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Open Innovation in Networks: Specifying Orchestration Capability for SMEs

Authors
Publisher
C3 Ledelse og Oekonomi Organisation
Publication Date
Keywords
  • Open Innovation
  • Sme
  • Network
  • Orchestration Capability
Disciplines
  • Design
  • Musicology

Abstract

Paper for Ledelse & Erhvervsøkonomi: Open Innovation in Networks: Specifying Orchestration Capability for SMEs Author 1: Yimei Hu Centre for International Business, Aalborg University Sino-Danish Centre for Education and Research Fibigerstræde 10, 9220 Aalborg East Email to: [email protected] Author 2: Olav Jull Sørensen Centre for International Business, Aalborg University Sino-Danish Centre for Research and Education Open Innovation in Networks: Specifying Orchestration Capability for SMEs Abstract Open innovation in multifirm networks has been a popular topic for long, and the focal firm with orchestration capability will enhance its innovation performance through networks. However, only recently, researchers started to study SME’s open innovation and networks, especially those from the low-tech industry. Besides multifirm networks, some organizational researchers are interested in the internal network organizational design of prospector firms putting innovation on top of the agenda. This paper analyzes how an SME from a traditional industry implements the prospector strategy through purposively built multi-level networks, i.e. an internal network organization and a multifirm innovation network. In order to get more innovation output from external and internal networks, orchestration capability is needed and should be applied in both levels of network organizations. Key Words Open Innovation, Multifirm Innovation Network, Network Organization, Orchestration Capability Introduction Open innovation, has been widely accepted as a new paradigm for innovation (Chesbrough 2003). It introduces a new organizational innovation which targets at utilizing both internal and external innovation resources to advance firms’ technologies and capabilities. Open innovation theory assumes that “knowledge is widely distributed, and that even the most capable R&D organizations must identify, connect to, and leverage external knowledge sources as a core process in innovation” (Chesbrough 2006). Furt

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