Title: Open innovation and the management of intra-firm conflict

Authors: Andreas Panagopoulos, Christos N. Pitelis

Addresses: Economics Department, University of Crete, Gallos Campus, 74100 Rethymno, Greece. ' Judge Business School and Queens' College, University of Cambridge, Trumpington Street, Cambridge CB2 1AG, UK

Abstract: We analyse the hitherto unexplored relationship between intra-firm conflict between the research and development (R&D) department and central management, conflict alleviation and the choice of |open| versus |closed| innovation, in the context of a simple formal model. We find that in the presence of (intentional or unintentional) divergence of preferred R&D output between the R&D department and central management, the decision by central management to adopt an |open| (versus |closed|) innovation approach, may help serve the twin purpose of shifting constraints to growth and increasing firm profitability, by alleviating intra-firm conflict.

Keywords: intra-firm conflict; conflict management; open innovation; firm growth; research and development; R&D; central management; innovation management.

DOI: 10.1504/IJLIC.2010.034369

International Journal of Learning and Intellectual Capital, 2010 Vol.7 No.3/4, pp.295 - 307

Published online: 01 Aug 2010 *

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