Fuzzy Front End and Commercialization: Cross-Cultural Differences, Similarities, and Paradoxes in Innovation Strategies and Practices

Abstract

Research on innovation processes suggests that the most significant activities and decisions are made in the initiation phase, i.e., what is often termed as the “fuzzy front-end” (FFE) of innovation, and at the finalization phase, i.e., commercialization. If these assumptions are valid, one would expect that the success of Asian companies would reflect these factors. This paper presents a comparison and analysis of innovation practices in a sample of 473 Nordic, Asian, and Euro-American innovative manufacturing firms. In terms of the FFE, the analyses indicate that Asian firms are more extrovert, since, in their dominant strategies and practices, they emphasize participation in industry networks and use of external experts. In addition, they give high priority to interaction with key suppliers and customers. By comparison, Nordic and Euro-American manufacturing firms are more introvert. In commercialization, the similarities and differences are more diverse. All three categories of firms have in common that they have adopted a strategic approach to commercialization, but they differ in a number of other aspects. In the final section, the findings are discussed, and suggestions for further research are made.