Measuring Front-End of Innovation Performance: An Abstract

Abstract

This research presents the results of a preliminary, though thorough, scale development and validation effort that attempts to establish a subjective measure of front-end of innovation (FEI) performance. (By subjective, the authors mean a scale meant for key respondents such as innovation managers.) The authors offer two separate multi-item scales that are effective in capturing FEI performance. The first scale (FEI-1) is a global assessment measure of overall FEI performance. The second scale (FEI-2) is an attribute-level assessment of FEI performance that focuses on specific FEI outcomes as a gauge of performance. The inspiration to provide two distinct scales arises from the goal to provide scholars with options as they explore varying FEI phenomenon. To elaborate on each scale, the FEI-1 scale reflects a manager’s general perception as it relates to their firm’s overall FEI performance. On the other hand, the FEI-2 scale captures a manager’s outcome specific performance ratings of various attributes deemed essential to measure a firm’s FEI performance; like the preciseness of product concept definitions, financial feasibility of product concepts, etc. The authors used a survey with a panel of key respondents (i.e., managers and decision makers) to collect data. The sampling frame includes individuals that are directly involved in innovation decision-making. One hundred and seventy-eight respondents qualified based on a screening criteria and were presented with the survey instrument. Each scale employs seven-point Likert type items (strongly agree-strongly disagree). Both scales begin with the phrase: “Please select the appropriate response in the context of your innovation activities, especially its early stages (also referred to as the front-end of innovation).” The FEI-1 scale includes five items (1. The front-end results of new product projects I’ve led have been really good, 2. Front-end idea screening is considered a strength here, 3. Front-end concept development processes are considered a strength here 4. When I think about our NPD processes, the front-end activities are excellent, 5. In our front-end process, we excel at producing solid product concepts for future development.) The FEI-2 scale has four items (1. Product strategies that result from our front-end process are clear, 2. Our front-end idea screening produces sharp product definitions, 3. Product concepts that we recommend for further development are financially feasible, 4. In our front-end process, we excel at producing clear product definitions.) The scales are ultimately intended to aid scholars looking to further examine FEI performance phenomenon in a manner that allows them to offer normative recommendations to managers.