Digital Innovation Management

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SPECIAL SSUE: IT AND IINNOVATION
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Satish Nambisan
Lubar School of Business, University of Wisconsin—Mi|waukee,
Wisconsin–Milwaukee, 3202 N. Maryland Avenue,
Avenue,
Milwaukee,
Milwaukee, WI
WI 53211
53211 U.S.A. {nambisan@uwm.edu}
Kalle Lyytinen
Weatherhead School of Management, Case Western Reserve University,
University, 10900 Euclid Avenue,
Avenue,
Cleveland, OH 44106 U.S.A. {kjl13@case.edu}
{kj|13@case.edu}
Ann Majchrzak
Marshall School of Business, University of Southern California,
California,
Los Angeles,
Angeles, CA 90089 U.S.A. {majchrza@usc.edu}
Michael Song
School of Economics and Management, Xi’an
Xi'an Technological University,
University, WeiYang District,
Xi’an City CHINA {drmichae|song@163.com}
Xi‘an {drmichaelsong@163.com}
Rapid and pervasive

pervasive digitization of
of innovation processes
processes and outcomes has upended extant theories on
innovation management by calling into question fundamental
fundamental assumptions about the definitional
definitional boundaries
for innovation,
for agency for innovation,
innovation, agencyfor innovation, and the relationship between innovation processes
processes and outcomes.
outcomes. There
is a critical need for novel theorizing on digital innovation management that does not rely on such assumptions
needfor
and draws on the rich and rapidly emerging research on digital technologies.
technologies. We offer suggestionsfor
suggestions for such
theorizing in the form of
theform four new theorizing logics,
offour logics, or elements,
elements, that are likely to be valuable in constructing
more accurate explanations of of innovation processes
processes and outcomes in an increasingly digital world.world. These
logics can open new avenues for
for researchers to contribute to this important area.
area. Our suggestions in this
paper, coupled with the six research notes included in the special issue on digital innovation management,
paper, management, seek
to offer a broader foundation for
broaderfoundation for reinventing innovation management research in a digital world.
world.
Keywords: Digitizing, digitization, innovation, theory, management
Introduction capabilities, produced a new breed of innovation processes,

and, more broadly, transformed entire industries in its wake
Digital innovation is the use of digital technology during the (e.g., Boudreau and Lakhani 2013; Hui 2014; Iansiti and
process of innovating. Digital innovation can also be used to Lakhani 2014; OECD 2016; Porter and Heppelmann 2014,
describe, fully or partly, the outcome of innovation. Digital 2015).
innovation has radically changed the nature and structure of
new products and services, spawned novel value creation and The rise of digitization has led scholars to increasingly ques-
value appropriation pathways, enabled innovation collectives tion the explanatory power and usefulness of extant innova-
that involve dynamic sets of of actors with diverse goals and tion theory and related organizational scholarship (Barrett et
MIS Quarterly Vol.

Vol. 41 No.
No. 1, pp. 223-238/March 2017
1, pp. 223
Nambisan et al./Introduction: Reinventing Innovation Management in a Digital World
World
al. 2015; Benner and Tushman 2015; Goldfarb and Tucker practices, processes,
practices, processes, andprinciples
and principles that underlie the effective
2012; Greenstein et al. 2013; Yoo et al. 2012). For example, orchestration of digital innovation.
ofdigital
Benner and Tushman (2015) recently noted that
Our definition
definition of digital innovation is intended to capture
because of the shift in the locus of innovation and three important and concurrent phenomena.
phenomena. First, garour defini-
defini-
because some ofof our core organizing axioms may be tion of digital innovation includes a rn
infiilinnvininl range offinnvin
innovation
challenged or fundamentally changed by the digital outcomes,
m such
h as n
new
w products,
r platforms,
l f rm and n services
rvi as
revolution, the nature of innovation and organiza- well as nw
wll new customer experiences and
mrxrin n other
hrvlvalue pathways;
hw;
tional scholarship may be at a transition point (p. 2). as long as these outcomes are made possible through the use
of digital technologies and digitized processes, the outcomes
This transition from innovation to digital innovation comes as themselves do not need to be digital. Secgnd,
Second, our definition
gar definitign
a golden opportunity to be seized upon by information sys- offiilinnvininl
digital innovation includes a broad
r swath of digital tools
whfiill
tems (IS) researchers. IS researchers have, for the last four and infrastructure (e.g., 3D printing, data analytics, mobile
decades, been at the forefront in observing the dawn and con- computing, etc.) for making innovation possible.
possible. Third,
Third, our
oat
secutive wakes of digitization in organizations and, broadly, finiininl
definition includes the
h possibility
iili that
h theh outcomes
m m may be
in society, and explaining its repercussions. By and large, diffused,
if assimilated,
imil orr adapted to specific
ifi use contexts
n x such h
their efforts were originally focused on effects of digitizing typically experienced with digital platfgnns.
as typigally platforms. Our broad
internal organizational processes (e.g., Fichman 2004; definition
definition bridges a research focus on intra—organizational
intra-organizational
Swanson 1994).
1994). More recently, there has been an expansion innovation management (e.g., Swanson 1994) with research
to identifying and articulating unique aspects of digitization on digital products, platforms, ecosystems, and infrastructure
in industries, specific
specific organizational domains, or product (Bharadwaj
(Bharadwaj et al. 2013; Tilson et al. 2010; Tiwana et al. 2010;
families (e.g., Agrawal et al. 2013; Anderson and Agarwal Yoo et al. 2012; Yoo et al. 2010).
2011; Greenstein et al. 2013; Xue et al. 2013). They have
especially highlighted the paradoxes and dilemmas that digiti-
first summarize the existing research
In what follows, we first
zation
zinr creates for organizations developing,
frrnizin vlin deploying,
lin and n
challenging key assumptions that underlie extant theories
managing digital innovation (e.g., Breshnahan and Greenstein
informing innovation management. Then, using these chal-
2014; Kallinikos et al. 2013; Lyytinen et al. 2016; Nambisan
lenges to assumptions as our jumping
jumping off point, we formulate
fgrrnalatg
2013; Tilson et al. 2010; Tiwana et al. 2010; Yoo et al. 2010).
several
vrl suggestions
in to mv
move digital innovation management
iilinnvinmn rnn
IS scholars have also been increasingly focused on the
theory forward.
theggg fgrward. This discussion, along with the-
the six research
materiality of
of digitization within innovation processes and
notes that make up the special issue, offer a broader founda-
outcomes (e.g., Boland et al. 2007; Lee and Berente 2012;
Majchrzak et al. 2013). tion to theorize and reflect
reflect upon the implications of digital
technology for innovation management.
management.
As a consequence of this growing research on digitization, we
ofthis
suggest that it is time to develop theories that explicitly incor-
porate the variability, materiality, emergence, and richness of Challenging Key Assumptions of
the sociotechnical phenomenon called digital innovation. The
time for new theorizing about digital innovation is, therefore,
Innovation Management Theories Z
now and it is this challenge that motivated our choice of of pro-
Received theories in innovation management have primarily
posing and organizing this special issue.
focused on addressing three basic questions.
To pursue the call for more encompassing theories of of digital
innovation, we adopt a conceptualization of digital innovation
ofdigital •- How do innovations form/evolve?
forrn/evolve?
that is meant to be inclusive and inviting of perspectives and •- How should actors/entities organize for innovation?
disciplines that may not have contributed in the past to •- How does the nature of innovation and the organization
research on innovation management. We conceptualize of innovation interact?
digital innovation
inngvatign as the creation of (and consequent
conseguent change
in)
in 2 market offerings, business processes,
ofterin s,business processes, or models that result Underlying these questions (and their related theories) are
from
trom the use of ot digital technology.
technolog. Stated differently, in three key assumptions.
digital innovation,
innovation, digital technologies and associated digi-
tizing processes form an innate
tizingprocessesform part of
innatepart the new idea and/or its
ofthe (1) Innovation is a well—bounded
well-bounded phenomenon focused on
development,
development, diffusion,
dijfusion, or assimilation. Given the above con-
Con- fixed products and therefore the question of how innova-
fixed
ceptualization, digital innovation management refers to the tions form/evolve
forrn/evolve is a well—bounded
well-bounded question.
224 MIS Quarterly Vol. 41 No.

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(2) The nature of the innovation agency is centralized, and fluidity in innovation pro-
plans. These create a new level of fluidity
therefore actors/entities can organize for innovation. cesses, allowing them to unfold in a nonlinear fashion across
time and space.
(3) Innovation processes and outcomes are distinctly dif-
ferent phenomenon, and therefore there is interaction Further, less bounded innovation outcomes and processes also
between the nature and organization of innovation that reflect newer success criteria (for example, ones that reflect
reflect reflect
can be explicitly theorized. the potential for radical rescoping of the product, community-
ofthe
based generativity, platform—based
platform-based network effects, etc.) and
With the digitization of
of innovation, these assumptions are demand newer theories that incorporate such metrics and
increasingly being challenged (e.g., Henfridsson et al. 2014; underlying factors.
Nylén and Holmström
Holmstrom 2015; Yoo et al. 2012), raising the
need for new theory development and inviting alternative
conceptualizations. Below we briefly
briefly review the research
Can Innovation Agency Be Predefined?
challenging these assumptions, paving the path for new theory
development.
With digital innovation, there is a shift toward less predefined
predefined
and more distributed innovation agency, particularly in
technology intensive industries; this shift has been referred to
Is
is Innovation a Well-Bounded
Well-Bounded Phenomenon? as distributed innovation (e.g., Lakhani and Panetta 2007;
Sawhney and Prandelli 2000), open innovation (Chesbrough
Prior studies on innovation management, have, by and large, 2003), and network—centric
network-centric innovation (Nambisan and
fixed, discrete set of
presupposed a fixed, of boundaries and features
Sawhney 2007) among others. By distributed innovation
for the new product (or service) idea that underlies a market agency, we mean an innovation context wherein a dynamic
opportunity (e.g., Ulrich and Eppinger 201 2011).
1). The continued
and often unexpected collection of actors with diverse goals
popularity ofof product development methodologies such as
and motives—often outside the control of the primary
stage gate testifies
testifies to this (e.g., Grönlund
Grénlund et al. 2010). Unique
innovator—engage in the innovation process (e. (e.g.,
g. , Bogers and
characteristics of digital artifacts—they are malleable, edit-
West 2012). This heterogeneous constellation of actors as a
able, open, transferable, etc. (Yoo et al. 2010; Zittrain
whole often constitutes the agency necessary to innovate
2008)— dress them with “ambivalent ontologies” (Kallinikos
successfully. Importantly, such collectives are also highly
et al. 2013). The scope, features and value ofof digital offerings
dynamic in that actors (individuals, organizations, etc.) can
can continue to evolve even after the innovation has been
opt in and out while their goals change, new competencies are
launched or implemented. Most digital designs remain some-
needed, motivations shifts, complementary capabilities need
what incomplete and in a state of flux where both the scale
of flux
to be garnered, new constraints and opportunities emerge, or
and scope of the innovation can be expanded by various
varying contributions become recognized (Lusch and
participating innovation actors (Hanseth and Lyytinen 2010;
Nambisan 2015).
Lyytinen et al. 2016). Thus, this imparts an unprecedented
level ofof unpredictability and dynamism with regard to
assumed structural or organizational boundaries of the digital This shift has been largely made possible by digital tech-
innovation, be it a product, platform, or service. Therefore, nologies infused into innovation outcomes and processes. For
boundaries on what is or is not an innovation outcome have innovation outcomes, digital platforms and open standards
become more porous and fluid.fluid. enable collectives (of organizations or individuals) to pursue
innovation collaboratively (e.g., Boudreau 2010; Bresnahan
Innovation processes, in addition to outcomes, also have and Greenstein 2014; Gawer and Cusumano 2014; Parker et
become less bounded, in terms of their temporal structure. al. 2016; Tiwana et al. 2010). For innovation processes, col-
Specifically, the digitization of
Specifi cally,the of innovation processes helps to laboration among collectives is enabled by such digital infra-
break down the boundaries between different innovation structural capabilities as knowledge sharing and work
phases and brings a greater level of unpredictability and execution platforms (e.g., GitHub), crowdsourcing (e.g., Top
overlap in their time horizons. For example, new digital Coder), crowdfunding (e.g., Kickstarter), virtual worlds (e.g.,
infrastructures (e.g., 3D printing, digital makerspaces, etc.) Second Life), digital makerspaces, and dedicated social media
enable product ideas to be quickly formed, enacted, modified,
modifi ed, (e.g., OpenStack). The scope, functionality, and other charac-
and reenacted through repeated cycles of experimentation and
ofexperimentation teristics of these enabling digital technologies fundamentally
implementation (Ries 2011), making it less clear as to when shape the scope, content, and direction ofthe
of the distributed inno-
a particular innovation process phase starts and/or ends. vation agency (e.g., Chandra and Leenders 2012; Majchrzak
Similarly, digital infrastructures (e.g., cloud computing) facili- and Malhotra 2013; Smith et al. 2013). This highlights the
tate rapid scaling up (or down) of product implementation growing significance
significance of incorporating the features of digital
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technology into theories about innovation management that Clearly, the research community faces new questions. For
make distributed agency possible. example, how does the use of digitally enabled infrastructures
ofdigitally
constrain or enable digital designs and participation in
Specifically, this shift creates the need for innovation manage-
Specifi cally,this innovation? How do digital designs shape the use of digitally
ment theories to address two questions: enabled infrastructure? New theories are needed that take
into consideration the endogeneity associated with both out-
•- How does a firm organize for innovation when its part- comes and processes that are inherent in digital innovation.
ners and their contributions are diverse, unknown or ill Such theories can build on the extant product/organizational
defined?
defined? modularity literature but need to consider digital technologies
(and their characteristics) not as a mere context but as an
•- How do innovation collectives form, evolve, and con- active innovation ingredient that inflinfluences
uences the nature of
tribute to a shared innovation agenda? modularity (e.g., Henfridsson et al. 2014).
More broadly, the digitization of the processes and platforms

that facilitate distributed agency calls for new theories
explaining how digital technologies enable, constrain or shape New Logics of Theorizing about
the nature of
of innovation as a collective action (e.g., Lyytinen Digitization of Innovation:
Innovation:
et al. 2016; Yoo et al. 2012). A Research Agenda
Our discussion so far highlights the need to revisit the three

Can Studies of
of Innovation Processes and Out- pivotal assumptions regarding innovation management:
management: defi-
defi-
comes Focus on One and Not on the Other? nition of innovation as having clearly delimitable boundaries,
innovation agency as being centralized and predictable, and
Traditionally, innovation management studies have focused innovation outcomes as occurring independently of process
either on the process (with limited attention to the innovation and visa versa. In challenging these assumptions, there is an
outcome) or the innovation outcome (with limited attention to opportunity
opportlmity for new theory building. To start on this new
the innovation process) (e.g., Ahmad et al. 2013; Sivasubra-
Sivasubra— theorizing, we offer four theoretical logics or conceptual
maniam et al. 2012). While the extensive research on product elements that IS researchers are particularly skilled at
modularity offers the “mirror hypothesis”—that a product’s exploring. In formulating
fonnulating each of the four theoretical logics,
modular structure should be aligned with the product develop- we also raise a set of new research questions. Table 11 sum-
ment organization—most complexities associated with the marizes our arguments.
interdependence of of outcome and process organization are
ignored (e.g., Baldwin and Clark 2000; Danese and Filippini
2010; Langlois 2002; Sanchez and Mahoney 1996; Schilling
2000; Staudenmayer et al. 2005). Problem-Solution Design Pairing
Dynamic Problem–Solution
The complexities, however, cannot be ignored. With digiti- Given the unbounded nature of digital innovation, we suggest
zation, dependencies between innovation processes and a shift from a focus on innovation processes and outcomes to
innovation outcomes are complex and dynamic. Boland et al. a focus on dynamic problem—solution
problem–solution design pairing (von
(2007), for example, demonstrated that in innovating con- Hippel and von Krogh 2016). In particular, we suggest that
struction projects, the use of 3D tools as a digital process the study of
of digital innovation management be one analyzed
infrastructure led to unexpected interactions and collabora- as a sporadic,
sporadic, parallel,
parallel, and heterogeneous generation,
generation,
tions between different trades, designers, and other stake- forking, merging,
forking, merging, termination, refinement ofproblem—
termination, and refinement of problem–
holders, generating multiple “wakes of innovation.” solution design pairs.
pairs.
Similarly, Dougherty and Dunne (2012) demonstrated that the
use of
of digital technologies during new drug discoveries led to Innovation problems are primarily associated with unidenti-
the reorganization of the innovation focus and created a new fied and latent needs of users, customers or other stake-
fied
set of
of activities necessary among groups ofof scientists, which, holders, while solutions refer here to digitized artifacts—their
in turn, held implications for innovation outcomes. These fimctionalities, and user affordances—and the sur-
features, functionalities,
documented effects were all unintended. Indeed, as these and rounding sociotechnical contexts.
contexts. By introducing the notion
other recent studies suggest (e.g., Bailey et al. 2012; Lee and of problem—solution
problem–solution design pairs we highlight that digital
Berente 2012), digitizing innovation involves processes and innovation involves the continuous matching of the potential
outcomes (product/services) shaping and being shaped by the (or capabilities) of new and/or newly recombined digital
other. technologies with original market offerings. Thus, digital in-

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Table 1. New Logics of Theorizing About Digitization of Innovation

Assumptions of Innovation
Management Theories that
Digital Innovation New Logics of Theorizing about
Challenges Digitization of Innovation Questions Emerging from the New Theorizing Logics
Dynamic problem–solution
prob|em—so|ution design • When, where,
where, and under what conditions do digital innovation opportunities
pairing: Digital innovation manage- emerge? What theories can inform on the creation/discovery of such oppor-
ment as a sporadic,
sporadic, parallel, and tunities and the paths they take in their gradual evolution into products/
products!
heterogeneous generation, forking, services?
merging, termination,
termination, and refinement of • How are new digital capabilities and the problems/opportunities related to
prob|em—so|ution design pairs.
problem–solution innovation paired? How do such pairings evolve and how much shifts and
dynamics happen during the constant pairing of new solution potential and and
Acknowledges the fluid boundaries of discovery of new types of problems?
the innovation space and the potential • What theories and concepts could explain the temporal trajectories of digital
for innovation agency to be distributed. innovation projects? What unique characteristics and aspects of digital tech-
nologies shape such trajectories? More broadly,
broadly, what new theories may
explain the dynamic nature of evolution of digital innovation?
• How should firms
firms organize for the temporal “distensions” (in the innovation
innovation
journey) facilitated by digital technologies? What new theories may explain
firms’ success in navigating the convergences and divergences in the forma-
•- Less bounded innovation and enactment of digital innovation opportunities?
tions: With digitization, • What are the tensions between digital and non-digital elements of an innova-
(a) continuously shifting tion and how do such tensions shape/
shapel reshape the scope and functionalities
structural boundaries for of the offerings? How are such tensions resolved/managed and under what
innovation outcomes, and conditions?
(b) continuously shifting
Socio-cognitive sensemaking: • How do agents (actors) make sense and discover new meanings around
spatial and temporal
Shared cognition and joint sense- digital technology and construct-related use scenarios and affordances? How
boundaries for innovation
making as critical element of digital do actors negotiate and adjust meanings around digital technology innova-
processes.
innovation management;
management; “narratives” tions and what makes them stabilize or break down?
(embedded in digital artifacts and • How do narratives serve as a vehicle for shared meaning-making in digital
• Less predefinition in
supported by digital technologies) as a innovation? How do digital technologies support (and shape) the evolution of
innovation agency: With
vehicle for such socio-cognitive sense- such narratives?
digitization, a shift from pre-
making. • How are analogous reasoning and metaphors deployed to discover new ways
defined set of focal innova-
defined
of generating digital innovations?
tion agents to evolving,
Acknowledges the fluid boundaries of • What is the effect of distributed agency as a new potential and constraint (too
innovation collectives with
the innovation space and the hetero- influencing socio-cognitive sensemaking around digital
many participants) in influencing
diverse goals, motives, and
geneous actors that populate it innovation? How does socio-cognitive inertia and related challenges of
capabilities.
(distributed innovation agency). identity maintenance influence and/or curtail innovation?
Technology affordances and con- • How do digital tools and infrastructure enable and constrain innovation out-
• Less boundaries between
straints: Considers digital technology comes? How do the nature and characteristics of digital innovation shape/
shapel
innovation process and
use as sets of affordances and con- influence the use of digital tools and infrastructure?
influence
outcomes: With digitiza-
straints for particular innovating actors • How are digital capabilities used in specific innovation contexts and across
tion, less demarcation and
and helps explain how and why the contexts as specific
specific affordances? What generic new technology affordances
more complex, dynamic
“same” technology can be repurposed are enabled by digital technologies and how do they influence
influence innovation
interaction between inno-
by different actors or has different inno- trajectories and outcomes? How do specific
specific nonfunctional features of digital
vation processes and
vation outcomes in different contexts. technology such as scale and speed of computation,
computation, differences in cost,
outcomes.
distribution, new forms of control,
geographic distribution, control, or new forms of analysis enable
Acknowledges the receding distinctions digital innovation?
(and the accompanying duality) • What new theories and concepts may explain the intermingling of digitized
between innovation processes and innovation processes and related innovation outcomes during digital
outcomes. innovation?
Prob|em—so|ution
Orchestration: Problem–solution • How and under what conditions does an agency become distributed in digital
matching as a microfoundation of innovation?
digital innovation orchestration; • What theories can explain how firms
firms are able to successfully and fluidly mix,
fluidly mix,
increasing role of digital technologies in match, and integrate internal and external parties and
and various diverse
enabling or supporting such communities in digital innovation?
orchestration. • How do digital technologies enable/support problem–solution
prob|em—so|ution matching? How
do digital technologies enable, constrain,
constrain, and shape the nature/form of
Acknowledges the fluid boundaries of innovation as collective action?
the innovation space and the potential • How do human and material (digital) agencies intermingle in innovation
for innovation agency to be distributed. orchestration and to what effect?
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novation can be viewed as a temporary (labile) set of for innovators as “rules of thumb that provide a plausible aid
couplings between needs, user affordances, digital artifact in structuring a problem at hand or in searching for a satis-
features and related sociotechnical “constellations.” ficing artifact design” (Gregory and Muntennann
ficing Muntermann 2014, p. p.
639). Similarly, they serve “as a generalized solution to a
A conceptualization of of digital innovation as dynamic commonly occurring problem” (Douglass 2003, p. 50). For
problem–solution
problem—solution design pairing helps us to fill fill the gaps example, when coding in HTML, the use of a cascading style
created by the challenged assumptions discussed earlier. sheet offers a design pattern. At the business layer, a design
First, by focusing on problem—solution
problem–solution design pairing, pre- pattern can be an exchange transaction, since it is done
defined
defined problem solution spaces are replaced with an inno- repeatedly across different systems, assets, or currencies.
vation space of fluid boundaries (one that reflects
of fluid reflects the Generally, design patterns offer tentative relationships
flexibility of
flexibility recombinations afforded by digital technologies).
ofrecombinations between at least two components within a design and a
Problem–solution
Problem—solution design pairing then helps address a key solution that matches with the goals and constraints of the
question: How do digital innovations emerge/form and problem.
evolve? Second, problem—solution
problem–solution design pairing also incor-
porates the potential for innovation agency to be distributed—
distributed- Such patterns can also serve generally in supporting more
as would-be
would—be innovators collaborate in defining
defining and matching distributed innovation agency—one wherein they guide
problem–solution
problem—solution pairs in multiple contexts. As such, individual innovators in generating problem—solution
problem–solution pairs to
problem–solution
problem—solution pairing helps address a key question: How match particular contexts. For example, in the case of Volvo
firms integrate internal and external parties and various
do firms (see Svahn et al. 2017), identifying varying design patterns
diverse communities in contributing to digital innovation? was critical to moving with the creation of an open software
platform for the car without knowing completely the desired
Problem–solution
Problem—solution pairs can also be imbued with memory, functionality expected from a connected car. As a result, the
such as memory ofof earlier couplings. This allows innovation company generated a portfolio of platforms, each offering a
to be simultaneously path dependent and path breaking. For specific problem–solution pair and where each such pair was
specific problem—solution
example, a developer can use a Google Maps API to insert a grounded on a different and specific
specific design pattern of limited
link to a map providing driving directions on a website to scope and distinct focus.
solve the problem of navigation. A new developer may take
the same app and add new features such as police sightings or Accordingly, every digital innovation process can be viewed
construction warnings to address a different problem (of as a constant discovery, manifestation, and combination of
avoiding speed traps). Each evolution incorporates the mem- one or more design pattern wherein each pattern identifi
identifies
es a
ory of
of what has gone before with a new distinct problem-
problem– new and different relationship between at least two
solution pair. components of the digital technology functions. The extent
of pattern similarity between digital solutions can be poten-
Digital product architectures promote long-lasting
long—lasting and struc- tially used by IS researchers to trace and compare digital
tural differentiation for distinct and separate digital innova- innovation processes.
tions with unique innovation trajectories involving new ways
of
of generating problem—solution
problem–solution pairs (Adomavicius et al.
2008; Lyytinen and Rose 2003). Accordingly, digital inno- Socio-Cognitive Sensemaking
vation can be viewed as a constant search for and identifi-
identifi-
cation of new or evolved problem—solution
problem–solution pairs. Such fluidity of the innovation boundaries, the dynamics of
The fluidity
searches may initially focus on replacing existing functions. problem–solution pairs, and the heterogeneity of
matching problem—solution
Over time, these searches may create complements to existing innovation actors all contribute to shifts in participant cogni-
products or services or largely decompose or restructure the tion and sense making that form a critical element of digital
current product architecture to several separate layers. As innovation. Here we suggest that a critical element of theo-
layers are introduced (such as “software stacks”), highly rizing about digital innovation management is how digital
distinct design-solution
design—solution pairs can be sought to offer new technologies (artifacts, platforms, etc.) interact with innova-
recombination possibilities as well as the potential for open tion agents (be they organizations or individuals) to foster
innovation (see Henfridsson et al. 2014; Henfridsson and Yoo innovative socio-cognitive
socio—cognitive sensemaking. By socio-cognitive
socio—cognitive
2013; Tilson et al. 2010). sensemaking, we mean that the technology is being made
sense of simultaneously in an individual innovator’s cognition
The discovery and matching of problem–solution pairs
of problem—solution and the innovator’s social system of collectives of organiza-
depends on the richness and plausibility of design patterns tions and individuals. Integrating an understanding of how
that can be mobilized by the innovators. Patterns serve here this socio-cognitive
socio—cognitive sensemaking influences
influences digital innovation

No. 1/March
1/March 2017
processes and outcomes is central to any theory of innovation by related and past experiences (Garud and Giuliani 2013). 2013).
management. Following our notion of problem–solution pairing that evolves
ofproblem—solution
and changes over time, innovators (and entrepreneurs) build,
First consider the need for shared socio-cognitive
socio—cognitive sense- share and cocreate narratives around problems and solutions
making. Digital architectures (layered modular architecture) that in turn transform
transfonn opportunities into new products and
increase the complexity and comprehensibility of products services. Such narratives enable “meaning making” (Bruner
and services. When an innovation platform spans multiple 1990),
1990), that is, innovators “plot sets of social and material
traditional product categories, the scope of the innovation may
ofthe elements from the past, present, and future into a compre-
be hard to understand by any single innovator and the innova- hensible narrative” (Garud and Giuliani 2013, p. p. 159). Speci-
tion itself may be given different cognitive frames by different
itselfmay fically, narratives “construct realities rather than reduce them
fically,
participants; for example, radical digital innovation cognition through modeling…and
modeling. . .and as such they grasp the complexities
needs to be extended beyond traditional product and process of real life events” (Khan and Sarv 2013, p. p. 204). The value
categories (Lyytinen and Rose 2003; Negro and Leung 2013). of such narratives in fostering innovation has been suggested
If
If a dominant frame emerges, inertia to reframe may result, before in the context of communities of practice (e.g.,
(e. g., Brown
inhibiting innovators from perceiving the possibility of new and Duguid 1991)
1991) and, more recently, in the broader context
cognitive frames and therefore new innovation opportunities of strategic management and entrepreneurship (Müller(Mfiller and
(failure to reframe) (Kaplan and Tripsas 2008; Rosa and Porac Becker 2013; Nambisan and Zahra 2016).
2002). However, when different frames are socially com-
municated to others so that individuals become motivated to
Importantly, digital artifacts may be unique in that they both
“break” their existing frames, this may allow individuals to embody past narratives and portend future narratives (i.e.,
they inform on the possibilities of the future) (Nambisan
see new possibilities with a new cognitive frame, and thus
2017). Specifically,
Specifi cally, the features and functionalities of digital
generate new innovation (Verganti 2009). Successful digital
artifacts convey information
infonnation on the nature of the problem—
problem–
innovation thus depends on how actors come to understand,
solution pairs rooted in a specific
specific context. As users discover
share with others, and then modify their understandings of of
and use such digital artifacts in newer contexts, they can use
innovation outcomes, processes, and related markets.
digital infrastructures (e.g., social media, crowdsourcing
systems) for sharing and cocreating new narratives leading to
Successful digital innovation, then, calls for relentless
new digital innovations (Nambisan and Zahra 2016). Indeed,
deframing and reframing of innovation outcomes and
the process of developing an understanding of an emerging
processes, influenced
influenced by a social process. This is no different
innovation opportunity often starts from such narratives as
than socio-cognitive
socio—cognitive innovation with less digital artifacts
they offer important signals regarding changes in customer
(Carlile 2004; Harvey 2014; Majchrzak et al. 2012; Tsoukas aspirations, wants, and demands. As recent studies (e.g.,
2009). However, what is unique with digital artifacts is the Fischer and Reuber 2011) indicate, interactions on social
ease with which the artifact itself
itself can be modifi
modified, and the
ed,and media enable innovators and entrepreneurs to formulate new
lack of
of comprehensibility such that innovation requires an opportunities in an incremental and inductive manner. As
understanding ofof others’ socio-cognitive
socio—cognitive frames. such, digital innovation can be viewed as a process of social
construction (Berger and Luckman 1967) of opportunities
Moreover, digital innovation reframing creates a conundrum from narratives.
for the organization. If, on the one hand, radical digital inno-
vation is framed too strongly as an opportunity for new sense- Overall, our discussion suggests the potential value of narra-
making, this may be interpreted by the organization as tives developed through socio-cognitive sensemaking to
questioning current ways of of framing markets and products, address two broad sets of questions around digital innovation:
ofquestions innovation:
leading to an organizational response that is either weak and First, if innovation agency is distributed, how do innovation
confusing or rigid and protective (Gregoire et al. 2010). If, agents make sense and discover new meanings around digital
on the other hand, the radical digital innovation is framed technologies and construct related use scenarios and afford-
within current frames, the radical opportunities afforded by ances? Second, how do digital technologies facilitate such
the technology may not be understood. shared meaning making among a diverse set of innovation
agents, thereby fueling future digital innovation?
Therefore, an important element of a digital innovation
management theory is one that addresses the question of
of how
these socio-cognitive
socio—cognitive frames about digital innovation are Technology Affordances and Constraints
developed and shared. The frames are certainly shaped by
narratives of sensemaking interactions between innovating As the distinction between innovation processes and out-
actors (often mediated by digital technologies) and affected comes recede in a digital world and as (digital) tools both
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shape and are shaped by digital products and services, it vation collectives. For example, how are digital capabilities
becomes imperative to develop a deeper understanding of used in specific
specific innovation contexts and across contexts as
their intermingling. Technology affordances and constraints specific
specific affordances and how do they shape digital
theory (Gibson 1979;
1979; Leonardi 201
2011;1; Majchrzak and Markus innovation?
2013; Markus and Silver 2008; Treem and Leonardi 2012)
offers a promising lens that is particularly well suited to help Overall, the technology affordance theory helps us to address
IS scholars build new theories in this regard. the challenged assumption regarding the differentiation
between innovation process and outcome and, specifically,
specifically,
An affordance (or a constraint) is defined
defined as an action the important research questions that underlie the emerging
potential offered by the digital technology; it is a relation complex, dynamic interactions (and duality) between digital
between a technology with certain features and a users’
users’ intent innovation processes and outcomes.
or purpose to which this technology is to be used (Majchrzak
(Maj chrzak
and Markus 2013). Thus, the focus is not on what features
digital tools or artifacts possess, but how actors’ goals and Orchestration
capabilities can be related to the inherent potential offered by
the features. By looking at technology use as sets of afford- As innovation boundaries get more diffused and innovation
ances and constraints for particular innovating actors, IS agency more distributed, questions related to how digital
researchers can explain how and why the same technology technologies shape the nature and form of innovation as a
can be repurposed by different actors or has different collective action gain heightened significance.
significance. Here, we
innovation outcomes in different contexts. suggest the notion of orchestration as a theoretical lens to
examine such questions. Prior studies on innovation networks
Affordances also enable separating digital innovations that and ecosystems have suggested the concept of orchestration,
emerge during the process of connecting use contexts and firms (or entities) assume the responsi-
wherein one or more firms
features through constant problem—solution
problem–solution matching and bility for coordinating value cocreation and value appro-
innovation within specific
specific features of
of technologies that are priation (e.g., Dhanaraj
Dhanaraj and Parkhe 2006; Nambisan and
located in specific
specific layers of the architecture stack. This helps Sawhney 2007, 2012011;1; Wind et al. 2009). Building on that, we
deepen and enrich general and substantive theories of of digital next discuss aspects of orchestration that are unique to the
innovation. context of
of digital technologies and digital innovation.
In the digital innovation context, affordances often refer to the Previously, we noted how digital innovation could be con-
way in which innovation process tools are used. For example, ceptualized in terms of dynamic problem—solution
problem–solution design
in the CRM case outlined in this issue (see Saldanha et al. pairing. The rise of such dynamic problem—solution
problem–solution pairing
2017), the affordance of a relational information process has led to the rise of new organizational fonns,
forms, a form that
capability for customer engagement was studied and found to Afuah and Tucci (2012) call problem-solving organizations.
increase the probability of of eliciting innovations from In problem-solving organizations, problems (or needs) and
customers. Other affordances needing to be studied include solutions “float
“float around” waiting to be temporarily matched for
ways in which customers use new product features, the com- action potential and capabilities orchestrated within the
binatorial nature of software modules, platforms that facilitate organization (von
(Von Hippel and Von
von Krogh 2016). This model
flexible modularization for a
stakeholder collaboration, and flexible has similarities with the classic “garbage-can”
“garbage—can” model (Cohen
platform affording changing platform design constraints more et al. 1972) where the problem and solution pairs came largely
quickly. More broadly, how do affordances associate with from professional capabilities and related organizational
specific
specific nonfunctional features of digital technology such as stimuli.
the scale and speed of of computation, differences in cost and
geographical distribution, etc., and how do they, in combina- Thus, in problem-solving organizations, a loosely connected
tion, enable digital innovation? What generic technology crowd of “contributors” can be identified
identified and mobilized by a
affordances are enabled by new digital technologies and how digital technology or person serving—either temporarily or
do they influence
influence innovation trajectories and outcomes? permanently—to orchestrate the crowd. This orchestra-
more per1nanently—to
tion involves waiting for the right problem to enter the stage
The benefit
benefit of the affordance lens is that the specificity
specificity of
of the to match with an available or new potential solution, or helps
affordance, which matches the features with the use context, brokering solutions generated by contributors to plausible
allows specifying more accurate theories which are informed problems or opportunities. Thus, in essence, orchestration
by relationships between affordances, and between afford- can be viewed in tenns
terms of the matching of
ofthe problems and needs
ofproblems
ances and users, between affordances and the needs of inno- with potential solutions. Accordingly, here we suggest

No. 1/March
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problem–solution matching as a micro-foundation of

pr0blem—soluti0n (digital)
of(digital) too simplistic assumptions about the nature of the phenom-
innovation orchestration. Such a perspective would allow us enon so the use of such methodologies does not easily get at
to gain a more granular understanding of how innovation the heart of the matter. Use of classic qualitative inquiries
occurs when agency is distributed and, more importantly, the like the use of small N case studies or ethnographies helps us
role that digital technologies may play in enabling or reveal and understand the local meanings and related logics,
supporting it. but fails to scale to broader effects of technology and its
influence
influence in shaping the context and outcomes of the
While prior studies have largely focused on organizational innovation processes across sites and industries. Something
firm or a group of firms
orchestrators (a firm firms acting as the orches- different is called for. Below we note three methodologies
trator), it is increasingly becoming evident that digital that could potentially offer novel insights to the study of
technologies have the potential to match problems (or needs) digital innovation: computational social science, configura-
configura-
with solutions and thereby to serve as the orchestrator. Uber tional analysis, and methodologies for identifying complex
can be viewed as an exemplar of this new type of digital emergent phenomena.
orchestration (Libert et al. 2014). Here, Uber drivers are
often those with a solution, while passengers are those with a
problem, and the Uber algorithm (a digital artifact) does the Computational Social Sciences
temporary matching. While Uber (and other such examples)
indicate digital orchestration of of operations, the increasing Computational social sciences refers to a set ofmethodologies
of methodologies
sophistication of such (digital) algorithms—for example, deep
ofsuch for exploring human behavior computationally. These tech-
learning capabilities—imply their relevance for orchestrating niques help scale local analysis of the use of digital tech-
digital innovation. nologies and innovation around them to broader contexts. At
the same time, they seek to remain faithful to the inherent
Digital technologies also play a more indirect and supportive meanings of activities that influence
ofactivities influence innovation processes and
role in innovation orchestration. In digital innovation, prob- outcomes. The computational sciences cover the use of simu-
lem and solution pairs may emerge from the new functional lations, data mining, behavioral tracking, or large-scale field
large—scale field
potential opened by opportunistic and joint joint sensemaking experiments. The areas of research on solution-problem
around digital technologies and the consequent formation
fonnation of pairing and orchestration are particularly well suited to be
pairing
new couplings between needs, affordances, artifacts and the studied using computational social sciences because much of
sociotechnical environment. As we noted previously, such the pairing and orchestration can be examined with digital
joint sense making and problem—solution
problem–solution matching may occur traces.
through conversations among a diverse set of actors who own
the problems and/or the solutions. By serving as the venue There are many forms of computational social sciences that
for such conversations, digital platforms (e.g., crowdsourcing can be applied to testing and developing new theories of
and crowdfunding systems) support innovation orchestration. digital innovation management. One form is organizational
The potential for specific
specific features of
of such digital platforms to genetics, in which the digital innovation is decomposed into
shape those conversations (for example, by supporting actors’ actors, activities, artifacts, and affordances to identify routines
search in the problem or solution landscape) imply the need (Gaskin et al. 2014). A study of digital innovation manage-
to study the intermingling of human and material (digital) ment could use organizational genetics to determine how
agencies in innovation orchestration. Thus, generally, a digital technologies such as digital platforms enable the
focus on orchestration as problem—solution
problem–solution matching opens creation, transfonnation,
transformation, and use of new technologies, such as
ofnew
up important avenues for future research that relates to the software applications for an automobile or to study innovation
design, effectiveness, and boundary conditions of of digital processes over time as a set of matching activities and to
technologies as innovation orchestrators. detect their variation, sources of variation, and outcomes.
Another form of of computational social sciences has been

referred to as computational case study research (Lindberg
Innovate in Methods to 2015). By using sequence analytic approaches, initially made
Study Innovation popular by Bakeman and Gottman (1997) and Abbott (2001),
this approach seeks to integrate the quantitative big data
Studying digital innovation management, given the theoretical algorithmic analysis with qualitative narrative development.
elements we suggest, may require adopting novel method- Digital trace data (which captures human interactions in real
ologies that have not been used to a great extent in the past. time) can be analyzed using computational tools to detect
Classic variance based studies are often too static and make common behavioral patterns over extended periods of time
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231
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subject to qualitative inquiry to interpret the meaning and identified

identified such emergent phenomena as team climate, team
context of
of the detected variation in sequences (see, for goals, and a team’s transactive memory. As such, method-
example, Maj
Majchrzak
chrzak and Malhotra 2017). Digital innovation ologies for identifying emergence can well—apply
well-apply to the
management could fruitfully employ computational case study theoretical element of socio-cognitive sensemaking discussed
ofsocio—cognitive
research techniques—for example, to generate explanations earlier. There are a number of different methodologies that
of
of how innovation in digital tools changes the way in which can be used to explore emergence. The most traditional form
engineers or other participating groups do their work. is the use of agent-based models. For example, Nan’s (2011)
agent—based models.
agent-based
agent—based simulation model based on Orlikowski’s (1996)
Another form of of computational social sciences has been case study of social structuration of technology identified
identified the
referred to as process mining (Pentland et al. 2010; van der emergence of new work practices as an outgrowth of mutual
Aalst 2011).
201 1). Process mining involves application of Petri nets
ofPetri adaptations between technology and users. Alternatively, the
to elicit processes from event log data. Petri nets are a emergence can be identified
identified using behavioral tracing studies
formalism that allows for formal analysis of concurrency, as when self-organizing crowds evolve to implicitly coor-
data-related,
data—related, and time-related
time—related aspects. A process model dinate their knowledge sharing to amplify their deliberation-
elicited with Petri nets allows also the modeling of hierarchies
ofhierarchies resolution capabilities (Kane et al. 2014). Finally, emergence
flow of
between subprocesses, transitions, wait times, and the flow of can be identified field experiments that guide and
identified through field
a token through the work process. As with all business encourage behavior, but not constrain it. For example, con-
process management models, the elicited processes can be field experiments of
ducting field different ways of
ofdifferent guiding crowds
ofguiding
viewed from any of a number of of different perspectives, such during crowdsourcing led to the emergence of temporarily
as organizational unit perspective, resource perspective, roles enacted self-defined
self-defined roles, in accordance with Faraj
Faraj et al.’s
or actor perspectives, as well as workfl
workflow.
ow. Process models (2011) theorizing, which led to an increased ability of the
identified
identified from event logs can be used to compare different crowd to cocreate solutions to problems (Malhotra and
models ofof the work process (Pentland et al. 2010). A study Majchrzak
Maj chrzak 2014).
of
of digital innovation management could use process mining
to compare the workfl
workflows
ows within innovation projects to
discern differences that may explain why one project is more
Articles in this Special Issue j
successful than others.
The six research notes included in the special issue survived
a lengthy review process and were selected from an initial
Configurational Analysis pool of 86 full-paper
full—paper submissions. They offer interesting
glimpses to the emerging stream of research on the effects of
Identifying problem–solution pairs and technology affordance
Identifyingproblem—solutionpairs aflordance digitization on innovation processes and outcomes. Here we
research creates a need for methodologies that focus on provide a brief description of each paper and discuss how it
matching specific
specific conditions for specific
specific outcomes rather than relates to the theoretical concepts and research themes
variance explanation. One such approach that has begun to discussed above (see Table 2).
receive attention in IS research is qualitative comparative
analysis (QCA), and its application to temporal conditions The first article, “Embracing Digital Innovation in Incumbent
and “fuzzy” conditions (Ragin 2000, 2008). QCA uses Firms: How Volvo Cars s Managed Competing Concerns,” is
Boolean algebraic techniques to compare pair—wise
pair-wise combina- a case study of digital innovation at Volvo Cars. We learn
tions of
of antecedents and outcome conditions to identify those about the paradoxes Volvo experienced while transitioning to
that produce an outcome. El Sawy Savw et al. (2010) recently the open connected car initiative, which externalizes software
argued for the benefits
benefits of
of using QCA in studying configu-
configu- development of applications for the vehicle. These paradoxes
ofapplications
rations of “digital ecodynamics” in information systems included balancing between existing and new internal capa-
research. bilities that needed to be created, balancing between too much
product versus too much process innovation, between
spending resources to develop internal innovation capabilities
Theory Methods
Complexity Theory versus those of external partners, and between control versus
flexible governance over the external development processes.
flexible processes.
Complexity theory has long suggested the central role of The authors, Fredrik Svahn, Lars Mathiassen, and Rikard
bottom-up
bottom—up emergence of self-organization, absent outside Lindgren, illustrate with examples of fascinating ways by
direction (McKelvey et al. 2013). Emergence has also been which Volvo coped with these paradoxes.
paradoxes. Specifically,
Specifi cally, a
theorized at some length, for example, in the team cognition series of initiatives to maintain a balance between each side
literature (e.g., Kozlowski and Chao 2012), where it has of the paradox were implemented, including a new organiza-

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Table 2. Special Issue Papers

Paper Title and Authors Key Themes Related to Digital Innovation
“Embracing Digital Innovation in Incumbent Firms: How A shift toward more distributed innovation agency raises
Volvo Cars Managed Competing Concerns,” Fredrik Svahn, key paradoxes with regard to innovation focus,
focus, capability
Lars Mathiassen,
Mathiassen, and Rikard Lindgren development, resource deployment,
deployment, and innovation
governance.
“Platform Ecosystems: How Developers Invert the Firm,”
Firm," As firms pursue distributed innovations agency through a
Geoffrey Parker, Marshall Van Alstyne,
Alstyne, and Xiaoyue Jiang platform approach
•- When does the locus of innovation truly shift?
•- how do firms optimize their own intellectual property
regimes in order to maximize growth?
“Leveraging Customer Involvement for Fueling Innovation: Digital infrastructures (and associated capabilities) com-
The Role of Relational and Analytical Information Processing plement practices related to distributed innovation agency
Capabilities,” Terrence Saldanha, Sunil Mithas, and M. S. to advance innovation.
innovation.
Krishnan
“How Information Technology and External Knowledge Digital infrastructures complement capabilities related
related to
Search Shape Process Innovation Performance,” external knowledge search (and, more broadly,
broadly, distributed
Konstantinos Trantopoulos,
Trantopoulos, Georg von Krogh,
Krogh, Martin Wallin,
Wallin, innovation agency) to advance process innovation.
innovation.
and Martin Woeiter
Woerter
“Growing on Steroids: Rapidly Scaling the User Base Mechanisms that underpin the rapid scaling
scaling of user base
through Digital Innovation,”
|nnovation,” Jimmy Huang,
Huang, Ola Henfridsson, fluid and
by a digital venture (a generative process) imply fluid
Martin Liu, and Sue Newell porous innovation boundaries (i.e.,
(i.e., associated
associated with existing
services, business models, etc.).
etc.).
“Knowledge Reuse for Customization: Metamodels in an Digitization of design knowledge facilitates reuse for cus-
Open Design Community for 3D Printing,” Harris Kyriakou, tomization and the factors that shape such reuse imply the
Jeffrey Nickerson, and Gaurav Sabnis complex interactions between digital innovation processes
and outcomes.
outcomes.
tional unit called the Connectivity Hub, new design ideology relationship with such openness, developer-to-developer
developer—to—developer
(from a requirements-based
requirements—based to a design-pattern-based
design—pattern—based ap- competition has a non-monotonic effect. Finally, they also
proach), separating externally untouchable back—end
back-end software firms that pursue high—risk
show that firms high-risk innovations with more
from software apps developed by the community, and profitable than firms
developers can be more profitable firms that pursue low
developing new contracts emphasizing mutual liability and risk innovations with fewer developers. More broadly, the
cost neutrality. study contributes to a deeper understanding of why (and
when) external developers might cause a shift in the locus of
The second article, “Platform Ecosystems: How Developers firm) and how platform firms
innovation (i.e., inverting the firm) firms
Invert the Firm,” addresses key challenges related to the
—addresses can optimize their own intellectual property regimes to
successful and effective distribution of innovation agency on maximize the growth of digital platforms.
platforms.
digital platforms. Specifically,
Specifi cally, Geoffrey Parker, Marshall
Van Alstyne, and Xiaoyue Jiang study platform leaders’ Terrence Saldanha, Sunil Mithas, and M. S. Krishnan in their
decisions regarding how much of the core platform they article, “Leveraging Customer Involvement for Fueling
should open (to spur external developer innovation) and for Innovation: The Role of Relational and Analytical Informa-
developers ’ innovations
how long they should protect external developers’ tion Processing Capabilities,” examine how the comple-
(before absorbing those innovation into the core platform). mentarities between specific
specific types of customer involvement
Based on an analytical model, the authors show how once a and specific
specific IT-enabled firm innovation.
IT—enabled capabilities enhance firm innovation.
threshold level of firms would
of external developers is reached, firms Specifically,
Specifi cally, they suggest that relational information pro-
choose to innovate using open external contracts in preference cessing capability and analytical information processing
to closed vertical integration, or subcontracts. They also capability complement product—focused
product-focused customer involvement
show that while platfonn—to—platform
platform-to-platform competition has a linear and information-intensive
infor1nation—intensive customer involvement practices,
MIS Quarterly Vol.

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findings show that firms

respectively. Their empirical findings firms can parameters of metamodels to produce models that fulfill
fulfill their
benefit
benefit more when specific
specific configurations
configurations of of IT-enabled
IT—enabled findings illustrate the effects of
personal needs). The study findings
capabilities are leveraged in unison with specific
specific types of digitization of design knowledge—via Metamodels—on reuse
ofdesign
findings suggest
customer involvement. More broadly, their findings and the implications for innovation. Broadly, the study
new digital infrastructures (and their associated capabilities) speaks to the issues related to the interactions between design
firm’s practices related to
can critically complement a firm’s processes and outcomes in digital innovation.
distributed innovation agency (for example, collaboration
with customers or a broader ecosystem of of external partners)
finn innovation.
and thus advance firm
Conclusions
In their paper, “How Information Technology and External
Knowledge Search Shape Process Innovation Performance,” Our objective in this introductory paper has been to lay bare
Konstantinos Trantopoulos, Georg von Krogh, Martin Wallin, the broader implications of digital innovation for research in
and Martin Woerter focus on the roles that digital technology innovation management. How should organizations engage
plays in compounding the effect of external knowledge search
ofexternal in and enhance their innovation outcomes and processes in the
firms’ process innovation. Specifically,
on firms’ using a nine—year
Specifi cally,using nine-year digital world? How should we (as students of innovation
firms,
panel data from a wide range of Swiss manufacturing firms, management) conduct research on the related issues and
they examine how different types of digital infrastructures concepts?
(data access systems, network connectivity) enhance the
impact of
of deep external knowledge search on firmfirm process As we noted at the beginning, digital innovation management
findings extend our prior understanding of
innovation. Their findings promises a rich and potentially highly rewarding area of
the complementary role of digital technology to the context of research for information systems researchers. As digital tech-
process innovation. firms and industries and
nologies fundamentally transform firms
question the key assumptions and themes that underlie
The next paper in this issue, “Growing on Steroids: Rapidly innovation management, research in this area will need to
ocuses on
Scaling the User Base through Digital Innovation,” focuses incorporate theoretical concepts and constructs that reflect
reflect
how digital ventures scale their business rapidly by drawing and capture the myriad ways by which digital material can
on and adding to digital infrastructure. The authors, Jimmy change both innovation processes and outcomes. As the
Huang, Ola Henfridsson, Martin Liu, and Sue Newell, theoretical logics and conceptual elements that we discussed
consider such rapid scaling as a generative process that illustrate, information systems researchers are uniquely posi-
involves reflective
reflective actors engaging in digital innovation to tioned to contribute to this emerging research stream.
increase the user base. Through an in-depth process study of of
a Chinese digital venture in the credit business, they examine At the same time, such a discourse on digital innovation
three mechanisms that underlie such a generative process:
process: management needs to be enjoined by researchers from other
data-driven operation, instant release, and swift transfor1na—
transforma- disciplines (for example, from computer science, economics,
tion. These mechanisms (and their underlying concepts) hold design, sociology, etc.) (Nambisan 2013). Indeed, without
important implications for future research on digital innova- such an interdisciplinary effort, it is unlikely that value from
frem
tion and speak to some ofof the themes highlighted here. For the theoretical perspectives identified
theeretieal perspeetives realized.
identified here would be realized.
example, data driven operation facilitates less bounded We hope our discussion here along with the new theoretical
innovation; it helps create an abundance ofof options for future concepts and insights offered in the papers included in the
digital innovation that could potentially redefine
redefine the bound- special issue will usher in such a broader outlook and help
aries of
of existing services, business models, etc. forge a promising path forward in digital innovation
management research.
The sixth and final paper in this special issue, “Knowledge
Reuse for Customization: Metamodels in an Open Design
Community for 3D Printing,” examines a fascinating set of Acknowledgments
issues related to the reuse of digitized design knowledge in a
community setting. Specifically,
Specifi cally, the authors, Harris Kyria—
Kyria- We would like to thank Paulo Goes for giving us the opportunity to
kou, Jeffrey Nickerson, and Gaurav Sabnis, use data from work on this special issue. We also gratefully acknowledge valuable
Thingiverse, a community of files for 3D
of designers that share files comments and suggestions from Arun Rai, Nigel Melville, and the
printing, to examine the factors related to reuse for customi- participants of the MISQ Digital Innovation Special Issue Workshop
ofthe
zation (a process in which designers manipulate the held at the University of Southern California in February 2015.

No. 1/March
1/March 2017
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Rapid and pervasive

Keywords: Digitizing, digitization, innovation, theory, management

Introduction capabilities, produced a new breed of innovation processes,

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224 MIS Quarterly Vol. 41 No.

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More broadly, the digitization of the processes and platforms

Our discussion so far highlights the need to revisit the three

226 MIS Quarterly Vol. 41 No.

Table 1. New Logics of Theorizing About Digitization of Innovation

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problem–solution matching as a micro-foundation of

Another form of of computational social sciences has been

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subject to qualitative inquiry to interpret the meaning and identified

232 MIS Quarterly Vol. 41 No.

Table 2. Special Issue Papers

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ﬁndings show that firms

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References Bresnahan, T., and Greenstein, S. 2014. “Mobile Computing:

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236 MIS Quarterly Vol. 41 No.

McKelvey, B., Salmador, M. P., Morcillo, P., and Rodriguez-Anton,

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Van Der Aalst, W. 2011. Process Mining: Discovery,

238 MIS Quarterly Vol. 41 No.

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