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Organizing for Open Innovation: Aligning Internal Structure with External Knowledge Search

This study adopts the notion of open innovation as external knowledge search and investigates its mutual interdependence with internal organizational structures of a firm’s innovation function. Drawing upon behavioral theories about organizational search and information processing, they hypothesize how structural dimensions such as specialization, formalization and decentralization affect gains from open innovation. Based on a sample of German manufacturing firms, they find higher performance gains from open innovation by aligning internal organizational structures in terms of lower specialization as well as higher formalization and decentralization.


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