Effect of space creativity and social climate on business model innovation in Do-it-Yourself laboratories: the mediating role of opportunity discovery in the case of Singapore

Abstract

ABSTRACT In the recent decade, Do-it-Yourself laboratories (DIY labs) have proliferated in many cities across developing and developed economies. Although these labs play an important role in the innovation ecosystems, there is limited empirical research on if and how the creativity engendered in DIY labs affects innovation outcome. Despite the frequent association of DIY lab climate of sharing and cooperation with innovation, the link between them has been understudied. There is a lack of framework explaining the mechanism that entrepreneurial members employ at DIY labs to optimise their innovation outcome. The purpose of our research is to study the link between DIY lab characteristics (space creativity and social climate) and innovation outcome, particularly business model innovation (BMI). We also investigate if opportunity discovery (OD) is the key process underlying the link. Based on our empirical study of 164 start-up projects incubated at seven DIY labs in Singapore, we demonstrate that the space creativity of DIY labs has a significantly positive relationship with BMI and that the OD process partially mediates the relationship. Our findings also establish that while the social climate of DIY labs has no direct effect on BMI, the OD process fully mediates the link between them.