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Open innovation and the management of intra-firm conflict

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  • Pitelis, Christos
  • Panagopoulos, Andreas

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.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23940.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:23940

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Related research

Keywords: intra-firm conflict; management; open innovation; firm growth;

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References

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  1. Ashish Arora & Andrea Fosfuri & Alfonso Gambardella, 2004. "Markets for Technology: The Economics of Innovation and Corporate Strategy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511819, January.
  2. Pitelis, Christos & Teece, David, 2009. "The (new) nature and essence of the firm," MPRA Paper 24317, University Library of Munich, Germany.
  3. Eaton, B Curtis & Schmitt, Nicolas, 1994. "Flexible Manufacturing and Market Structure," American Economic Review, American Economic Association, vol. 84(4), pages 875-88, September.
  4. James Bessen & Michael J. Meurer, 2005. "The Patent Litigation Explosion," Working Papers 0501, Research on Innovation.
  5. Pitelis, Christos & Teece, David, 2010. "Cross-border Market Co-creation, Dynamic Capabilities and the Entrepreneurial Theory of the Multinational Enterprise," MPRA Paper 23301, University Library of Munich, Germany.
  6. Alex Coad, 2007. "Firm Growth : a Survey," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00155762, HAL.
  7. Gans, Joshua S. & Stern, Scott, 2003. "The product market and the market for "ideas": commercialization strategies for technology entrepreneurs," Research Policy, Elsevier, vol. 32(2), pages 333-350, February.
  8. Penrose, Perran & Pitelis, Christos, 1999. "Edith Elura Tilton Penrose: Life, Contribution and Influence," Contributions to Political Economy, Oxford University Press, vol. 18(0), pages 3-22.
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