Involvement of “Ostensible Customers” in really new innovation: Failure of a start-up

In contrast to a large body of literature showing the positive impact of customer involvement in really new innovation, this article portrays a failure. Using an inductive research design to examine data collected over four years, the authors analyze the case of a start-up that produced and marketed hi-tech equipment. Although the start-up firm was initially successful, it faced difficulties under the influence of “ostensible customers” who provided insights that were counterproductive in the process of really new innovation. The start-up experienced a downward spiral that ended in product, business, and organizational failure.