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Open innovation and the management of intra-firm conflict

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  • Andreas Panagopoulos
  • Christos N. Pitelis

Abstract

We analyse the hitherto unexplored relationship between intra-firm conflict between the research and development (R&D) department and central management, conflict alleviation and the choice of 'open' versus 'closed' innovation, in the context of a simple formal model. We find that in the presence of (intentional or unintentional) divergence of preferred R&D output between the R&D department and central management, the decision by central management to adopt an 'open' (versus 'closed') innovation approach, may help serve the twin purpose of shifting constraints to growth and increasing firm profitability, by alleviating intra-firm conflict.

Suggested Citation

  • Andreas Panagopoulos & Christos N. Pitelis, 2010. "Open innovation and the management of intra-firm conflict," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 7(3/4), pages 295-307.
    • Handle: RePEc:ids:ijlica:v:7:y:2010:i:3/4:p:295-307
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    References listed on IDEAS

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    More about this item

    Keywords

    intra-firm conflict; conflict management; open innovation; firm growth; research and development; R&D; central management; innovation management.;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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