Summary Lectures and Articles Organizing for Innovation 2020

All lectures and articles are summarized from the course cooperating for innovation (SIM). Focused on possible exam questions.

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Summary Lectures and Articles
Lecture 1: Organising Knowledge for Innovation
Knowledge is a dynamic human process of justifying personal belief towards the truth. Types of Knowledge
1. Level of knowledge (→ location): individual, group, organisational, inter-organisational 2. Nature/Content of knowledge • explicit knowledge → easily articulated, codified, stored; can be transferred without loss of
integrity • tacit knowledge → valuable and unique → can provide a firm with competitive advantage;
complex; “sticky”; diﬃcult to articulate, codify, store and transfer; more important for
innovation because you can protect your invention/innovation better • technological knowledge → know-how/competences necessary to the process and
execution of product/process development; scientific & experimental knowledge • managerial knowledge → know-how/competences necessary to eﬃencetly/eﬀectively
coordinate & supervise organisational resources & processes; includes operational & applied
knowledge; abstract and complex knowledge • market knowledge → organised & structured information on the market; know-how/
competences cantered on customers’ characteristics, preferences & needs that firms are
requested to satisfy Process of Innovation (Teece, 2007)
tool
knowledge
knowledge
outcome
Sensing innovation
Seizing innovation
opportunities
opportunities
knowledge
source
Knowledge-based view (KBV) (Grant, 1996)
• extension of the RBV • the firm as a repository of knowledge; knowledge as the resource • knowledge as the most strategically significant resource of a firm • proponents argument (+) → knowledge-base resources are usually diﬃcult to imitate & social complex → heterogenous knowledge bases among firms are the major determinants of sustained
competitive advantage & superior performance • absorptive capacity Resource-based view (RBV)
• the firm has a bundle of resources; resources as the basis for competitive advantages • for transforming a short-run competitive advantage in a long-run one, resources have to be → heterogenous/rare in nature & not perfectly mobile • VRIN conditions; conditions to support the competitive advantage & above average return → Valuable; bring value to the firm → Rare; unique strategy from resources → Inimitable; competing firms cannot obtain them → Non-substitutable: not be able to replace Page of
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Organisational Learning Theory (OLT)
• emphasises the importance of learning processes to understand why some firms outperform
others • learning and knowledge are intrinsically interrelated → knowledge as input and output of
learning • learning tension: exploitation (using current knowledge) vs. exploration (creating new
knowledge) → both exploitation and exploration are creating ambidexterity → it’s not knowledge to outperform, it’s learning why some firms are better than others, they have
superior capabilities in learning = KBV & OLT attribute a central role of knowledge → key to innovation Knowledge management mechanisms → firms need to engage to work with knowledge
1. ability: absorptive capacity → firms need the capability to do something with the knowledge
2. opportunity → knowledge sharing, creation and recombination
3. motivation → intrinsic and extrinsic rewards; reciprocity Knowledge recombination
• process by which existing knowledge is untangled, altered, and integrated with other knowledge
bases to create novel business concepts/competences Example: Henry Ford was inspired by the meat assembly line for the car mass production
Technology brokering strategy
• knowledge recombination (complementary or old ideas in new ways) on diﬀerent levels (within
the firm, within markets/industries, across market/industries) → key role is knowledge sharing Grogoriou and Rotharmel (2017) - Organising for Knowledge Generation: Internal
Knowledge Networks and the Contingent Eﬀect of External Knowledge Sourcing
• explanation on how the eﬀectiveness of external knowledge sourcing depends on the properties
of internal knowledge production
• two important firm-level properties 1. incumbent’s internal potential for knowledge recombination 2. level of knowledge coordination costs Attributes than can be linked with a firm’s
potential for future knowledge
recombination: • degree of network’s clustering
→ groups of individuals are working
together to generate relevant
knowledge (large group: likelihood of
further knowledge recombination
increases) • path length
→ longer paths indicate a heterogenous
network, extensive range, relies on
significant broad knowledge stocks
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Hypotheses
1. interaction between external knowledge sourcing and internal knowledge networks
characterised by high recombination potential is negative Supported 2. interaction between external knowledge sourcing and internal knowledge networks
characterised by high coordination costs is negative Supported Results
Coordination costs
• in case coordination costs are low → Alliances have strong positive eﬀect, acquisition have a
positive eﬀect • in case coordination costs are high → Alliances might actually be harmful, acquisitions decrease
firm’s ability to generate new knowledge Findings
• a firm’s internal organisational characteristics play a crucial role in determining its ability to
organise knowledge for innovation • conceptual framework suggests that the eﬀectiveness of external knowledge sourcing partly
depends on the state of the internal knowledge production Zhou and Li (2012) - How Knowledge Aﬀects Radical Innovation: Knowledge Base,
Market Knowledge Acquisition, and Internal Knowledge Sharing
• examines how existing knowledge base (breadth & depth) interacts with knowledge integration
mechanisms to aﬀect radical innovation → external market knowledge acquisition → internal knowledge sharing 1. a firm with a broad knowledge base is more likely to achieve radical innovation through
internal knowledge sharing 2. a firm with a deep knowledge base is more likely to achieve racial innovation through market
knowledge acquisition • firm knowledge base is alone not necessarily suﬃcient for new product development →
knowledge integration mechanisms (see definitions) must be used to capture, interpret and
deploy firm knowledge resources Main findings
• the fit between knowledge integration mechanisms and knowledge base is important for
fostering radical innovation 1. firms with broad KB benefit more from internal knowledge sharing than from market
knowledge acquisition for radical innovation → firms need a good “shake” to create a new perspective of its existing knowledge → increased interaction and knowledge exchange → individuals of diﬀerent divisions recognise other perspectives on their work → synthesise and reach the common goal of radical innovation → potential for new, truly innovative combinations of knowledge 2. firms with deep KB benefit more from market knowledge acquisition than from knowledge
sharing for radical innovation → integrating knowledge from potential markets into deep understanding of current
segments → detect and learn from future markets players to overcome inertia → renewed look at cause-eﬀect understanding, question existing structures → trough divers knowledge from competitors & suppliers, etc. you get varied problem-
solving approaches 
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Document Outline

Summary Lectures and Articles

Lecture 1: Organising Knowledge for Innovation

Grogoriou and Rotharmel (2017) - Organising for Knowledge Generation: Internal Knowledge Networks and the Contingent Effect of External Knowledge Sourcing

Zhou and Li (2012) - How Knowledge Affects Radical Innovation: Knowledge Base, Market Knowledge Acquisition, and Internal Knowledge Sharing

Li et al. (2013) Top management attention to innovation: The role of search selection and intensity in new product introductions

Lecture 2: Organising Discontinuous Innovation

Ahuja and Lampert (2001) - Entrepreneurship in Large Corporation: A Longitudinal Study of How Established Firms Stumble when Confronted with Discontinuity

Christensen and Overdorf (2000) - Meeting the Challenge of Disruptive Change

Veryzer (1998) - Discontinuous Innovation and the New Product Development

Summary Lecture 3: Organising Continuous Innovation

Brown and Eisenhardt (1997) - The Art of Continuous Change: Linking Complexity Theory and Time-paced Evolution in Relentlessly Shifting Organisations

Jansen et al. (2006) - Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organisational Antecedents and Environmental Moderators

Birkinshaw and Gibson (2004) - Building Ambidexterity into an Organisation

Lecture 4: Organising Change for Innovation

Feldmann (2000) - Organisational Routines as a Source of Continuous Change

Rosenbloom (2000) - Leadership, Capabilities, and Technological Change: The Transformation of NCR in the Electronic Era

Danneels (2010) - Trying to Become A Different Type of Company: Dynamic Capability at Smith Corona

Lecture 5: Organising Incentives for Innovation

Makri et al. (2006) CEO Incentives innovation, and performance in technology-intensive firms: A Reconciliation of Outcome and Behaviour-based incentive schemes

Ederer and Manso (2013) - Is Pay for Performance Detrimental to Innovation

Lee and Meyer-Doyle (2017) - How Performance Incentive Shape Individual Exploration and Exploitation Evidence from Micro data

Lecture 6: Organising Capabilities for Innovation

Jansen et al. (2005) Managing Potential and Realised Absorptive Capacity: How Do Organisational Antecedents matter?

Bianchi et al. (2016) Organising for Inbound Open Innovation: How external Consultants and a Dedicated R&D Unit influence product innovation performance