Session 237

Open Innovation

Track I

Date: Tuesday, October 9, 2012

 

Time: 08:00 – 09:15

Common Ground

Room: Club E


Facilitator:

  • Sharon Belenzon, Duke University

Title: Brother From Another Mother

Authors

  • Matthew Semadeni, Arizona State University
  • Curba M Lampert, Florida International University

Abstract: We focus on the determinants of innovation selection and specifically investigate the impact that the source of an innovation (externally or internally developed) and the novelty of its technological domain to the firm has on the probability of the invention’s selection for commercialization. In our longitudinal study of which pharmaceutical compounds move from Preclinical to Phase I testing, we find a clear “Not-Invented-Here” bias where externally sourced innovations are less likely to be selected for further development. This effect holds even in new technological domains.

Title: Deriving Value by Signaling Good Citizenship: The Case of Open Source Software

Authors

  • Dilan Aksoy, Carlos III University of Madrid

Abstract: In this paper, an event study methodology is adopted in order to quantify the effect of firms’ software source code releases on their abnormal market returns as well as their rivals’. A sample of 87 announcements from US News and Wires that are published between 1st of January 1999 and 31st of December 2010 is studied in the empirical analysis. The results suggest that, announcements of firms’ software source code releases, on aggregate, lead to positive abnormal returns in financial markets. Interestingly enough, announcements of rivals’ software source code releases, as well, lead to positive abnormal returns for the focal firm. In line with the theoretical framework, firms that signal good open source citizenship are rewarded in financial markets.

Title: Developing \'Hugging\' Capabilities for Fostering Open Innovation: The Case of Sense Worldwide

Authors

  • Alessandro Giudici, City University London
  • Patrick Reinmoeller, Cranfield University

Abstract: Open innovation literature suggests that firms may successfully innovate by leveraging knowledge gained from external innovators through Web 2.0 platforms. Yet, most firms struggle to fully benefit from this knowledge because ensuring the continuous support of external contributors poses major challenges. Prior research argues that firms need to develop open innovation dynamic capabilities but it remains surprisingly unclear how this may happen in practice. In this paper we advance open innovation research by starting investigating how open innovation platforms may be successfully managed by developing hugging capabilities, i.e. a set of integrated physical and virtual activities aimed at orchestrating emphatic relationships with external contributors. We do so by exploring the case of an UK consultancy which strengthened its open innovation platform through these hugging capabilities.

Title: How Firms Collaborate with Academics in Open Innovation: Using Social Capital to Bridge Cognitive Distance

Authors

  • Tommy Clausen, Nordland Research Institute
  • Einar Rasmussen, Nord University Business School
  • Siri Jakobsen, University of Nordland
  • Marianne Steinmo, University of Nordland

Abstract: This paper examines how firms are able to create value from collaborating with universities over the life course of high performing innovation projects. Based on a longitudinal study of 16 R&D projects, the paper extends research on external knowledge sourcing from university R&D alliances by pointing at the importance of social capital for open innovation. Further, it extends cognitive distance theory by suggesting that whether and to what extent a high cognitive distance between the firm and its collaborating partners will enable or inhibit successful innovation depends critically on the social capital between the firm and its partners. Our preliminary analysis revealed three strategies to develop the social capital required to engage with universities as external knowledge sources in open innovation.

Title: The Role of the Information Environment for Firm Openness in the Pursuit of Exploratory Innovation

Authors

  • Alexander Alexiev, University of Amsterdam

Abstract: In their pursuit of exploratory innovation, firms often search for and attempt to access or acquire divergent knowledge located outside their boundaries. Yet, theory about the motivations of firms to engage in such practices is still underdeveloped. We address this gap by testing a model about the role of the organizational information environment for firm openness in the innovation process. We argue that attention focus and subjective beliefs of senior managers about the external environment can enable or inhibit a firm’s choice to engage in open collaboration in addition to its technological or market knowledge needs. We show that strategic considerations about market turbulence and market heterogeneity are positively related to openness in innovation, while concerns about competitive intensity are negatively related with firm openness.

Title: What is Open Innovation, Really?

Authors

  • Giovanni Valentini, IESE Business School
  • Bruno Cassiman, IESE Business School

Abstract: Presented as a new ‘paradigm’, Open Innovation has increasingly attracted substantial attention from practitioners and academics. But what is innovative -and distinctive- in the Open Innovation framework, really? Some have argued that Open Innovation can be characterized as “old wine in new bottles.” We claim that the key novel theoretical insight of the Open Innovation framework is that purposive inward and outward flows of knowledge are complementary (innovation) activities, and that engaging in one activity increases the return from the other in terms of productivity of R&D. We empirically test this claim, and find that while engaging in one activity at a time might increase the productivity of R&D, engaging in both activities influences negatively firms’ R&D productivity.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 274: Knowledge Foundations: A Conversation with Robert Grant about the Knowledge Based View
Sun: 09:30 – 10:45
Session 273: Big Data, Knowledge and Innovation
Sun: 11:15 – 12:30
Session 275: The Changing Nature of Innovation in Emerging Economies
Sun: 15:15 – 16:30
Session 225: Intellectual Property Rights
Session 229: Structure and Innovation
Mon: 08:00 – 09:15
Session 223: Individuals, Teams and Innovation
Session 242: R&D
Mon: 09:30 – 10:45
Session 140: Knowledge Management & Knowledge Structures: Who knows?
Session 226: Technology
Session 235: Learning
Mon: 13:30 – 14:45
Session 222: Integrating Knowledge about Knowledge Integration
Session 227: Knowledge Transfer and Replication
Mon: 16:30 – 17:45
Session 224: Absorptive Capacity
Session 236: Innovation and Performance
Tue: 08:00 – 09:15
Session 230: Ties, Networks, and Innovation
Session 237: Open Innovation
Tue: 11:00 – 12:15
Session 228: Exploration
Session 231: Alliance and Transfer
Tue: 14:15 – 15:30
Session 234: Incumbent Response to Foreign Entry and to Disruptive Innovation
Session 240: Capabilities
Tue: 15:45 – 17:00
Session 233: Structure and Transfer
Session 243: Entrepreneurs, Ventures, and Innovation
Tue: 17:30 – 18:45
Session 232: Innovation and Transfer
Session 239: Ambidexterity / Exploration and Exploitation
Session 244: Knowledge Management


Strategic Management Society

Prague