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The purpose of this paper is to identify the dominant strategy and business models of companies and to analyse the awareness of design and the stage of design application in business in its broader sense from the perspective of business executives in the manufacturing sector and professional designers in the design industry that lead to creating successful business models in Latvia and Estonia.

The questionnaire was used with two target groups – business executives (based on NACE 2, B-E sections, i.e. manufacturing companies) and professional designers in the design industry (NACE 2, M 74.10 section). In the first target group, 374 responses of business executives in Latvia and 371 responses of business executives in Estonia were received; in the second target group, 85 respondents in Latvia and 42 respondents in Estonia providing professional design services were analysed to identify the level of design awareness and its application in business in the respective countries.

There are national and regional specifics in Latvia and Estonia based on the development level of micro and macro factors that influence the entire innovation ecosystem. When comparing both countries in these terms, both target groups specify that design is applied more frequently in the processes of product development in Estonia, thus leading to new forms of innovation, than it is in Latvia. Conversely, in Latvia, many business managers still focus on short-term business solutions and cost-reduction as a sole challenge, with limited awareness of management approaches based on the broader application of design as a powerful innovation source for product development, improvement, and renewal of business models.

A suggestion for further research is to replicate the study in Lithuania and explore the perspective of other stakeholders.

The results of this research demonstrate the necessity to change the thinking patterns of business managers in order to develop their skills and capabilities to recognize emerging new driving forces of innovation unfolding through awareness of design and opportunities for its extended application that create successful business models for continuous value generation.

This paper makes a contribution to understanding the current stage of awareness of design and its application in the manufacturing sector in the Baltic States.

Using Taiwanese enterprises that produce computer and consumer electronics products as case subjects, this study aims to explore the effective product innovation strategies applied to cope with competition in the global market and develop a competitive advantage. The product design strategies and methods of companies that used different types of innovation strategies were then analyzed. Finally, a mapping framework for product innovation and design strategies was proposed for enterprises in the computer and consumer electronics industry in Taiwan.

The two stages of this study were a questionnaire survey and case studies. Stage 1: A questionnaire survey and literature review were performed to explore the innovation strategies used by companies in the Taiwanese computer and consumer electronics industry. The purpose of the literature review was to determine the definitions and content of innovation strategies. Stage 2: Design and R&D managers were interviewed to explore the practical design strategies and approaches to product design in the industry.

These four innovation strategies and ways of product design are closely related to the scale, business type and product development conditions in enterprises. Notably, different innovation strategies have different approaches to product design. Generally, product design emphasizes “new experience” in aggressive innovation enterprises, “new value” in market innovation enterprises, “new service” in technical innovation enterprises and “new positioning” in opportunity innovation enterprises. The findings of this study provide a reference for product R&D and design in enterprises.

In recent years, the global market of computer and consumer electronic products has been fiercely competitive. Therefore, only enterprises that can innovate, respond rapidly and maintain advantages in product design can survive in the market. Hopefully, this case study of companies in the Taiwan computer and consumer electronic industry can provide a reference for product R&D and design. The findings of this study provide a reference for product R&D and design in enterprises, especially the Chinese market.

The purpose of this paper is to examine how empowering consumers by means of co-designing activities influences both positive and negative consumer engagement with new service innovations.

Two experimental studies tested the proposed hypotheses. Participants were asked to imagine co-designing a hypothetical innovation, and then respond to scales that measured intervening variables. The first study measured participants’ valuation of the innovation as well as the intention to recommend it. The second study partially replicated the first one but measured participants’ perceived severity after a scenario where the innovation failed to deliver its promised performance.

Empowerment triggered a higher sense of engagement through the mediating effects of sense of power and psychological ownership. Subsequently, this effect not only drove more positive evaluations of the innovation but also exacerbated negative evaluations if the service innovation was not delivered successfully.

The current study highlights the importance of adopting a psychological perspective toward engagement and shows a balanced view of empowerment in the context of new service innovations.

The purpose of this paper is to explore how firms achieve competitiveness by implementing design-driven innovation.

This paper is a detailed longitudinal analysis of the design innovation underpinning the Norwegian furniture industry. Using a data set spanning 40 years (1976-2015) of design patents by both Norwegian firms and inventors, the authors map the coinventor connectivity of the design-innovation clusters of Norway, both within the country and with foreign locations.

Using network analysis, the authors find that most of the rise of co-inventor connectivity within Norwegian furniture industry’s design innovation is occurring within the country. More surprisingly, the leading firms and star inventors are less likely to collaborate internationally, i.e. they are characterized by greater innovative “lock-in”.

The exploration of all the potential reasons for the “lock-in” in design innovation of the Norwegian furniture industry is beyond the scope of this paper. A particularly interesting avenue for future research would be to compare the coinventor connectivity of traditional sectors like furniture with more high technology sectors within Norway.

By assessing a detailed and historical context of the evolution of Norwegian furniture industry, the paper provides a fairly comprehensive study of design innovation as a source of firms’ competitiveness, which has been rarely explored. The authors suggest that innovative “lock-in” may be more likely to arise in the traditional sectors of an economy and the forces may be particularly strong for those firms and individuals that have the highest domestic connectedness and status.

This paper discusses how service design can be used to activate a transition of textile artisan communities towards a sustainable future.

Two participatory case studies were undertaken with textile artisans in the UK and South Africa. These led to the development of an original methodological framework for “crafting situated services” – services designed to be meaningful to the local communities within which they are embedded. An evaluation study assessed the originality of the framework, its relevance for tackling real-world problems, its extensibility and the rigour of the research process.

The framework brings together a variety of roles, methods and tools that designers can adopt in order to enter communities, make sense of sustainable futures, facilitate the co-design of situated services and activate legacies within communities. Building on emerging anthropological approaches, the framework makes a bridge between service management and service design for social innovation, advancing the field towards design for social entrepreneurship.

Arguing against the idea of the designer “parachuting” into communities to create services regardless of the local context, the concept of “situated services” is proposed in this paper, alongside a process for “crafting” meaningful social innovations. This requires the service designer to adopt a more situated and embedded approach to designing with communities in order to align with their needs and aspirations, interweave places, time, people and practices within the process, and co-design contextually better services.

The purpose of this paper is to present a design fiction diegetic prototyping methodology and research framework for investigating service innovations that reflect future uses of new and emerging technologies.

Drawing on speculative fiction, the authors propose a methodology that positions service innovations within a six-stage research development framework. The authors begin by reviewing and critiquing designerly approaches that have traditionally been associated with service innovations and futures literature. In presenting their framework, authors provide an example of its application to the Internet of Things (IoT), illustrating the central tenets proposed and key issues identified.

The research framework advances a methodology for visualizing future experiential service innovations, considering how realism may be integrated into a designerly approach.

Design fiction diegetic prototyping enables researchers to express a range of “what if” or “what can it be” research questions within service innovation contexts. However, the process encompasses degrees of subjectivity and relies on knowledge, judgment and projection.

The paper presents an approach to devising future service scenarios incorporating new and emergent technologies in service contexts. The proposed framework may be used as part of a range of research designs, including qualitative, quantitative and mixed method investigations.

Operationalizing an approach that generates and visualizes service futures from an experiential perspective contributes to the advancement of techniques that enables the exploration of new possibilities for service innovation research.

The purpose of this article is to contribute to the empirical literature, which investigates innovation modes, by exploring the role of design as a source of innovation.

The empirical analysis is carried out at the firm‐level, on the ground of a recent survey covering more than 5,000 European firms. A factor analysis is carried out first, followed by a cluster analysis based on identified factors in order to ensure a significant number of homogeneous groups of firms.

The paper finds that: design and R&D are complementary sources of innovation; design is predominant in firms characterized by a complex innovation strategy and intense interactions with the external environment; and these types of firms also show better economic performance.

Policies should recognize the importance of design‐based competences, as they differ from those related to R&D activities.

To date, in this empirical research, R&D activity is regarded as the major internal source of knowledge, as well as a fundamental driver of firms' competitiveness. This paper's results show how design enters in this framework and suggests future research directions.

The concept design-driven innovation focuses on innovating product meanings. It has been studied from a variety of perspectives and contexts since the early 2000s. However, a complete overview of the literature published in this area is currently missing. The purpose of this study is to provide a comprehensive understanding of how design-driven innovation contributes to value creation in product development.

In this systematic literature review, 57 papers and book chapters that cover design-driven innovation were identified and analyzed. An iterative coding process was followed to derive five facets of design-driven innovation that contribute to value creation.

Design-driven innovation creates value by focusing on the intangible values of products. The following five facets of design-driven innovation that contribute to value creation were identified: development of new product meanings, knowledge generation, actors and collaborations, capabilities and process. These facets and their interrelations are presented in a theoretical framework.

The main practical implication of this study is that it is now clear that the five facets of design-driven innovation are interrelated and reinforce each other. Therefore, companies need to approach design-driven innovation from a holistic perspective.

This paper contributes to theory by presenting the theoretical framework that provides an overview of available knowledge and that creates a context for future research.

The aim of this paper is to present design management as a dynamic capability and to analyze its mediating role between organizational learning capability and product innovation performance in small and medium enterprises (SMEs).

Structural equation modeling is used to test the research hypotheses based on data from the Italian and Spanish ceramic tile industries. The data are derived from the responses of 182 companies (50 percent of the target population) to a questionnaire addressed to Product Development Managers and Human Resource Managers.

The results suggest that organizational learning capability enhances product innovation through the mediation of design management capability. The authors find an interesting interplay between organizational learning, design management capability and product innovation that can be very useful to better understand how to improve innovation performance. This finding shows that design management, as a dynamic capability, emerges from learning and allows the firm to adapt to environmental changes.

Several works have studied dynamic capabilities but without specifying the nature of these capabilities. More recent empirically‐based studies conceptualize and refer to specific dynamic capabilities. In this paper, the authors present design management as a dynamic capability. This study aims also to develop a better understanding of how organizational learning capability impacts on the product innovation performance of SMEs and how this relationship is mediated by design management capability.

Innovation dynamics have been the object of study of several researchers, focusing in particular on technological innovation and the emergence of a dominant design. However, these models have been challenged by how the pervasiveness of digital technologies is speeding up the pace at which innovation evolves. On the other hand, a growing body of literature in innovation management has started underlining the relevance of new product and service meanings as a source of innovation.

This research aims to study the different innovation dynamics within an industry, investigating not only how companies react to fast-changing functional advancements but rather how their behavior changes as shifts in meaning occur. To properly assess the phenomenon, this longitudinal study analyzes the social media industry, strongly subjected to continuous functional advancements, through a deep dive in the 160 innovations introduced between 2003 and 2017 by the eight leading players in the industry.

Our results illustrate the co-existence of different approaches to innovation within an industry and hint that consequent and fast cycles of innovation in both functionalities and meanings discourage the emergence of a dominant design.

Our results help managers and innovators acknowledge the possibility to leverage not just on the technological dimension of innovation but also the reason why people use a given product or service, innovating its meaning. Furthermore, our results recognize the co-existence of different innovation streams upon which innovators can act.

This research contributes to the extant literature in innovation management, extending the classical models of innovation dynamics by including the evolution of innovations of meaning in relation to technological innovation.