Creating Value and Innovation in Smes: The Critical Role of Tools for Design Management,

Design management has been widely recognised to play a key role in creating value and innovation. However, the empirical implementation of tools for design management as well as their impact on the customers brand experience is still little investigated, especially in the case of Small and Medium-sized Enterprises (SMEs). This study introduces concepts relevant to customer involvement in the product design process and analyses the case of a pioneer Italian SME that produces luxury furniture. By referring to design workshops, it is identified that crowdsourcing, co-design, co-creation and crowdcrafting as concepts of design management play a critical role for the product innovation process of the company. A standardised questionnaire with workshop participants is used to provide insights into the impacts of these tools for design management on the customer experience. The findings suggest that the analysed approach satisfies customer interest and provides the opportunity to cooperate with other workshop participants in the product development in an inspiring learning atmosphere. Furthermore, workshop participants reported increased brand trust, willingness to purchase and loyalty towards the brand. The study concludes with discussing managerial implications and further research recommendations.