Open innovation and the management of intra-firm conflict

Inderscience Publishers
Publication Type:
Journal Article
International Journal of Learning and Intellectual Capital, 2010, 7 (3/4), pp. 295 - 307
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We analyse the hitherto unexplored relationship between intra-firm conflict between the research and development (R&D) department and central management, conflict alleviation and the choice of `open versus `closed innovation, in the context of a simple formal model. We find that in the presence of (intentional or unintentional) divergence of preferred R&D output between the R&D department and central management, the decision by central management to adopt an `open (versus `closed) innovation approach, may help serve the twin purpose of shifting constraints to growth and increasing firm profitability, by alleviating intra-firm conflict.
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