diagnostic
metrics
• Built-to-last view
• Brand personality
• Accessible
• Touchable
• Value chain view
• Value proposition
• Distribution of value
• Brand image
•DuPont’s ratio analysis
•Value-based planning
• Consistent brand
delivering
• BI methods

9. Companies have lost their pivotal role in marketing communication
-> new marketing strategies & tactics needed
Branding
Conceptual pinball framework
of brand message
(Henning-Thurau et al. 2010)
Hennig-Thurau,Thorsten, EdwardC. Malthouse,
Christian Friege, Sonja Gensler, Lara Lobschat,
Arving Rangaswamy,and Bernd Skiera (2010),
“The Impact of NewMediaon Customer
Relationships,”Journal of Service Research,13, 3,
311–30.

10. Effectuation
Categories of
differentiation
Causation processes Effectuation processes
Givens • Effect is given • Only some means or tools are given
Decision-making
selection criteria
• Help choose between means to achieve the given effect
• Selection criteriabased on expected return
• Effect dependent: choice of means is driven by characteristicsof
the effect the decision maker wants to create and his/her
knowledge of possible means
• Help choose between possible effects that can be created with
given means
• Selection criteriabased on affordable loss or acceptable risk
• Actor dependent: given specific means, choice of effect is driven by
characteristicsof the actor and his /her ability to discover and use
contingencies
Competencies
employed
• Excellent at exploiting knowledge • Excellent at exploiting contingencies
Context of relevance • More ubiquitous in nature • More ubiquitous of dynamic, nonlinear and ecological environments
Nature of unknowns • More useful in static, linear, and independent environments • Focus on the controllable aspects of an unpredictable future
Underlying logic • To the extent we can predict future, we can control it • To the extent we can control future, we do not need to predict it
Outcomes • Market share in existent markets through competitive
strategies
• New markets created through alliances and other cooperative
strategies
Contrasting causation and effectuation (Sarasvathy 2001)
More about effectuationthinking
http://www.effectuation.org
Effectuation - logic of control
Causation - logic of prediction
Sarasvathy, S. (2001). Causation and Effectuation:Towarda Theoretical Shift from Economic Inevitabilityto Entrepreneurial
Contingency.Academy of Management Review, 26(2), 243–263.

11. Effectuation
Effectuation theory
• introduced in 2001 by Sarasvathy
• describes process of firm creation in markets that do not exist
Main principles of effectuation (Sarasvathy 2001, 2004)
1. affordable loss rather than expected returns
2. strategic alliances rather than competitive analyses
3. exploitation of contingencies rather than exploitation of pre-existing knowledge
4. controlling an unpredictable future rather than predicting an uncertain one
Sarasvathy, S. (2001). Causation and Effectuation:Towarda Theoretical Shift from Economic Inevitabilityto Entrepreneurial
Contingency. Academy of Management Review, 26(2), 243–263.
Sarasvathy, S. (2004). Making it Happen: Beyond Theories of the Firm to Theories of Firm Design. EntrepreneurshipTheory and
Practice, 28(6), 519–531.

12. Effectuation
Effect
Effect
Effect
Effect
Effect
Effect
Effect
Effect
Effect
Human aspiration
Human aspiration
Human aspiration
Human aspiration
Human aspiration
Individuallevel:
Traits, tastes, and abilities
Firm level:
Physical resources
Level of economy:
Demographics
WhoIamWhatIknowWhomIknow
Individuallevel:
Traits, tastes, and abilities
Firm level:
Physical resources
Level of economy:
Demographics
Individuallevel:
Traits, tastes, and abilities
Firm level:
Physical resources
Level of economy:
Demographics
Imagination
Contingencies
Affordable loss
Acceptable risk
Strategic partnership
The logic of control
Effectuator’s
(given) set of means
Effectuator’s
(contingent) aspirations
Theory of effectuation (Sarasvathy 2001)
Sarasvathy, S. (2001). Causation and Effectuation:Towarda Theoretical Shift from Economic Inevitabilityto Entrepreneurial
Contingency.Academy of Management Review, 26(2), 243–263.

13. Effectuation
Example of a causation model – new product/service to existing market (Kotler 1991)
1. analyse long-run opportunities in the market
2. research and select target markets
• identify segmentation variables and segment the market
• develop profiles of resulting segments
• evaluate the attractiveness of each segment
• select the target segment(s)
• identify possible positioning concepts for each target segments
• select, develop, and communicate the chosen positioning concept
3. design marketing strategies
4. plan marketing programs
5. organize, implement, and control marketing effort
Kotler, P, 1991. Marketing management.
Englewood Cliffs,NJ: Prentice-Hall.

14. Effectuation
Idea generation
Practical example of effectuation model –
Entrepreneur-friendly sales model for start-ups (Onyemah et al. 2013)
Product
execution
Original
idea
Revised
idea
Refine
idea
Invite and
collate feedback
from prospects
Share idea
with select
group of
prospects
Consider
dropping idea
No, and not
improvable
Is idea’s
appeal strong
and broad?
No, but
improvable
Yes
Develop and
test prototype
with
prospects
Obtain
conditional
commitment
“If I deliver the product by
X date, would you buy it in
the Y-Z€ price?”
Develop and
test product
Assess
leads
Follow up
with
customers
Generate leads
from large group
of prospects
Identify
qualified
prospects
Explore
product
with
prospects Address
objections
Close
deal
Deliver
product
Onyemah, V., Rivera Pesquera, M., & Ali, A. (2013). What entrepreneursget wrong. Harvard
Business Review, 91(5), 74-79.

15. Creation theory
Creation theory
• alternative theory of entrepreneurial actions to discovery
• example of teleological theory
• seek to explain actions that entrepreneurs take to form and exploit opportunities
Creation
• No business opportunities
independent on entrepreneurship
• New business opportunities are
created by the actions, reactions,
and enactment of entrepreneurs
exploring ways to produce new
products or services
Discovery
• New entrepreneurial business
opportunities exist and wait just
to be discovered
• New business opportunities
exist due to technological,
political or regulatory changes =
exogenous shock

16. Creation theory
Alvarez, S. A., & Barney, J. B. (2007). Discovery and creation: Alternative theories of entrepreneurial action.
Strategic EntrepreneurshipJournal, 1(1-2), 11-26.
Discovery Creation
Leadership • Based on expertise and (perhaps) experience • Based on charisma
Decision making • Risk-based data collection tools
• Risk-based decision making tools
• Importance of opportunity costs
• Iterative, inductive, incremental decision making
• Use of bias and heuristics
• Importance of affordable loss
Human resource
practices
• Recruitment: specific human capital recruited broadly • Recruitment: general and flexiblehuman capital recruited from pre-
existing social networks
Strategy • Relativelycomplete and unchanging • Emergent and changing
Finance • External capital sources: banks and venture capital firms • Bootstrapping and friends, familiesand fools
Marketing • Changes in marketing mix may be how new opportunities
manifest themselves
• Marketing mix may fundamentallychange as a result of new
opportunities that emergence
Sustaining
competitive
advantage
• Speed, secrecy, and erecting barriers to entry may sustain
advantages
• Tacit learning in path dependent process may sustain advantages
Entrepreneurial actions in discovery and creation contexts (Alvarez & Barney 2007)

17. Social commerce
Social commerce
• is a form of commerce mediated by social media involving convergence between the online and
offline environments (Wang and Zhang 2012)
• involves the use of Internet-based media that allows people to participate in the marketing,
selling, comparing, curating, buying, and sharing of products and services in both online and
offline marketplaces, and in communities (Zhou et al. 2013)
• not just a simple fusion between e-commerce and social networking technology, regardless of
whether it takes the form of adding a social layer to e-commerce web sites or plugging a retail
layer into social media sites (Zhou et al. 2013)
• people are new dimension to the original ‘‘4P’’ marketing mix (McCarthy 1964) framework -
product, price, place, and promotion
McCarthy, E. J. Basic Marketing. Richard D. Irwin, IL, 1964.
Wang, C., and Zhang, P. The evolution of social commerce: an examination from the people, business, technology,and information perspective.
Communication of the Associationfor Information Systems, 31, 5, 2012, 105–127.
Zhou, L., Zhang, P., & Zimmermann, H. (2013). Social commerce research:An integrated view. ElectronicCommerce Research and Applications, 12(2),
61-68

18. Business modelling
• “A business model reflects management’s hypothesis about what customers want, how they
want it and what they will pay, and how an enterprise can organize to best meet customer needs,
and get paid well for doing so” (Teece 2010)
• Business model innovation
• disruptive innovation (Christensen1997)
• blue ocean strategy (Kim & Mauborgne 2005)
• open innovation (Chesbrough 2006)
• Business model design stands as a key issue also for any entrepreneur willing to create a new
business (Zott and Amit 2010)
Chesbrough, H. (2003) Open innovation: The New Imperative for Creating and Profitingfrom Technology.Harvard Business
School Press. Boston.
Christensen,C. M. (1997) The Innovator's Dilemma: When New TechnologiesCause Great Firms to Fail. Harvard Business
School Press. Boston.
Kim, W. C. & Mauborgne, R. (2005) Blue ocean strategy:How to create uncontestedmarket space and make competition
irrelevant. Harvard Business Press.
Teece, D. J. (2010). Businessmodels, business strategyand innovation. Long Range Planning, 43(2–3), 172-194.
Zott, C., & Amit, R. (2010). Businessmodel design: An activity system perspective.Long Range Planning,43(2), 216-226.

19. Business modelling
Teece, D. J. (2010). Businessmodels, business strategyand innovation. Long Range Planning, 43(2–3), 172-194.
Select technologies
and features to be
embedded in the
product/service
Determine benefit to
the customer from
consuming/using the
product/service
Identify market
segments to be
targeted
Confirm available
revenue streams
Design mechanisms
to capture value
Design mechanisms
to capture value
Elements of business model design (Teece, 2010)
Create value
for customers,
entice payments,
and convert
payments to
profits

20. Business modelling
The business model canvas
(Osterwalder & Pigneur, 2010)
• practical method and tool
for business modelling
http://www.businessmodelgeneration.com/
Osterwalder,A., Pigneur, Y., & Clark, T. (2010). Business model generation:A handbook for visionaries, game changers,and challengers . Hoboken, New Jersey: Wiley-Blackwell.

21. Experimentation
Importance of experimentation approach
• in strategy execution (Thomke 2003, Lester & Piore 2004)
• staying at the cutting edge of competition in a rapidly changing industry
(Brown & Eisenhardt, 1997; 1998)
• in the development of business models (Chesbrough 2010)
• new start-up process (Ries 2011, Blank 2013)
Blank, S. (2013) Why lean startup changes everything, Harvard BusinessReview May 2013.Blank,S.G. (2005) The Four Steps to Epiphany.Cafepress.com.
Brown, S. L. & Eisenhardt,K. M. (1997) The art of continuous change: linking complexity theory and time-paced evolution in relentlesslyshifting organizations.
Adminis-trativeScience Quarterly, Vol. 42, pp. 1–34.
Brown, S. L. & Eisenhardt,K. M. (1998) Competing on the edge. Strategy as structuredchaos. Harvard Business School Press. Boston.
Chesbrough, H. (2003) Open innovation: The New Imperative for Creating and Profitingfrom Technology.Harvard BusinessSchool Press.Boston.
Lester, R. K. & Piore, M. J. (2004) Innovation- the missing dimension. Harvard University Press. Boston, USA.
Ries, E. (2011). The lean startup: How today's entrepreneursuse continuous innovation to create radically successfulbusinesses Random House LLC.
Thomke, S. H. (2003) Experimentationmatters. Unlocking the potential of new technologiesfor innovation. Harvard BusinessSchool Press. Boston.

22. Experimentation
Thomke, S. H. (2003) Experimentationmatters. Unlocking the potential of new technologiesfor innovation. Harvard BusinessSchool Press. Boston.
Customer
Iterations
Learning by
experimentation
Step 1: Design
•Conceive new ideas and
concepts (the experiments)
•Refine concepts using
information from last cycle
Step 2: Build
•Build virtual models or
physical prototypes to be
used in experiments
•Prepare testing set up
Step 3: Run
•Run tests using models
or prototypes
•Test environment,
conditions, and cases
correspond to real or
simulated use conditions
Step 4: Analyse
•Carefully analyse
observations
•Develop or modify
understanding about cause
and effect
Experimentation as four-step iterative cycles (Thomke 2003)

23. User driven approach
Concept/approach References
Lead user von Hippel 1986, 1988, 1989, Urban & von Hippel 1988, Herstatt & von Hippel 1992
User-oriented product development Rosenblad-Wallin(1983, 1985, 1988), Dahlman 1986
User-centred product concept (UCPCD) Kankainen 2002
User-centred design Beyer & Holtzblatt1998, Hackos & Redish 1998
Concept testing Acito & Hurstad 1981, Moore 1982, Page & Rosenbaum1992
Beta-testing Dolan & Matthews 1993, Nielsen 1993
QFD Sullivan 1986, Eureka & Ryan 1988, Hauser & Clausing 1988, Akao 1990, Ullman 1992
Usability experience Nielsen 1993,
User experience (UX) Norman et al. 1995, Beyer & Holtzblatt1998
Participatory ergonomics Noro & Imada 1991
Participatory innovation Buur & Matthews 2008
Design anthropology Suchman 1987
User innovator von Hippel 2005
Consumer idealised design Ciciantelli & Magdison 1993
Open communities Hienerth 2006
Open source Lakhani & von Hippel 2003
Service-dominant logic Vargo & Luch 2004
Customer development process Blank 2013
Different approaches to be
user driven – forms of
gathering information about
customers and end-users
and methods and practices
to involve customers and
users in the innovation
process (product, service,
new business )

24. Networked innovation
comprehensive innovation definitions:
A novel combination of new or existing elements of
a solution – customer – organization – value ”system” Valkokari et al 2011.

25. Networked innovation
Between other functions Manufacturing, marketing,
R&D etc.
Cross-functional teams
Between R&D units Research labs and units Support/adaptive units, development labs, research labs,
technology scanning units
In supply chain Main supplier, system supplier,
subcontractor
Simultaneous Engineering/ Concurrent Engineering,
module outsourcing
Research cooperation Universities, research institutes Technology programs, testing services, technology
development
With customer Customers, consumers, users Lead user, user innovator
R&D partners Design and planning companies Outsourcing of design work, orchestration
With competitors Competitors Technology development, standards, international
technology programs, exchange basis
With community Governments, EU, societies Legislation, directives, standards
Between companies in
same branch
Companies, designer, strategic
alliance
Technology development, standards
Between technology
utiliser
Companies, designer, consortia Technology development, standards,
Between system user Companies, designer User group of software etc.
Between member of
community
Members Communities of practice, knowledge exchange

26. .. and other topics to help understand acceleration approach
• in marketing area
• viral marketing (e.g. Juvetson & Draper 1998, Godin & Gladwell 2001, Krauz et al. 2009)
• digital marketing
• real time marketing
• guerrilla marketing (e.g. Levinson 1984, Krauz et al. 2009)
• buzz marketing (e.g. Rosenbloom 2000, Krauz et al. 2009)
• agile (e.g. Higsmith 2002, Abrahamsson 2002, Nerur & Balijepally 2007)
• lean (e.g.Womack et al. 1990, Womack & Jones 2010)
• organisational learning (Argyris & Schön 1978, Huber 1991, Nonaka & Takeuchi 1995)
• ecosystem building (Moore 1993, Iansity & Levien 2004)
• ambidextrous change management (March 1991, Tuchman & O’Reilly 1996)

27. Acceleration challenges and relevant approaches
Acceleration
challenge
Description Relevant approaches, models
Business creation
“from scratch”
- start-up
- new business model concept
Effectuation, creation theory, lean start-up, business
modelling, social commerce, business modelling,
experimentation, customer development process
New technology - start-up
- new technology based product idea
Discovery theory, EM as relationship and network
marketing in SMEs, entrepreneur-friendly sales model,
social commerce, business modelling, experimentation
New solution - large, mature company
- solution and business model in line of
recent strategy and offering portfolio
Customer-based brand management, EM as
entrepreneurship in marketing, branding through new
media, social commerce, business modelling,
experimentation
New business - large, mature company
- radical solution and/or business
model
Lean start-up, business modelling, EM as marketing in
entrepreneurship, effectuation, social commerce,
experimentation, customer development process
Growth - SME
- new solution/market/business model
EM as relationship and network marketing in SMEs,
entrepreneur-friendly sales model, social commerce,
business modelling, experimentation