There is a significant potential to improve the benefits from public procurement through a better understanding of drivers in company success at the micro-level, an area that has received little study to date. To increase these impacts on innovation and markets, policy makers have opened procurement to innovation, including the strategic incorporation of formal standards in calls for tenders. Consequently, companies offering innovative solutions should have higher chances to be successful in public tenders. In addition, companies who engage in standardization activities at standards development organizations may have a competitive advantage in submitting tenders. Examining the case of Germany, this paper empirically investigates the effects of German manufacturing companies' innovation activities and their engagement in national standardization on the receipt of contracts within domestic procurement competitions. The results of our empirical analyses based on German companies surveyed within the framework of the Community Innovation Survey show that being successful in product innovation and being engaged in standardization are significant positive predictors of companies' success in public procurement. With implications for policy-makers and practitioners, this shows that public procurement is indeed open for solutions from companies active in innovation and standardization.
Crowdsourcing provides companies with access to widespread knowledge pools and constitutes a well-established inbound open innovation practice. More recently, some companies have introduced the approach of open innovation within their company boundaries. Using internal crowdsourcing (IC), companies can apply open innovation principles to overcome information silos. Multinational corporations often have thousands of employees around the globe, embedded in divisions and virtually separated from each other. Although a large proportion of companies nowadays use social IT to mitigate problems of distance, only a few companies can access their employees’ wisdom effectively—let alone efficiently. With almost 100,000 employees worldwide, SAP possesses significant resources, which IC can help to unlock and develop. In this business case study, we report the findings of our investigation of five IC implementations at SAP. Based on interviews and secondary data, we analyze the process and related governance tasks of the different IC approaches. The applications for IC range from the search for new and sustainable business models to an approach that uses crowdsourcing for the competence development of SAP’s employees. Our paper contributes to our understanding of open innovation and crowdsourcing by conceptualizing IC as a form of internal open innovation. Further, from our observations, we derive six lessons learned to support managers in implementing and executing IC initiatives successfully. Our findings will subsequently help managers to increase the innovation capabilities of their companies, create more sustainable business models, further the entrepreneurial mindset of their employees and thus provide a competitive advantage.
This study contributes to the understanding of collaborative innovation in online user communities. Aside from providing evidence for the existence of these communities, prior research focused on users’ motivations, backgrounds, and roles at the micro level but largely neglected to examine the effects of individual user activities on joint activities at the community level. By applying a netnographic research design, which is followed by a content analysis step and logistic regression analysis, we explore to what degree different user activities trigger collaborative innovation inside a community. We find two factors inherent to the initial post of a thread, problem complexity and collaboration intention, which explain the probability of collaborative innovation. The likelihood of joint activities is raised significantly if the contribution of a user ranks high on both dimensions. By quantifying collaborative user innovation, we hope to encourage the inclusion of user activities in future policy considerations. Moreover, understanding the effects of individual user activities at the community level may help companies to understand users of technologies better and to identify opportunities for collaboration.
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