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Publications
  • 2013
  • Chapter
  • Handbook of Economic Organization: Integrating Economic and Organization Theory

Open Innovation and Organizational Boundaries: Task Decomposition, Knowledge Distribution and the Locus of Innovation

By: Karim R. Lakhani, Hila Lifshitz-Assaf and Michael L. Tushman
  • Format:Print
  • | Pages:28
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Abstract

This chapter 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.

Keywords

Innovation; Organizational Boundaries; Institutional Logics; Modular Innovation; Open Innovation; Knowledge Sharing; Innovation Strategy; Organizational Design; Boundaries; Collaborative Innovation and Invention

Citation

Lakhani, Karim R., Hila Lifshitz-Assaf, and Michael L. Tushman. "Open Innovation and Organizational Boundaries: Task Decomposition, Knowledge Distribution and the Locus of Innovation." Chap. 19 in Handbook of Economic Organization: Integrating Economic and Organization Theory, edited by Anna Grandori, 355–382. Northampton, MA: Edward Elgar Publishing, 2013.
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About The Authors

Karim R. Lakhani

Technology and Operations Management
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Michael L. Tushman

Organizational Behavior
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More from the Authors
  • Sustainability as a Business-Model Transformation By: Ivanka Visnjic, Felipe Monteiro and Michael L. Tushman
  • Strategy in an Era of Abundant Expertise: How to Thrive When AI Makes Knowledge and Know-How Cheaper and Easier to Access By: Bobby Yerramilli-Rao, John Corwin, Yang Li and Karim R. Lakhani
  • JPMorganChase: Leadership in the Age of GenAI By: Iavor I. Bojinov, Karim R. Lakhani and David Lane
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