Title

Collaborative Product Development with Competitors to Stimulate Downstream Innovation

Select papers by Sinan Erzurumlu are available on SSRN at http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=721375

Publication

International Journal of Innovation Management

DOI*

http://dx.doi.org/10.1142/S1363919610002787

Abstract

Open innovation through collaboration could be beneficial for various reasons, but participating firms must also consider the strategic consequences of their formation on the supply chain. This study is concerned with how open innovation through inter-firm collaboration and strategic alliances may generate value for competing suppliers by stimulating the adoption of the new component innovation by the downstream supply chain. The analysis specifically examines three types of firm interaction representing different levels of open innovation. First, in the joint venture, fully integrated suppliers would develop and market the component. Second, in the development alliance, partially integrated suppliers share the development outcome, but compete in marketing. Finally, independent suppliers do not form any kind of collaborative formation. The findings reveal that the value of open innovation comes not only from technology development, but also how well it stimulates the downstream OEM to invest.

Disciplines

Management Information Systems | Management Sciences and Quantitative Methods | Strategic Management Policy

Recommended Citation

ERZURUMLU, SINAN. 2010. "COLLABORATIVE PRODUCT DEVELOPMENT WITH COMPETITORS TO STIMULATE DOWNSTREAM INNOVATION." International Journal Of Innovation Management 14, no. 4: 573-602.

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