Why Open Innovation is Easier Said Than Done: An Organizational Identity Perspective

Maral Mahdad,Alberto Di Minin,Chiara E De Marco,Andrea Piccaluga

doi:10.24840/2183-0606_008.002_0005

Abstract

In this article, we explore and interpret organizational identity transformation associated with open innovation strategy of the largest telecommunication company in Italy, Telecom Italia (TIM). When TIM established eight joint laboratories within five major Italian universities to benefit from opening its business model, it transferred some of the R&D employees to the new laboratories to work with the university scientists. This organizational transformation created underexplored conditions for R&D employees engaged in the open innovation activities of the firm. Our interpretive phenomenological analysis (IPA) answers the question of “How do R&D employees experience organizational identity change in the process of open innovation?”. We based our analysis on interpreting lived experiences of 14 employees. Studying the phenomena of organizational identity change during the process of open innovation implementation suggests the following: (1) The process of open innovation through mobility of skilled R&D employees triggers organizational identity ambiguity and change, (2) Organizational identity ambiguity phase in the process of open innovation can be shortened by the support of parent company and managerial skills highlighting sensemaking mechanisms, (3) Constructing a shared organizational identity with university members involved in this process is an undeniable element of OI success for this strategy. We contribute to the literature by establishing linkages among organizational identity and open innovation and by building on recent works on the role of individuals within open innovation ecosystem. Our qualitative analysis draws on a conceptual framework for open innovation and organizational identity transformation.

Highlights

In this article, we conduct an interpretative phenomenological analysis (IPA) to answer the question of “how do R&D employees experience the implementation of an open innovation strategy from an organizational identity perspective?” In order to address this question, we explore and interpret the phenomenon of open innovation strategy implemented through the mobility of high skilled employees, applying the theoretical lens of organizational identity
We conducted an interpretative phenomenological analysis (IPA) to answer the question of “how do R&D employees experience the implementation of an open innovation strategy from an organizational identity perspective?” Our analysis is based on the interpretation of the lived experiences of 14 employees
Studying the phenomenon of open innovation implementation using the lens of organizational identity suggests the following: (1) The process of open innovation through mobility of skilled R&D employees triggers organizational identity ambiguity and change, (2) Organizational identity ambiguity phase in the process of open innovation can be shortened by the support of parent company and managerial skills highlighting sensemaking mechanisms, (3) Constructing a shared organizational identity with university members involved in this process is an undeniable element of OI success

Summary

Introduction

Our study sheds light on the underexplored conditions that organizational identity transformations generate in the process of an organizational change, related to a specific mode of implementing the open innovation strategy, i.e. the collaboration between university and industry. Open innovation scholars have studied this paradigm across different level of analysis, but the individual level received limited attention (e.g., Salter et al 2015). Bogers et al (2016) called for more research on how individuals within an organization cope with the new challenges of open innovation strategies. There is a specific invitation for organizational behavior and identity scholars, to address the question of how R&D employees experience change when they start involving more in the activities outside the organizational boundaries

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