Abstract
Open innovation has become a popular topic in management literature since Chesbrough published his book with the same title in 2003 (Chesbrough, 2003). Consequently, no longer does it only exist in the realm of conceptualization; at numerous companies it has been applied. Chesbrough (2003) suggests that companies using the closed innovation paradigm are fundamentally inwardly focused when it comes to the development of new ideas, knowledge, and creativity; the notion of the closed innovation paradigm is not unlike that of a castle or silo. The underlying logic of this approach implies a need for vertical integration with the aim of centralized, internal research and development. But the logic underlying the closed innovation paradigm has been challenged in the transformative era of e-business and social media, due to the interdependence of various firms on other firms for critical technologies and other resources. In an information economy, firms are operating in a more open, fast-paced global environment, where firms can create ideas for external or internal use and can access ideas from outside as well as from within. The availability and quality of these external ideas have changed the logic that once led to the formation of internal, centralized R&D silos and that have now evolved with the open innovation paradigm that enables a firm to leverage and share distributed knowledge. Now firms must manage innovation in an uncertain world, and they must adopt an open innovation paradigm and become strategically agile and aligned by leveraging multiple paths to market their in-house technologies, by sharing ideas and intellectual property (IP), and by accessing and integrating external knowledge through strategic alliances and collaborative partnerships.
The author thanks Joel West and Jeff Tsai for their insightful comments on earlier drafts of this chapter.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Adler, R. (2012). The Wide Lens: A New Strategy for Innovation. New York: Portfolio/Penguin.
Adner, R. (2006). “Match Your Innovation Strategy to Your Innovation Ecosystem.” Harvard Business Review 84 (4): 98.
Adner, Ron. (2012). The Wide Lens: A New Strategy for Innovation. Penguin.
Adner, Ron, and Kapoor, R. (2010). “Value Creation in Innovation Ecosystems: How the Structure of Technological Interdependence Affects Firm Performance in New Technology Generations.” Strategic Management Journal 31 (3): 306–33. doi:10.1002/smj.821
Afuah, A. (2009). Strategic Innovation. New York: Routledge.
Afuah, A., and Tucci, C. L. (2012). “Crowdsourcing as a Solution to Distant Search.” Academy of Management Review 37 (3): 355–75. doi:10.5465/amr.2010.0146
Allarakhia, M., Kilgour, D. M., and Fuller, J. D. (2010). “Modelling the Incentive to Participate in Open Source Biopharmaceutical Innovation.” R&D Management 40 (1): 50–66. doi:10.1111/j.1467–9310.2009.00577.x.
Antikainen, M., Mäkipää, M., and Ahonen, M. (2010). “Motivating and Supporting Collaboration in Open Innovation.” European Journal of Innovation Management 13 (1): 100–119. doi:http://dx.doi.org.ezaccess.libraries.psu.edu/10.1108/14601061011013258.
Barney, J. B. (2001). “Resource-Based Theories of Competitive Advantage: A Ten-Year Retrospective on the Resource-Based View.” Journal of Management 27 (6): 643–50. doi:10.1177/014920630102700602
Bhatt, G. D. (2001). “Knowledge Management in Organizations: Examining the Interaction between Technologies, Techniques, and People.” Journal of Knowledge Management 5 (1): 68–75. doi:10.1108/13673270110384419
Chesbrough, H. (2010). Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era, 1st ed. Hoboken, NJ: Jossey-Bass.
Chesbrough, H. W. (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business School Press.
Chesbrough, H. W. (2006). Open Business Models: How to Thrive in the New Innovation Landscape. Harvard Business School Press.
Chesbrough, H. W., and Appleyard, M. M. (2007). “Open Innovation and Strategy.” California Management Review 50 (1): 57–76.
Chiaroni, D., Chiesa, V., and Frattini, F. (2009). “Investigating the Adoption of Open Innovation in the Bio-pharmaceutical Industry: A Framework and an Empirical Analysis.” European Journal of Innovation Management 12 (3): 285–305. doi:http://dx.doi.org.ezaccess.libraries.psu.edu/10.1108/14601060910974192.
Christensen, C. M., and Raynor, M. E. (2003). The Innovator’s Solution: Creating and Sustaining Sucessful Growth. Boston, MA: Harvard Business School Press.
Cullen, J. B., Johnson, J. L., and Sakano, T. (2000). “Success through Commitment and Trust: The Soft Side of Strategic Alliance Management.” Journal of World Business 35 (3): 223–40. doi:10.1016/S1090–9516(00)00036–5.
Culpan, R. (2008). “The Role of Strategic Alliances in Gaining Sustainable Competitive Advantage for Firms.” Management Revue-The International Review of Management Studies 19 (1–2): 94–105.
Dahlander, L., and Gann, D. M. (2010). “How Open Is Innovation?” Research Policy 39 (6): 699–709. doi:10.1016/j.respol.2010.01.013
Das, T. K., and Teng, B.-S. (1998). “Between Trust and Control: Developing Confidence in Partner Cooperation in Alliances.” The Academy of Management Review 23 (3): 491. doi:10.2307/259291
De Jong, J. P. J., Vanhaverbeke, W., Kalvet, T., and Chesbrough, H. (2008). Policies for Open Innovation: Theory, Framework and Cases. Vision Era.Net.
Dodgson, M., Gann, D., and Salter, A. (2006). “The Role of Technology in the Shift towards Open Innovation: The Case of Procter & Gamble.” R&D Management 36 (3):333–46. doi:10.1111/j.1467–9310.2006.00429.x.
Enkel, E., Gassmann, O., and Chesbrough, H. (2009). “Open R&D and Open Innovation: Exploring the Phenomenon.” R&D Management 39 (4): 311–16.doi:10.1111/j.1467–9310.2009.00570.x.
Franke, N., and Shah, S. (2003). “How Communities Support Innovative Activities: An Exploration of Assistance and Sharing among End-Users.” Research Policy 32:157–78.
Gassmann, O., and Enkel, E. (2010). “Creative Innovation: Exploring the Case of Cross-Industry Innovation.” R&D Management 40 (3): 256–70.
Gawer, A. (2011). Platforms, Markets and Innovation. Edward Elgar Publishing.
Grönlund, J., Sjödin, D. R., and Frishammar, J. (2010). “Open Innovation and the Stage-Gate Process: A Revised Model for New Product Development.” California Management Review 52 (3): 106–31.
Gulati, R. (1995). “Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice in Alliances.” Academy of Management Journal 38 (1): 85–112. doi:10.2307/256729
Hedlund, G. (1994). “A Model of Knowledge Management and the N-form Corporation.” Strategic Management Journal 15 (S2): 73–90. doi:10.1002/smj.4250151006
Hoegl, M., Lichtenthaler, U., and Muethel, M. (2011). “Is Your Company Ready for Open Innovation?” MIT Sloan Management Review 53 (1): 45–48.
Ili, S., Albers, A., and Miller, S. (2010). “Open Innovation in the Automotive Industry.” R&D Management 40 (3): 246–55. doi:10.1111/j.1467–9310.2010.00595.x.
Jaruzelski, B., and Holman, R. (2011). “The Tree Paths to Open Innovation.” strategy+business, May 23. http://www.strategy-business.com/article/00075?gko=e1727 (accessed October 22, 2013).
Kutvonen, A. (2011). “Strategic Application of Outbound Open Innovation.” European Journal of Innovation Management 14 (4): 460–74. doi:http://dx.doi.org.ezaccess.libraries.psu.edu/10.1108/14601061111174916.
Laursen, K., and Salter, A. (2006). “Open for Innovation: Te Role of Openness in Explaining Innovation Performance among U.K. Manufacturing Firms.” Strategic Management Journal 27 (2): 131–50.
Lettl, C., Herstatt, C., and Gemuenden, H. G. (2006). “Users’ Contributions to Radical Innovation: Evidence from Four Cases in the Field of Medical Equipment Technology.” R&D Management 36 (3): 251–72. doi:10.1111/j.1467–9310.2006.00431.x.
Munsch, K. (2009). “Open Model Innovation.” Research Technology Management 52 (3): 48–52.
Perkmann, M., and Walsh, K. (2007). “University-Industry Relationships and Open Innovation: Towards a Research Agenda.” International Journal of Management Reviews 9 (4): 259–80.
Peteraf, M. A. (1993). “The Cornerstones of Competitive Advantage: A Resource-Based View.” Strategic Management Journal 14 (3): 179–91. doi:10.1002/smj.4250140303
Quinn, J. B., Baruch, J. J., and Zien, K. A. (1997). Innovation Explosion: Using Intellect and Software to Revolutionize Growth Strategies. Simon & Schuster.
Reuer, J. J., and Ariño, A. (2007). “Strategic Alliance Contracts: Dimensions and Determinants of Contractual Complexity.” Strategic Management Journal 28 (3): 313–30. doi:10.1002/smj.581
Sanchez, R., and Heene, A. (1997). Strategic Learning and Knowledge Management, 1st ed. New York: John Wiley & Sons, Inc.
Snow, C. C., and Culpan, R. (2011). “Open Innovation through a Collaborative Community of Firms: An Emerging Organizational Design.” In T. K. Das (ed.), Strategic Alliances for Value Creation (pp. 279–300). Charlotte, NC: Information Age Publishing.
Snow, C. C., Strauss, D. R., and Culpan, R. (2009). “Community of Firms: A New Collaborative Paradigm for Open Innovation and an Analysis of Blade.org.” International Journal of Strategic Business Alliances 1 (1): 53–72.
Teece, D. J. (1998). “Research Directions for Knowledge Management.” California Management Review 4 (3): 289–92.
Teece, D. J. (2007). “Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance.” Strategic Management Journal 28 (13): 1319–50. doi:10.1002/smj.640
Teece, D. J. (2009). Dynamic Capabilities and Strategic Management: Organizing for Innovation and Growth: Organizing for Innovation and Growth. Oxford University Press.
Von Hippel, E., and Von Krogh, G. (2006). “Free Revealing and the Private-Collective Model for Innovation Incentives.” R&D Management 36 (3): 295–306. doi:10.1111/j.1467–9310.2006.00435.x.
Wernerfelt, B. (1984). “A Resource-Based View of the Firm.” Strategic Management Journal 5 (2): 171–80. doi:10.1002/smj.4250050207
West, J., and Wood, D. (2013). “Evolving an Open Ecosystem: The Rise and Fall of the Symbian Platform.” In R. Adler, J.E. Oakley, and B.S. Silverman (eds) Advances in Strategic Management (vol. 30 Collaboration and Competition in Business Ecosystems) (pp. 27–67). Emerald Group Publishing, Bingley, the U.K.
Winter, S. G. (2003). “Understanding Dynamic Capabilities.” Strategic Management Journal 24 (10): 991–95. doi:10.1002/smj.318
Zollo, M., and Winter, S. G. (2002). “Deliberate Learning and the Evolution of Dynamic Capabilities.” Organization Science 13 (3): 339–351. doi:10.1287/orsc.13.3.339.2780
Editor information
Editors and Affiliations
Copyright information
© 2014 Refik Culpan
About this chapter
Cite this chapter
Culpan, R. (2014). Open Innovation Business Models and the Role of Interfirm Partnerships. In: Culpan, R. (eds) Open Innovation through Strategic Alliances. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137394507_2
Download citation
DOI: https://doi.org/10.1057/9781137394507_2
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-48542-0
Online ISBN: 978-1-137-39450-7
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)