Integrating corporate innovation communities: the role of structure and culture

A fundamental weakness of current research on corporate innovation communities is that knowledge about how to alter them for innovation endeavors remains vague. To help facilitate this gap, we analyze the influence of organizational contexts on innovation activities and outcomes from a contingency theory perspective. From the analysis of multiple in-depth case studies, four types of organizational integration as triggers for distinct sets of innovation activities as well as enablers for divergent sets of innovation outcomes have been identified. Based on our findings a taxonomy of organizational integration of corporate innovation communities is developed. INFORMATIK 2011 Informatik schafft Communities 41. Jahrestagung der Gesellschaft für Informatik , 4.-7.10.2011, Berlin www.informatik2011.de erschienen im Tagungsband der INFORMATIK 2011 Lecture Notes in Informatics, Band P192 ISBN 978-3-88579-286-4 weitere Artikel online: http://informatik2011.de/519.html 1. Setting the Stage Organizations increasingly rely on corporate innovation communities as a means to unleash the innovative potential of their employees. These communities are typically (but not necessarily) characterized by mutual collaboration in online setting to search, select and develop innovations. They are mostly supported by social software and bound to organizational contexts in which they are integrated [AR08][BH02]. However, organizational integration as a pre-condition for innovation to occur [AR08] often remains limited due to missing understanding on its effects on innovation activities and outcomes. Thus, the present article illuminates the question ‘how does organizational integration influence corporate innovation communities?’. To help facilitate this endeavor we apply contingency theory [Ga73] [BS94] [LL67]. It builds on the premise that organizational contexts frame individuals’ activities and outcomes [Gl84] [BS94] [LL67]. Specifically, several scholars emphasize the crucial role of supporting cultural and structural contingencies for innovation activities and outcomes to occur [BS94][LL67][BK04]. Hence, contingency theory offers an instrument to determine the antecedents of organizational contexts on corporate innovation communities. 2. Theoretical Perspectives Contingency theory underlines that contingency, i.e. structural conditions of a given organization [BS94][LL67], explain antecedents determining particular activities and outcomes of employees [Gl84][BS94][LL67]. Whereas contingencies may relate to the nature of tasks or teams [Gl84], this study focuses on two contingencies frequently highlighted to enhance innovation activities and outcomes in general: organizational culture and structure [BK04] [BS94][LL67]. Conclusively, individuals’ innovation-related activities depend on contingencies in which they are integrated. Community researchers stress the importance of organizational integration, such as cultural and structural integration, for corporate communities to flourish [Ko05][Br01][KB01]. First, cultural integration comprises sets of norms, values, beliefs, attitudes and procedures [De84] that value activities of organizational communities [KB01]. Specifically, innovation activities are fostered by cultures that embrace proactivity, creativity and risk taking while relying on open and informal interactions [An01][CF92][GS01][GW90][Sm98]. Second, structural integration includes amalgamation of administrative procedures – e.g., goal system integration, provision of resources, integration of performance appraisal systems etc. [Br01][VW07][LC03][GZ99]. For instance, several empirical studies show that financial resources have to be provided to ensure efficiency of community activities [Br01] [LC03] [VW07]. 1 For a more nuanced discussion with a clear management focus, see also Bansemir, B., Neyer, A-K., Möslein, K. M.: Anchoring Corporate Innovation Communities in Organizations: A taxonomy. International Journal of Knowledge-Based Organizations, (in print). INFORMATIK 2011 Informatik schafft Communities 41. Jahrestagung der Gesellschaft für Informatik , 4.-7.10.2011, Berlin www.informatik2011.de erschienen im Tagungsband der INFORMATIK 2011 Lecture Notes in Informatics, Band P192 ISBN 978-3-88579-286-4 weitere Artikel online: http://informatik2011.de/519.html Although it is well-known that adequate sets of contingencies support community viability at large via cultural and structural integration, insights concerning the influence of these contingencies on innovation activities and outcomes remain rather limited and often speculative. 3. Research Approach To answer our research question, multiple case study method was applied [Ei89][Yi03] including twelve in-depth case studies from varying industry sectors. All of the participating firms in knowledge intensive industries typically applied a wide range of innovation methods and possessed versatile practical experiences about innovation supportive contexts. In sum, 45 in-depth interviews were conducted, using a semistructured interview guideline. Each interview lasted from 45 to 120 minutes, averaging 90 minutes. Usually, at least two interviews per case were conducted and recorded. Besides interviews, data were enriched by extensive documentary analysis. Data analysis followed Mayring’ [Ma02] five step research procedure, including determination, explication and revision of categories, summative check and interpretation. Accordingly, transcripts, notes from meetings and extensive documentary were analyzed following these typical content analysis procedures [Ma02][MH94][RB00]. To achieve high levels of credibility and to reduce potential post hoc response bias, interviewees were explicitly asked to explain their statements in terms of stories and individual experiences [Go92]. Interviews following a semi-structured guideline lasted from 45 to 120 minutes, averaging 90 minutes. All interviewees held an academic degree (around 30 % PhDs). Usually, at least two interviews per case were conducted. Altogether, 46 interviews were conduct. Further information about organizational affiliation, professions of interviewees etc. refer to table 1. Case Employees Professions of interviewees Interviews Business  50.000100.000 Innovation & strategic managers 9 Employment agency  15.00030.000 Innovation, strategic, project & human resource managers 8 Service provider  5.00015.000 Executive officer, innovation, project, strategic & human resource managers 8 Accounting / Auditing  > 100.000 Innovation & strategic managers 2 Communication service  > 100.000 Innovation managers 2 Airline  50.000100.000 Innovation & project managers, engineers 5 Automotive manufacturer  50.000100.000 Innovation managers 2 Semiconductor  5.00015.000 Project & innovation managers, mechanical engineer 3 High-tech manufacturer  < 5.000 Strategic manager & consultant 2 Innovation Consulting  < 5.000 Strategic manager 1 IT solutions INFORMATIK 2011 Informatik schafft Communities 41. Jahrestagung der Gesellschaft für Informatik , 4.-7.10.2011, Berlin www.informatik2011.de erschienen im Tagungsband der INFORMATIK 2011 Lecture Notes in Informatics, Band P192 ISBN 978-3-88579-286-4 weitere Artikel online: http://informatik2011.de/519.html  < 5.000 Strategic manager & software engineer 2 IT services  < 5.000 Marketing manager & consultant 2 Innovation solutions Table 1: Case study companies.