A Taxonomic Framework on Prevalent Collaborative Innovation Options between Corporations and Startups
Collaborative open innovation with technology startups is attracting considerable interest among large corporations around the world. Despite this practical relevance, an extensive and comparative analysis on collaborative open innovation options and its characteristics has not yet been a focus of research.
This paper characterizes and contrasts nine prevalent operational contexts in which large corporations engage in collaborative open innovation with tech startups to facilitate and benefit from innovation. Specifically, this paper proposes a taxonomic framework for corporate venture capital mergers & acquisitions, procurement, business incubators, corporate accelerators, corporate company builders, co-working spaces and startup platform programs and innovation labs. It then delimitates their characteristics based on a predefined set of traits (strategy, financing, startup target, structure, culture, resources, performance measurement and ecosystem-leverage). The study that forms the focus of this thesis involved conducting design science research following a literature review. The findings of this thesis provide a theoretical foundation for further studies and offers terminological clarifications for researchers as well as for innovation managers. Furthermore, it is anticipated that this research will form the basis for future research on the subject particularly in the validation and development of the framework’s general applicability.
Yoo, Y., Henfridsson, O. and Lyytinen, K. (2010). The new organizing logic of digital innovation: An agenda for information systems research. Information Systems Research, 21(4), 724–735.
Kohler, T. (2016). Corporate accelerators: Building bridges between corporations and startups. Business Horizons, 59(3), 347–357.
Dee, N., Gill, D., Weinberg, C. and Mctavish, S. (2015). Startup Support Programmes: What’s the difference? Nesta. Retrieved from https://www.nesta.org.uk/sites/default/files/whats_the_diff _wv.pdf.
Cohen, S. (2013). What Do Accelerators Do? Insights from Incubators and Angels. Innovations, 8 (3), 19-25.
Isabelle, D. (2013). Key Factors Affecting a Technology Entrepreneur’s Choice of Incubator or Accelerator. Technology Innovation Management Review, 16–22.
Kim, J.-H. and Wagman, L. (2012). Early-Stage Financing and Information Gather-ing: An Analysis of Startup Accelerators. SSRN Scholarly Paper. Rochester, NY: Social Science Research Network. Retrieved from http://papers.ssrn.com/abstract=2142262.
Chesbrough, H. (2006). Open innovation: A new paradigm for understanding indus-trial innovation. In Open Innovation. Researching a New Paradigm, ed. H. Chesbrough, W. Vanhaverbeke & J. West, 1-12. New York, NY: Oxford University Press.
Aubert, B. A., Kishore, R. and Iriyama, A. (2015). Exploring and managing the “innovation through outsourcing” paradox. Journal of Strategic Information Systems, 24(4), 255–269.
Chesbrough, H. (2003). Open Innovation: The New Imperative for Creating and Profiting from Technology. Cambridge, MA: Harvard Business School Press.
Schättgen, N. and Mur, S. (2016). The age of collaboration. Retrieved from http://www.adlittle.co m/downloads/tx_adlreports/ADL_MatchMaker_The_Age_of_Collaboration.pdf.
Weiblen, T. and Chesbrough, H. W. (2015). Engaging with Startups to Enhance Cor-porate Innovation. California Management Review, 57(2), 66–90.
Ringel, M., Taylor, A. and Zablit, H. (2016). The Most Innovative Companies 2016: Getting “Not Invented Here.” The Boston Consulting Group (BCG). Retrieved from https://media-publications.bcg.com/MIC/BCG-The-Most-Innovative-Companies-2016-Jan-2017.pdf.
Neyens, I., Faems, D. and Sels, L. (2010). The impact of continuous and discontinuous alliance strategies on startup innovation performance. International Journal of Technology Management, 52(3/4), 392-410.
Banerjee, S., Bielli, S. and Haley, C. (2016). Scaling Together. Overcoming Barriers in Corporate-Startup Collaboration. Nesta. Retrieved from https://www.nesta.org.uk/report/scaling-together-overcoming-barriers-in-corporate-startup-collaborations/.
Spender, J.-C., Corvello, V., Grimaldi, M. and Rippa, P. (2017). Startups and open innovation: a review of the literature. European Journal of Innovation Management, 20(1), 4–30.
McCafferty, D. (2015). Why Enterprises and Startups Collaborate. CIO Insight, 10/15/2015, 2.
Oshri, I., Kotlarsky, J. and Gerbasi, A. (2015). Strategic innovation through outsourcing: The role of relational and contractual governance. Journal of Strategic In-formation Systems, 24(3), 203–216.
De la Tour, A., Soussan, P., Harlé, N., Chevalier, R. and Duportet, X. (2016). From Tech to Deep Tech – Foster in Collaboration between Corporates and Startups. The Boston Consulting Group (BCG) Media Publication. Retrieved from http://media-publications.bcg.com/from-tech-to-deep-tech.pdf.
Engel, J. and del-Palacio, I. (2009). Global networks of clusters of innovation: Accelerating the innovation process, Business Horizons, no 5., vol. 52, 493-503.
Mind the Bridge (Ed.) (2017). European Corporate Innovation Outposts - The Who’s Who. San Francisco V 1.0, March 2017 Crowd Companies: The Corporate Innovation Imperative. Retrieved from http://www.web-strategist.com/blog/2017/02/21/ report-the-corporate-innovation-imperative/.
Bonzom, A. and Netessine, S. (2016). How do the world’s biggest companies deal with the startup revolution. Retrieved from http://698640.hs-sites.com/500corporations.
Sarbacher, M., Schildhauer, T., Schleicher, T. and Näfelt, A. (2016). Die 2. Welle der Open Innovation. Skubsch & Company and Institute of Electronic Busi-ness. [PowerPoint slides]. Retrieved from https://www.jku.at/ham/content/e35389/e318923/e318945/e318946/Download VortragThomasSchildhauer.pdf.
Hisrich R.D. and Peters, M.P. (1998). Entrepreneurship: Starting, Developing, and Managing a New Enterprise (4th Ed), Irwin, Chicago, IL: Irwin Publishing.
Stevenson, H.H. and Jarillo, J.C (1990). A paradigm of entrepreneurship. Entrepreneurial management Strategic Management Journal, 11, 1990, 17-27.
Lewis, M. and Moultrie, J. (2005). The Organizational Innovation Laboratory. Wiley, Volume 14 Number 1 March 2005.
Chanal, V. (2010). The Difficulties involved in Developing Business Models open to Innovation Communities: the Case of a Crowdsourcing Platform. M@n@gement, 2010/4 (Vol. 13).
Spinuzzi, C. (2012). Working alone together: coworking as emergent collaborative activity. Journal of Business Technology, Communication (26), 399–441.
Bruneel, J., Ratinho, T., Clarysse, B. and Groen, A. (2012). The evolution of business incubators: Comparing demand and supply of business incubation services across different incubator generations. Technovation, 32(2), 110-121.
Peter, L. (2018). Gestaltungsbereiche für Grossunternehmen zur Kollaboration mit Startups: Das Startup-Collaboration-Model. Unpublished paper (submitted to Die Unternehmung, 2018).
Hevner, A., March S., Park, J. and Ram, S. (2004). Design science in information systems research. MIS Quarterly, 28(1), 75–105.
Cumbie, B. A., Jourdan, Z., Peachey, T., Dugo, T. M., and Craighead, C. W. (2005). Enterprise resource planning research: where are we now and where should we go from here?. JITTA: Journal of Information Technology Theory and Application, 7 (2), 21-36.
Palvia, P. (2015). Methodological and topic trends in information systems research: A meta-analysis of IS journals. Communications of the Association for Information Systems, 37 (1), 30.
Gough, D., Oliver, S. and Thomas, J. (2012). An Introduction to Systematic Reviews. Thousand Oaks, CA: SAGE Publications.
Petticrew, M. and Roberts, H. (2006). Systematic reviews in the social sciences: a practical guide. Hoboken, New Jersey: Blackwell Publishing.
Mayring, P. (2002). Einführung in die Qualitative Sozialforschung: Eine Einlei-tung zu qualitativem Denken (5. Auflage). Basel: Beltz Verlag.
Seuring, S. and Gold, S. (2012). Conducting Content-analysis Based Literature Re-views in Supply Chain Management. Supply Chain Management: An International Journal, 17 (5), 544–555.
Patton, M. Q. (2015). Qualitative Research & Evaluation Methods: Integrating Theory and Practice (4 ed.). Thousand Oaks, CA: SAGE Publications.
Mumford, E. (2001). Advice for an action researcher. Information & People, Vol. 14, Iss: 1, 12-27.
Coleman, B.L., Fadel, S. A., Fitzpatrick, T. and Thomas S.-M. (2017). Influenza and Other Respiratory Viruses. John Wiley & Sons Ltd., Vol 12, No 3.
Brewerton P. and Millward, L (2001). Organisational research methods. London: Sage.
Brandenburg, M., Govindan K., Sarkis, J. and Seuring, S. (2014). Quantitative Models for Sustainable Supply Chain Management: Developments and Directions. European Journal of Operational Research, 233 (2), 299–312.
Reim, W., Parida, V. and Örtqvist, D. (2015). Product–Service Systems (PSS) Business Models and Tactics – A Systematic Literature Review. Journal of Cleaner Production, 97, 61–75.
Accenture (2015). Harnessing the power of entrepreneurs to open innovation. G20 Young Entrepreneurs Alliance Summit, Istanbul.
Chesbrough, H. (2002). Making sense of corporate venture capital. Harvard Business Review, 80 (3), 90–99.
Lerner, J. (2013). Corporate Venturing. Harvard Business Review, 2013.
Andersson, M. and Xiao, J. (2016). Acquisitions of start-ups by incumbent businesses: A market selection process of “high-quality” entrants?. Research Policy, 45(1), 272–290.
Velten, C., Michel, J. and Özdem, A. (2016): Digital Labs - How to build, how to run. Strategien zum erfolgreichen Aufbau und Betrieb von digitalen Innovation Labs in großen und mittelständischen Unternehmen. Kassel: Crisp Research.
Handelsblatt (2017). Ein Company Builder gibt Antworten auf wichtige Geschäftsfragen. Handelsblatt Online. Retrieved from http://unternehmen.handelsblatt.com/company-builder.html.
Jäger, M. (2016). Company Builder am Beispiel von Rocket Internet. Founders Owl. Retrieved from http://www.founders-owl.de/glossar/company-builder/.
Mocker, V., Bielli, S. and Haley, C. (2015). Winning together – A Guide to Successful Corporate Startup Collaboration. Retrieved from https://www.nesta.org.uk/publications/winning-together-guide-successful-corporate-startup-collaborations.
Brigl, M., Hong, M., Roos, A., Schmieg, F. and Wu, X. (2016). Corporate venturing shifts gear. How the largest companies apply a broad set of tools to speed in-novation. The Boston Consulting Group. Retrieved from http://image-src.bcg.com/Images/BCG-Corporate-Venturing-Shifts-Gears-Apr-2016_tcm102-150374.pdf.
Gompers, P.A and Lerner, J. (2004). The Venture Capital Cycle (2nd ed.). Cambridge, CA: MIT Press.
Dushnitsky, G. and Lenox, M. (2006). When does corporate venture capital investment create firm value? Journal of Business Venturing, 21, 753-772.
Brigl, M., Roos, A., Schmieg, F. and Watten, D. (2014). Incubators, Accelerators, Venturing, and More: How Leading Companies Search for Their Next Big Thing. The Boston Consulting Group. Retrieved from https://www.elkarbide.com/sites/default/files/incubators_accelerators_ven turing_ more_jun_2014_tcm80-163819.pdf.
Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin, A. and Dushnitsky, G. (2017). A Review and Road Map of Entrepreneurial Equity Financing Re-search. Journal of Management, 43(6).
Ferrary, M. and Granovetter, M. (2009). The role of venture capital firms in Silicon Valley’s complex innovation network. Economy and Society, 38(2), 326–359.
KPMG. (2015). On the road to corporate startup collaboration. Retrieved from https://assets.kpmg.com/content/dam/kpmg/pdf/2016/04/On-the-road-to-corporate-startup-collaboration-16-12-2015.pdf.
Baierl, R., Anokhin, S. and Grichnik, D. (2016). Coopetition in corporate venture capital: the relationship between network attributes, corporate innovativeness, and financial performance. International Journal of Technology Management, 71(1/2), 58–80.
Coyle, J. F. and Polsky, G. D. (2013). Acqui-hiring. Duke Law Journal, 63(2), 281-346.
Fantasia, R. (2016). Acquihiring: A New Process for Innovation and Organizational Learning. In: Ricciardi F., Harfouche A. (Ed.) Information and Communication Technologies in Organizations and Society. Lecture Notes in Information Systems and Organisation, 15(1). Springer.
Gans, J.S. and Stern, S. (2003). The product market and the market for “ideas”: commercialization strategies for technology entrepreneurs. Research Policy, 32 (2), 333–350.
Schalast, C. (Ed.) (2016). Aktuelle Aspekte des M&A-Geschäftes. Frankfurt am Main: Frankfurt School Verlag.
Kelly, C. and Ma, C. (2016). How Do Established Companies Acquiring Startups Re-tain the Innovative Thinkers and Leverage this Thinking? Retrieved from http://digitalcommons.ilr.cornell.edu/student/137.
Owyang, J. and Szymanski, J. (2017). The Corporate Innovation Imperative: How large corporations avoid disruption by strengthening their ecosystem. Crowd Companies. Retrieved from https://de.slideshare.net/jeremiah_owyang/the-corporate-innovation-imperative-how-large-companies-avoid-disruption-by-strengthening-their-ecosystem.
Dixon, I. (2005). Culture Management and Mergers and Acquisitions. Society for Human Resource. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/us/Documents /mergers-acqisitions/us-ma-consulting-cultural-issues-in-ma-010710.pdf.
Hodgson, A. and Haas, R. (2013). What Shape is Your Curve? A.T. Kearney. Retrieved from http://www.atkearney.co.uk/latest-article/-/asset_publisher/lON5IOfbQl6C/ content/what-shape-is-your-curve-/10192.
Van Weele, A.J. and Essig, M. (2017). Strategische Beschaffung Grundlagen, Pla-nung und Umsetzung eines integrierten Supply Management. Wiesbaden: Springer.
Umbenhauer, B. and Sopher, S. (2013). Charting the course: Why procurement must transform by 2020. Deloitte Consulting LLP. Retrieved from https://www2.deloitte.com/content/dam/Deloitte /us/Documents/process-and-operations/us-cons-charting-the-course-071013.pdf.
Taga, K., Pichai, H. and Doemer, F. (2015). Telecom operators: Open Innovation with start-ups. Arthur D. Little White Paper Series. Retrieved from http://www.adlittle.com/downloads/tx_ad lreports/ADL_Telco_Start-ups_OpenInnovation.pdf.
Batran, A., Erben, A., Schulz, R. and Sperl, F. (2017). Procurement 4.0: A survival guide in a digital, disruptive world. Frankfurt am Main: Campus Verlag.
Robinson, S. and Stubberud, H. A. (2014). Business incubators: What services do business owners really use? International Journal of Entrepreneurship, 18 (December), 29–39.
Gassmann, O. and Enkel, E. (2004). Towards a Theory of Open Innovation: Three Core Process Archetypes. R&D Management Conference (RADMA), 7.-9. July 2004, Lisbon, Portugal.
Hackett, S. and Dilts, D. (2004). A systematic review of business incubation research. The Journal of Technology Transfer 29 (1), 55–82.
Hathaway, I. (2016). What Startup Accelerators Really Do. Harvard Business Review, 7.
InBIA (2017). Operational Definitions: Entrepreneurship Centers. Retrieved from https://inbia. org/wp-content/uploads/2016/09/InBIA-IndustryTerms.pdf?x84587.
Mian, S., Lamine, W. and Fayolle, A. (2016). Technology Business Incubation: An overview of the state of knowledge. Retrieved from https://doi.org/10.1016/j.technovation.2016.02.005.
Sullivan, D.M. and Marvel, M.R. (2011). Knowledge acquisition, network reliance, and early-stage technology venture outcomes. J. Manag. Stud. 48, 1169–1193. In: van Weele, M., van Rijnsoever, F. J., and Nauta, F. (2017). You can’t always get what you want: How entrepreneur’s perceived resource needs affect the incubator’s assertiveness. Technovation, 59.
Sá, C. and Lee, H. (2012). Science, business, and innovation: Understanding networks in technology-based incubators. R & D Management, 42(3), 243–253.
Borgatti, S.P. and Foster, P.C. (2003). The network paradigm in organizational re-search: a review and typology. Journal of Management, 29 (6), 991–1013. In: van Weele, M., van Rijnsoever, F. J. and Nauta, F. (2017). You can’t always get what you want: How entrepreneur’s perceived resource needs affect the incubator’s assertiveness. Technovation, 59, 18-33.
Lewis, D.A. (2001). Does technology incubation work? A critical review of the evidence. Athens, OH: National Business Incubation Association. In: Robinson, S. & Stubberud, H. A. (2014). Business incubators: What services do business owners really use? International Journal of Entrepreneurship, 18, 29–39.
McGrath, H. and O'Toole, T. (2013). Enablers and inhibitors of the development of network capability in entrepreneurial firms: A study of the Irish micro-brewing network. Industrial Marketing Management, 42(7), 1141–1153.
Zhu, Y., Hong, J. and Liang, L. (2014). How the incubator managers act as the niche manager? Empirical evidence from China. 18th Pacific Asia Conference on Information Systems, PACIS 2014.
Voisey, P., Gornall,L., Jones, P. and Thomas, B. (2006). The measurement of success in a business incubation project. Journal of Small Business and Enterprise Development, no.3, vol.13, 454-468.
Stephens, S. and Onofrei, G. (2012). Measuring business incubation outcomes. Entrepreneurship and Innovation, 13 (4), 277–285.
Crichton, D. (2014, August 25). Corporate Accelerators Are An Oxymoron. Tech-Crunch. Retrieved from https://techcrunch.com/2014/08/25/corporate-accelerators-are-an-oxymoron/.
Petzov (2017). Corporate Innovation as a System. Medium. Retrieved from https://medium.com/@petzov/corporate-innovation-system-3b05e6a2fa7f.
Cohen, S. and Hochberg, Y.V. (2014). Accelerating Startups: The Seed Accelerator Phenomenon. SSRN Journal, 1(16).
Fehder, D.C. and Hochberg, Y.V. (2014). Accelerators and the Regional Supply of Venture Capital Investment. Retrieved from http://dx.doi.org/10.2139/ssrn.2518668.
Clarysse, B., Wright M. and Van Hove, J. (2015). A look inside accelerators: Building businesses. Nesta. Retrieved from https://www.nesta.org.uk/sites/default/files/a_look_inside _accelerators.pdf.
Scott, M. (2014). Copycat Business Model Generates Genuine Global Success for Start-Up Incubator. New York Times. Retrieved from https://www.nytimes.com/2014/02/28/technology /copycat-business-model-generates-genuine-global-success-for-start-up-incubator.html.
The Economist (2014a). Rocket Internet’s IPO: Launching into the unknown. The Economist. Retrieved from https://www.economist.com/news/business/21621820-predicting-rocket-internets-trajec-tory-hard-want-predecessors-launching.
The Economist (2014b). Tech startups: Building Companies: Rocket Machine. Special Report. The Economist. Retrieved from https://www.economist.com/news/special-report/21593586-how-build-companies-kit-rocket-machine.
Rocket Internet (2017). Company Homepage. Retrieved from https://www.rocket-internet.com/.
Stryber (n.d.). German Company Builders have stopped company building – How can they evolve? Stryber AG Switzerland. Retrieved from https://stryber.com/german-company-builders-have-stopped-company-building/.
Rao, L. (2013). The Rise of Company Builders. TechCrunch. Retrieved from https://techcrunch.com/2013/02/16/the-rise-of-company-builders/.
Waters-Lynch, J. and Potts, J. (2017): The social economy of coworking spaces: a fo-cal point model of coordination. Retrieved from https://doi.org/10.1080/00346764 .2016.1269938.
Pohler, N. (2012). Neue Arbeitsräume für neue Arbeitsformen: coworking Spaces. Österreichische Zeitschrift für Soziologie. 37, 65–78.
Corsi, P. (2017). Case Study: Growth Through Cooperation, Work, Time and Space, in Going Past Limits to Growth: A Report to the Club of Rome EU-Chapter. Hoboken, NJ: John Wiley & Sons, Inc..
Bouncken, R.B. and Reuschl, A.J. (2016). Coworking-spaces: how a phenomenon of the sharing economy builds a novel trend for the workplace and for entrepreneurship. Heidelberg: Springer.
Jacobs, E. (2016). Big business moves into co-working spaces. The Financial Times. Retrieved Retrieved from https://www.ft.com/content/c8255158-fffe-11e5-ac98-3c15a1aa2e62.
Gryszkiewicz, L., Lykourentzou, I. and Toivonen, T. (2016). Innovation Labs: 10 Defining Features. Stanford Social Innovation Review. Retrieved from https://ssir.org/articles/entry/ innovation_labs_10_defining_features#bio-footer.
Wallis, I. (2016, June 13). Europe’s 25 Corporate Startup Stars. Startups – The UK’s No.1 starting a business resource. Retrieved from http://startups.co.uk/europes-25-corporate-startup-stars/.
Tardy, F. (2013). Frédéric Tardy, Chief Marketing & Distribution of AXA Group announces the creation of the AXA Lab [Video File]. Retrieved from https://www.youtube.com/watch?v =bdoh5Mg4-rc.
- There are currently no refbacks.