To remain relevant, even the successful social networks need to evolve. Vertical Social Networks (VSN) are the response of this, satisfying people who are seeking more niched and personalized content. However, this is a highly competitive environment where taking advantage of the first mover advantages is crucial for the future success. This study concerns diffusion of innovations and segmentation according to the technology adoption lifecycle to investigate how a VSN can reach user growth by understanding their current users better. We have built this study upon an explorative case study of a case company operating in the VSN landscape providing their users with an application. Building on extensive literature research, theory, surveys and conducting interviews, differences in user characteristics were identified. Theoretical and empirical evidence was further analyzed based on user behavior and level of satisfaction. Our recommendations suggest that considerations for different phases of the diffusion journey has to be made by targeting the appropriate users as this is vital for satisfying the existing users, and for reaching new ones. / För att bibehålla relevans, måste även de mest framgångsrika sociala nätverken utvecklas. Vertikala Sociala Nätverk (VSN) är svaret på detta, genom att tillfredsställa människor som söker mer nischade och personifierat innehåll. Detta landskap är dock präglat av hög konkurrens där vikten av att vara först på marknaden är avgörande för framtida framgång. Denna studie belyser Innovationsspridning och segmentering enligt Technology Adoption Lifecycle för att undersöka hur ett VSN kan nå användartillväxt genom att förstå sina nuvarande användare bättre. Vi har genomfört en undersökande fallstudie av ett företag inom VSN branschen som bistår sina användare med en applikation. Baserat på tidigare forskning, teori, enkäter och intervjuer identifierades olikheter i karaktärsdrag hos deras användare. Teoretiska och empiriska bevis beträffande olikheter i karaktärsdrag analyserades och diskuterades vidare baserat på användarbeteende och nivå av tillfredsställelse. De föreslagna rekommendationerna innefattar att ett övervägande för olika faser av diffusionsresan måste göras för att tilltala lämpliga målgrupper, då detta är avgörande för att tillfredsställa befintliga användare, och för att nå nya.

This is a study of innovation in Knowledge Intensive Business Services (KIBS) and the impact innovation has on employment. The thesis relies on theories within the fields of "innovation in services", in particular KIBS, and "innovation and employment", taking as its point of departure the taxonomy of product and process innovation. The thesis is based on a discussion of innovation in services with a focus on how innovation in services may be understood and delineated. A long discussion is dedicated to the taxonomy of product and process innovation and the extent to which these concepts may be applicable to innovation in services. The thesis also scrutinises the concept of KIBS and how this can be defined. It further discusses features commonly associated with KIBS firms. The thesis is also rooted in the broader issue of innovation as a creator and destroyer of employment and makes a contribution in applying these issues to service sectors. The empirical part of the thesis builds on a database compiled for the research project, comprised of 967 Swedish KIBS firms. The database covers issues of innovation, employment and characteristics of the firm. The findings indicate that innovation was common in Swedish KIBS firms and that innovations often had an impact on employment. However, the thesis did not detect a straightforward relation between type of innovation (technological process innovation, organisational process innovation, goods product innovation and service product innovation) and the impact on employment. Explanations other than type of innovation have to be considered to analyse the impact of innovation on employment. The thesis further suggests that although innovation in KIBS is common, innovation itself is difficult to conceptualise and delineate.