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Collaboration in innovation

Q: How should firm organize for innovation according to Farms et al. (2005)

Firms need to engage in both exploitation (improvement, refinement, efficiency, selection, complementary assets, and implementation) and exploration (search, variation, experimentation, and discovery). To meet multiple requirements firms tend to adopt a portfolio approach toward organizing their new product development (NPD) activities. Alliances are used to overcome tensions related to combining short-term and long-term orientated developments.

Q: What are the benefits of exploitative-oriented collaborations, according to Farms et al. (2005)?

Exploitative-oriented collaborations (with suppliers and customers) could support the improvement and further development of existing technologies and products . They benefit from clear performance objectives that are translated into measurable output controls and are monitored by formalized coordinating and control mechanisms. Hence, these collaborative agreements typically are characterized by clear job responsibilities, centralized procedures, and highly engineered work processes.

Q: What are the benefits of explorative-oriented collaborations, according to Farms et al. (2005)?

Explorative-oriented collaborations (universities and research organizations) would be beneficial for innovation objectives aimed at creating new technologies and products. They are seen as instrumental in creating new competencies, learning processes and joint experimentation. Hence, a differential emphasis in the direction of intangible or tacit knowledge exchange can be observed. To achieve such learning objectives, alliance partners rely more on personal and informal modes of coordination and control. Such ‘‘organic’’ structures, in which job responsibilities are less explicit and flexible working procedures have been introduced, seem to suit innovation projects that focus on novelty rather than efficiency.

16 important questions on Collaboration in innovation

How should firm organize for innovation according to Farms et al. (2005)

Firms need to engage in both exploitation (improvement, refinement, efficiency, selection, complementary assets, and implementation) and exploration (search, variation, experimentation, and discovery). To meet multiple requirements firms tend to adopt a portfolio approach toward organizing their new product development (NPD) activities. Alliances are used to overcome tensions related to combining short-term and long-term orientated developments.

What are the benefits of exploitative-oriented collaborations, according to Farms et al. (2005)?

Exploitative-oriented collaborations (with suppliers and customers) could support the improvement and further development of existing technologies and products. They benefit from clear performance objectives that are translated into measurable output controls and are monitored by formalized coordinating and control mechanisms. Hence, these collaborative agreements typically are characterized by clear job responsibilities, centralized procedures, and highly engineered work processes.

What are the benefits of explorative-oriented collaborations, according to Farms et al. (2005)?

Explorative-oriented collaborations (universities and research organizations) would be beneficial for innovation objectives aimed at creating new technologies and products. They are seen as instrumental in creating new competencies, learning processes and joint experimentation. Hence, a differential emphasis in the direction of intangible or tacit knowledge exchange can be observed. To achieve such learning objectives, alliance partners rely more on personal and informal modes of coordination and control. Such ‘‘organic’’ structures, in which job responsibilities are less explicit and flexible working procedures have been introduced, seem to suit innovation projects that focus on novelty rather than efficiency.

What are the conclusions that came out of the research Farms et al. (2005), regarding the effect of interorganizational collaboration between companies concerning innovation?

It can be concluded that the more firms engage in a variety of different interorganizational collaborations, the more likely they are to create new or improved products that are commercially successful. Collaboration with different types of partners coincides with different types of innovation outcomes. These results highlight the relevance for senior management of adopting a portfolio approach to interorganizational collaborations in order to achieve results both in terms of developing existing technologies and creating new ones.

What is the summary of the article written by Nobel et al. (1998)?

There are three types of R&D unit roles are identified (local adaptor, international adaptor, international creator). (1) Each type of R&D unit is managed primarily through a different mode of control; (2) local and international adaptors both focus their communication on their internal corporate network; and (3) international creators have strong internally and externally oriented networks of relationships.

What is, according to Nobel et al. (1998), the challenges that MNC face, regarding their R&D?

A challenge facing many large multinational corporations (MNCs) today is how to effectively make use of their far-flung research and development operations (5-25% foreign R&D efforts). Due to global innovation efforts it’s of major importance to stimulate communication among researchers; it becomes more difficult when laboratories are located far from each other. The importance of effectively managing international R&D units is underlined by the centrality of R&D to the raison d’être of the MNC.

What do the results show, according to Nobel et al. (1998), about the control modes for MNC, regarding their R&D structure?

All control modes were used by all the units, but the relative emphasis on the different modes varied significantly.

What are the conclusions of the article written by Nobel et al. (1998)?

This study provided insight into the management of international R&D units on a number of different levels: communication patterns and control system. Foreign R&D is predominantly internationally focused.

International creator used socialization extensively as control mechanism.

Local adaptor units are the most problematic to manage (disconnected with central R&D; dissatisfaction in areas of product development and know-how exchange).

International adaptors evolve from local adaptors, so HQ needs to retain some openness to their ideas.

Global R&D collaboration is a desirable goal but one which in practical terms may not be achieved in the near future.

What was the goal of the study done by Ojasalo (2012)?

The purpose of this study is to increase knowledge of challenges of innovation networks. The literature includes a great deal of research on both innovation and business networks, but the empirical knowledge of their intersection, namely innovation networks, is still scarce.There is a clear knowledge gap on challenges of innovation networks, in particular.

What are the findings that came out of Ojasalo's (2012) research?

This empirical study identifies several challenges of innovation networks. The challenges identified are
• Conflict of interest and opportunism
• Educating/learning in the network
• Unforeseen gain to competitors
• Network partner’s economic problems
• Defining responsibilities and roles
• Lack of coordination and leadership
• Holding schedules
• Lack of written contracts
• Unreliable partners/scam
• Ability to correct one’s own errors
• Exaggerating skills and capabilities

Why do companies collaborate in innovation? (powerpoint)

1. Get access to specific knowledge and skills
2. Improve time-to-market
3. Share development costs
4. Get access to local markets
5. Develop industry standards

Which customers should you involve when you innovate? (powerpoint

1. Lead users
2. Depends on the innovation stage
3. Key customers in the value chain

Which other parties could you involve, besides customers in the collaboration process of innovation (powerpoint)?

Depends on:

•What type of partners?
•Partner contributions?
•Selection criteria for partners?
•Individuals to approach?
•Preferred interaction/communication modes?
•Management challenges and solutions?

What are the advantages of collaboration in innovation (powerpoint)?

Knowledge

–innovation requires a diversity of competences
–which do not always exist within the firm
–may be provided by outside partners

Cost

–increasing cost of innovation
–may be shared with partners
– Time

–time-to-market is critical
–improve cycle time by using skills where they alreadyexist

What are the disadvantages of collaboration in innovation (powerpoint)?

Increased costs

–increased communication and coordination
– Delays

–collaboration problems
– Competition

–a partner may turn into a competitor
– Imbalance

–differences between value of collaboration or between contributions

What kind of bonds do you have between companies? (powerpoint)

Economic bonds

–portfolio of products and services in return for prices, more formal: joint ventures
• Social bonds

–interaction between actors; important for creating and maintaining trust
• Technical bonds

–adjustment of products and processes
• Administrative bonds

–systems, procedures and routines to work together
• Informational bonds

–communication, knowledge
• Contractual bonds

–very visible, but may be less effective than they appear to be

The question on the page originate from the summary of the following study material:

Innovation Management in Multinationals

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Collaboration in innovation

16 important questions on Collaboration in innovation

How should firm organize for innovation according to Farms et al. (2005)

What are the benefits of exploitative-oriented collaborations, according to Farms et al. (2005)?

What are the benefits of explorative-oriented collaborations, according to Farms et al. (2005)?

What are the conclusions that came out of the research Farms et al. (2005), regarding the effect of interorganizational collaboration between companies concerning innovation?

What is the summary of the article written by Nobel et al. (1998)?

What is, according to Nobel et al. (1998), the challenges that MNC face, regarding their R&D?

What do the results show, according to Nobel et al. (1998), about the control modes for MNC, regarding their R&D structure?

What are the conclusions of the article written by Nobel et al. (1998)?

What was the goal of the study done by Ojasalo (2012)?

What are the findings that came out of Ojasalo's (2012) research?

Why do companies collaborate in innovation? (powerpoint)

Which customers should you involve when you innovate? (powerpoint

Which other parties could you involve, besides customers in the collaboration process of innovation (powerpoint)?

What are the advantages of collaboration in innovation (powerpoint)?

What are the disadvantages of collaboration in innovation (powerpoint)?

What kind of bonds do you have between companies? (powerpoint)

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