managing external knowledge in open innovation processes – a systematic review of literature

Faculty of Business | Chair of Business and Information Systems, esp. Information Management | Prof. Schoop

Managing External Knowledge in Open Innovation Processes – A Systematic Review of Literature

Dresden University of Technology, Dresden, GermanyKRC – Knowledge Research Center e.V.

Paul Kruse ([email protected])

Peter Geißler ([email protected])


Agenda

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External Knowledge in Open Innovation | ECKM 2012 | Paul Kruse

Motivation Conceptual Base Approach Results Conclusion & Outlook

2


Motivation

Novelty of Open Innovation e.g., research on “user innovation” (von Hippel, 1986),

“collective invention” (Allen, 1983) or “interactive value creation” (Reichwald & Piller, 2006)

emergence of social media/software lack of research on convergence of KM and OI

Potentials and challenges EK equally important as internal (Chesbrough, 2006b)

various influencing factors (Chen et al., 2011)

focus on internal knowledge not enough (Powell et al., 1996)

fluctuant transfer effort requires precise selection focus on well-balanced mixture of sources (Laursen & Salter,

2006)

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External Knowledge in Open Innovation | ECKM 2012 | Paul Kruse 3


Motivation

Aim Overview on state-of-the-art Systematization of findings Identification of research gaps Clarification of role and complexity of EK for innovation

Research questions1. What kind of external knowledge influences the process

of innovation in an Open Innovation context?

2. How does external knowledge influence corporate innovativeness?

3. What challenges can be derived from 1 and 2?

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Conceptual Base – Knowledge

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Kn

ow

led

ge • “Entirety of skills

and capabilities which individuals utilize to solve problems”

(Probst et al., 2010, S. 24)

Kn

ow

led

ge t

ran

sfe

r • Process “through which one unit is affected by the experience of another”

(Argote et al., 2000, S. 3)

Kn

ow

led

ge M

an

ag

em

en

t • “Integrated intervention concept for managing the organizational knowledge base”

(Probst et al., 2010, S. 24)

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Conceptual Base – Innovation

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Inn

ovati

on • “Implementation

of novel technical, commercial, organizational, or social solutions in a business environment.”

(Pleschak & Sabisch, 1996)

Op

en

In

novati

on • Companies “use

external ideas as well as internal ideas, and internal and external paths to market, [in order] to advance their technology”.

(Chesbrough, 2003)

Inn

ovati

on

Man

ag

em

en

t • “Leadership and Management [...] of the whole process of innovation”

(Disselkamp, 2005)

6


Research approach

Literatur Review (Webster & Watson, 2002; vom Brocke et al., 2009)

Scientific databases & search engines (ca. 200 papers from pertinent scientific journals (cf. Harzing, 2011))

Structuring content analysis (Mayring, 2008)

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Identification of analysis material

Definition of structuring dimensions

Definition of category system

Definition ofcoding approach

Screening and extraction

of fragments

Revision ofcategories

Preparation of results

Step 1

Step 2

Step 3

Step 4

Step 7

Step 5/6 Step 8

Coding

7


Research approach

Step 1: Identification of analysis material search queries on several data bases and narrowing down results

Step 2: Definition of structuring dimensions sources of EK as well as influences through EK

Step 3: Definition of category system introduction of concepts/categories and their relation

Step 4: Definition of coding approach provide definitions, examples and coding rules

Step 5/6: Screening of material and extraction of fragments step-wise approach partially based on Grounded Theory

Step 7: Revision of categories final adjustment of categories

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Results – RQ1

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Sources of external knowledge

aca

dem

ic

non-

acad

emic

governmenta

l

user/

consumer

customer

supplierinnovator

companies

within vc

other

companies

marke

ts

eve

nts

mass m

edia

standards/

regulations

patents/

licensesbusiness

scientific

othe

r

indu

stry

scie

nce

R&

Dcompetitors

employeesne

twor

ks/

allia

nces

business

partners

customers

inst

itutio

nsmedia

9


Results – RQ1

Sources of external knowledge 1/2

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Category Sub category Exampleinstitutions academic universities, colleges, public research

institutions, laboratoriesnon-academic commercial/private research institutionsgovernmental governements, governmental institutions,

legislation, chambers of commercenetworks/alliances

R&D external research networks/alliances, research projects, innovation networks, consortia

science expert networks, science parks, university alliances

industry cooperation agreements, technology parks, company networks, industry cluster/-consortia

other communities, partnerships, joint ventures, strategic alliances, networks

customers user/consumer

(future) consumer, lead user, user innovators, iser communities

customer buyer, (potential) customer, reference customers, focus groups, customer companies

competitors competitors, competing products/services

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Results – RQ1

Sources of external knowledge 2/2

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Category Sub category Examplebusiness partners

supplier suppliers of machinery/material, IT-/suppliers, vendors

innovators innovation partners, intermediarycompanies within value chain

technology intermediary, specialized SMEs, service providers, research firms

other companies consultancies, non-customers, non-suppliers, start-ups, venture capitalists

employees scientific researcher, alumni, PhD studentsbusiness external specialists, employees of other

companies, personnel exchange, knowledge brokers

media patents/licences patents, license agreements, patent databases

standards/regulations

security standards, technical standards, health regulations

mass media Internet, magazines, journals, TV, databases, scientific publications, seach engines

events fairs, trade shows, conferences, idea competitions, workshops, trainings

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Process of innovation

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Generation and Mobilization

Advocacy and Screening

Commercialization

Experimentation

Diffusion and Implementation

(DeSouza et al., 2005)


Results – RQ2

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Category ExampleGeneration & Mobilization

Compensate low R&D resourcesIncrease number of ideas and degree of noveltySkimming of spillover from external knowledge bearersIncrease innovativenessGenerate new knowledge

Advocacy & Screening

Facilitate radical innovationSupport technological innovationAllow selection of complex innovation

Experi-mentation

Shorten time to developIncrease/Improve innovation qualityEnable new combinations (e.g., of EK and technology)

Commercia-lization

Decrease risk and insecurityIncrease mutual benefit in collaborative agreementsIncrease probability of successful realizationIncrease Return on R&D InvestmentShorten time to market

Category ExampleDiffusion &Implemen-tation

Deregulate loss/outlet of knowledgeIncrease number of new productsIncrease number of new processesIncrease number of patentsAvoid redundanciesEnhance organizational knowledge baseIncorporate new abilities/capabilitiesEnhance existing skills

Cross-process

Depend on previous knowledge/R&DComplement internal knowledge/R&DIntegration develops into core competency Increase competitivenessIncrease flexibility and visibilityIncrease financial savingsShorten innovation processFacilitate acquisition/transfer of EKDecentralize innovation processes Reduce complexity of internal R&DImprove internal R&D

Positive influences through external knowledge

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Results – RQ2

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Negative influences through external knowledge

Category ExampleGeneration & Mobilization

Cannot guarantee uniqueness of EKIncreases dependency on external knowledge bearersCannot automatically increase innovativeness

Advocacy & Screening

Cause nonobservance of opportunities Leads to miss of chances

Experi-mentation

none

Commercia-lization

Increase risk and insecurityCannot automatically increase business valueCause IPR problemsIncrease cost for search, acquisition, integration of EKCannot exclusively belong to organization

Diffusion &Implemen-tation

Cause conflict between sharing and protectionImpede exchange by over-protectionPollute internal body of knowledge

Category ExampleCross-process

Cannot replace internal R&DCannot secure correctness of EKCause internal knowledge to seep outRequire cultural changesRequire organizational changesLead to immoderate opennessCannot complement internal R&DCause lock-in effectReduces internal R&DCause “over-search” by exorbitant number of sourcesIncrease complexity if sources are widespreadEquals internal body of knowledgeDiffers from internal body of knowledgeIncrease complexity of relationships Slowed down by low number of sourcesCause InertiaNot-invented-here syndrome / buy-inRelate-out / all-stored-hereOnly-used here / sell-out


Conclusion

1. What kind of external knowledge influences the process of innovation in an Open Innovation context?

2. What impact has external knowledge on corporate innovativeness?

3. What challenges can be derived from 1 and 2?

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Conclusion

Application Better understanding of external knowledge and its role

for innovation Facilitate selection of proper source/type of knowledge Basis for further recommendations (in progress...) ...

Further research Mapping of possible integration concepts and categories Performance measurement of knowledge transfer in OI Legal gray area (?)

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Thank you for your attention.

Questions?

Discussion

Paul Kruse

Chair of Business and Information Systems, esp. Information Management

Technische Universität Dresden

Fon: +49 351 463 33098

Mail: [email protected]

twitter: @hoellenpaul (for slides)

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mailto:[email protected]


References

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managing external knowledge in open innovation processes – a systematic review of literature

Business

information management

information systems

open innovation eckm

process of innovation

kind of external knowledge

open innovation context

internal knowledge

user innovation