Open Innovation in Networks: Specifying Orchestration Capability for SMEs

Abstract

Open innovation in multifirm networks has been a popular topic for long, and the focal firm with orchestration capability will enhance its innovation performance through networks. However, only recently, researchers started to study SME’s open innovation and networks, especially those from the low-tech industry. Besides multi firm networks, some organizational researchers are interested in the internal network organizational design of prospector firms putting innovation on top of the agenda. This paper analyzes how an SME from a traditional industry implements the prospector strategy through purposively built multi-level networks, i.e. an internal network organization and a multi firm innovation network. In order to get more innovation output from external and internal networks, orchestration capability is needed and should be applied in both levels of network organizations.