Consumer‐driven innovation networks and e‐business management systems

This paper examines the use of consumer‐driven innovation networks within the UK food‐retailing industry using qualitative interview‐based research analysed within an economic framework. This perspective revealed that, by exploiting information gathered directly from their customers at point‐of‐sale and data mining, supermarkets are able to identify consumer preferences and co‐ordinate new product development via innovation networks. This has been made possible through their information control of the supply‐chain established through the use of transparent inventory management systems. As a result, supermarkets’ e‐business systems have established new competitive processes in the UK food‐processing and retailing industry and are an example of consumer‐driven innovation networks. The informant‐based qualitative approach also revealed that trust‐based transacting relationships operated differently from those previously described in the literature.