Burying the Hatchet for Catch-Up: Open Innovation among Industry Laggards in the Automotive Industry

2017 ◽  
Vol 60 (2) ◽  
pp. 17-42 ◽  
Author(s):  
Marcelo Cano-Kollmann ◽  
Snehal Awate ◽  
T.J. Hannigan ◽  
Ram Mudambi
Keyword(s):  
Automotive Industry ◽  
Open Innovation ◽  
Global Alliance ◽  
Collaborative Relationships ◽  
Key Technology ◽  
The Road ◽  
Automotive Technology ◽  
Catch Up ◽  
Study Context ◽  
Innovation Processes

What happens when firms in an oligopolistic industry find themselves lagging behind in a potentially dominant technology? If R&D costs are significant and catch-up is key, technology laggards must turn to each other and open up their innovation processes in order to survive. This article uses a real options framework to explain the motives of bitter rivals to engage in collaborative relationships in order to catch up with industry leaders in specific technologies. It shows that ex ante, their interests converge and this lays the foundation of “catch-up alliances”: competitors open up to catch up. However, they often bring vastly different resources to the alliance and, in the process of cooperation, what they learn may cause their interests to diverge. Furthermore, some participants may discount a technology trajectory on the basis of what they learn, and terminate efforts in that area. Therefore, the “road not taken” may be a valuable outcome of the open innovation alliance. This article uses the case of a global alliance in hybrid electric drivetrain automotive technology as the study context, and it analyzes the implications for managers facing similar decisions.

MAPPING THE PERCEPTION AND REALITY OF OPEN INNOVATION

2013 ◽  
Vol 17 (06) ◽  
pp. 1340016 ◽  
Author(s):  
JUSTYNA DĄBROWSKA ◽  
IRINA FIEGENBAUM ◽  
ANTERO KUTVONEN
Keyword(s):  
Open Innovation ◽  
Innovation Management ◽  
Innovation Process ◽  
Innovation Research ◽  
Innovation Activities ◽  
Current State ◽  
Business Practitioners ◽  
The Right ◽  
Innovation Practices ◽  
Innovation Processes

Open innovation holds great potential for improving the efficiency of companies' innovation processes, but also presents substantial risks. A key issue in innovation management is finding the right balance of openness, i.e., determining how open companies should be in their innovation activities. However, academics and business practitioners hold conflicting notions of what constitutes open innovation practice and of how "open innovation companies" are defined. In this paper, we present three in-depth case studies of global R&D-intensive companies, where we find that the firms' perception of their openness differs from their actual situation (as determined by the innovation practices that they apply), and that each company has a different view as to what constitutes open innovation. We claim that resolving conceptual ambiguity and differentiating between openness (as a philosophical aspect) and open innovation (as a way of structuring the innovation process) in research is critical in order to clarify the current state of open innovation research and enable the communication of results to practitioners.

scholarly journals Theoretical Foundations in Support of Small and Medium Towns

2020 ◽  
Vol 12 (13) ◽  
pp. 5312 ◽  
Author(s):  
Teresa de Noronha ◽  
Eric Vaz
Keyword(s):  
Open Innovation ◽  
Local Governance ◽  
Strategic Knowledge ◽  
Social Functions ◽  
Systematic Analysis ◽  
Governance Systems ◽  
The Social ◽  
Technological Developments ◽  
Theoretical Foundations ◽  
Innovation Processes

This theoretical review aims to create a comprehensive and systematic analysis based on previously published literature explaining how contemporary technological developments may promote new paths for small and medium-sized towns (SMTs) and their networking systems. Much has been said concerning the capacity of towns to absorb strategic knowledge, which is highly dependent on local governance systems. In this paper, five levels of multidisciplinary approaches will be addressed so as to pinpoint the theoretical grounds for the promotion and advocacy of small and medium-sized towns (SMTs) as major drivers of regional sustainability: agglomeration advantages and networking efficiencies—representing strict economic accounting of cost and benefits; clustering in a context of online environments, and its extension to open networking systems; sustainable innovation processes for SMTs, technology, and knowledge transfer in open innovation systems—both settings for discussions within the framing of new technological developments and artificial intelligence; knowledge and new technological developments with local spillovers—to be enhanced employing new educational programs and learning diffusion at advanced levels; the social functions of small and medium-sized towns—to be addressed in the areas of sociology, architecture, and planning.

scholarly journals Open Innovation and Social Big Data for Sustainability: Evidence from the Tourism Industry

2018 ◽  
Vol 10 (9) ◽  
pp. 3215 ◽  
Author(s):  
Pasquale Del Vecchio ◽  
Gioconda Mele ◽  
Valentina Ndou ◽  
Giustina Secundo
Keyword(s):  
Big Data ◽  
Open Innovation ◽  
Tourism Industry ◽  
Longitudinal Case Study ◽  
Huge Amount ◽  
Knowledge Assets ◽  
Social Big Data ◽  
Tourism Experience ◽  
Innovation Processes

This paper aims to contribute to the debate on Open Innovation in the age of Big Data by shedding new light on the role that social networks can play as enabling platforms for tourists’ involvement and sources for the creation and management of valuable knowledge assets. The huge amount of data generated on social media by tourists related to their travel experiences can be a valid source of open innovation. To achieve this aim, this paper presents evidence of a digital tourism experience, through a longitudinal case study of a destination in Apulia, a Southern European region. The findings of the study demonstrate how social Big Data could open up innovation processes that could be of support in defining sustainable tourism experiences in a destination.

The evolution of the pathways of innovation strategies in the automotive industry. The case of Fiat Chrysler Automobiles

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elena Candelo ◽  
Ciro Troise ◽  
Diego Matricano ◽  
Amedeo Lepore ◽  
Mario Sorrentino
Keyword(s):  
Automotive Industry ◽  
Open Innovation ◽  
Relevant Literature ◽  
Theoretical Framework ◽  
Knowledge Flows ◽  
Historical Period ◽  
Content Type ◽  
Innovation Activities ◽  
Innovation Strategies

PurposeFundamental management innovations have been ideated and developed in the automotive industry. Over the years, carmakers have radically modified their innovation strategies. Currently, carmakers are increasingly adopting open innovation approaches, moving from a closed to open innovation paradigm. The aim of this paper is to reconstruct the evolution of the innovation activities performed by carmakers and to propose an original periodisation of innovation strategies in the automotive industry since its origins.Design/methodology/approachThis paper analyses the relevant literature and proposes a theoretical framework that defines how innovation strategies have changed from the birth of the automotive industry to current times. A detailed in-depth case study of Fiat Chrysler Automobiles (FCA), one of the top ten global carmakers, is used to corroborate the theoretical framework. The case study reconstructs the entire evolution of the innovation strategies of the company from its origins to the present day.FindingsThe paper proposes an original periodisation by identifying three evolutionary phases of innovation strategies pursued by carmakers: “internal innovation”, “collaborative innovation” and “towards open innovation”. Each phase embraces a historical period, and for each period, the most relevant managerial aspects, as well as the types and direction of knowledge flows for fostering innovation, are analysed. The case study provides clear evidence that FCA has undergone the three above-cited phases in fostering its innovation strategies.Originality/valueThe study reconstructs the evolution of the innovation strategies performed by global carmakers, proposing an original periodisation of the transitions that occurred in practice in the automotive industry. This paper is among the first to explore the evolution of innovation strategies in the automotive industry since its origins to date and to highlight the salient differences that have occurred over time.

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