Skip to main content Accessibility help
×
Hostname: page-component-8448b6f56d-cfpbc Total loading time: 0 Render date: 2024-04-19T22:14:32.166Z Has data issue: false hasContentIssue false

Chapter 3 - Open Innovation and Open Strategy: Epistemic and Design Dimensions

from Part I - The Concept of Open Strategy

Published online by Cambridge University Press:  13 July 2019

David Seidl
Affiliation:
Universität Zürich
Georg von Krogh
Affiliation:
Swiss Federal University (ETH), Zürich
Richard Whittington
Affiliation:
Saïd Business School, University of Oxford
Get access

Summary

The past decade has seen a multiplication of theory and research on Open Innovation as a set of practices by which firms bring novel ideas to the market (Chesbrough, 2003; Gassmann et al., 2010). In the early stage of the work on Open Innovation, research was primarily driven by a focus on practical approaches and critically important insights into how firms went about exchanging knowledge and ideas with the outside world. Lately, however, studies of Open Innovation have benefited greatly from building on the knowledge-based theory of the firm (Cohen & Levinthal, 1990; Kogut & Zander, 1992; Nonaka et al., 2006), which draws attention to the sources of innovation-relevant knowledge and the designs of mechanisms to tap and replenish such sources.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Afuah, A., & Tucci, C. L. (2012). Crowdsourcing as a solution to distant search. Academy of Management Review, 37(3), 355375.Google Scholar
Alexy, O., George, G., & Salter, A. J. (2013). Cui Bono? The selective revealing of knowledge and its implications for innovative activity. Academy of Management Review, 38(2), 270291.CrossRefGoogle Scholar
Alexy, O., West, J., Klapper, H., & Reitzig, M. (2018). Surrendering control to gain advantage: Reconciling openness and the resource-based view of the firm. Strategic Management Journal, 39(6), 17041727.Google Scholar
Appleyard, M. M., & Chesbrough, H. W. (2017). The dynamics of open strategy: From adoption to reversion. Long Range Planning, 50(3), 310321.Google Scholar
Ashmos, D. P., Duchon, D., & McDaniel, R. R. (1998). Participation in strategic decision making: The role of organizational predisposition and issue interpretation. Decision Sciences, 29(1), 2551.CrossRefGoogle Scholar
Baer, M., Dirks, K. T., & Nickerson, J. A. (2013). Microfoundations of strategic problem formulation. Strategic Management Journal, 34(2), 197214.Google Scholar
Baldwin, C. Y., & Clark, K. B. (2006). The architecture of participation: Does code architecture mitigate free riding in the open source development model? Management Science, 52(7), 11161127.Google Scholar
Baptista, J., Wilson, A. D., Galliers, R. D., & Bynghall, S. (2017). Social media and the emergence of reflexiveness as a new capability for open strategy. Long Range Planning, 50(3), 322336.Google Scholar
Berchicci, L. (2013). Towards an open R&D system: Internal R&D investment, external knowledge acquisition and innovative performance. Research Policy, 42(1), 117127.Google Scholar
Birkinshaw, J. (2017). Reflections on open strategy. Long Range Planning, 50(3), 423426.Google Scholar
Bjelland, O. M., & Wood, R. C. (2008). An inside view of IBM’s “Innovation Jam.” MIT Sloan Management Review, 50(1), 3240.Google Scholar
Bogers, M., Afuah, A., & Bastian, B. (2010). Users as innovators: A review, critique, and future research directions. Journal of Management, 36(4), 857875.Google Scholar
Bogers, M., Chesbrough, H., & Moedas, C. (2018). Open innovation: Research, practices, and policies. California Management Review, 60 (2), 516.Google Scholar
Boudreau, K. J., & Lakhani, K. R. (2009). How to manage outside innovation. MIT Sloan Management Review, 50(4), 6976.Google Scholar
Brunswicker, S., & Chesbrough, H. (2018). The adoption of open innovation in large firms. Research-Technology Management, 61(1), 3545.Google Scholar
Buysse, K., & Verbeke, A. (2003). Proactive environmental strategies: A stakeholder management perspective. Strategic Management Journal, 24(5), 453470.Google Scholar
Cassiman, B., & Valentini, G. (2016). Open innovation: Are inbound and outbound knowledge flows really complementary? Strategic Management Journal, 37(6), 10341046.Google Scholar
Chatterji, A. K., & Fabrizio, K. R. (2014). Using users: When does external knowledge enhance corporate product innovation? Strategic Management Journal, 35(10), 14271445.Google Scholar
Chesbrough, H. (2003). Open innovation: The new imperative for creating and profiting from technology. Boston: Harvard Business School Press.Google Scholar
Chesbrough, H., & Brunswicker, S. (2014). A fad or a phenomenon? The adoption of open innovation practices in large firms. Research Technology Management, 57(2), 1625.Google Scholar
Chesbrough, H., & Crowther, A. K. (2006). Beyond high tech: Early adopters of open innovation in other industries. R&D Management, 36(3), 229236.Google Scholar
Chiaroni, D., Chiesa, V., & Frattini, F. (2011). The open innovation journey: How firms dynamically implement the emerging innovation management paradigm. Technovation, 31(1), 3443.Google Scholar
Clarke, A., & Fuller, M. (2010). Collaborative strategic management: Strategy formulation and implementation by multi-organizational cross-sector social partnerships. Journal of Business Ethics, 94(S1), 85101.Google Scholar
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128152.Google Scholar
Colombo, M. G., Rabbiosi, L., & Reichstein, T. (2011). Organizing for external knowledge sourcing. European Management Review, 8(3), 111116.Google Scholar
Criado, J. I., Sandoval-Almazan, R., & Gil-Garcia, J. R. (2013). Government innovation through social media. Government Information Quarterly, 30(4), 319326.CrossRefGoogle Scholar
Criscuolo, P., Laursen, K., Reichstein, T., & Salter, A. (2018). Winning combinations: Search strategies and innovativeness in the UK. Industry and Innovation, 25(2), 115143.Google Scholar
Cui, A. S., & Wu, F. (2016). Utilizing customer knowledge in innovation: Antecedents and impact of customer involvement on new product performance. Journal of the Academy of Marketing Science, 44(4), 516538.Google Scholar
Di Gangi, P. M., & Wasko, M. (2009). Steal my idea! Organizational adoption of user innovations from a user innovation community: A case study of Dell IdeaStorm. Decision Support Systems, 48(1), 303312.Google Scholar
Dobusch, L., Dobusch, L., & Müller-Seitz, G. (2017a). Closing for the benefit of openness? The case of Wikimedia’s open strategy process. Organization Studies. Published online December 21, 2017, 128.Google Scholar
Dobusch, L., Kremser, W., Seidl, D., & Werle, F. (2017b). A communication perspective on open strategy and open innovation. Managementforschung, 27(1), 525.Google Scholar
Dodgson, M., Gann, D., & Salter, A. (2006). The role of technology in the shift towards open innovation: The case of Procter & Gamble. R&D Management, 36(3), 333346.Google Scholar
Dyer, J. H., & Nobeoka, K. (2000). Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal, 21(3), 345367.Google Scholar
Easterby-Smith, M., Lyles, M. A., & Tsang, E. W. K. (2008). Inter-Organizational knowledge transfer: Current themes and future prospects. Journal of Management Studies, 45(4), 677690.CrossRefGoogle Scholar
Enkel, E., Gassmann, O., & Chesbrough, H. (2009). Open R&D and open innovation: Exploring the phenomenon. R&D Management, 39(4), 311316.Google Scholar
Faraj, S., von Krogh, G., Monteiro, E., & Lakhani, K. R. (2016). Special section introduction – Online community as space for knowledge flows. Information Systems Research, 27(4), 668684.Google Scholar
Felin, T., & Zenger, T. R. (2014). Closed or open innovation? Problem solving and the governance choice. Research Policy, 43(5), 914925.Google Scholar
Floyd, S., & Wooldridge, B. (2000). Building strategy from the middle: Reconceptualizing strategy process. Thousand Oaks, CA: Sage Publications.Google Scholar
Foss, N. J., Laursen, K., & Pedersen, T. (2011). Linking customer interaction and innovation: The mediating role of new organizational practices. Organization Science, 22(4), 980999.Google Scholar
Foss, N. J., Lyngsie, J., & Zahra, S. A. (2013). The role of external knowledge sources and organizational design in the process of opportunity exploitation. Strategic Management Journal, 34(12), 14531471.CrossRefGoogle Scholar
Franke, N., & Shah, S. (2003). How communities support innovative activities: An exploration of assistance and sharing among end-users. Research Policy, 32(1), 157178.Google Scholar
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge: Cambridge University Press.Google Scholar
Gambardella, A., Raasch, C., & von Hippel, E. (2017). The user innovation paradigm: Impacts on markets and welfare. Management Science, 63(5), 14501468.Google Scholar
Garriga, H., von Krogh, G., & Spaeth, S. (2013). How constraints and knowledge impact open innovation. Strategic Management Journal, 34(9), 11341144.CrossRefGoogle Scholar
Gassmann, O., Enkel, E., & Chesbrough, H. (2010). The future of open innovation. R&D Management, 40(3), 213221.Google Scholar
Gawer, A., & Phillips, N. (2013). Institutional work as logics shift: The case of Intel’s transformation to platform leader. Organization Studies, 34(8), 10351071.Google Scholar
Gegenhuber, T., & Dobusch, L. (2017). Making an impression through openness: How open strategy-making practices change in the evolution of new ventures. Long Range Planning, 50(3), 337354.Google Scholar
Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17, 109122.Google Scholar
Grimpe, C., & Sofka, W. (2009). Search patterns and absorptive capacity: Low- and high-technology sectors in European countries. Research Policy, 38(3), 495506.Google Scholar
Groen, A. J., & Linton, J. D. (2010). Is open innovation a field of study or a communication barrier to theory development? Technovation, 30(11–12), 554.Google Scholar
Haefliger, S., Monteiro, E., Foray, D., & von Krogh, G. (2011). Social software and strategy. Long Range Planning, 44(5–6), 297316.Google Scholar
Haefliger, S., von Krogh, G. F., & Spaeth, S. (2008). Code reuse in open source software development. Management Science, 54(1), 180193.CrossRefGoogle Scholar
Hamel, G., & Prahalad, C. K. (1991). Corporate imagination and expeditionary marketing. Harvard Business Review, 69(4), 8192.Google Scholar
Hautz, J., Seidl, D., & Whittington, R. (2017). Open strategy: Dimensions, dilemmas, dynamics. Long Range Planning, 50(3), 298309.CrossRefGoogle Scholar
Hillman, A. J., & Hitt, M. A. (1999). Corporate political strategy formulation: A model of approach, participation, and strategy decisions. Academy of Management Review, 24(4), 825842.Google Scholar
Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: What’s the bottom line? Strategic Management Journal, 22(2), 125139.Google Scholar
Jeppesen, L. B., & Lakhani, K. R. (2010). Marginality and problem-solving effectiveness in broadcast search. Organization Science, 21(5), 10161033.Google Scholar
Katila, R., & Ahuja, G. (2002). Something old, something new: A longitudinal study of search behavior and new product introduction. Academy of Management Journal, 45(6), 11831194.Google Scholar
Kellogg, K. C., Orlikowski, W. J., & Yates, J. (2006). Life in the trading zone: Structuring coordination across boundaries in postbureaucratic organizations. Organization Science, 17(1), 2244.Google Scholar
Kim, B., Kim, E., & Foss, N. J. (2016). Balancing absorptive capacity and inbound open innovation for sustained innovative performance: An attention-based view. European Management Journal, 34(1), 8090.Google Scholar
Knight, K. E. (1967). A descriptive model of the intra-firm innovation process. The Journal of Business, 40(4), 478496.Google Scholar
Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3(3), 383397.Google Scholar
Lakhani, K. R., & von Hippel, E. (2003). How open source software works: “Free” user-to-user assistance. Research Policy, 32(6), 923943.Google Scholar
Langen, M., & Kammergruber, W. C. (2013). Collaborative trend scouting and roadmapping. In 2013 International Conference on Engineering, Technology and Innovation (ICE) & IEEE International Technology Management Conference (pp. 110). IEEE.Google Scholar
Laursen, K., & Salter, A. (2006). Open for innovation: The role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal, 27(2), 131150.CrossRefGoogle Scholar
Laursen, K., & Salter, A. (2014). The paradox of openness: Appropriability, external search and collaboration. Research Policy, 43(5), 867878.Google Scholar
Lee, S. M., Hwang, T., & Choi, D. (2012). Open innovation in the public sector of leading countries. Management Decision, 50(1), 147162.CrossRefGoogle Scholar
Liebeskind, J. P. (1996). Knowledge, strategy, and the theory of the firm. Strategic Management Journal, 17, 93107.CrossRefGoogle Scholar
Lifshitz-Assaf, H. (2017). Dismantling knowledge boundaries at NASA: The critical role of professional identity in open innovation. Administrative Science Quarterly, 63(4), 746782.Google Scholar
Lombe, M., & Sherraden, M. (2008). Inclusion in the policy process: An agenda for participation of the marginalized. Journal of Policy Practice, 7(2–3), 199213.CrossRefGoogle Scholar
Luedicke, M. K., Husemann, K. C., Furnari, S., & Ladstaetter, F. (2017). Radically open strategizing: How the premium cola collective takes open strategy to the extreme. Long Range Planning, 50(3), 371384.CrossRefGoogle Scholar
MacCormack, A., Rusnak, J., & Baldwin, C. Y. (2006). Exploring the structure of complex software designs: An empirical study of open source and proprietary code. Management Science, 52(7), 10151030.Google Scholar
Mack, D. Z., & Szulanski, G. (2017). Opening up: How centralization affects participation and inclusion in strategy making. Long Range Planning, 50(3), 385396.Google Scholar
Malhotra, A., Majchrzak, A., & Niemiec, R. M. (2017). Using public crowds for open strategy formulation: Mitigating the risks of knowledge gaps. Long Range Planning, 50(3), 397410.Google Scholar
Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853886.Google Scholar
Morgan, G. (1983). Rethinking corporate strategy: A cybernetic perspective. Human Relations, 36(4), 345360.CrossRefGoogle Scholar
Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization Science, 5(1), 1437.Google Scholar
Nonaka, I., von Krogh, G., & Voelpel, S. (2006). Organizational knowledge creation theory: Evolutionary paths and future advances. Organization Studies, 27(8), 11791208.Google Scholar
Perkmann, M., & Walsh, K. (2007). University–industry relationships and open innovation: Towards a research agenda. International Journal of Management Reviews, 9(4), 259280.Google Scholar
Poetz, M. K., & Schreier, M. (2012). The value of crowdsourcing: Can users really compete with professionals in generating new product ideas? Journal of Product Innovation Management, 29(2), 245256.Google Scholar
Puranam, P., Raveendran, M., & Knudsen, T. (2012). Organization design: The epistemic interdependence perspective. Academy of Management Review, 37(3), 419440.CrossRefGoogle Scholar
Puranam, P., Singh, H., & Zollo, M. (2006). Organizing for innovation: Managing the coordination-autonomy dilemma in technology acquisitions. Academy of Management Journal, 49(2), 263280.Google Scholar
Randhawa, K., Wilden, R., & Hohberger, J. (2016). A bibliometric review of open innovation: Setting a research agenda. Journal of Product Innovation Management, 33(6), 750772.Google Scholar
Rothaermel, F. T., & Alexandre, M. T. (2009). Ambidexterity in technology sourcing: The moderating role of absorptive capacity. Organization Science, 20(4), 759780.Google Scholar
Rumelt, R. (2003). Evaluating business strategy. In Quinn, J. B., Mintzberg, H., & James, R. M. (Eds.), The strategy process: Concepts, contexts, and cases, 2nd ed. (pp. 8087). Essex, England: Pearson Education Ltd.Google Scholar
Salter, A., Ter Wal, A. L. J., Criscuolo, P., & Alexy, O. (2015). Open for ideation: Individual-level openness and idea generation in R&D. Journal of Product Innovation Management, 32(4), 488504.Google Scholar
Schlagwein, D., Conboy, K., Feller, J., Leimeister, J. M., & Morgan, L. (2017). “Openness” with and without information technology: A framework and a brief history. Journal of Information Technology, 32(4), 297305.Google Scholar
Seidl, D., & Werle, F. (2018). Inter-organizational sensemaking in the face of strategic meta-problems: Requisite variety and dynamics of participation. Strategic Management Journal, 39(3), 830858.Google Scholar
Sieg, J. H., Wallin, M. W., & von Krogh, G. (2010). Managerial challenges in open innovation: A study of innovation intermediation in the chemical industry. R&D Management, 40(3), 281291.Google Scholar
Spaeth, S., Stuermer, M., & von Krogh, G. (2010). Enabling knowledge creation through outsiders: Towards a push model of open innovation. International Journal of Technology Management, 52(3–4), 411431.Google Scholar
Spaeth, S., von Krogh, G., & He, F. (2015). Perceived firm attributes and intrinsic motivation in sponsored open source software projects. Information Systems Research, 26(1), 224237.CrossRefGoogle Scholar
Spicer, N., & Evans, R. (2006). Developing children and young people’s participation in strategic processes: The experience of the Children’s Fund initiative. Social Policy and Society, 5(02), 177.Google Scholar
Stanko, M. A., Fisher, G. J., & Bogers, M. (2017). Under the wide umbrella of open innovation. Journal of Product Innovation Management, 34(4), 543558.Google Scholar
Stieger, D., Matzler, K., Chatterjee, S., & Ladstaetter-Fussenegger, F. (2012). Democratizing strategy: How crowdsourcing can be used for strategy dialogues. California Management Review, 54(4), 4468.CrossRefGoogle Scholar
Stuermer, M., Spaeth, S., & von Krogh, G. (2009). Extending private-collective innovation: A case study. R&D Management, 39(2), 170191.Google Scholar
Tavakoli, A., Schlagwein, D., & Schoder, D. (2017). Open strategy: Literature review, reanalysis of cases and conceptualisation as a practice. Journal of Strategic Information Systems, 26(3), 163184.Google Scholar
Tegarden, L., Sarason, Y., Childer, J. S., & Hatfield, D. E. (2005). The engagement of employees in the strategy process and firm performance: The role of strategic goals and environment. Journal of Business Strategies, 22(2), 7599.Google Scholar
Thomas, J. B., Sussman, S. W., & Henderson, J. C. (2001). Understanding “strategic learning”: Linking organizational learning, knowledge management, and sensemaking. Organization Science, 12(3), 331345.Google Scholar
Trantopoulos, K., von Krogh, G., Wallin, M. W., & Woerter, M. (2017). External knowledge and information technology: Implications for process innovation performance. MIS Quarterly, 41(1), 287300.Google Scholar
Tucci, C. L., Chesbrough, H., Piller, F., & West, J. (2016). When do firms undertake open, collaborative activities? Introduction to the special section on open innovation and open business models. Industrial and Corporate Change, 25(2), 283288.Google Scholar
Vanhaverbeke, W., Roijakkers, N., Lorenz, A., & Chesbrough, H. (2017). The importance of connecting open innovation to strategy. In Pfeffermann, N. & Gould, J. (Eds.), Strategy and communication for innovation, 3rd ed. (pp. 315). Cham, Switzerland: Springer International Publishing.Google Scholar
van Wijk, R., Jansen, J. J. P., & Lyles, M. A. (2008). Inter-and intra-organizational knowledge transfer: A meta‐analytic review and assessment of its antecedents and consequences. Journal of Management Studies, 45(4), 830853.Google Scholar
von Hippel, E. (1986). Lead users: A source of novel product concepts. Management Science, 32(7), 791805.CrossRefGoogle Scholar
von Hippel, E. (1994). Sticky information and the locus of problem-solving: Implications for innovation. Management Science, 40(4), 429439.Google Scholar
von Hippel, E., von Krogh, G., & Schoonhoven, C. B. (2003). Open source software and the “private-collective” innovation model: Issues for organization science. Organization Science, 14(2), 209223.Google Scholar
von Krogh, G. (2012). How does social software change knowledge management? Toward a strategic research agenda. The Journal of Strategic Information Systems, 21(2), 154164.CrossRefGoogle Scholar
von Krogh, G., Haefliger, S., Spaeth, S., & Wallin, M. W. (2012). Carrots and rainbows: Motivation and social practice in open source software development. MIS Quarterly, 36(2), 649676.Google Scholar
von Krogh, G., Netland, T., & Woerter, M. (2017). Winning with open process innovation. MIT Sloan Management Review, 59(2), 5356.Google Scholar
von Krogh, G., & von Hippel, E. (2006). The promise of research on open source software. Management Science, 52(7), 975983.Google Scholar
West, J., & Bogers, M. (2014). Leveraging external sources of innovation: A review of research on open innovation. Journal of Product Innovation Management, 31(4), 814831.Google Scholar
Whittington, R., Cailluet, L., & Yakis-Douglas, B. (2011). Opening strategy: Evolution of a precarious profession. British Journal of Management, 22(3), 531544.Google Scholar
Whittington, R., Yakis-Douglas, B., & Ahn, K. (2016). Cheap talk? Strategy presentations as a form of chief executive officer impression management. Strategic Management Journal, 37(12), 24132424.Google Scholar
Yakis-Douglas, B., Angwin, D., Ahn, K., & Meadows, M. (2017). Opening M&A strategy to investors: Predictors and outcomes of transparency during organisational transition. Long Range Planning, 50(3), 411422.Google Scholar
Yoo, Y., Boland, R. J., Lyytinen, K., & Majchrzak, A. (2012). Organizing for innovation in the digitized world. Organization Science, 23(5), 13981408.Google Scholar
Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27(2), 185203.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×