Managing business-to-business open innovation: A project-level approach

Embracing business-to-business open innovation (B2B OI) can enable firms to remain competitive in an increasingly saturated business environment. Whilst B2B OI is generally undertaken to serve the needs of a specific innovation project, previous research has mainly studied it from the firm-level perspective. Accordingly, the number of project-level studies on B2B OI, especially empirical, remains limited, resulting in an incomplete understanding of B2B OI management. In this editorial, we briefly review the B2B OI literature, discuss the importance of studying B2B OI at project level, and describe how each of the six articles included in our special issue contributes to this field. Moreover, we suggest future research opportunities with regard to issues and topics that remain largely under-investigated in project-level B2B OI, but which also open up to a multilevel perspective.     

Opening and closing open innovation projects: A contractual perspective

In this article we introduce three concepts from transaction cost economics that have so far remained excluded from the open innovation literature, and that enable us to address the demands in the literature for an explanatory mechanism for closing open innovation: unanticipated disturbances, tolerance zone and interpretations of contracts. First, we argue that threats resulting from unanticipated disturbances are absorbed in a tolerance zone and lead to adaptations in knowledge sharing. Second, we argue that these threats and changes in knowledge sharing at the project level impact the interpretation of the open innovation contract at the firm level. Adopting a contractual perspective, the article contributes to the open innovation literature by explaining the tolerance zone of transitioning between closed and open innovation. We illustrate in a case study on a B2B open innovation project how a threat to value creation leads to a continuation of open innovation, whereas a threat to value capture leads to a closing of open innovation.     

Fundamental transformations of trust and its drivers: A multi-stage approach of business-to-business relationships

This research tests a multistage model of trust in business-to-business (B2B) relationships. The model contains three forms of trust, each with unique drivers and consequences for buyer–supplier relationships. An exploratory qualitative study (N = 38) and four quantitative studies (N_Total = 616) validate the distinct stages (N1 = 140, N2 = 144, N3 = 152) and provide an overall test of the model (N4 = 180), using structural equation modeling techniques. The results support the proposed modeling of the stages and highlight a positive effect of reputation on calculative trust. Conflict resolution, communication, and sympathy positively affect cognitive trust. However, shared values do not significantly drive affective trust. Interdependence also exists among the three trust forms, both directly and indirectly. That is, calculative trust does not affect investments in relationship or confidential communication, but cognitive trust influences these constructs indirectly, through the mediation of affective trust. Affective trust also leads directly to greater investments in relationship and generates additional confidential communication.     

A tentative model of the innovation process

The paper proposes a model of innovation claimed to be applicable both to the lone entrepreneur and the large institution. It treats innovation as a social process and views it in some respects as analogous to natural selection.
The model takes into account 12 elements: the innovator, the new concept, the innovating group, the new product, target user, competitors, capital supply, strategy, supplying organization, technology, relevant environment and chance. The author characterises each element and shows how they interact in the course of guiding a particular innovation to success or failure.
The operation of the model is illustrated by applying it to two cases — the rise and decline of the metal ski and the launch and success of a national US newspaper.
The paper concludes with a list of possible uses of the model, as a checklist for action, as a basis for incorporating other approaches to the innovation process and as a starting point for a quantitative representation of the innovation process.     

Managing business-to-business relationships under conditions of employee attrition: A transparency approach

Client-contact employee attrition can negatively affect client-supplier relationships, a problem all the more obvious within the knowledge-intensive service industry in which the untimely loss of employees adversely affects client relationships. From the client's perspective, employee attrition increases uncertainty over the perceived quality of service and results in the loss of valuable tacit knowledge from the provider. Drawing on case study materials, this paper seeks to develop a framework for understanding how firms can successfully manage client relationships despite threats of employee attrition. This paper suggests that relationship transparency based on the active transfer of information, knowledge retention and sharing, the implementation of succession plans, and timely intervention by the management, can reduce clients' perceived uncertainty, thereby fortifying a trusted relationship with their provider. This study offers a transparency-based conceptual framework that contributes to the business-to-business relationship literature within the knowledge-intensive service industry and discusses managerial implications.     

Managing complex development projects: arenas, knowledge processes and time

The literature on project management has been dominated by techniques and methods for separating activities and making thought out plans. Closely related to this research stream is the research on product development, which seems to advocate somewhat of a different strategy where managing projects is a matter of enabling the crossing of functions and knowledge bases. This paper attempts to integrate these two lines of research.
The paper is based on two in–depth case studies of project management in product development contexts. The projects under study were highly complex and consisted of multiple interrelated parts, which called for 'tightly coupled' organizational solutions. From our point of view, much effort by the project management teams was put into establishing a project that was responsive and where participating local units were oriented toward various 'global' measures.
In our conception, the overall deadline seemed to have played an important role for promoting communal and interactive problem solving. Furthermore, the deadline emphasized the need for global arenas where the interactive problem solving could take place. It is argued that time–based controls set a global time for the project. The paper also demonstrates the importance of various global arenas, such as testing activities and project management forums, in order to keep track of time limits and to trigger global knowledge processes. Furthermore, based on the notion of 'separation' and 'coupling' of sub–systems and project phases, the paper suggests a model identifying four types of project organizations. The paper contributes to the knowledge on project management in complex product development.     

Commercialization performance of outbound open innovation projects in public research organizations: The roles of innovation potential and organizational capabilities

The current literature on open innovation (OI) has been limited to organization-level studies of inbound OI despite the importance of understanding outbound OI to improve performance of public research organizations (PRO) at project level. Our study contributes to the OI literature by investigating the relationship between the innovation potential and the commercialization performance of 189 outbound OI projects between PROs and firms, and the effect of network and project management processes on this relationship. In line with our expectation, our results demonstrate that PRO-firm outbound OI projects with technologies of high innovation potential are likely to have high commercialization performance. In addition, we empirically establish that among projects with technologies of high innovation potential, those with high resource allocation quality are more likely to have high commercialization performance. Finally, our findings indicate that among projects with technologies of high innovation potential, those with high opportunity discovery through networks are more likely to have high commercialization performance.     

Managerial challenges of outbound open innovation: a study of a spinout initiative in AstraZeneca

While the research on open innovation is flourishing, less attention has so far been given to ‘outbound’ processes in comparison to ‘inbound’ and ‘coupled’ open innovation. In this paper we analyze a qualitative case study of the global bio‐pharmaceutical company AstraZeneca and their attempt to establish a spinout initiative where internal projects are transferred to entrepreneurial startups funded by external venture capital. We explain the enactment work of this initiative and identify three emerged managerial challenges, linked to (1) internal decision‐making, (2) the cultural and psychological barriers of what we phrase as the ‘not‐invented‐elsewhere’ (NIE) syndrome, and (3) the ability to translate and communicate internal projects as attractive external proposals. Theoretical and managerial implications in relation to these challenges are outlined and discussed.     

Justifying CRM projects in a business-to-business context: The potential of the Benefits Dependency Network

Customer Relationship Management (CRM) projects often fail. We focus on the project justification process as one way of improving project success rates. We review how the typical combination of an Return On Investment (ROI) calculation and a project plan can have flaws as a project justification approach, and we propose the use of the Benefits Dependency Network (BDN) as an additional tool. The second part of the paper reports on an exploratory study of the BDN's use in five business-to-business CRM projects, inductively deriving propositions regarding its benefits and factors for success in its use. Further research on the tool's efficacy is encouraged.     

Entrepreneurial marketing of international high-tech business-to-business new ventures: A decision-making process perspective

Knowledge of how entrepreneurial marketing is conducted in industrial markets is currently rather weak. This study explores the marketing decision-making process of entrepreneurs undertaking entrepreneurial marketing in international new ventures (INVs) operating in high-tech business-to-business markets. A qualitative study conducted with entrepreneurs from four case firms reveals that due to the iterative, incremental, and co-creative nature of the process, marketing decision making in high-tech business-to-business INVs that is more effectual than causal results in more entrepreneurial marketing. A novel finding is that entrepreneurs alternate causal and effectual marketing forms as a result of their ambidextrous entrepreneurialism, and variations in the internal uncertainty, technological uncertainty, and any market turbulence faced by the firm. We develop a dynamic model presenting the alternation between effectual and causal processes, and the feedback loop of entrepreneurial marketing. The research offers implications for the management of organizations operating under conditions of uncertainty on how their decision-making processes can optimize entrepreneurial marketing, how to create new markets, and how to reduce the perceived uncertainty in industrial markets.     

Definition of innovation projects in small firms: A Spanish study

Small and medium‐sized enterprises (SMEs) are the main holders of the European economy and innovation projects are essential tools for SMEs to ensure their growth. A high percentage of innovation projects implemented by SMEs lacks planning and initial management, which causes the appearance of important problems for the SMEs survival. The authors have confirmed with a field study of 72 Spanish small firms that a lot of these problems arise from an incomplete project definition, so it is necessary to help SMEs to have a specific methodology that is appropriate to their own characteristics and projects. The statistical analysis shows how the project management knowledge helps to a better project definition, contributing to the project alignment with the company strategy. Also, it reveals other problems related to the project definition as planning, budget, market and financing. Of this analysis, it concludes that the definition phase supports the other phases and is essential in order to achieve project success. This paper presents an ‘integration model of factors’ that helps SMEs in the management of the definition phase of their innovation projects. This model relates the various areas of analysis needed to ensure their integration at the project definition. The relationships between the different model areas have been defined, showing the way to integrate the technical, economic and strategic outlooks of project objectives management in the definition phase of the project. This model has been implemented in 21 new innovation project definitions. The users' valuation has been very positive with a 90.4% of success and all of the model users are interested in implementing the model again in next projects. The main advantages highlighted were user‐friendliness, intuitive model and easy application.     

the evaluation of innovation projects

Abstract . Any realistic assessment of research projects must allow for possible failures. Scaling down the Potential gain from each project by its probability of achievement ignores the expenditure on unsuccessful projects and is therefore misleading. The method proposed here is more sound: it uses a concept termed the Survival Probability Function, which is simply the probability that a Project will still exist at various times in the future. This function can be derived from estimates for the survival factors and durations of project stages. The function can then be used to calculate the statistics of project successes and failures, and can be employed in a standard Risk Analysis. More simply, if can be used as a weighting function for cash flow patterns. This leads to a comparison method for projects with different risks and different potential returns, and thus to project portfolio selection.     

Negotiating innovation: product renewal as the outcome of a complex bargaining process

In this paper, it is argued that innovation can be the result of a repetitive, multi-actor negotiation process. We present the case of an environment-related product innovation in a large multinational company that emerged as the outcome of a complex interaction process in which numerous external and internal actors negotiated to safeguard their own interests. This negotiation perspective challenges conventional economic views of innovations, in which new products and processes are regarded as exogenous variables, the outcomes of deliberately planned research, or the combination of technology (pushing) and market (pulling) inducements. Instead, innovation may be a non-linear, unpredictable process that involves multiple actors with divergent interests and that leads to outcomes that are collectively acceptable but not necessarily (sub)optimal.     

Managing learning in informal innovation networks: overcoming the Daphne-dilemma

In this article we discuss the nature and productivity of informal innovation networks, i.e. informal collaborative arrangements between organizations engaged in product or process innovation. Such networks can be used in any phase of the innovation process, but their informal nature makes them especially suited for its fuzzy front end. We explore their potential in technology exchange and learning on the basis of a combination of organization network theory and knowledge management theory. We discuss issues in network governance and network operational management and discuss the basic dilemma – which we named the Daphne-dilemma – facing attempts to improve the productivity of informal innovation networks: too little management effort may lead to under-exploitation of their potential and poor productivity, but too much management effort may destroy their informal nature and hence their creative and explorative potential.     

Managing alliance relationships: Key challenges in the early stages of collaboration

Recent surveys indicate that executives of technology companies consider strategic alliances to be central to their competitive strategies. Yet the barriers to successful alliances are formidable. In many instances, these barriers develop in the early stages of an alliance. This study identifies and analyzes the types of challenges that companies face in the start–up phase of their alliances. It is based on a survey and interviews with executives in the Canadian high technology industry. The study finds that the principal challenges in the first year of an alliance relate to relationship issues between the partners. It suggests stronger attention to these issues in the design and implementation of an alliance. The paper concludes with guidelines to build and sustain effective working relationships between partners.     

Managing innovation in an emerging sector: the case of marine-based nutraceuticals

Biotechnology is turning a traditionally low-tech industry (food) into a high-tech industry (functional food/nutraceuticals). There is a real need to enhance managerial understanding by clarifying the nature of innovation processes in the functional food industry, including the role of research and development (R&D) and collaboration. The present investigation focuses on a particular segment of the functional food industry, viz. marine-based nutraceuticals. We find that various hurdles thwart the fullest realization of the business potential of marine bio-actives in the pharmaceutical space. However, the innovation of commercially viable marine-based nutraceuticals/cosmeceuticals is yet possible if the extraction route for supply is a feasible fallback option, should industrial-scale synthesis prove elusive. Effectiveness in innovation is facilitated by the collaboration of various disciplines including epidemiology, traditional/folkloric medicine, aquaculture/fermentation, natural products chemistry, toxicology, and relevant strands of medical, pharmacological, and clinical research. In this regard, the inter-disciplinary field of ethno-pharmacology rises to prominence. Universities and government research institutes may be well positioned to drive such collaboration and reap the benefits from problem definition in addition to problem solving. Toward this end, the findings from the present study are integrated into a phased approach toward the innovation of commercially viable marine-based nutraceuticals that is targeted at entrepreneurs in this field.     

The microfoundations of open innovation: CEO overconfidence and innovation choices

How to successfully drive open innovation (OI) has been an important issue. However, the existing literature on the determinants of OI mainly focuses on organizational and contingent factors, and the “human side” of it is still not well understood, which also motivates us to explore it more deeply. This paper attempts to link upper echelon theory with OI research using data from a large sample of Chinese listed companies to investigate how the overconfident tendency of the CEO affects his or her preference for different OI modes. At the same time, what role do other top management team (TMT) members play in this process. The results show that overconfident CEOs favor market and organization-oriented OI over technology-oriented OI, and TMT governance can moderate such relationship, that is, as the level of TMT governance increases, the preference of overconfident CEOs for market and organization-oriented OI will be weakened, avoiding the negative effect of excessive adoption of such activities on firm performance. By focusing on the human side of OI, this paper adds to the literature on the impact of strategic leadership, namely the influence of key individual CEO and other executives within the organization on OI management, which is also a response to the emphasis that more attention should be paid to the microfoundations of OI in the future.     

Digital mediation in business-to-business marketing: A bibliometric analysis

Digital mediation in business-to-business marketing is becoming increasingly important to firms, due to customer needs and evolving technological environments. The extensive research in this area for the past twenty years has created a need to synthesize extant research. This paper examines the literature in the domain, to create a classification scheme for subdomains and to explore future research directions. This study reviews 119 relevant articles published in 29 journals between January 1999 and March 2019, to detail the domain. In addition to providing details on most cited articles and published authors, our analysis classifies the digitally mediated business-to-business marketing literature into four subject clusters—a framework for digitally mediated business-to-business marketing, the digital business-to-business marketplace, value creation through digital marketing, and the use of social media for business-to-business marketing. Four shifts in the literature are described: the emergence of Internet research and business-to-business technology; the evolution of e-commerce; the focus on social media; and the broadening of research. Finally, directions for future research are identified and discussed.