Management of Innovation Networks – Two Different Approaches

Authors: Jukka Ojasalo

Rapid growth of R&D partnering in the economy has taken place recently.Capability of managing inter-organizational networks focused on developing new products is extremely important for companies operating in the dynamic marketplace where product life cycles become shorter, technological development faster, and competition harder. The existing literature includes little empirical knowledge of the management of innovation networks. The empirical study reported in this article aims at increasing the knowledge ofmanagement of innovation networks by mapping characteristics of management approaches of two case companies. The case companies operate in the software business and develop their products in inter-organizational networks. Special attention in the analysis is paid to differences in the management approachesbetween the case companies. The study contributes by identifying various aspects, which are relevant in understanding and explaining the nature of innovation network management. It also finds two different fundamental views on how controlled and structured the management of innovation networks should be. Moreover, it finds that the orientation to profit maximization in innovation networks may vary. This article also offers several managerial recommendations for the management of innovation networks.

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Publish Year: 2004

Conference: Copenhagen, Denmark (2004)