Review Article

Innovation Drivers and Outputs for Software Firms: Literature Review and Concept Development

Table 2

Concept definitions and associations.

ConceptDefinitionPrincipal associations

(O1) Product/service innovationNovel and useful software products and services representing a significant advance or change in direction for a companyUnderstood as an output influenced by various drivers

(O2) Process innovationStep-changes or significant modifications in the processes used to develop software products and servicesUnderstood as an output influenced by various drivers and often contributes to product/service innovation

(D1) Innovation leadershipManaging development teams to create innovationDrives both process innovation and, through heavy influence on team process, product/service innovation
 (D1.1) Work environmentPromoting a creative work environment and minimizing creativity barriersPromotes creative cognition and teamwork
 (D1.2) Path creationCreating an overall sense of direction in response to market and technology developmentsDrives product/service innovation through team process
 (D1.3) Portfolio managementSteering multiple projects in relation to innovation challengesCan be a form of innovation evaluation
 (D1.4) Conflict resolutionResolving conflicts between individuals and groups in the pursuit of innovationEnables creative cognition and teamwork

(D2) Innovation evaluationThe ability to reflectively evaluate ideas, techniques, and processes for their contribution to innovationDrives product/service innovation moderated by team process and also relates to evaluation of ideas

(D3) Knowledge leverageThe use of internal or external knowledge to drive software innovationDrives product/service innovation and, to a lesser extent, process innovation
 (D3.1) Absorptive capacityThe ability of a development team to find, adapt, and exploit external knowledge in software innovationBasis for leverage of other knowledge drivers
 (D3.2) Market understandingThe use of information about software markets to promote product innovationDrives product/service innovation
 (D3.3) Technology trajectory understandingThe use of understandings of the probable direction of software and hardware infrastructures, platforms, and technologies to guide innovationDrives product/service innovation
 (D3.4) User domain understandingUsing understandings of customers’ business domain or specialized internal knowledge to drive innovationDrives product/service innovation, related to user involvement
 (D3.5) Competitor understandingMonitoring competitors’ processes, products, and services to inform innovation Drives product/service innovation

(D4) Community and networkExploiting external connections, collaborations, and partnerships to promote innovationStrong connection with the various forms of knowledge leverage
 (D4.1) Open innovationUsing open business models that partially or wholly share intellectual property (e.g., code) to promote innovationStrong connection with the various forms of knowledge leverage
 (D4.2) Open sourceExploiting open source code or cooperation to drive innovationHas implications for both product/services and process
 (D4.3) Crowd sourcingInviting the widespread participation of potential users and customers to enhance innovationOften includes a process innovation in the incorporation of knowledge or ideas into the development framework

(D5) User involvementInvolving users to stimulate innovationDrives both product/service innovation and to a lesser extent process innovation, through knowledge leverage, particularly user domain knowledge
 (D5.1) CustomizationInvolving users in customization of standard products and servicesInvolves development framework adjustments
 (D5.2) User-driven/lead userFacilitating expert users with specialist competences in directing software innovationRelated to user toolkits, often the vehicle for user innovation

(D6) Creative cognitionThe exploitation of individual cognitive creativity for innovationInvolves process innovations and drives product/service innovation
 (D6.1) Generative capacityThe ability to generate creative ideas and solutions promoting innovationInvolves process innovations and drives product/service innovation
 (D6.2) Ideation expertiseThe ability to refine and exploit creative ideas to promote innovationInvolves process innovations and drives product/service innovation, related to evaluation

(D7) Software design capabilityThe ability to design innovative software products and servicesOften a form of knowledge leverage moderated by teamwork
 (D7.1) ConceptThe ability to develop overall concepts for new products and servicesOften the product of absorptive capacity
 (D7.2) Feature setThe ability to create distinct sets of novel and useful software functionalityAs above

(D8) TeamworkOrganizing teamwork to promote innovationDrives process innovations and contributes to product/service innovation
 (D8.1) Team compositionSelection of team members to promote innovationAffects teamwork and generative capacity
 (D8.2) Expertise integrationFacilitating dialogue between experts with different technical and nontechnical specializationsRelationship with knowledge leverage
 (D8.3) Shared understandingBuilding and maintaining a team’s common purpose in the face of many challenges and direction changesAlso an innovation leadership task

(D9) Innovation tools & techniquesUsing tools and techniques designed to promote creativity in the development processStrongly associated with process innovation
 (D9.1) Creativity techniquesThe use of conceptual tools (such as mind-mapping) to support innovationStrong relation to development framework, which promotes creative cognition
 (D9.2) Creativity support toolsThe use of computerised tools designed to support creativity to support innovationStrong relation to development framework, which promotes creative cognition
 (D9.3) User toolkitsThe deployment of tools (often computerised) to facilitate user innovation, often in respect to a technology platformRelates to user-driven innovation

(D10) Development frameworkThe concepts, methods, and techniques used to underpin software team’s development effort in respect to innovationAssociated with process improvement
 (D10.1) AgilityUse of agile methods, or adaptations of agile methods as an innovation driverAssociated with process improvement
 (D10.2) Creative requirements analysisStimulating requirements gathering by use of techniques designed to increase users’ and customers’ creativityAssociated with process improvement
 (D10.3) Experimentation/prototypingStimulating creativity by iterative use of experimentation and/or prototyping in the development processAs above, often concerned with exploitation of external knowledge

(M1) InfrastructureRecognizing social and technical infrastructural preconditions for innovationModerates both product/service innovation and process innovation
 (M1.1) Installed baseExploiting the technical development environment of a software firm to generate innovationModerates (enables and constrains) the development effort and can be upgraded to drive process innovation
 (M1.2) Path dependencyRecognizing innovation directions partially determined by developments in infrastructures Relates to installed base