Summary Strategy & Innovation Management
Articles and Slides
Week 2: Creativity 3
Lecture slides + notes 3
Gong, Y., Kim, T-Y., Lee, D-R., and Zhu, J. (2013) A Multilevel Model of Team Goal
Orientation, Information Exchange, and Creativity 6
Herrmann, D. and Felfe, J. (2014) Effects of Leadership Style, Creativity Technique and
Personal Initiative on Employee Creativity. 7
Perry-Smith, J. E. and Mannucci, P. V. (2017) From Creativity to Innovation: The Social
Network Drivers of the Four Phases of the Idea Journey. 9
Week 3: Sources of innovation 11
Lecture slides + notes 11
Bradonjic, P., Franke, N., and Lüthje, C. (2019). Decision-makers’ Underestimation of User
Innovation. 12
Grimpe, C., and Kaiser, H. (2010) Balancing Internal and External Knowledge Acquisition:
The Gains and Pains from R&D Outsourcing. 13
Zahra, S., and George, G. (2002) Absorptive Capacity: A Review, Reconceptualization, and
Extension. 15
Week 4: Select uncertainty 17
Lecture slides + notes 17
Krychowski, C., and Quelin, B. (2010) Real Options and Strategic Investment Decisions:
Can They Be of Use to Scholars? 17
Milliken, F. (1987) Three Types of Perceived Uncertainty about the Environment: State,
Effect, and Response Uncertainty 20
Schoemaker, P. (1993) Multiple Scenario Development: Its Conceptual and Behavioral
Foundation. 21
Week 5: Implement innovation in MNCs 24
Lecture slides + notes 24
Almeida, P., and Phene, A. (2004) Subsidiaries and Knowledge Creation: The Influence of
the MNC and Host Country Innovation. 26
Berry, H. (2018). The Influence of Multiple Knowledge Networks on Innovation in Foreign
Operations 27
Sofka, W., Shehu, E., and de Faria, P. (2014) Multinational Subsidiary Knowledge Protection
- Do Mandates and Clusters Matter? 28
Week 6: Strategy Implementation: innovation and strategy at the corporate level 30
Lecture slides + notes 30
Foss, N.J. (1997) On the Rationales of Corporate Headquarters. Industrial and Corporate
Change 30
Chung, W. and Alcácer, J. (2002) Knowledge Seeking and Location Choice of Foreign Direct
Investment in the United States 33
1
, Klingebiel, R., and Rammer, C. (2013): Resource allocation strategy for innovation portfolio
management 34
Week 7: Implementing strategy: Design and Structure 36
Lecture slides + notes 36
Liebeskind, (1996): Knowledge, strategy, and the theory of the firm 37
Lam, A. (2010) 'Innovative organizations: structure, learning and adaptation', 39
Bos, B., Faems, D., and Noseleit, F. (2017): Alliance concentration in MNCs: Examining
alliance portfolios, firm structure, and firm performance 42
2
,Week 2: Creativity
Lecture slides + notes
Why is creativity important?
- Motivates generation of new ideas: necessary but not sufficient creation for innovation
- Creativity is a strategic resource that is valuable, rare, imperfectly imitable, and
non-substitutable (RBV → SCA)
- Creativity results in product differentiation → driver for firm performance
Myths about creativity:
- Pre-ordained skill
- You can’t learn it
- You can’t teach it
- It belongs to art, not business → important to be creative in seeing patterns, thinking
outside the box etc.
Myths about managing creativity:
1. money is a creativity motivator--> People have different skills, need to have internal
motivation and intrinsic rewards instead of external motivation and external rewards
a. risk averse when driven by money, brings in less bigbang innovative ideas (only
small improvements).
1. Time pressure fuels creativity --> creativity is not bound by time. Productivity increases
when a deadline, but not your creativity
2. Fear forces breakthroughs --> if you feel fear (i.e. negative feelings), your creativity
decreases
3. Competition beats collaboration --> not true because limit knowledge (because everyone
keep their knowledge for themselves, instead of collaborate and share their knowledge
and stick all these knowledge together)
4. A streamlined organization is a creative organization --> when you fire "lazy people",
everyone is talking about other things than work, which leads to less creativity since
creativity comes from work conversations (informal).
Creativity = a mental process involving the generation of new ideas or concepts, or new
associations between existing ideas or concepts
→ cognitive effort leads to expression of new ideas
Innovation = successful implementation of creativity ideas by an organization
→ Know the difference between creativity and innovation
SCA = VRIN = valuable, rare, inimitable, non-substitutional
3
, What makes the difference between a creative and uncreative idea?
A creativity idea needs to be:
1) Novel
a) Can be new to the market, or to the firm, or the employee
2) useful/valuable/meaningful
Divergent thinking is about using imagination (convergent is more using logic), which makes
divergent thinking more creativity
Innovation = successful implementation of creativity ideas by an organization
When does creativity lead to innovation?
- Personal initiative !! → the ability to push it through the innovation
Managing creativity
- Antecedent conditions = such as moodstates: biographical variables, past
reinforcement
- Influences individual creativity
Individual
- Cognitive style and ability: divergent thinking
- Personality factors: self-esteem, locus of control (to influence the future)
- Knowledge: domain/creativity-related
- Motivation: intrinsic motivation
- Social influences = social facilitation and social rewards
- Why is social influence more important in creative task settings?
- If you have to behave, social pressure, you would like to be a safe
environment
- Influences the relationship between individual and group creativity
- Contextual influence = physical environment. and time and task constraints
- Influences the relationship between individual and group creativity
4
Articles and Slides
Week 2: Creativity 3
Lecture slides + notes 3
Gong, Y., Kim, T-Y., Lee, D-R., and Zhu, J. (2013) A Multilevel Model of Team Goal
Orientation, Information Exchange, and Creativity 6
Herrmann, D. and Felfe, J. (2014) Effects of Leadership Style, Creativity Technique and
Personal Initiative on Employee Creativity. 7
Perry-Smith, J. E. and Mannucci, P. V. (2017) From Creativity to Innovation: The Social
Network Drivers of the Four Phases of the Idea Journey. 9
Week 3: Sources of innovation 11
Lecture slides + notes 11
Bradonjic, P., Franke, N., and Lüthje, C. (2019). Decision-makers’ Underestimation of User
Innovation. 12
Grimpe, C., and Kaiser, H. (2010) Balancing Internal and External Knowledge Acquisition:
The Gains and Pains from R&D Outsourcing. 13
Zahra, S., and George, G. (2002) Absorptive Capacity: A Review, Reconceptualization, and
Extension. 15
Week 4: Select uncertainty 17
Lecture slides + notes 17
Krychowski, C., and Quelin, B. (2010) Real Options and Strategic Investment Decisions:
Can They Be of Use to Scholars? 17
Milliken, F. (1987) Three Types of Perceived Uncertainty about the Environment: State,
Effect, and Response Uncertainty 20
Schoemaker, P. (1993) Multiple Scenario Development: Its Conceptual and Behavioral
Foundation. 21
Week 5: Implement innovation in MNCs 24
Lecture slides + notes 24
Almeida, P., and Phene, A. (2004) Subsidiaries and Knowledge Creation: The Influence of
the MNC and Host Country Innovation. 26
Berry, H. (2018). The Influence of Multiple Knowledge Networks on Innovation in Foreign
Operations 27
Sofka, W., Shehu, E., and de Faria, P. (2014) Multinational Subsidiary Knowledge Protection
- Do Mandates and Clusters Matter? 28
Week 6: Strategy Implementation: innovation and strategy at the corporate level 30
Lecture slides + notes 30
Foss, N.J. (1997) On the Rationales of Corporate Headquarters. Industrial and Corporate
Change 30
Chung, W. and Alcácer, J. (2002) Knowledge Seeking and Location Choice of Foreign Direct
Investment in the United States 33
1
, Klingebiel, R., and Rammer, C. (2013): Resource allocation strategy for innovation portfolio
management 34
Week 7: Implementing strategy: Design and Structure 36
Lecture slides + notes 36
Liebeskind, (1996): Knowledge, strategy, and the theory of the firm 37
Lam, A. (2010) 'Innovative organizations: structure, learning and adaptation', 39
Bos, B., Faems, D., and Noseleit, F. (2017): Alliance concentration in MNCs: Examining
alliance portfolios, firm structure, and firm performance 42
2
,Week 2: Creativity
Lecture slides + notes
Why is creativity important?
- Motivates generation of new ideas: necessary but not sufficient creation for innovation
- Creativity is a strategic resource that is valuable, rare, imperfectly imitable, and
non-substitutable (RBV → SCA)
- Creativity results in product differentiation → driver for firm performance
Myths about creativity:
- Pre-ordained skill
- You can’t learn it
- You can’t teach it
- It belongs to art, not business → important to be creative in seeing patterns, thinking
outside the box etc.
Myths about managing creativity:
1. money is a creativity motivator--> People have different skills, need to have internal
motivation and intrinsic rewards instead of external motivation and external rewards
a. risk averse when driven by money, brings in less bigbang innovative ideas (only
small improvements).
1. Time pressure fuels creativity --> creativity is not bound by time. Productivity increases
when a deadline, but not your creativity
2. Fear forces breakthroughs --> if you feel fear (i.e. negative feelings), your creativity
decreases
3. Competition beats collaboration --> not true because limit knowledge (because everyone
keep their knowledge for themselves, instead of collaborate and share their knowledge
and stick all these knowledge together)
4. A streamlined organization is a creative organization --> when you fire "lazy people",
everyone is talking about other things than work, which leads to less creativity since
creativity comes from work conversations (informal).
Creativity = a mental process involving the generation of new ideas or concepts, or new
associations between existing ideas or concepts
→ cognitive effort leads to expression of new ideas
Innovation = successful implementation of creativity ideas by an organization
→ Know the difference between creativity and innovation
SCA = VRIN = valuable, rare, inimitable, non-substitutional
3
, What makes the difference between a creative and uncreative idea?
A creativity idea needs to be:
1) Novel
a) Can be new to the market, or to the firm, or the employee
2) useful/valuable/meaningful
Divergent thinking is about using imagination (convergent is more using logic), which makes
divergent thinking more creativity
Innovation = successful implementation of creativity ideas by an organization
When does creativity lead to innovation?
- Personal initiative !! → the ability to push it through the innovation
Managing creativity
- Antecedent conditions = such as moodstates: biographical variables, past
reinforcement
- Influences individual creativity
Individual
- Cognitive style and ability: divergent thinking
- Personality factors: self-esteem, locus of control (to influence the future)
- Knowledge: domain/creativity-related
- Motivation: intrinsic motivation
- Social influences = social facilitation and social rewards
- Why is social influence more important in creative task settings?
- If you have to behave, social pressure, you would like to be a safe
environment
- Influences the relationship between individual and group creativity
- Contextual influence = physical environment. and time and task constraints
- Influences the relationship between individual and group creativity
4
