Orchestrating Innovation Networks What is the contribution of this article to the academic world? Charles Dhanaraj Arvind Parkhe Group 7 - Dolenc N., Makkonen S., Rauhala J., Itävuo T., Andersson M.,

Area of context  innovation networks, what kind of networks are they?  what does loose coupling mean?  what are hubs?  what does orchestrating mean in this context ?

Innovation Network Loosely coupled systems of autonomous organizations. A network maintained in order to distribute knowledge in hopes of shared value gained if anyone within the network innovates. Loose coupling entails little to no hierarchy.

Loose Coupling a situation in which elements are responsive, but retain evidence of separateness and identity.

Hub The entity in the center of the network, making sure the network is maintained and works efficiently.

Orchestrating a.k.a. network management + innovation management + resource management + knowledge management

“Every herd of wild cattle has its leaders, its influential head” -Tarde G., 1903

The head of the network is a hub and it should concern itself with managing... 1.Knowledge Mobility 2.Innovation appropriability 3.Network Stability

1.Knowledge Mobility How easily knowledge is shared in a network ●Value will not be created if the knowledge is not shared between the members of the network ●Resources that are easily available will promote knowledge mobility

2. Innovation appropriability The ability to capture the profits generated by innovation ●Goal is to ensure that the created value is distributed fairly ●Joint asset ownership and patent pooling enhances the commitment of the network members

3. Network Stability How stable is the network and what are the risks ●An unstable network is not a good environment for value creation ●Risk of network members turning into competitors ●Firms interact more and understand each other better →Increases stability

Other concerns of the hub  There is tension in revealing knowledge to partners  Maintain a strong appropriability to keep existing members in the network  Hubs influence the network through recruitment  Hubs can control their position by handling connections

Research propositions of the paper

Proposition 1 With more knowledge their is greater likelihood of innovation “Network Innovation output will be greater the higher the level of knowledge mobility orchestrated by the hub firm”

Proposition 2 If you know how to capitalize on innovation you’ll have better results “Network innovation output will be greater the higher the level of innovation appropriability orchestrated by the hub firm.”

Proposition 3 Stability ensures knowledge is not lost during the innovation process “Network innovation output will be greater the higher the level of network stability orchestrated by the hub firm.”

Proposition 4 There is a natural tension to promote mutual learning and innovation “Innovation appropriability in an innovation network will positively impact knowledge mobility in the network.”

Proposition 5 Innovation appropriability entails efficient knowledge sharing which helps build trust “Innovation appropriability will positively impact the stability of innovation networks.”

Proposition 6 trust, procedural justice and joint asset ownership are processes that enhance reputation, which lead to openness that helps innovation “Stability of innovation networks will positively impact the strength of innovation appropriability.”

What is the contribution of this article to the academic world?

What does this imply for research At the moment the theory represented in the article is based on scientific articles and is at very abstract level. This creates 3 main challenges for the academic world: 1) Questioning the theory 2) Creating studies based on the theory 3) Linking the theory to the corporate world

1.Questioning the theory  The theory in the article is a vision of 2 independent researchers on a very theoretic subject  Therefore the outcome represented might not yet be accurate  More studies are needed to determine whether the theory is valid or not → As the theory is questioned, its quality is improved.

2. Creating studies based on the article  The article represents a simple model of innovation network and more studies can be done based on it.  The academic world can for example study  How this theory can be studied in practice  The correlation between different variables of a successful network  Hub effects on network  Hub actions in network  Practical studies. Grounded Theory?  As studies are made based on the theory, for example the characteristics of a successful network can be described → The idea of how and what to examine in the network is created. More detailed of the different functions of the hubs is received.

3. Linking the theory to the corporate world  The theory in the article is at a very abstract level and is currently hard to be applied in real life  The theory does not give any suggestions for the companies  The challenge for the academic world is to make the theory more concrete and simple and link it to the corporate world  Case studies  Examples → The academic theory turns into beneficial, easy-to-understand information for the corporate world

Contribution A framework for what can and should be analyzed when one wants to understand what hubs do in order to manage loosely coupled innovation networks