Session 2 - External innovation and learning

Question 1

What is open innovation?

Answer 1

Open innovation is the practice of using both internal and external knowledge sources for innovation. It involves knowledge flowing in and out of an organization to accelerate innovation, including practices like licensing, partnerships, and joint ventures. (Chesbrough, 2003)

Question 2

Why do companies shift from closed to open innovation?

Answer 2

Because not all valuable knowledge resides internally. Open innovation allows firms to leverage external expertise, accelerate development, and create new business models.

Question 3

How can customers act as a source of innovation?

Answer 3

Customers can identify inefficiencies, express evolving needs, reveal latent demands, and engage in shared experimentation—helping firms co-create innovative solutions. (Flint et al., 2002)

Question 4

Why are customers valuable for innovation?

Answer 4

1. They experience the service first-hand → identify problems.
2. They have evolving needs → signal where change is needed.
3. They offer latent needs → reveal future-facing demands.
4. They enable shared experimentation → allow joint testing and lower-risk innovation.

Question 5

What is interorganizational learning (IOL)?

Answer 5

IOL is a process where two or more organizations intentionally share and develop knowledge together to improve performance and enable innovation. It’s common in collaborative supply chains.

Question 6

What enables successful interorganizational learning?

Answer 6

Trust, relational embeddedness, knowledge-sharing routines, joint problem-solving, and mutual learning orientation. (Bessant et al., 2003)

Question 7

How is interorganizational learning different from traditional supplier development?

Answer 7

Traditional supplier development is one-way (buyer improves supplier). IOL is two-way, focusing on joint capability building and long-term innovation.

Question 8

What is organizational learning in the context of innovation?

Answer 8

It is the ability of an organization to detect, interpret, and respond to environmental signals through structured feedback, learning routines, and adaptation.

Question 9

How is organizational learning related to innovation?

Answer 9

Organizational learning provides the foundation for innovation by creating mechanisms to learn from experience, reflect, and institutionalize new knowledge.