University:
Massachusetts Institute of Technology
Course:
15.501/516 | Accounting
Academic year:

2023
Views:

122

Pages:

9
Author:

lamernicotinism

Managing the Innovation Process Inter-Organizational Networks Overview • Take-Away • Required Readings • Supplemental Readings • Caveats 2 Take-Away • Innovation may benefit from a more open process • Innovation can be sparked by knowledge brokers • Innovation often resides in networks of firms • Innovation is one product of strategic alliances 3 (Wolpert, 2002) • “Breaking out of the innovation box” • Open Innovation Will Be More Sustainable In Long Run (investment in innovation follows boom-bust cycle) • Network Of Intermediaries (third-party companies that facilitate exchange of information) • Intermediary Candidates (IBM alphaWorks, Xerox alphaAvenue, baby boomer retirees) 4 (Hargadon, 1998) • “Firms as knowledge brokers: Lessons in pursuing continuous innovation” • Knowledge Brokers (firms that span multiple markets and technology domains) • Example Firms (IDEO, Design Continuum, Andersen, McKinsey & Co., HP, Boeing, Edison & Co., Elmer Sperry) • Innovation Activities (access, learning, linking, implementation) 5 (Ahuja, 2000) • “Collaboration networks, structural holes, and innovation: A longitudinal study” • Innovation Through Patents (international chemicals industry) • Direct/Indirect Ties Positively Related to Innovation (source of resources and information for firm) • Structural Holes Negatively Related to Innovation (benefits of trust outweigh benefits of brokerage) 6 (Powell, et al., 1996) • “Interorganizational collaboration and the locus of innovation: Networks of learning in biotechnology” • Locus Of Innovation Resides In Networks Rather Than Firms (biotechnology industry) • Network Examples (R&D, outside investors, clinical trials/evaluation, manufacturing, marketing/licensing, supply/distribution, investment/join venture) • Experience And Centrality In Network Related To Success (relevant knowledge is widely distributed – outside of firm) 7 (Stuart, 1998) • “Network positions and propensities to collaborate: An investigation of strategic alliance formation in a hightechnology industry” • Positions Of Firm Associated With Propensity to Collaborate (high-technology industry) • Strategic Alliances (contractual asset pooling or resource exchange agreements) • Formation Of Alliances Predicted By: (crowding – technological segments with many active firms) (prestige – track record of developing seminal inventions) 8 Caveats • What are the incentives for firms to open innovation? • When do knowledge brokers obstruct innovation? • How do firms know which network ties will help? • Are benefits from strategic alliances always equitable? 9