Influence of Regulatory Environment on the Process and Outcomes of Lead User Innovation

Scholars agree on the importance of lead user characteristics of trend and expected benefits on innovation outcomes. Although scholars agree on characteristics, the process and regulatory environment have not been adequately considered to influence innovation outcomes. With its increasing emphasis on product innovation, lead user innovation literature has become distanced from the real-world considerations of regulatory authorities and the innovation process. Understanding the role regulators and innovation processes play on innovation would enhance identification of different groups of lead users and management processes for the fintech sector and by extension success or failure criteria. The sequential mixed-method approach on 321 lead users and eight regulators quantitative responses, 36 lead users, and five qualitative ones provides new insights. SPSS analyzed quantitative data through principal component and regression analysis, while NVivo analyzed the qualitative data. Results showed that the number of partners is significant, while work experience is only significant when integrated with other variables. It enhances the lead-user theory by addressing whether more than trends and benefits determine the success or failure of innovations. The study linked lead-user innovation outcomes to the process of innovation and regulatory authorities, offering new insights.