Innovation Processes in Business Networks: Managing Inter-Organizational Relationships for Innovational Excellence (Advances in Information Systems and Business Engineering Book 2)

In today's networked economy, each organization is more and more shaped by the system of its long-term business interactions. Innovation processes cannot be successfully designed and managed unless the complex influences of business networking on innovation processes and innovation-related performances are clearly understood. But extant theories on business networks are fragmented, and each of them, taken singularly, provides only partial or poor understanding of the impacts of business networking on innovation performances. Based on qualitative research on three exemplary worst practices and on expert panel discussion and validation, Francesca Ricciardi develops novel quantitative models in this theory-building work to explain innovation performances in different inter-organizational networks. Contents Possible Positive and Negative Impacts of Business Networking on Innovation and Excellence Sustainable Altruism for Business Networking Ecology of Innovation in Organizational Settings Motivations for Business Networking Innovational Effectiveness of Different Network Types: Theory Building and Testable Models Target Groups Researchers, students, and practitioners in the fields of information science and management science The Author Francesca Ricciardi has been a lecturer in "ICTs and the Information Society" and other similar subjects at the Catholic University of Milan, Italy, since 1998. The Editors The series Advances in Information Systems and Business Engineering is edited by Ulrike Baumöl, Jan vom Brocke and Reinhard Jung Foreword 6 Acknowledgements 8 Table of Contents 9 List of Figures 13 List of Tables 14 1. Introduction 15 2. Business Networking: Possible Positive and Negative Impacts on Innovation and Excellence 18 2.1 Introduction 18 2.2 Possible Impacts of Business Networking on the Organization’s Efficiency 20 2.3 Possible Impacts of Business Networking on the Organization’s Effectiveness 21 2.4 Possible Impacts of Business Networking on the Organization’s Innovation Capabilities 21 2.5 Possible Impact of Business Networking on the Organization’s Social Role 23 2.6 Possible Impacts of Business Networking on the Organization’s Financial Strength 23 2.7 Measuring Business Network Impact 24 2.7.1 Organization’s Innovational Success (IS) 25 2.7.2 Organization’s Social Excellence (SE) 26 2.7.3 Organization’s Competitive Excellence (CE) 26 References 27 3. Sustainable Altruism for Business Networking: The Costs of Fairness and Cooperation 29 3.1 Introduction 29 3.2 What Is Altruism and Why Does It Exist? 30 3.2.1 Altruism-Related Concepts 30 3.2.2 Altruism in Game Theories 32 3.2.3 Altruism in Systems Theories 33 3.2.4 Altruism in Evolutionary Studies 35 3.2.5 Different Forms of Altruism in Integrated Evolutionary-System-Game Theories 36 3.3 What Is the Role of Altruism in Inter-Organizational Business Interactions? 37 3.3.1 Altruism in the Theory of the Population Ecology of Organizations 38 3.3.2 Altruism in the Resource Dependence Theory 39 3.3.3 Altruism in the Resource Based / Relational View of the Firm 40 3.3.4 Altruism in the Collaborative Network Theory 42 3.3.5 Altruism in the Institutional Theory 43 3.4 Under What Conditions Are Altruistic Behaviors Sustainable? 44 3.5 Measuring Business Network Strength 44 3.5.1 Business Network Strength (NS) 45 References 47 4. Ecology of Innovation in Organizational Settings 49 4.1 Introduction 49 4.2 Literature Search Method 51 4.3 Literature Survey 52 4.3.1 What Is Creativity in Organizational Settings? 52 4.3.2 What Are the Antecedents of Creativity in Organizational Settings? 54 4.3.3 What Are the Possible Relationships Between Creativity and Innovation in Organizational Settings? 58 4.3.4 How Can We Consistently Explain Creativity and Successful Innovation in Organizational Settings? 58 4.4 An Evolutionary Approach to Creativity and Innovation 59 4.4.1 The Main Evolutionary Problem with (Creative) Innovation: Irreversibility 60 4.4.2 The Homeostatic Mechanisms and the Tacking Nature of Innovation 61 4.5 Measuring Organizational Innovation 63 4.5.1 Strategic Support to Innovation (SS) 65 4.5.2 Organization’s Innovation Capabilities (IC) 66 References 68 5. Motivations for Business Networking 71 5.1 Introduction 71 5.2 How Can Long-Term Business Relationships Discourage or Hinder Successful Innovation? 72 5.3 How Can Actors’ Motivations to Business Networking Influence Innovation Performances throughout the Network? 74 5.4 Three Cases of Network Failure 76 5.4.1 First Case: Resistances to the Introduction of ERP Systems in Supply Chains 76 5.4.2 Second Case: the Breakdown of the Textile District of Prato, Italy 77 5.4.3 Third Case: the Destruction of Landscape Resources in Alpine Tourism Destinations 79 5.5 Measuring the Motivations for Business Networking 80 5.5.1 Importance of Reliability/Predictability as a Motivation for Business Networking (NM-R) 81 5.5.2 Importance of Information Exchange as a Motivation for Business Networking (NM-I) 81 5.5.3 Importance of Control of Network Resources as a Motivation for Business Networking (NM-C) 82 5.5.4 Importance of Power on External Resources and Decisions as a Motivation for Business Networking (NM-P) 83 5.5.5 Importance of Project / Change Co-Management as a Motivation for Business Networking (NM-M) 83 5.5.6 Importance of Legitimacy as a Motivation for Business Networking (NM-L) 84 References 85 6. Innovational Effectiveness of Different Network Types: Theory Building and Testable Models 87 6.1 Introduction 87 6.2 Reliability / Predictability Networks 89 6.3 Information Exchange Networks 90 6.4 Control Oriented Networks 90 6.5 Power Oriented Networks 91 6.6 Project / Change Co-Management Networks 91 6.7 Legitimacy Networks 92 6.8 Limitations and Further Research 106 In today's networked economy, each organization is more and more shaped by the system of its long-term business interactions. Innovation processes cannot be successfully designed and managed unless the complex influences of business networking on innovation processes and innovation-related performances are clearly understood. But extant theories on business networks are fragmented, and each of them, taken singularly, provides only partial or poor understanding of the impacts of business networking on innovation performances. Based on qualitative research on three exemplary worst practices and on expert panel discussion and validation, Francesca Ricciardi develops novel quantitative models in this theory-building work to explain innovation performances in different inter-organizational networks. Contents Possible Positive and Negative Impacts of Business Networking on Innovation and Excellence Sustainable Altruism for Business Networking Ecology of Innovation in Organizational Settings Motivations for Business Networking Innovational Effectiveness of Different Network Types: Theory Building and Testable Models Target Groups Researchers, students, and practitioners in the fields of information science and management science The Author Francesca Ricciardi has been a lecturer in "ICTs and the Information Society" and other similar subjects at the Catholic University of Milan, Italy, since 1998. The Editors The series Advances in Information Systems and Business Engineering is edited by Ulrike Baumöl, Jan vom Brocke and Reinhard Jung Front Matter....Pages I-XV Introduction....Pages 1-3 Business Networking: Possible Positive and Negative Impacts on Innovation and Excellence....Pages 5-15 Sustainable Altruism for Business Networking: The Costs of Fairness and Cooperation....Pages 17-36 Ecology of Innovation in Organizational Settings....Pages 37-58 Motivations for Business Networking....Pages 59-74 Innovational Effectiveness of Different Network Types: Theory Building and Testable Models....Pages 75-94