Setting up Innovation Networks: The Case of a Small Company in the Calibration Industry

Abstract

From the recent studies about open innovation paradigm, it emerges that the choice of the governance mode ”right” to cooperate is still an interesting topic. Theoretical frameworks about the topic are available, suggesting the need for coherence among a series of factors and the governance mode to be selected. However, applications on concrete cases are still scarce, above all as concerns small companies. This empirical work aims at increasing this area of knowledge by describing the practical experience of a small company which had to choose the governance mode in order to organize and manage a New Product Development network. The first inconsistency between factors and form of government chosen leads to failure of the network. The next consistency turns failure into success, and this makes the case an interesting example of how to build an external innovation network. Moreover, peculiarities of small businesses emerge. In particular, has shown that some highly integrated governance modes, even if they could be the ”ideal choice”, are not really feasible for small companies. Strong planning, control and formalization can anyway serve the scope of reinforcing the governance mode in terms of integration and commitment.