Information Technology Reference
In-Depth Information
As team members become increasingly distributed, dispersed members use
different tools and possess different worldviews (Hauser et al., 2006), creating chal-
lenges in coordination. As a result, the quality of teamwork may suffer (Hoegl &
Parboteeah, 2006). In addition, leadership effectiveness often suffers as members of
the same team are located in different geographical areas and time zones (Hoegl
et al., 2007). Boundaries between individuals, teams, and organizations create
additional management complications. It is likely that the strategies for managing
boundary interfaces will differ between large corporations, other businesses in sup-
ply and distribution networks, small specialist firms, and independent individual
experts (Dodgson et al., 2006). It will be increasingly necessary to understand how
organizations are managing these interfaces as boundaries become more permeable.
7.4 The Role of Information Technology
It can be easily recognized that without recent technological advances the concept
of open innovation would not be feasible. Yet, the relationship between IT and open
innovation models is complex and circular in nature. While IT makes it possible to
structure, facilitate, and manage open innovation, the continued demand for alter-
native and more adaptive innovation models has spurred an increased demand for
new forms of technology that can make it all possible. As firms continue to open
their boundaries they will increasingly adopt IT to enable this way of organizing.
Not only will firms adopt new technologies, but they will also demand new techno-
logical advances to create efficiencies in a world where boundaries are erasing and
competitors are becoming co-operators.
7.4.1 IT in Closed Versus Open Innovation Models
IT in closed innovation models is primarily used to automate existing operations
and to increase the speed of communication. The replacement of paper, and some-
times people, often occurs as information collection and storage tasks are absorbed
by IT. Despite advances in IT, little change in the way work was done and dis-
cussions shifted to the “productivity paradox,” suggesting that IT investments were
not generally reflected in outcomes. Collaboration tools used by closed innovation
teams are generally limited to face-to-face exchanges and e-mail or audio confer-
encing, all rich communication media because of their ability to impart multiple
cues between sender and receiver. However, these media may impair companies'
ability to successfully use more open innovation models (Malhotra & Majchrzak,
2005), as they limit the knowledge creation and application which are both vital to
successful innovation.
With the open innovation model, new forms of teams adopt new technologies
in order to derive competitive advantage through the circulation and pooling of
global expertise. New types of IT offer a variety of opportunities, including the
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