Organizing form, innovation and performance: Lessons from the nascent civilian drone industry

Abstract: This paper explores how organizing form influences innovation performance in nascent markets. By studying two civilian drone ventures and 3 industry-wide innovations, we contribute a theoretical framework that compares the user community v. firm organizing forms. A core insight is the flexibility of firm-based organizing. Firms have a broad repertoire of innovation processes that flexibly fit the wide range of innovations occurring in nascent markets. We also add problem finding, parallel and serial experimentation, hybrid problem solving, and speed to the comparative literature on organizing form. Overall, we indicate how organizing form and problem types jointly shape innovation performance in nascent markets. A further core insight is that rapidly and accurately reducing uncertainty is at the heart of the advantage of firm-based organizing for innovation.