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Embracing the Paradox of Interorganizational Value Co-creation–Value Capture: A Literature Review towards Paradox Resolution
Alliance Manchester Business School, University of Manchester, Manchester, United Kingdom.
University of Gävle, Faculty of Engineering and Sustainable Development, Department of Industrial Management, Industrial Design and Mechanical Engineering, Industrial Management. University of Gävle, Center for Logistics and Innovative Production. Department of Industrial Economics and Management, School of Industrial Engineering and Management, KTH Royal Institute of Technology, Stockholm, Sweden..ORCID iD: 0000-0003-3371-9313
2019 (English)In: International journal of management reviews (Print), ISSN 1460-8545, E-ISSN 1468-2370, Vol. 21, no 2, p. 231-255Article, review/survey (Refereed) Published
Abstract [en]

This study reviews literature on paradoxical tensions between value co-creation and capture in interorganizational relationships (IORs). The purpose of this review is to make a re-evaluation of the literature by engaging a paradox theory lens, thereby identifying factors that render tensions salient and factors that lead to virtuous or vicious cycles. This review of 143 articles reveals factors that make tensions salient; these relate to plurality (e.g. coopetition), scarcity (e.g. lack of experience with IORs), change (e.g. changes in collaboration scope) or combinations thereof (e.g. IORs in weak appropriability regimes). Results also uncover factors that resolve paradoxical tensions of value co-creation and capture, thus spurring virtuous cycles (e.g. carefully mixing trust and contracts), as well as factors that promote vicious cycles, owing to the emphasis on either value co-creation or capture (e.g. myopia of learning). This review also uncovers a new category of factors that may stimulate either virtuous or vicious cycles, depending on the extent to which they are enforced. This finding expands the value co-creation–capture paradox resolution, and brings to light new dynamics in the paradox framework of dynamic equilibrium. The authors thus contribute by: (1) reassessing the existing literature and applying paradox theory to the well-known hazard of value co-creation and capture; (2) highlighting factors that amplify paradoxical tensions related to this hazard; and (3) outlining factors that solve the paradox by embracing its contradictory poles and factors that hinder paradox resolution by emphasizing either value co-creation or appropriation. 

Place, publisher, year, edition, pages
Wiley-Blackwell, 2019. Vol. 21, no 2, p. 231-255
National Category
Other Mechanical Engineering Economics and Business
Research subject
Industrial Economics and Management
Identifiers
URN: urn:nbn:se:hig:diva-28512DOI: 10.1111/ijmr.12196ISI: 000466180200006Scopus ID: 2-s2.0-85065069830OAI: oai:DiVA.org:hig-28512DiVA, id: diva2:1263671
Funder
Swedish Agency for Economic and Regional Growth
Note

Erratum published in: International Journal of Management Reviews 21(3), p. 400-401.

Funding: University of Gävle (Gävleborg Region and the Swedish Agency for Economic and Regional Growth) and KTH Royal Institute of Technology (Styffe foundation)

Available from: 2018-10-31 Created: 2018-11-16 Last updated: 2019-08-27Bibliographically approved
In thesis
1. Knowing the Ropes in Open Innovation: Understanding Tensions through a Paradox Lens
Open this publication in new window or tab >>Knowing the Ropes in Open Innovation: Understanding Tensions through a Paradox Lens
2018 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The fundamental paradox of disclosure suggested by Kenneth Arrow represents a challenge in contemporary open innovation settings. Potential negative outcomes of this paradox – e.g. misappropriation of ideas – are still not fully avertable. Researchers, practitioners and policy makers strive to untangle tensions related to this paradox, because failure to manage such tensions might entail lost jobs and hampered economic and technological growth.The purpose of this thesis is to provide a deeper understanding of this paradox by combining three perspectives on tensions in open innovation and applying a paradox lens. The overarching perspective is of value co-creation–value capture. The thesis comprises of five papers that are based on quantitative, qualitative and conceptual studies. The findings reveal: 1) characteristics of tensions; 2) factors that create tensions; and 3) possible solutions and pitfalls to managing said tensions. Findings show that tensions may be managed as paradoxical, dilemmatic or dialectical, depending e.g. on the need to be open or on the overlap between a product’s solution and its characteristics. Moreover, tensions could be spurred by a variety of factors, which may be categorized as: plurality of views, scarcity of resources, change, and combinations thereof (compound factors).Possible solutions to managing tensions include e.g. increasing staff awareness about intellectual property issues or improving collaboration contracts. Possible pitfalls are linked to over-focusing on either co-creating or on capturing value, and also to subsequent tensions. Findings also reveal a category of factors with dual role, which depending on their intensity, may lead to either solutions or to pitfalls. This hints towards additional layers of complexity concerning the paradox of disclosure. The findings contribute to theory on open innovation, appropriability and organizational paradox, and have important implications for practitioners and policy makers.

Abstract [sv]

En aktuell utmaning i samband med öppen innovation kan hänföras till den grundläggande paradox om avslöjande av idéer som föreslogs av Kenneth Arrow. Det är oklart hur potentiella negativa konsekvenser av denna paradox - till exempel otillåten användning av idéer – ska hanteras. Forskare, praktiker och beslutsfattare strävar efter att eliminera de spänningar som följer av paradoxen eftersom de kan hindra ekonomisk och teknologisk tillväxt. Denna avhandling syftar till att ge en djupare förståelse av paradoxen om avslöjande genom att kombinera tre perspektiv på spänningar och tillämpa paradoxteori som teoretisk lins. Det övergripande perspektivet är spänningarna mellan samskapande av värde och värdefångst. Avhandlingen inkluderar fem papper som baseras på kvalitativa, kvantitativa och konceptuella studier. Resultaten identifierar: 1) karaktären på spänningar; 2) faktorer som skapar spänningar och 3) möjliga lösningar och fallgropar för att hantera spänningarna. Resultaten visar att spänningarna kan hanteras som paradoxala, dilemmatiska eller dialektiska beroende på t.ex. behovet av att vara öppen eller överlapp mellan en produkts lösning och dess egenskaper. Dessutom kan spänningar förstärkas av en mängd olika faktorer, som kan kategoriseras som: olika synsätt, brist på resurser, förändring eller kombinationer därav (sammansatta faktorer). Möjliga lösningar för att hantera spänningar inkluderar t.ex. att öka medvetenheten om immateriella frågor eller förbättra samarbetsavtal. Möjliga fallgropar är kopplade till överfokusering på antingen samskapande eller fångst av värde, eller till efterföljande spänningar. Resultaten visar också en kategori av faktorer med dubbel roll, som beroende på deras intensitet kan leda till antingen lösningar eller fallgropar. Detta pekar mot ytterligare lager av komplexitet angående paradoxen om avslöjande. Avhandlingens resultat bidrar bland annat till teorier om öppen innovation och organisatoriska paradoxer och har viktiga konsekvenser för praktiker och beslutsfattare.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2018. p. 116
Series
TRITA-ITM-AVL ; 2018:53
Keywords
tensions, open innovation, paradox of disclosure, value co-creation, value capture, openness, appropriability, intellectual property rights, misappropriation, paradox lens, spänningar, öppen innovation, paradox om avslöjande, samskapande av värde, värdefångst, öppenhet, immateriella rättigheter, idé missbruk, paradoxteori lins
National Category
Other Mechanical Engineering
Research subject
Industrial Economics and Management
Identifiers
urn:nbn:se:hig:diva-28511 (URN)978-91-7873-014-8 (ISBN)
Public defence
2018-11-23, F3, Lindstedtsvägen 26, Stockholm, 14:00 (English)
Opponent
Supervisors
Available from: 2018-11-16 Created: 2018-11-16 Last updated: 2018-11-16Bibliographically approved

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