Behavioral foundations for open innovation: Knowledge gifts and social networks

The literature on “open innovation” so far focuses almost exclusively on strategic issues. In this largely conceptual paper we propose behavioral foundations for knowledge exchange and knowledge sharing to address this gap in the literature. Innovation and knowledge development that result from knowledge transfer, is an uncertain and cumulative process that typically involves a number of parties. Knowledge transfer between people and firms has been fruitfully studied from a structural or network perspective. The social network literature however, faces an “action problem”. Focusing on structural elements such as an agent’s position in a network and the types of relations entertained cannot explain why actors actually do share knowledge. The exchange of knowledge is elusive and is a discretionary act for the people involved, certainly in the case of open innovation (OI). It is argued here that social network analysis is to be complemented by the concept of gift exchange, drawing on social exchange literature. Gift exchange – following Mauss’ dictum to “give, receive and reciprocate”– establishes obligations between people especially under circumstances of ambiguity, which explain why and how knowledge exchange relations are established, persist, and may also end. Relationships in a social network and the social capital that inheres in these cannot be drawn on at will to exchange knowledge. These obligations established by gift exchange between individuals who share a connection explain why agents exchange knowledge with each other even in the absence of markets or hierarchy

Distances in organizations: Innovation in an R&D lab

The distance between actors in an organization affects how they interact with each other, and particularly whether they will exchange (innovative) knowledge with each other. Actors in each other’s proximity have fewer conflicts, more trust towards each other, for example, and are thus more involved in knowledge transfer. Actors close to others thus are believed to perform better: by being more innovative, for instance. This theory of propinquity’s claim resonates widely in the literature and has intuitive appeal: ‘people are most likely to be attracted towards those in closest contact with them’ (Newcomb, Th. (1956). American Psychologist , 11, p. 575). Knowledge that a focal actor receives from alters who are close is more readily accessed, better understood and more readily useable. At the same time, however, and in contrast to the what the theory of propinquity suggests, knowledge that a focal actor receives from alters who are at a greater distance may be more diverse, offer unexpected and valuable insights, and therefore give rise to innovation. In order to understand these opposing expectations, scholars have indicated that distance must be conceived of as multifaceted: individuals can be close to each other in one way, while at the same time distant in another. No prior paper has extensively studied the effects of distance as a multifaceted concept, however. This study offers two distinct contributions. It argues, first, why some instances of distance affect the opportunity to interact with alters, potentially lowering an actor’s performance, while other instances of distance affect the expected benefits from interaction. The latter would increase an actor’s performance. Secondly, this paper is the first study to test empirically the expectations about how seven different measures of distance affect an actor’s innovative performance. Innovative performance is measured as both creative contribution and contribution to knowledge that has immediate commercial use (patents). In the setting of a large research lab, it is found, contrary to expectations, that distance does not hurt individual innovative performance and sometimes helps it in unexpected ways

Network position and firm performance – The mediating role of innovation

Analyzing a unique, domain-similar database including all horticulturalists in a major flower producing country, this paper shows that a firm’s central position in a network significantly improves its financial performance. The effect of strategic positioning in a network is in large part mediated through its enhanced innovativeness. Strategically positioning in a network of firms contributes more to firm performance, both directly as well as indirectly, than other strategic options a firm has available, such as seeking scale, seeking to diversify, pursuing cost advantages, or locating in a cluster

How info-firms use big data to target customers

Purpose: The purpose of this paper is to review and assess the different strategies that what we call Info-firms can deploy in the markets that they serve. In many markets, a firm’s competitive advantage is derived from its information position. Firms that actively and extensively collect customer information may develop a number of strategies to increase their competitiveness. We refer to such firms as info-firms – for some firms, this is all that they do: collect and sell data about consumers. Info-firms can target either customers or other firms, and they target either existing or adjacent markets. A 2 × 2 matrix characterizing strategies is introduced. Some strategies are known, but their effects are more pronounced on online markets because of the overwhelming amount of data available, while other strategies that are discussed are new. The strategies that info-firms develop and use change the dynamics in value chains substantially. The strategies adopted affect the market and value chain dynamics and determine which parties in the market are likely to benefit (most). Design/methodology/approach: This is a conceptual paper. Findings: The strategies that info-firms develop and use change their dynamics in value chains substantially. Some strategies are known, but their effects are more pronounced on online markets because of the overwhelming amount of data available, while other strategies are new. Research limitations/implications: Drawing on an economic theory, an evaluation of the strategies that info-firms develop is offered, identifying which parties stands to gain the most. Practical implications: The effects of the use of strategies used by info-firms have been largely overlooked, and yet, strategies adopted affect the market and value chain dynamics and determine which parties in a market are likely to benefit (most). Originality/value: The classification of strategies that info-firms can develop, and the likely effects on the market dynamics and economic prospects of different market players has not been discussed in the literature so far. A comprehensive and novel perspective is offered.</p

Novel genetic loci underlying human intracranial volume identified through genome-wide association

Intracranial volume reflects the maximally attained brain size during development, and remains stable with loss of tissue in late life. It is highly heritable, but the underlying genes remain largely undetermined. In a genome-wide association study of 32,438 adults, we discovered five novel loci for intracranial volume and confirmed two known signals. Four of the loci are also associated with adult human stature, but these remained associated with intracranial volume after adjusting for height. We found a high genetic correlation with child head circumference (ρgenetic=0.748), which indicated a similar genetic background and allowed for the identification of four additional loci through meta-analysis (Ncombined = 37,345). Variants for intracranial volume were also related to childhood and adult cognitive function, Parkinson’s disease, and enriched near genes involved in growth pathways including PI3K–AKT signaling. These findings identify biological underpinnings of intracranial volume and provide genetic support for theories on brain reserve and brain overgrowth