Embedded (Lead) Users as Catalysts to Product Diffusion

Posted: 18 Apr 2013 Last revised: 2 Dec 2014

See all articles by Tim Schweisfurth

Tim Schweisfurth

Technische Universität München (TUM); Hamburg University of Technology (TUHH)

Cornelius Herstatt

Technical University Hamburg-Harburg (TUHH)

Multiple version iconThere are 2 versions of this paper

Date Written: April 18, 2013

Abstract

To increase and speed up diffusion of new product introductions firms may rely on network marketing. They select individuals in customer and user networks whose own product adoptions and opinions influence adoption decisions of others in the network. In this paper we transfer this rationale to firm employees. More specifically we focus on “embedded users” who are employees of a firm, but at the same time users of the firm’s products. We aim to find out if certain use related variables (access to user networks, use experience, and lead userness) impact on the embedded users’ disposition towards opinion leadership and domain-specific innovativeness. We also aim to show how cognitive empathy towards external users is a mechanism to explain these relationships.

Drawing on literatures of user innovation and consumer behavior we derive nine hypotheses which are tested in a sample of 54 firm employees in gaming hardware firms. We find that use experience is positively related to employees’ innovativeness but not to their opinion leadership. We find support for the hypothesis that lead userness and both innovativeness and opinion leadership are positively related. Cognitive empathy mediates all relationships in our study. Employees who are product users of the firm’s own products, i.e. embedded users, have characteristics which can speed up product diffusion processes outside the firm. They act as boundary spanners, as they are both more likely to be opinion leaders for other consumers outside the firm, and are also more likely to adopt new products early themselves. Therefore managers should encourage their employees to use the firm’s products to build use experience and thus develop cognitive empathy towards external users.

Keywords: user innovation, lead user, diffusion, organizational behavior

Suggested Citation

Schweisfurth, Tim and Herstatt, Cornelius, Embedded (Lead) Users as Catalysts to Product Diffusion (April 18, 2013). Available at SSRN: https://ssrn.com/abstract=2253343 or http://dx.doi.org/10.2139/ssrn.2253343

Tim Schweisfurth (Contact Author)

Technische Universität München (TUM)

Arcisstrasse 21
Munich, 80333
Germany

Hamburg University of Technology (TUHH) ( email )

Schwarzenbergstrasse 95
Hamburg, DE Hamburg 21073
Germany
040428783833 (Phone)

Cornelius Herstatt

Technical University Hamburg-Harburg (TUHH) ( email )

Hamburg, D-21071
Germany

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