The impact of partner organizational structure on innovation (Record no. 526868)

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Personal name Balachandran, Sarath and Eklund, John
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Title The impact of partner organizational structure on innovation
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Place of publication, distribution, etc Administrative Science Quarterly
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Extent 69(1), Mar, 2024: p.80-130
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Summary, etc Interorganizational partnerships can spur innovation, but their value may be diminished by friction in knowledge flows between firms. We consider how a partner’s organizational structure may influence the knowledge that is accessible via partnerships. We focus on how a partner’s structure trades off localized autonomy for its managers, which facilitates timelier decision making, and unified control, which facilitates integration. By shaping this balance, centralization of decision rights within the partner organization shapes access to its knowledge. Centralized structures generate wide-ranging internal knowledge pathways that enable access to a broader array of a partner’s knowledge. However, the reduced managerial autonomy afforded by centralization makes decision making more cumbersome, which constricts the rate of access to a partner’s knowledge. We find evidence of this tradeoff in the context of corporate venture capital relationships between incumbents and startups in the pharmaceutical industry. An increase in the incumbent’s diversity of knowledge or in the knowledge required by the startup enhances the value of a greater breadth of access, whereas the degree to which the startup can leverage social ties (affinity) or hierarchical fiat (authority) alleviates the costs of a reduced access rate. Each of these features makes an incumbent organization’s centralization more valuable to the startup. By highlighting this tension related to centralization, our findings suggest that new firms striving to maximize their partnership benefits may need to carefully consider their partners’ internal structures.- Reproduced

https://journals.sagepub.com/doi/full/10.1177/00018392231212680
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Main entry heading Administrative Science Quarterly
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Subject DIP INNOVATIONS
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Item type Articles
Holdings
Withdrawn status Lost status Source of classification or shelving scheme Damaged status Not for loan Permanent location Current location Date acquired Serial Enumeration / chronology Barcode Date last seen Koha item type
          Indian Institute of Public Administration Indian Institute of Public Administration 2024-07-01 69(1), Mar, 2024: p.80-130 AR132412 2024-07-01 Articles

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