Implementing Open Innovation

By • on March 17, 2013

The Crowdsourcing website notes that as knowledge is widely distributed across the external environment, many companies have opened up their innovation process to gain access to the expertise of external parties and existing knowledge from different domains. While earlier literature has demonstrated positive performance contributions of open innovation, more recent literature has emphasized that firms need to build dedicated processes and internal capabilities to effectively utilize this opportunity. As Gupta and Govindarajan state, a firm’s internal organizational structure determines “the information processing¬†potential between its various subunits and with the environment.”

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