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TheTheory,ScienceandTechnologyof
Innovation:TheGood,theBadandtheUgly?
Jan Recker
Information Systems School, Queensland University of Technology
Innovation matters to Australia.
▪ Australian businesses that innovate are 
– 60 % more likely to report increases in income and profitability
– four times more likely to increase the number of export markets 
targeted
– twice as likely to increase productivity and employment
– three times more likely to report increases in investment in 
training and IT expenditure
– five times more likely to increase the range of goods and 
services offered.
AUSTRALIAN INNOVATION SYSTEM
REPORT 2015 
The Systemic Australian 
Innovation Challenge
▪ 50 % of economic growth is accounted for by 
innovation activity (OECD, 2015).
▪ But: Australia ranks well below the OECD 
average in innovation performance (21st out of 
32 countries).
▪ Suspected reasons:
– Poor networking and collaboration
– Poor innovation culture
– Risk aversion
– Poor innovation management capability
– Geographically isolated economy
– Obstructive policies and regulations
AUSTRALIAN INNOVATION SYSTEM
REPORT 2014 
The opportunity for IS 
research is now.
▪ Technology is meant to address & overcome 
the challenges identified in the 
innovation report.
▪ Coincidentally, the national agenda seems 
to align well (take Turnbull’s Innovation 
Statement for example):
– New Innovation and Science government 
department
– Equipment of students with digital technology
– Increased funding for collaboration between 
university and industry
– Promotion of science, maths
▪ IS research fits the “innovation 
challenge” bill perfectly.
What do I mean by Innovation 
System
Structure
People
Technology
Tasks
Social Sub‐System Technical Sub‐System
Agile?
Lean?
Matrix?
C‐Inno‐O?
Employee 
involvement?
Not‐invented‐
here?
Ideate?
Incubate?
Operate?
Assimilate?
Collaborate?
Filter?
Manage?
Generate?
My Own Research Context
▪ The Woolworths Chair of Retail Innovation
2012‐2018
– Funding since 2012; > $1.5 million
– “providing applied research services that can 
be used to further develop desired innovation 
capabilities within the retail sector”
▪ A Theory of Innovation Systems
ARC DP160103407
2016‐2018
– “developing theories to explain and design 
information systems to assist organizational 
innovation”
– Jan Recker, Michael Rosemann
The Academic Innovation 
Systems Challenge
▪ IT is clearly meant to assist the innovation 
challenge.
▪ But at closer look, we don’t have all that 
much knowledge about how information systems 
can meaningfully support organisations in 
becoming innovative. 
– Sometimes, information systems are used effectively 
as “innovation systems”. Next time around, they’re 
not.
– Sometimes “innovation systems” exist or are 
proclaimed but don’t actually work.
– Sometimes “innovation systems”‐enabled innovation 
succeeds or fails, without a clear pattern.
– Existing theories appear to fall short of 
explaining let alone predicting or prescribing 
innovation in the digital age
Addressing the Challenge 
1. The Theory of Innovation
– Predicting it.
2. The Science of Innovation
– Explaining it.
3. The Technology of Innovation
– Building it.
1. The Theory of Innovation
1. The Theory of Innovation
▪ The innovation space is filled with 
innovation‐relevant theories, e.g.,
– Disruptive Innovation
– The Corporate Garage
– The Lean Organization
– Open Innovation
▪ But:
1. Lack of actual evidence
2. Cases of both confirmation and refute
3. Lack of predictive and/or prescriptive power
One Example of our own 
research:
▪ “How an Innovative Organization Failed 
its Online Open Innovation Community 
Implementation”
– We explored the case of a failed open 
innovation initiative in an arguably 
innovative business that implemented an 
online open innovation community.
– Contrasts two prevalent viewpoints:
▪ Open innovation as a panacea.
▪ Research on success factors doesn’t explain 
failure.
Von Briel, F., Recker, J. (cond. accepted) "How an Innovative 
Organization Failed its Online Open Innovation Community 
Implementation", MISQ Executive
The Case 
▪ ElectriCo: an electronics manufacturing 
company founded as a family business in 
the 1950s, following a breakthrough 
innovation invented by its founder.
▪ Today, remains a family business with 
subsidiaries as independent entities 
that fulfill different functions and 
serve different markets in more than 40 
countries, making ElectriCo’s products 
available in more than 100 countries 
worldwide.
▪ Innovation‐fostering culture:
– roots as the inventor of a breakthrough 
innovation that shaped the entire industry
– existence of a so‐called chief innovation 
officer in the executive board
– An applied research subsidiary
– Company values highlighting customer 
orientation and innovativeness
– Top management committing to innovation 
projects and acting as sponsors
▪ Goals of the OI initiative:
– establishing a direct communication 
channel between product development and 
its worldwide customers
– improving the public perception regarding 
the organization’s innovativeness
▪ Expected benefits:
– Empowerment of staff and customers
– Integration of global community
– Fostering collective intelligence
– Innovation contests
▪ Committed $200k on development and 
marketing.
▪ KPI: one idea per year worth 
implementing
▪ … but it didn’t work.
Why did it fail?
What does it mean?
Open
Innovation
Barrier
Potential Challenge Checkpoint
Industry
Context
Highly secretive customer processes Are your customers open to share their knowledge in your community?
Fear of idea theft How IP-focused is your industry sector?
Customer perspective Can you ask your customers for feedback in order to be able to address their actual needs?
Legal
framework
Data protection regulations Do the data protection regulations allow you to store, transfer, and process innovation information from both within and outside
your organization?
Corporate structure Do your corporate structures provide a governance model for open innovation?
Financial regulations How can open innovation participation and innovation ideas from outside the organization be incentivized? Who will benefit
financially from open innovation ideas?
Implementat
ion
Processes
Cycle times Do you have defined response times to provide feedback to open innovation ideas upon community implementation?
Idea management Does your community implementation include processes to filter, evaluate, select, and progress generated ideas?
Proactive feedback Does the community allow for processes to encourage, foster, and facilitate idea generation and participation in open
innovation?
Innovation
Mindset
Not-invented-here syndrome Are you willing to accept ideas from the outside and work with them?
Problem framing Loosely or undefined problems might yield disruptive ideas. Are you ready to realize potentially disruptive ideas that might be
2. The Science of Innovation
2. The Science of Innovation
▪ Many ‘scientific studies’ on how some 
innovation including some “innovation 
systems” should/could/would work
– Open innovation, crowdsourcing, disruptive 
IT, social networks, communities…
▪ But:
– Too many success cases. Too much
self‐fulfilling research
– Lack of systematic, generalizable knowledge
– Lack of research on failure
– Lack of explanatory and predictive studies
– Situation compounded by misconduct and 
other allegations
16 |
Examples of our research:
“Innovation Systems Failure”
17
|
Using Social Networks (un‐) 
successfully for innovation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Ideation Business
Case
Development Testing Launch
Results of regression analysis predicting Innovation Idea Progress
Beta
1. The Content of an innovation 
idea
Implicational explicitness 0.36**
Acceptability 0.25*
2. The Content Flow of an 
innovation idea
Duration of discussion 0.24*
3. The Users
Network power of originator 1.05***
Organizational position of 
originator ‐0.45**
Organizational position of 
contributor 0.47***
* p ≤ 0.05, ** p ≤ 0.01, *** p ≤ 0.001
Adjusted R2 = 0.80, F(6,16) = 15.32, p < 0.001.
Recker, J., A. Malsbender, and T. Kohlborn (2016) "Learning 
how to Effectively Use Enterprise Social Networks as 
Innovation Platforms", IT Professional (17), March/April
Not realizing the “innovation 
affordances” of IT platforms
▪ “The open, flexible affordances of pervasive digital 
technology are fundamentally shifting the nature of 
innovation processes.” (Yoo et al. 2014, p. 1400)
▪ Example: Proclaimed affordances of ESN platforms for 
innovation
– Persistence
– Visibility
– Editability
– Association
– Generativity
– Metavoicing
– …
▪ Should all contribute to a generative and inclusive 
free flow of ideas and innovations through an 
organization.
▪ But do they really?
Recker, J. and D. Lekse (2016) "A Field Study of Spatial 
Preferences in Enterprise Microblogging", Journal of 
Information Technology (31), forthcoming
Not realizing the affordances of 
Innovation System platforms
Recker, J. and D. Lekse (2016) "A Field Study of Spatial 
Preferences in Enterprise Microblogging", Journal of 
Information Technology (31), forthcoming
Not realizing the affordances of 
Innovation System platforms
Recker, J. and D. Lekse (2016) "A Field Study of Spatial 
Preferences in Enterprise Microblogging", Journal of 
Information Technology (31), forthcoming
Empirical Analysis to build 
Predictive Theory: Example
▪ The Role of External Enablers in the 
Process of Creating a New Wave of 
Hardware Ventures 
Emerging entrepreneurial firms that 
create new market offerings based 
on development of digital devices
Why are hardware ventures 
important
Hardware ventures are nothing new…
But are gaining importance in the global economy 
…
– Consumer electronic VC investment: from US$ 150 mil 
(2010) to US$ 848 mil (2013)
– Hardware venture investment: All‐time high of US$ 
2.6 bio (2014) 
What’s different about the 
(new) hardware industry?
“There is a reason they call it hardware—it is hard.” 
Tony Fadell, inventor of the iPod
• Require specific equipment, expertise, and distribution networks
• High dependency on numerous external actors and resources
• Scaling difficult
The Hardware venture 
resurgence
Current IT venture trends are… 
– compatible standard platforms
– connectible devices
– 3D printing
– Social media platforms
…similar to trends that contributed to 
formation of the IS discipline
‐ open architectures
‐ Decreasing hardware costs
‐ Compatible standard platforms
Theorizing Enabling Mechanisms 
of IT for hardware ventures
Create
(generate)
Modify
(substitute, 
combine, expand)
Destroy
Preserve
(compress, 
conserve) 
Theorizing Enabling Mechanisms 
of IT for hardware ventures
IT Trend Prospecting Developing Exploiting
3D Printing ‐ Reduces prototyping time
(compression)
‐ Allows for reproduction and improvement 
through third parties
(generation)
‐ Reduces prototyping costs 
(conservation)
Single‐board 
computers
/ microcontrollers
‐ Reduces prototyping time
(compression)
‐ Reduces development time
(compression)
‐ Reduces prototyping costs 
(conservation)
‐ Reduces development costs 
but increases production costs per piece
(conservation)
‐ Provides access to technological / 
human resources
(expansion)
‐ Enables core functionality through coupling 
with other modules
(combination)
Inter‐connectable 
mobile devices
‐ Coupling with other devices is required for use
(combination)
Crowdfunding ‐ Provides access to financial resources; 
replaces other sources
(substitution)
‐ Provides access to financial resources; replaces 
other sources
(substitution)
Social media ‐ Provides access to technological / 
human resources
(expansion)
‐ Allows for reproduction and improvement 
through third parties
(generation)
Cloud computing ‐ Allows for enhancement of functionality
(generation)
‐ Allows for new business models / revenue 
streams
(generation)
‐ Extends functionality through coupling with other 
applications
(combination)
3. The Technology of Innovation
The state of research
Observations
▪ Too many builts, not enough abstraction
– Too much nascent, situated knowledge, not enough abstract, mature knowledge:
▪ what are kinds of innovation systems?
▪ Too many systems that inadvertently claim the name
– Ill‐defined conceptualizations:
▪ what is an innovation system?
▪ Too many systems that do not work as intended
– Lack of prescriptive theorizing:
▪ what are relevant design principles?
Conclusion
1. The design challenge: how can we develop “innovation‐focused” 
information systems that afford (enable and support) innovation 
practices?
2. The knowledge challenge: which “innovation affordances” exist in 
current or future information systems that are relevant or required to 
contribute to the innovation challenge of organizations?
3. The impact challenge: what are the impacts and outcomes from using 
Innovation Systems such that more organizations become more efficient 
or successful in their innovation initiatives?
Problems with current 
“Innovation Systems”
Problems with current 
“Innovation Systems”
▪ Too inefficient
some systems support only limited transactions during 
innovation and are restricted to specific operational 
outcomes, while others do not scale up and rely 
heavily on the expertise of facilitators and 
innovation professionals,
▪ Too affording
some systems can be used for innovation activities 
but also for any other activity and therefore do not 
offer specific support for innovation,
▪ Too limited
some systems support only parts of the innovation 
process without considering dependencies to other 
stages of the process, and
▪ Too rigid
some systems have hard‐to‐customize business 
processes embedded and therefore create inertia or 
unnecessarily complicate required changes.
Our research‐in‐progress: 
Components of a Design Theory
▪ What must innovation systems do?
– Support innovation activities alongside the entire process 
▪ How can they achieve that?
– Provide relevant innovation affordances that build on an 
understanding of
▪ the symbolic expressions of information systems that communicate 
innovation‐relevant functional affordances,
▪ the innovation action goals of users, and
▪ the required abilities to act on the technological objects.
Overview of the Organizational Innovation Process and Relevant Managerial Questions (Dreiling & Recker, 2013)
Affordances Theory
33
Affordances Theory
1. Sufficient & correct information about an 
existing affordance
– (Perceptible) affordance
2. Information suggests a non‐existing 
affordance
– False affordance
3. Affordance exist – even if it is not visible
– Hidden affordance
34
Material Properties and Symbolic Expressions
An Innovation Systems Design 
Theory
Design Theory Propositions
1. Any kind of Innovation System instantiation needs to operate at the scope of 
ideation, incubation, implementation or operation of an innovation.
2. Any kind of Innovation System instantiation will be more effective the more 
scope of operations it encompasses.
3. Any kind of Innovation System instantiation needs to operate at least at the 
macro or the micro level of organizations.
4. Any kind of Innovation System instantiation will be more effective if it 
operates at both the macro and micro level rather than one level only.
5. To provide effective utility, any kind of Innovation System instantiation 
requires the provision of innovation‐relevant functional affordances that 
can be actualized at either the macro or micro level.
6. In any kind of Innovation System instantiation, innovation‐relevant 
functional affordances need to be designed such that required material 
properties are accompanied by suitable symbolic expressions appropriate for 
the intended user groups at the macro or micro level.
Example: MyStarbucksIdea.com
▪ Provides material 
properties relevant to the 
function “Sensing, 
collecting and composing 
ideas”
▪ Operates at a macro, i.e., 
organizational, level.
▪ achieves this function 
through a form that 
comprises material 
properties that allow for 
feedback forms, and ego 
representations of users. 
The chosen symbolic 
expressions involve a blog‐
type news feed with 
additional content rating 
form through Star rating 
expressions.
Implications
▪ Comprehensiveness
– The theory should be able to encompass kind‐
level Innovation System design theories.
▪ Explanation and Prediction
– The theory should be able to account for 
good/bad Innovation System designs and for 
their impact.
▪ Contrast
– The theory should allow for discrimination 
between Innovation Systems and “other‐IS”.
▪ Prescription
– The theory should allow for development of 
Innovation Systems.
Summary
▪ Innovation Systems is a core challenge 
for Australia and its scientific 
community.
▪ The IS field is extremely well‐placed 
to improve socio‐technical innovation 
systems
▪ Opportunity and Demand are provided to
– Develop new, better theory of and for 
innovating
– Contribute rigorous, rich empirical 
evidence
– Develop better technological solutions
Selected Core Research Challenges
▪ Understanding digital innovation
▪ Assisting large organizations to 
innovate with IT
▪ Incorporating the socio‐aspect in 
socio‐technical innovation systems
Prof. Jan Recker, PhD
Information Systems School
Science and Engineering Faculty
Queensland University of Technology
email j.recker@qut.edu.au
web www.janrecker.com
twitter janrecker
Selected bibliography
– Recker, J. and D. Lekse (2016) "A Field Study of 
Spatial Preferences in Enterprise Microblogging", 
Journal of Information Technology (31), forthcoming
– Recker, J., A. Malsbender, and T. Kohlborn (2016) 
"Learning how to Effectively Use Enterprise Social 
Networks as Innovation Platforms", IT Professional 
(17, March/April) forthcoming
– Recker, J. (2016) “Reasoning about Discontinuance 
of Information System Use” Journal of Information 
Technology Theory and Application (17), forthcoming
– von Briel, F., Recker, J. (2016): “The Dual Nature 
of Information Systems in Enabling a New Wave of 
Hardware Ventures” 49th Hawaiian International 
Conference on Systems Sciences, Kuaui, Hawaii: IEEE
– von Briel, F., Recker, J. (conditionally accepted)  
“How an innovative SME failed its online open 
innovation community implementation” MISQ Executive 

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