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Enabling Open Innovation: Lessons from Haier

Published on Jan 1, 2017in International Journal of Innovation Studies
· DOI :10.3724/SP.J.1440.101002
Arie Y. Lewin38
Estimated H-index: 38
(Duke University),
Liisa Välikangas14
Estimated H-index: 14
(Hanken School of Economics),
Jin Chen2
Estimated H-index: 2
(THU: Tsinghua University)
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Abstract
Open innovation has become a dominant innovation paradigm. However, the actual adoption of open innovation organizational designs and practices remains elusive, and ongoing examples of large companies practicing open innovation in mature industries or beyond R&D activities are rare. Despite the continuing interest in open innovation and the surging research on the topic, not much is documented about how, in particular, large companies interpret and implement open innovation or develop and sustain an innovation-enabling culture. This paper reports on a study of Haier’s adoption of six radical innovations as it implements an open innovation organization over a period of seven years. The study is unique in that the cases reveal how open innovation is enabled by the socially enabling mechanisms developed under Chairman Ruimin Zhang’s leadership. These varied enabling mechanisms open the organization to serendipity at every level, from the bottom up to suppliers. Most importantly, the mechanisms imprint and sustain an open innovation culture recognized as important—yet often left unarticulated in terms of how it is practiced—in the prior literature. The paper contributes to and highlights the centrality of socially enabling mechanisms underlying an organization’s innovation absorptive capacity.
  • References (46)
  • Citations (4)
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References46
Newest
Published on Oct 1, 2016
Clayton M. Christensen49
Estimated H-index: 49
,
Taddy Hall4
Estimated H-index: 4
+ 1 AuthorsDavid S. Duncan4
Estimated H-index: 4
5 Citations
Published on Jan 22, 2015
Benn Lawson26
Estimated H-index: 26
(University of Cambridge)
The innovator's dilemma explores the reasons why incumbent companies fail in the face of certain types of market and/or technological change. They fail because they listen to their customers, and focus of investing in sustaining technologies. However, this leaves them unable to cope with rise of disruptive technologies. Keywords: disruptive innovation; disruptive technologies; sustaining technologies; technological change; process technology
10 Citations Source Cite
Published on Jan 1, 2015in Journal of Management Studies 5.84
J. Ignacio Canales5
Estimated H-index: 5
(Glas.: University of Glasgow)
This paper elaborates theory inductively by following the evolution of 14 strategic initiatives from an exploratory case study. The study examines the context and character of such initiatives over an 8-year period. Based on these initiatives, the paper proposes a two-stage selection mechanism for the intra-evolutionary strategy process that explains the long-term mutation of organizations. The mechanism operates by selecting according to both fit with the strategic intent and feasibility of the...
5 Citations Source Cite
Published on Jul 1, 2014in Journal of Product Innovation Management 3.78
Joel West27
Estimated H-index: 27
(Keck Graduate Institute of Applied Life Sciences),
Marcel Bogers17
Estimated H-index: 17
This article reviews research on open innovation that considers how and why firms commercialize external sources of innovations. It examines both the “outside-in” and “coupled” modes of Enkel et al. (2009). From an analysis of prior research on how firms leverage external sources of innovation, it suggests a four-phase model in which a linear process — (1) obtaining, (2) integrating and (3) commercializing external innovations — is combined with (4) interaction between the firm and its collabora...
536 Citations Source Cite
Published on Dec 1, 2013in Journal of Product Innovation Management 3.78
Gina Colarelli O'Connor27
Estimated H-index: 27
,
Mark P. Rice7
Estimated H-index: 7
Large established firms typically focus on enhancing their ability to manage their core businesses, with an emphasis on cost reduction, quality improvements, and incremental innovation in existing products and processes. To sustain competitive advantage over the long term, mature firms must in parallel develop radical innovations (RI) as a basis for building and dominating fundamentally new markets. Management practices that are effective in established businesses are often ineffective and even ...
71 Citations Source Cite
Published on Nov 1, 2012in Journal of Management Studies 5.84
Mats Alvesson67
Estimated H-index: 67
(Lund University),
André Spicer32
Estimated H-index: 32
In this paper we question the one-sided thesis that contemporary organizations rely on the mobilization of cognitive capacities. We suggest that severe restrictions on these capacities in the form of what we call functional stupidity are an equally important if under-recognized part of organizational life. Functional stupidity refers to an absence of reflexivity, a refusal to use intellectual capacities in other than myopic ways, and avoidance of justifications. We argue that functional stupidit...
145 Citations Source Cite
Published on Jun 1, 2012in Strategic Management Journal 5.57
John Joseph10
Estimated H-index: 10
(Duke University),
William Ocasio24
Estimated H-index: 24
(NU: Northwestern University)
In this study, we analyze how the organizational architecture of a multi-business firm affects the adaptation of its constituent business units. Using an inductive analysis of GE’s governance system from 1951 to 2001, we examine how the integration of corporate and business unit attention occurs within and across the firm’s governance channels. Our theory identifies an unexplored aspect of the M-form’s architecture: collective vertical interactions between the corporate office and business units...
90 Citations Source Cite
Published on Oct 1, 2011in Technovation 5.25
Letizia Mortara15
Estimated H-index: 15
(University of Cambridge),
Tim Minshall14
Estimated H-index: 14
(University of Cambridge)
This paper addresses a major gap in reported research on open innovation (OI): how do companies implement open innovation? To answer this question a sample of 43 cross-sector firms were reviewed for their OI implementation approaches. The study analyzed how firms moved from practising closed to open innovation, classifying the adoption path according to the impetus for the adoption of the OI paradigm and the coordination of the OI implementation. The way firms adopted OI was found to vary accord...
125 Citations Source Cite
Published on Jul 1, 2011in Organization Science 3.26
Nicolai J. Foss72
Estimated H-index: 72
(NHH: Norwegian School of Economics),
Keld Laursen29
Estimated H-index: 29
(CBS: Copenhagen Business School),
Torben Pedersen45
Estimated H-index: 45
(CBS: Copenhagen Business School)
The notion that firms can improve their innovativeness by tapping users and customers for knowledge has become prominent in innovation studies. Similar arguments have been made in the marketing literature. We argue that neither literatures take sufficient account of firm organization. Specifically, firms that attempt to leverage user and customer knowledge in the context of innovation must design an internal organization appropriate to support it. This can be achieved in particular through the u...
275 Citations Source Cite
Cited By4
Newest
Abstract The technological catch-up behaviour of latecomer firms has been a topic of interest for the past three decades, especially in emerging economies, such as China and India. However, little research has systematically discussed the capability-upgrading issue that firms face in the context of open innovation, and the previous work lacks an explanation for why some Chinese firms can win competitive advantages in the global market within a short time. This study develops a PDSE (Position-Dep...
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Published on Jun 17, 2019
Xin Li3
Estimated H-index: 3
(CBS: Copenhagen Business School),
Torben Juul Andersen16
Estimated H-index: 16
(CBS: Copenhagen Business School),
Carina Antonia Hallin4
Estimated H-index: 4
(CBS: Copenhagen Business School)
Purpose The purpose of this paper is to propose an alternative perspective on Zhong-Yong that is different from the notion of “Yin-Yang balancing” and apply it to understand the issue of balancing the top-down and bottom-up processes in strategy making. Design/methodology/approach The authors adopt a “West meets East” mindset and approach to develop an alternative perspective on Zhong-Yong, and then apply this perspective to understand the issue of balancing the top-down and bottom-up processes ...
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Published on May 14, 2019in Small Business Economics 3.56
Simona Gentile-Lüdecke , Rui Torres de Oliveira2
Estimated H-index: 2
(QUT: Queensland University of Technology)
+ 0 AuthorsJustin Paul
Based on the evolutionary theory of the firm, this paper examines how traditional variables that describe a firm’s organizational structure—formalization, specialization, and centralization—affect the adoption of inbound and outbound open innovation. Using a cross-sectional survey of Chinese small and medium enterprises, our study shows that organizational structure matters for open innovation and that formalization, specialization, and centralization have diverse effects on the OI practices imp...
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Published on Jan 1, 2018in IEEE Engineering Management Review
Jianguo Jia (Huawei), Tariq S. Durrani22
Estimated H-index: 22
(University of Strathclyde)
+ 0 AuthorsJin Chen9
Estimated H-index: 9
(THU: Tsinghua University)
The modern mobile telecommunication industry is an active ecosystem, with a ten-year cycle time for the evolution wave from 1G to 5G. On investigating the mechanism using a systems thinking approach, we find that there are three innovation waves driving the evolution of the industry: A ten-year radical innovation wave for key technology research, standards definition, and the first product launch; followed by another ten years of incremental innovation to cover product refinement, which precedes...
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Kent Wickstrøm Jensen7
Estimated H-index: 7
(University of Southern Denmark),
Ye Liu2
Estimated H-index: 2
(University of Southern Denmark),
Thomas Schøtt14
Estimated H-index: 14
(University of Southern Denmark)
Abstract Entrepreneurs work such, as innovation, may bring financial benefits and non-pecuniary benefits, such as well-being. Entrepreneurial innovation expectedly benefits an individuals job satisfaction, balance between work and family, and life satisfaction. This is tested for entrepreneurs in China and around the world, with a globally representative sample of 33,519 entrepreneurs, including 786 in China. Among entrepreneurs around the world, innovation benefits job satisfaction, the balance...
5 Citations Source Cite
Published on Jun 1, 2017in Management and Organization Review 2.40
Henk W. Volberda49
Estimated H-index: 49
(EUR: Erasmus University Rotterdam),
Oli R. Mihalache6
Estimated H-index: 6
(VU: VU University Amsterdam)
+ 1 AuthorsArie Y. Lewin38
Estimated H-index: 38
(Duke University)
Transforming economies such as the BRIC countries – Ex-Soviet Republics, or Eastern European countries – share national aspirations of becoming innovation economies. These aspirations have stimulated a push for entrepreneurship and experimentation with new ways of doing things. This has created a fascinating context for research on business model innovation, relating to the way incumbent firms adapt their business models or come up with entirely new models. Similarly, new business models may be ...
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Published on Jan 1, 2017
Torben Juul Andersen16
Estimated H-index: 16
Abstract The global business context is turbulent and becoming a dynamic complex system where small events can trigger large outcomes that are difficult to predict. This gives urgency to the search for responsive global organizations that are able to adapt the multinational corporate strategy so it provides a better fit with the changing demands of the environment. An important key to this challenge is to activate the responsive potential of the many individuals in the multinational corporation ...
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