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Co-Development of Open Innovation Strategy and Dynamic Capabilities as a Source of Corporate Growth

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Author Info
Alar Kolk () (Institute of Strategy and International Business, Helsinki University of Technology)
Kristi Püümann () (School of Economics and Business Administration, Tallinn University of Technology)
Abstract

Companies need to be innovative in terms of their business models and technologies to achieve superior performance. As market conditions require innovation to be open, firms develop dynamic capabilities to generate and realise such open strategies. Even though corporate growth in rapidly changing environment is related to opening up innovation as well as developing dynamic capabilities, there is a necessity for appropriate management of openness of innovation strategies as well as management of the dynamics of capabilities. Therefore this paper suggests that firms need to find a balance point between development of their organisational capabilities and openness of their innovation strategies. Co-development of firms´ dynamic capabilities together with Open Innovation Strategies enables firms to maximise their performance.

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Publisher Info
Paper provided by School of Economics and Business Administration, Tallinn University of Technology in its series Working Papers with number 173.

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Length: 11
Date of creation: 2008
Date of revision:
Publication status: Published in Working Papers in Economics.School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Pages 73-83
Handle: RePEc:ttu:wpaper:173

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Related research
Keywords: open innovation; open business model; innovation strategies; dynamic capabilities; corporate growth;

Find related papers by JEL classification:
L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

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  1. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323. [Downloadable!]
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