The evolution of meanings. An empirical analysis in the social network industry

Several theoretical frameworks have been developed to describe the dynamics driving technological innovation, although little or no attention has been given to this issue in the innovation of meaning domain. The purpose of this research is to address the research gap emerging when looking at the evolution of the innovation of meaning in comparison to technological (functional) innovation. Some research questions emerged, focusing on the dynamics driving paradigm shifts in product meanings, the innovation strategies adopted by the market players, first-mover advantages and propensity to innovation of both incumbents and new entrants. Empirical evidence for the proposed model is derived through a 13-years-long analysis of the social network industry: a young, highly innovative industry where innovation leverages both on introducing novel product meanings and functionalities. The analysis encompassed the subdivision of social media platform innovations into a series of innovation clusters, groups of interrelated innovations which functionalities and meanings are pertinent to one another and should be observed together. Findings of the analysis encompass the existence of a recurring pattern of alternation between radical and incremental innovation of meaning, similarly to cycles observed in technological innovation. Resembling the theory of technological S-curves, cycles comprising both meaning and functional innovation appear shorter in time and lacking the stall of the maturity phase, normally occurring before a discontinuity. The presence of both incremental and radical innovation can although take place in different ways. Three different competitive approaches have been recognized through the observation of the twelve innovation clusters: (1) design-oriented; (2) technology-oriented; (3) balanced; the existence of these approaches confirms what had been previously stated by innovation management scholars. Another relevant finding encompasses the impact of first-mover strategies on the competitive setting: clusters with a design-driven first-mover all developed design-oriented competitive approaches, whereas clusters which first-mover introduced a technology epiphany all turned into a balanced setting. Furthermore, empirical evidence from this research supports the theory of first-mover advantages on both the functional and semantic domain, it is worth noticing how the first-mover of all design-driven clusters has held its innovation leadership position. This consideration supports the belief that functional advancements are easier to imitate compared to meanings and suggest that, once a new meaning is introduced to the market, the reworks performed on it by other players will be more incremental than reworks on functional advancements. A firm-level of analysis was then performed, showing how prominent innovation leaders are present across most (if not all) the innovation clusters identified. Finally, one serial imitator was detected among the market players, always occupying the incremental side of the innovation matrix and proving its incapability to understand new meanings – consequently plainly imitating them – and to leverage on functional advancements to unveil latent innovative opportunities. Empirical evidence for the proposed model is derived through a 13-years-long analysis of the social network industry: a young, highly innovative industry where innovation leverages both on introducing novel product meanings and functionalities. The analysis encompassed the subdivision of social media platform innovations into a series of innovation clusters, groups of interrelated innovations which functionalities and meanings are pertinent to one another and should be observed together. Findings of the analysis encompass the existence of a recurring pattern of alternation between radical and incremental innovation of meaning, similarly to cycles observed in technological innovation. Resembling the theory of technological S-curves, cycles comprising both meaning and functional innovation appear shorter in time and lacking the stall of the maturity phase, normally occurring before a discontinuity. The presence of both incremental and radical innovation can although take place in different ways. Three different competitive approaches have been recognized through the observation of the twelve innovation clusters: (1) design-oriented; (2) technology-oriented; (3) balanced; the existence of these approaches confirms what had been previously stated by several scholars in innovation management. Another relevant finding encompasses the impact of first-mover strategies on the competitive setting: clusters with a design-driven first-mover all developed design-oriented competitive approaches, whereas clusters which first-mover introduced a technology epiphany all turned into a balanced setting. Furthermore, empirical evidence from this research supports the theory of first-mover advantages on both the functional and semantic domain, it is worth noticing how the first-mover of all design-driven clusters has held its innovation leadership position. This consideration supports the belief that functional advancements are easier to imitate compared to meanings and suggest that, once a new meaning is introduced to the market, the reworks performed on it by other players will be more incremental than reworks on functional advancements. A firm-level of analysis was then performed, showing how prominent innovation leaders are present across most (if not all) the innovation clusters identified. Finally, one serial imitator was detected among the market players, always occupying the incremental side of the innovation matrix and proving its incapability to understand new meanings, consequently plainly imitating them, and to leverage on functional advancements to unveil latent innovative opportunities.

In letteratura sono stati sviluppati numerosi modelli teorici per descrivere le dinamiche che governano l’innovazione tecnologica. Nonostante ciò, le attenzioni prestate all’innovazione di significato in questo ambito sono poche o nulle. L’obiettivo di questa ricerca è di colmare la lacuna nella letteratura relativa all’evoluzione dell’innovazione di significato a confronto con quella tecnologica (funzionale). Da questo studio sono emerse numerose domande di ricerca, incentrate sulle dinamiche che modificano il paradigma semantico di prodotto, le strategie di innovazione adottate dagli attori sul mercato, i vantaggi dei first-mover e la propensione all’innovazione delle aziende in carica e dei nuovi operatori entranti sul mercato. L’evidenza empirica del modello proposto viene ricavata tramite un’analisi sull’arco di 13 anni nel settore dei social network: una realtà giovane e altamente innovativa, dove l’innovazione fa leva sia sul progresso funzionale, sia sull’innovazione di significato. L’analisi ha richiesto la suddivisione delle innovazioni nelle piattaforme di social networking in una serie di cluster d’innovazione, “gruppi” di innovazioni interdipendenti le cui funzionalità e significati sono in relazione e richiedono quindi di essere osservate insieme. I risultati dell’analisi includono l’esistenza di una configurazione ricorrente, che vede verificarsi l’alternanza tra innovazione radicale ed incrementale del significato, analogamente a quanto accade nell’innovazione puramente tecnologica. Questi cicli ricordano le curve ad S analizzate in letteratura, seppur avendo durata inferiore e non mostrando presenza del periodo di stallo nella fase di maturità che normalmente si verifica prima di una discontinuità. La presenza di innovazioni sia radicali che incrementali può assumere però configurazioni diverse. L’osservazione dei dodici cluster di innovazione ha portato a riconoscere tre diversi approcci: (1) l’approccio design-oriented; (2) l’approccio technology-oriented; (3) l’approccio bilanciato; la loro esistenza conferma ciò che era stato precedentemente detto nella letteratura della gestione dell’innovazione. Un altro risultato interessante è rappresentato dall’impatto delle strategie dei first-mover nello scenario competitivo: i cluster aventi un first-mover design-driven sviluppano tutti un approccio competitivo design-oriented, mentre i cluster il cui first-mover ha esordito sul mercato tramite un’epifania tecnologica hanno adottato tutti una configurazione bilanciata. L’evidenza empirica di questa ricerca supporta inoltre la teoria del vantaggio competitivo sia sul piano funzionale, sia su quello semantico. Vale la pena di notare che in tutti i cluster design-driven, il cui first-mover ha esordito tramite un’innovazione radicale di significato, la leadership in termini di innovatività non ha subito variazioni. Questa considerazione supporta l’idea che i miglioramenti funzionali siano più facilmente imitabili rispetto a quelli di significato e suggerisce come, una volta introdotto un nuovo significato sul mercato, le rielaborazioni su di esso da parte di altri operatori siano più incrementali di quelle effettuate sui miglioramenti a livello funzionale. In un secondo momento è stata effettuata avanti un’analisi a livello di azienda, che ha mostrato come i leader innovativi più importanti sono presenti in tutti (o quasi) i cluster di innovazione identificati. Infine è stato identificato un imitatore seriale tra i diversi operatori di mercato, occupante sempre il lato incrementale della matrice dell’innovazione, il quale ha dimostrato la sua costante incapacità di comprensione di nuovi significati di prodotto – che lo ha di conseguenza portato ad imitarli semplicemente – e a fare leva sui miglioramenti funzionali per svelare nuove opportunità di innovazione.