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Journal ArticleDOI

How do large multinational companies implement open innovation

01 Oct 2011-Technovation (Elsevier)-Vol. 31, Iss: 10, pp 586-597
TL;DR: In this paper, a sample of 43 cross-sector firms were reviewed for their OI implementation approaches, and the authors analyzed how firms moved from practising closed to open innovation, classifying the adoption path according to the impetus for the adoption of the OI paradigm and the coordination of the implementation.
About: This article is published in Technovation.The article was published on 2011-10-01. It has received 259 citations till now. The article focuses on the topics: Open innovation & Organizational culture.
Citations
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01 Jan 1998
TL;DR: Tushman and O'Reilly as discussed by the authors define ambidextrous organizations as those having internally consistent structures and an internal operating culture that provides for excelling today, while also planning for the future.
Abstract: Winning Through Innovation: A Practical Guide to Leading Organizational Change and Renewal Tushman, Michael L. and O'Reilly, Charles A., 256 pp., Cambridge, MA: Harvard Business School Press, 1997. Reviewed by Subodh P. Kulkarni, Assistant Professor in School of Business at Howard University, Washington, D.C. Professors Tushman and O'Reilly are well known for their research on innovation and organizational culture. In this book, the authors address a fundamental and interesting issue underlying organizational change and innovation: that of how firms can achieve a balance between stability and change. Businesses are not likely to prosper or survive in the long run without this balance. One of the book's key premises is that short-term success may constrain a firm's ability to change. Short term successes often occur in larger, older, more structured organizations, the source of structural and cultural inertia, which yields success in stable environments and failure when environments change. Therefore, a company's culture holds the key to success (or failure) in the long run. To create and sustain a competitive edge in the long run, companies must learn how to manage incremental and revolutionary change. The key, according to the authors, is to develop an "ambidextrous organization." Tushman and O'Reilly define ambidextrous organizations as those having internally consistent structures and an internal operating culture that provides for excelling today, while also planning for the future. The ambidextrous organizations are, thus, engaged in a balancing act between the management of incremental and revolutionary technologies. Further, these organizations have very different cultures within a company (or even a business unit, for that matter). Vision is vital to ambidextrous organizations, often displaying one vision that hosts multiple cultures in the unit. Of course, a firm can have multiple cultures under one roof by spinning off different business units and managing them independently. This is unacceptable to the authors. It is important to manage them as a whole, or as a system. The thing that holds the system components together is the overarching vision for the technology firm. That is why the book emphasizes strategic intent or competitive vision; because without a common, overarching purpose and set of values, the ambidextrous company just does not hold together. So it is not only different cultures, but different structures, systems, rewards, and competencies that need to be managed together. Drawing on their extensive research, consulting practice, as well as the experiences of managers from several "ambidextrous companies," the authors develop a model that can be used by executives to understand the dynamics of change necessary for long-term success. Toward this end, the book provides several tools for identifying and diagnosing the causes of performance gaps and for developing action plans to attain, and maintain, industry leadership. The book is divided into nine chapters. Chapter 1 is introductory, and it outlines the concepts underlying the authors' model. Chapter 2 highlights the significance of the concepts introduced earlier in the context of global change and innovation. Chapters 3 through 6 focus on the building of capabilities, competencies, and cultures that can generate a sustainable competitive advantage. Chapter 4 develops a model that highlights the congruence among an organization's strategies and four distinct factors: critical tasks, culture, structure, and people. A lack of congruence often results in performance gaps. Chapter 5 outlines how organizational culture-the selecting, socializing, and rewarding of workers consistent with the company's goals-promotes this congruence. It also illustrates how to assesses an organization's culture. Chapters 7 and 8 stand out in particular because in these chapters the authors introduce techniques for building an ambidextrous organization. …

886 citations

Journal ArticleDOI
TL;DR: The empirical research was conducted on 175 small to medium enterprises in the United Kingdom, suggesting that the knowledge-driven approach is the strongest determinant, leading to a preference for informal inbound OI modes.
Abstract: Purpose This paper aims to investigate three key factors (i.e. cognitive dimensions, the knowledge-driven approach and absorptive capacity) that are likely to determine the preference for informal inbound open innovation (OI) modes, through the lens of the OI model and knowledge-based view (KBV). The innovation literature has differentiated these collaborations into informal inbound OI entry modes and formal inbound OI modes, offering an advocative and conceptual view. However, empirical studies on these collaborations are still limited. Design/methodology/approach Building on the above-mentioned theoretical framework, the empirical research was performed in two stages. First, data were collected via a closed-ended questionnaire distributed to all the participants from the sample by e-mail. Second, to assess the hypotheses, structural equation modelling (SEM) via IBM® SPSS® Amos 20 was applied. Findings The empirical research was conducted on 175 small to medium enterprises in the United Kingdom, suggesting that the knowledge-driven approach is the strongest determinant, leading to a preference for informal inbound OI modes. The findings were obtained using SEM and are discussed in line with the theoretical framework. Research limitations/implications Owing to the chosen context and sector of the empirical analysis, the research results may lack generalisability. Hence, new studies are proposed. Practical implications The paper includes implications for the development of informal inbound OI led by knowledge-driven approach. Originality/value This paper offers an empirical research to investigate knowledge-driven preferences in informal inbound OI modes.

260 citations


Cites background from "How do large multinational companie..."

  • ...Several scholars have differentiated the adoption of the OI model between small to medium enterprises (SMEs) and corporate enterprises (Mina et al., 2014; Mortara and Minshall, 2011; Nieto and Santamaría, 2010)....

    [...]

  • ...Open and interactive collaborations generate a vibrant flow of external or internal knowledge (Chesbrough, 2003; Chesbrough and Bogers, 2014) within different contexts (Nieto and Santamaría, 2010; Mortara and Minshall, 2011; Bresciani et al., 2013; Mina et al., 2014)....

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  • ...…40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Journal of Know ledge M anagem ent to be flexible and adopt their internal organization to continual market changes (Del Giudice et al., 2016; Popa et al., 2016; Mina et al., 2014; Mortara and Minshall, 2011; Nieto and Santamaría, 2010)....

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  • ...…important than the accumulation of data (Seufert et al., 1999), because it positively affects the knowledge recombination for applied innovation (Chesbrough, 2003; Chesbrough and Bogers, 2014; Mina et al., 2014; Mortara and Minshall, 2011; Nieto and Santamaría, 2010; Soto-Acosta et al., 2016b)....

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors define dynamic capability as the potential to systematically solve problems, enabled by its propensity to sense opportunities and threats, to make timely decisions, and to implement strategic decisions and changes efficiently, thereby ensuring the right direction.

260 citations

Journal ArticleDOI
TL;DR: In this paper, the authors empirically assessed the theoretical assertion that the not-invented-here (NIH) syndrome and not-shared-here syndrome have negative impacts on the adoption of inbound and outbound open innovation.

253 citations

Posted Content
TL;DR: In this paper, the authors identify four specific challenges and coping strategies of individuals engaged in open innovation and propose a range of open innovation practices organizations can implement to better equip their staff to undertake effective external engagement.
Abstract: Open innovation often requires wholesale changes to the nature of R&D. Yet, academic research and managerial practice have paid little attention to the challenges that individuals face in the daily pursuit of open innovation. As a result, there is little understanding of how individuals cope with open innovation, and which organizational practices can support them in this role. Drawing on the experiences of R&D professionals, we identify four specific challenges and coping strategies of individuals engaged in open innovation and propose a range of open innovation practices organizations can implement to better equip their staff to undertake effective external engagement.

173 citations


Cites background from "How do large multinational companie..."

  • ...stalled due to internal barriers.(5) Thus, for many organizations, the promise of open innovation has not been realized....

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References
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01 Oct 1984
TL;DR: In this article, buku ini mencakup lebih dari 50 studi kasus, memberikan perhatian untuk analisis kuantitatif, membahas lebah lengkap penggunaan desain metode campuran penelitian, and termasuk wawasan metodologi baru.
Abstract: Buku ini menyediakan sebuah portal lengkap untuk dunia penelitian studi kasus, buku ini menawarkan cakupan yang luas dari desain dan penggunaan metode studi kasus sebagai alat penelitian yang valid. Dalam buku ini mencakup lebih dari 50 studi kasus, memberikan perhatian untuk analisis kuantitatif, membahas lebih lengkap penggunaan desain metode campuran penelitian, dan termasuk wawasan metodologi baru.

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01 Feb 2009
TL;DR: In this paper, the authors describe the process of inducting theory using case studies from specifying the research questions to reaching closure, which is a process similar to hypothesis-testing research.
Abstract: Building Theories From Case Study Research - This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.

40,005 citations

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TL;DR: In this paper, the authors argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities.
Abstract: In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures. **

31,623 citations


"How do large multinational companie..." refers background in this paper

  • ...The evidence also showed that excess outsourcing reduces performance because, as highlighted by Cohen and Levinthal (1990), the depletion of internal competencies compromises absorptive capacity....

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Journal ArticleDOI
TL;DR: In this paper, the authors define a leadership event as a perceived segment of action whose meaning is created by the interactions of actors involved in producing it, and present a set of innovative methods for capturing and analyzing these contextually driven processes.
Abstract: �Traditional, hierarchical views of leadership are less and less useful given the complexities of our modern world. Leadership theory must transition to new perspectives that account for the complex adaptive needs of organizations. In this paper, we propose that leadership (as opposed to leaders) can be seen as a complex dynamic process that emerges in the interactive “spaces between” people and ideas. That is, leadership is a dynamic that transcends the capabilities of individuals alone; it is the product of interaction, tension, and exchange rules governing changes in perceptions and understanding. We label this a dynamic of adaptive leadership, and we show how this dynamic provides important insights about the nature of leadership and its outcomes in organizational fields. We define a leadership event as a perceived segment of action whose meaning is created by the interactions of actors involved in producing it, and we present a set of innovative methods for capturing and analyzing these contextually driven processes. We provide theoretical and practical implications of these ideas for organizational behavior and organization and management theory.

22,673 citations

Book
01 Jan 1994
TL;DR: The eagerly anticipated fourth edition of the title that pioneered the comparison of qualitative, quantitative, and mixed methods research design, John W, Creswell as discussed by the authors, includes a preliminary consideration of philosophical assumptions, a review of the literature, an assessment of the use of theory in research approaches, and reflections about the importance writing and ethics in scholarly inquiry.
Abstract: The eagerly anticipated fourth edition of the title that pioneered the comparison of qualitative, quantitative, and mixed methods research design. for all three approaches, John W, Creswell includes a preliminary consideration of philosophical assumptions, a review of the literature, an assessment of the use of theory in research approaches, and reflections about the importance writing and ethics in scholarly inquiry.

20,949 citations

Trending Questions (1)
What kind of exercise is required as a intermediate person bridging between Entrepreneur and large companies in open innovation?

The paper does not provide specific information about the kind of exercise required as an intermediate person bridging between entrepreneurs and large companies in open innovation.