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in relation to value generation. Shapiro and Varian (1998) argue that the reward for an actor in the new economy is [the total value added to the industry] multiplied by [the firm’s percentage share of that added industry value]. Two parallel but distinctive processes are thus being pointed out in the innovation process; value creation and value extraction. ‘Open as free’ and ‘open as priced’ are often implicitly building on the assumption that the rules of value extraction are antecedents of possible value creation. The theoretical argumentation on how the innovative firm in this sense is bargaining with its environment to extract value are not particularly new but possibly empirically intensified through the presence of new methods and tools. The third stream, ‘open as generative’, is so far less theoretically discussed. This perspective is mainly focusing on the value creation process per se, with an underlying assumption that the additative work initiatives should not be too affected by the rules of value appropriation. Rather, value creation ideally precedes (or is separated from) value extraction. From this discussion, Chesbrough’s original definition of open innovation can be somewhat challenged. If open innovation is merely an inflow and outflow of knowledge across organizational boundaries (often with an emphasis of ‘open as priced’), Trott and Hartmann (2009) are right in criticizing him for not bringing anything theoretically new to the table. But, on the other hand, if open innovation is rather about generative capacity, the ‘open’ part of open innovation could in itself be challenged since both openness and closeness can be supporting and facilitating means of generative efforts. 26:03 Your innovation or mine? Exploring the decision-making process in private-collective knowledge communities Teigland, Robin 1 ; Giovacchini, Elia 2 ; DiGangi, Paul 3 ; Björn- Tore, Flåten 4 1 Stockholm School of Economics, Dept of Marketing and Strategy, Stockholm, Sweden; 2 Stockholm University, School of Business, Stockholm, Sweden; 3 Western Carolina University, Global Management and Strategy Department, Cullowhee, United States; 4 University of Agder, Center for Entrepreneurship, Kristiansand, Norway Organization science literature traditionally distinguishes between two types of business models: the private and the collective. The private model assumes support by private investors, who foresee a potential return from the capital invested. The collective model, on the other hand, is fundamentally concerned with public goods characterized by non-excludability and non-rivalry. Recently, von Hippel & von Krogh (2003) proposed a hybrid model labeled the “privatecollective” model in response to the rapid proliferation of Free Open Source Software (FOSS) communities. The privatecollective model is characterized by 1) private individuals investing their own resources but forgoing any potential returns by freely revealing their innovation to the community and 2) firms that base some or all of their profits on the products or services developed by the community (Dahlander & Magnusson 2008). While von Hippel & von Krogh suggest that private-collective communities provide the “best of both worlds”, their sustainability is dependent upon the ability of firms and community members to strike a balance between their often conflicting needs and goals. Little research to date, however, has provided guidance on how to effectively strike this balance. Current research has suggested that organizations engaging directly with their environment must manage the relational dynamic to effectively co-create value differently than with previous models (Di Gangi et al 2010). Different than the “man on the inside” (Dahlander & Wallin 2006), this 136 study focuses on private-collective knowledge communities in which a variety of actors self-organize to co-create value. More specifically, this study explores the relationship between different sets of actors and investigates the question: How do different private-collective actors influence the decisionmaking process within a private-collective community? We conducted a study using theories of network dynamics, stakeholder influence, and political skill of OpenSim. OpenSim is an open source multi-platform, multi-user 3D application server that enables developers across the globe to customize their virtual worlds based on their technology preferences. We chose OpenSim due to its global reach and to its diversity in community actors: independent users, freelance developers, non-profit organizations (e.g., universities), and both small and large for-profit firms (e.g., Intel and ReactionGrid). Results and implications are discussed. 26:04 Managing corporate open innovation Edenius, Mats1 ; Hrastinski, Stefan2 1Uppsala University, Informatics and Media, Uppsala, Sweden; 2Royal Institute of Technology, Media Technology, Stockholm, Sweden Since 2007 the research team has been working on analyzing and establishing various forms of open innovation environments. These efforts have been pursued with the intention of defining best practice strategies in creating and running open innovation business systems. At Stockholm Airport a complete multi-organizational innovation arena was established incorporating several corporations and authorities. A model was created through wide literature studies, and interviews and workshops with both personnel and senior management. After two major pilots extensive follow-up studies were pursued and the model was enhanced and has later been re-tested in other (single-corporation) environments. Organizational models have also been tested and researched in a number of other open innovation projects. The focus of the research team is on outside-in open innovation, primarily user-involvement in the corporate innovation system. The channel for establishing the communication with the users is the Internet, so the enabler for open innovation is information technology. Still, the use of information technology too often comes without well-defined organizational structure to support it. So the research team has focus on a holistic picture of open innovation management including both the use of the technology and the management of the resources supporting the outcomes of the technology – the innovations. Research results include the notion that corporate idea management usually produces rather incremental innovations, as experienced both with travellers at Stockholm-Arlanda Airport and personnel at one large Swedish municipality. Most ideas presented by end-users are actually low-level solutions to existing problems. Most of the time end-users use idea management systems to highlight a not optimally functioning situation and complementing it with the most obvious solution. To increase the level of innovation two measures can be taken; 1) perform an RCA (root cause analysis) to discover the actual need behind the submission, and 2) re-crowdsource the problem as defined to an innovation marketplace to invoke new perspectives from other competence areas. A model to describe this process has been developed, tested and finetuned throughout the five years of research and a process for crowdsourcing to different public target groups during different steps in the innovation value chain has been defined and is presented in the paper.
26:05 Playing the Game Leveraging artistic freedom and financial pressure in video game development Zackariasson, Peter 1 ; Sandqvist, Ulf 2 1 University of Gothenburg, School of Business, Economics and Law, Gothenburg, Sweden; 2 Umeå University, Economic History, Umeå, Sweden The development of video games has grown from a playful activity at universities, and military research, in the early 1950s to a professional and profitable industry. Today is the video games industry is one of the major cultural industries – for example, turnover from sale in the video game industry exceeds box office revenues in the film industry. Despite this size is this industry, apart from a few publications (Cadin et al 2006, Cadin and Guérin 2006, Kerr 2006, Readman and Grantham 2006, Tschang and Szczypula 2006), much ignored in academic research this far. This is about to change, not least in Sweden where theses about computer games industry arouses a growing interest (Dymek 2010, Sandqvist 2007, 2010; Zackariasson 2003, 2007). In this paper we aim to contribute to the discussion about leadership in the borderline between artistic freedom and financial pressure. Today, this is very much where the video game industry is situated. Leadership in cultural organizations, such as video games developer, has a significant role to capture the creativity and channel it towards innovations in production, video games, in this case. Guillet de Monthoux Others (2007) argues that there is a certain fuzzyness in this type of organization, which places special demands on the leadership to encourage this flow and steer them towards a common goal. Byrne et al (2009) suggests that leadership has an impact on an innovative process in which creative people can express their knowledge. Compared with the assumptions of the individual creative person and its driving force. The reason for the leadership and creativity in computer game development is a very good case to study is that this industry represents the output of today’s cultural and technological society. Video game industry is also an industry which is heavily dependent on the creativity and artistic creation (Tschang 2007, Zackariasson et al 2006), video games, like other cultural products, designed to stimulate our senses and arouse emotions. The process in which the game develops commute thus between artistic creativity and technical craft. The artistic creation is no different from other visual and auditory devices to the extent of creating a material that appeals to an imaginary audience. There must be a genuine creative behind the product - like a akvarellmålares artistry. However, what is to come to this artistic practice in a later stage, will be translated into a digital format. 26:06 Open innovation in health care services: Challenges and opportunities Keller, Christina 1 ; Edenius, Mats 2 ; Lindblad, Staffan 3 1 Department of Informatics, Jönköping International Business School, Department of Informatics and Media, Uppsala University, Jönköping, Sweden; 2 Department of Informatics and Media, Uppsala University, Uppsala, Sweden; 3 Karolinska Institutet, Stockholm, Sweden In Chesbrough’s (2003) terminology, health care organizations are so-called ”innovation missionaries”, not creating service innovations for profit, but to serve a cause. Traditions and organizational culture in health care has appointed the physician as the expert on the patient’s disease with full control of knowledge, treatment and services. In this sense, health care organizations clearly employ closed innovation principles. These principles have only recently been challenged by, for example, the patient empowerment movement (Hasselblad & Bejerot, 2007) and approaches like evidence-based design (Bate & Robert, 2006; Pickles & Hide, 2008). We argue that ”classic” open innovation principles could be applied also to open service innovation in health care. In the paradigm of open service innovation, every patient is an expert on his or her disease and should be perceived as such by physicians and professions in health care. Patients have access to knowledge about the disease from, for example, patient guides on the Internet or patient communities engaging in interaction via social media. Not only should evidence-based knowledge be valued in health care but also patients’ ”subjective” experiences from health care services, and effects from treatment and lifestyle changes. Accordingly, the patient should be regarded as a co-designer and innovator of health care services. The purpose of the study is to describe and discuss how principles from open innovation, which are primarily derived from commercial product development, could be applied to open service innovation in non-profit health care organizations. To evaluate the drivers, barriers and prerequisites of such innovation, we performed interviews with to rheumatologists, engaged in a Swedish research project on open innovation in health care. The main driver was considered to be ”the empowered patient”, with a good knowledge of his or her disease. Barriers to open innovation were the lack of meeting places for patients, a strong local variation in how health care services are delivered, and an organizational culture which not promotes learning and innovations. It is necessary for health care organizations to change their current culture of closed innovation, implying that only physicians have valid knowledge about patients’ diseases. Other necessary prerequisites for implementing open innovation principles are support from management and structures of financial control which encourage innovations. 26:07 Experiences of open innovation in leading companies. Based on an empirical study in two leading global companies Stefansdottir, Stella; Steinthorsson, Runolfur Smari University of Iceland, School of Business, Reykjavik, Island One way to manage product innovation and systematically drive new products to markets is through a product innovation process. Innovation processes are in an increasing manner adapted towards more open innovation which has been practiced for decades. This paper is related to a doctoral research project on open innovation. The research is based on empirical findings from a qualitative study that combines a grounded theory approach (Glaser and Strauss, 1967) and a case study (Yin, 2003) of two leading global high-tech companies in respective fields, http://marel.com/ and http://ossur.com/ . The main source of information is 16 in-depth interviews with R&D employees and managers at the companies. Kvale’s (Kvale and Brinkman, 2009) approach to transcript interviews is used. For analysis open coding, axial coding, selective coding (Strauss and Corbin, 1998) and formal data structure analysis (Gustavsson, 1996) are applied. The paper is based on available empirical data and gives a descriptive analysis and a discussion of how two global leading companies have adapted their product innovation processes towards open innovation in practice. The objective of the paper is threefold. Firstly, to show how two leading global companies practice knowledge-intensive open innovation processes with high degree of collaboration and thus adding value to the companies. Secondly, discuss how to gain benefits which can involve closeness to markets, leading customers, the best talents globally and possible others. Thirdly, open up for questions and considerations regarding open innovation and strategy. The research perspective 137
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School of Business NFF 2011 August
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Welcome to the 21 st NFF conference
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Conference theme The process of pro
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About Stockholm University School o
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Wednesday 9:30-10:30 Paper sessions
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Seminar room 3:240 Track 17: Nordic
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Seminar room 3:240 Track 17: Nordic
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Seminar room 3:240 Track 18: Sustai
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TRACK 1 - Perspectives on Service r
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TRACK 2 - The practice of services
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TRACK 3 - Brands & branding - conte
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04:03 Cooperation and competition -
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TRACK 6 - Interdisciplinary perspec
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Wednesday August 24 13:30-15:00 08:
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12:03 Entrepreneurial success: The
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Monday August 22 15:30-17:00 13:08
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14:02 Art-based interventions in ex
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TRACK 17 - Nordic Practices of HRM
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TRACK 21 - Practicing restructuring
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TRACK 23 - Mergers & acquisitions:
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24:08 Knowledge creation in multina
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TRACK 29 - Entrepreneurship educati
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Tuesday August 23 13:30-15:00 Works
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Abstracts 01:01 Service Systems as
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i.e. contractual arrangements estab
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innovation in different parts and c
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01:19 The buyer-seller paradox of p
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02:05 Managers in professional serv
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02:11 Cognitive distortion accounte
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as retailers internationalize, they
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integration, including communicatio
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03:06 Sensory positioning of metrop
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1995), customers as active co-creat
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are expressed from various directio
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04:09 Integrating government author
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introduced. In a strategic context
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its home turf of financial reportin
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of this analysis can also help to i
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08:06 Volatility, leverage effect a
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