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Open Innovation and Organizational Boundaries: The Impact of Task Decomposition and Knowledge Distribution on the Locus of InnovationKarim LakhaniHarvard Business School - Technology and Operations Management Group; Harvard University - Berkman Center for Internet & Society; Harvard Institute for Quantitative Social Science Hila Lifshitz - AssafHarvard Business School Michael TushmanHarvard University - Organizational Behavior Unit May 2, 2012 Harvard Business School Technology & Operations Mgt. Unit Working Paper No. 12-57 Harvard Business School Organizational Behavior Unit Working Paper No. 12-057 Abstract: This paper contrasts traditional, organization-centered models of innovation with more recent work on open innovation. These fundamentally different and inconsistent innovation logics are associated with contrasting organizational boundaries and organizational designs. We suggest that when critical tasks can be modularized and when problem-solving knowledge is widely distributed and available, open innovation complements traditional innovation logics. We induce these ideas from the literature and with extended examples from Apple, NASA, and LEGO. We suggest that task decomposition and problem-solving knowledge distribution are not deterministic but are strategic choices. If dynamic capabilities are associated with innovation streams, and if different innovation types are rooted in contrasting innovation logics, there are important implications for firm boundaries, design, and identity.
Number of Pages in PDF File: 42 working papers seriesDate posted: January 8, 2012 ; Last revised: May 5, 2012Suggested CitationContact Information
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