Management of innovation networks: a case study of different approaches

Abstract

PurposeThe literature includes a vast amount of research on both innovation and business networks; however, the empirical knowledge of their intersection – innovation networks and their management – is still scarce. This empirical study aims at increasing the knowledge of management of innovation networks by mapping characteristics of management approaches of two case companies. These companies operate in the software business and develop their products in inter‐organizational networks. Special attention is paid to differences in the management approaches between the case companies.Design/methodology/approachThe present empirical article is based on analysis of two case companies representing very different and contrasting approaches to management of innovation networks. The empirical study is conducted among SMEs in the software business.FindingsAs a result of the analysis, several aspects of management of innovation networks are identified and their nature explained. These aspects are: duration of the network; rewards from the network; fundamental meaning of the network; the nature of the networked organization; planning, control, and trust; and hierarchies, authority, and coordination. These aspects are powerful in mapping and explaining the characteristics of innovation network management.Originality/valueVarious management practices are suggested and discussed in the context of each of the identified aspects of innovation network management.