Effectuation Logic and Early Innovation Success: The Moderating Effect of Customer Co-creation

This research examines whether and how customer co-creation activities moderate the relationship between effectuation logic and performance in the early stage of the innovation process. Effectuation logic is a promising decision-making logic for innovation success, but the tools that help translate this approach into innovation performance are under-researched. Three key dimensions of effectuation logic are examined: means-driven, partnerships and control. The results of a large-scale survey-based study indicate a varied and nuanced role of co-creation as a means to enhance the contribution of effectuation logic to early innovation success. This research helps increase our understanding of the often-abstract principles of effectuation logic by examining its manifestation within the context of innovation and by showing how specific firm practices, here customer co-creation activities, can accentuate the contribution of effectuation logic to early innovation performance.