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Open Strategy as a Practice

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Webinar Series of the Strategizing Activities and Practices (SAP) Interest Group in the Academy of Management (AoM),
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Open Strategy as a Practice

  1. 1. Leonhard Dobusch University of Innsbruck Webinar Series Strategizing Activities and Practices (SAP) Interest Group in the Academy of Management June 18, 2020, Internet OPEN STRATEGY AS A PRACTICE
  2. 2. CO M M ERCIAL BREAK Dobusch, L. & Dobusch, L. (2019): The Relation between Openness and Closure in Open Strategy: Programmatic and Constitutive Approaches to Openness. In D. Seidl, G. von Krogh & R. Whittington (eds.), The Cambridge Handbook of Open Strategy. Cambridge: Cambridge University Press, 326-336
  3. 3. Openness as an Organizing Principle
  4. 4. 11 EIRMA SIG III, 2005-10-20 Closed innovation Our current market Our new market Other firm´s market Open innovation External technology insourcing Internal technology base External technology base Stolen with pride from Prof Henry Chesbrough UC Berkeley, Open Innovation: Renewing Growth from Industrial R&D, 10th Annual Innovation Convergence, Minneapolis Sept 27, 2004 Internal/external venture handling Licence, spin out, divest
  5. 5. a lesser extent in the arts and humanities). 0 50 100 150 200 250 2003 2004 2005 2006 2007 2008 2009 2010 2011 All SSCI B/M Figure 1.2 Growth of publications on open innovation in Web of Science Notes: Search criterion: “open innovation” in title, abstract or keyword or citing Chesbrough (2003a); All = SCI, SSCI and A&HCI; SSCI = Social Science Citation Index; B/M = Business or Management category (within SSCI)
  6. 6. Open Innovation and Strategy Henry W. Chesbrough Melissa M. Appleyard A new breed of innovation—open innovation—is forcing firms to reassess their leadership positions, which reflect the performance outcomes of their business strategies. It is timely to juxtapose some new phenomena in innovation with the traditional acade- mic view of business strategy. More specifically, we wish to examine the increas- ing adoption of more open approaches to innovation, and see how well this adoption can be explained with theories of business strategy. In our view, open innovation is creating new empirical phenomena that exist uneasily with well- established theories of business strategy. Traditional business strategy has guidedQuelle: David Lerner, https://en.wikipedia.org/wiki/File:Internet_troll.jpg, http://creativecommons.org/licenses/by-sa/3.0/ Open strategy … embraces the benefits of openness as a means of expanding value creation for organizations “ Chesbrough & Appleyard (2007)
  7. 7. Open Innovation and Strategy Henry W. Chesbrough Melissa M. Appleyard A new breed of innovation—open innovation—is forcing firms to reassess their leadership positions, which reflect the performance outcomes of their business strategies. It is timely to juxtapose some new phenomena in innovation with the traditional acade- mic view of business strategy. More specifically, we wish to examine the increas- ing adoption of more open approaches to innovation, and see how well this adoption can be explained with theories of business strategy. In our view, open innovation is creating new empirical phenomena that exist uneasily with well- established theories of business strategy. Traditional business strategy has guidedQuelle: David Lerner, https://en.wikipedia.org/wiki/File:Internet_troll.jpg, http://creativecommons.org/licenses/by-sa/3.0/ Open strategy … embraces the benefits of openness as a means of expanding value creation for organizations “ Chesbrough & Appleyard (2007)
  8. 8. Impression OPENNESS OF ORGANIZATIONS Example: Buffer
  9. 9. Impression Tool OPENNESS OF ORGANIZATIONS
  10. 10. Bild: Chris Potter, CC-BY 2.0, https://www.flickr.com/photos/86530412@N02/8334443952 Impression Tool Value OPENNESS OF ORGANIZATIONS
  11. 11. Various Domains of Openness
  12. 12. 13 [S]trategy is traditionally exclusive. […] Opacity is important to strategy […]. Open strategy challenges both these orthodoxies[.] (Whittington et al., 2011, p. 535) “ Open strategy balances the tenets of traditional business strategy with the promise of open innovation. (Chesbrough and Appleyard 2007, p. 58) “
  13. 13. Allows… as not “traditional“, “closed“, “exclusive“ NEGATIVE DEFINITION OF OPENNESS …selective revealing (Henkel et al. 2014) …selective inclusion …"openwashing" (Heimstädt 2017) Potential problems: Escalating demands Lack of commitment, diversity Loss of trust
  14. 14. Quelle: David Lerner, https://en.wikipedia.org/wiki/File:Internet_troll.jpg, http://creativecommons.org/licenses/by-sa/3.0/ Mind the Organizationality of the OUTSIDE CROWD actors do not share interpersonal ties but are mainly related to the focal organization in some form (e.g. customers, fans, etc.) Networks of interrelated actors, who may engage in interpersonal exchange and share social ties or a common identity COMMUNITY
  15. 15. Quelle: David Lerner, https://en.wikipedia.org/wiki/File:Internet_troll.jpg, http://creativecommons.org/licenses/by-sa/3.0/ Mind the Organizationality of the OUTSIDE From tensions of commitment to tensions of escalation (Hautz et al., 2017) CROWD Growing tensions of empowerment (overburdening) (Hautz et al., 2017) COMMUNITYL. Dobusch, J. Kapeller / Long Range Planning 51 (2018) 561e579 Source:Dobusch&Kapeller(2018)
  16. 16. Quelle: David Lerner, https://en.wikipedia.org/wiki/File:Internet_troll.jpg, http://creativecommons.org/licenses/by-sa/3.0/ Increasing Openness as a PROGRAM Tensions such as “compromising speed” or “burdening wider audiences with the pressures of strategy” (Hautz et al., 2017) as limitations or hurdles for achieving greater openness IIIOpenness as the opposite of closure, representing two endpoints of a continuum from closed to open: Inviting more actors, sharing more information >> open++ open++ as a normative ideal
  17. 17. Open Practices in Strategy-Making
  18. 18. 19 Democratizing Strategy: How Crowdsourcing Can Be Used for Strategy Dialogues (Stieger et al. 2012)“
  19. 19. “Open forms of strategy-making with more inside and outside organizations and more of different actors internally and externally. Whittington et al. (2011, p. 531) transparency inclusion
  20. 20. Surveying Dialoguing RatingInforming transparency inclusion
  21. 21. inclusion inclusion≠
  22. 22. How are openness and inclusion connected?
  23. 23. How connected are openness and inclusion?
  24. 24. Survey of 5.500 open source developers on Github: 95% male, 3% female (in comparison: ~20% of all professional developers in the USA are female) Quellen: http://opensourcesurvey.org/2017/; https://www.wired.com/2017/06/diversity-open-source-even-worse-tech-overall/
  25. 25. 358 Organization S Table 4. Data on members of strategy task forces Region Members’ origin % Associated with Wikimedia Foundation Arabic 7 6.5 China 6 5.6 Eastern Europe 2 1.9 EU 25 23.4 4 (2 WMB, 1 WMF, 1 WMC) India 17 15.9 1 (WMB) Latin America 2 1.9 USA 37 34.6 15 (3 WMB, 7 WMF, 5 WMC) Other 2 1.9 Unclear 9 8.4 Totals 107 20 *includes Wikimedia Board (WMB), Foundation staff (WMF) und hired consultants (WMC) Source: Dobusch et al. (2019, p. 358) 58%
  26. 26. Non-performativity of Openness?
  27. 27. Non-performatives describes the “reiterative and citational practice by which discourse” does not produce “the effects that it names” (Butler 1993: 2) “ Ahmed, S. (2012, p. 117)
  28. 28. Bild ShashiBellamkonda, CC BY 2.0, : https://www.flickr.com/photos/drbeachvacation/4623702054/
  29. 29. Why is open for "anyone" not open enough?
  30. 30. Exclusionary Openness
  31. 31. Lack of diversity in spite of radical openness? because of
  32. 32. Photo: UNESCO, https://commons.wikimedia.org/wiki/File:Online_harassment_of_women_journalists.png. CC BY-SA 4.0
  33. 33. Quelle: David Lerner, https://en.wikipedia.org/wiki/File:Internet_troll.jpg, http://creativecommons.org/licenses/by-sa/3.0/ If your group has nine helpful and polite members, and one rude, sexist, loud member, most women are going to continue to stay away because of that one member “ Valeria Aurora (2002), http://tldp.org/HOWTO/ Encourage-Women- Linux-HOWTO/
  34. 34. From Degrees to Paradoxes of Openness
  35. 35. Quelle: David Lerner, https://en.wikipedia.org/wiki/File:Internet_troll.jpg, http://creativecommons.org/licenses/by-sa/3.0/ Openness and Closure as CONSTITUTIVE Analyzing the paradoxical nature of openness (and closure) by focusing on legitimate forms closure. e.g., restricting scope of topics to increase number of potential participants (Dobusch, Kremser, Seidl, & Werle, 2018) IIIOpenness and closure as inextricably linked and interacting with each other >> we find examples of closure in all empirical studies of open strategy
  36. 36. Explicating and addressing normativity inherent in (calls for) openness from looking at degrees of openness to investigating combinations of openness and closure desirable in strategy-making labelled as ‘open’ together with a switch from exclusionary openness to inclusion through legitimate closure allows moving
  37. 37. CONTACT E-mail: Leonhard.Dobusch@uibk.ac.at Twitter: @leonidobusch Websites: bit.ly/LD-UIBK // www.dobusch.net Research blogs: governancexborders.com // osconjunction.net
  38. 38. References ‣ Ahrne, G., & Brunsson, N. (eds.), Organisation outside Organizations: The Abundance of Partial Organisation in Social Life. Cambridge: Cambridge University Press ‣ Chesbrough, H. W., & Appleyard, M. M. (2007). Open Innovation and Strategy. California Management Review, 50, 57–76. ‣ Dobusch, L. (2014). How exclusive are inclusive organisations? Equality, Diversity and Inclusion: An International Journal, 33(3), 220-234. ‣ Dobusch, L. & Dobusch, L. (2019): The Relation between Openness and Closure in Open Strategy: Programmatic and Constitutive Approaches to Openness. In D. Seidl, G. von Krogh & R Whittington (eds.), The Cambridge Handbook of Open Strategy. Cambridge: Cambridge University Press, 326-336 ‣ Dobusch, L., Dobusch, L., & Müller-Seitz, G. (2019). Closing for the benefit of openness? The case of Wikimedia’s open strategy process. Organization Studies, 40(3), 343-370. ‣ Dobusch, L., & Kapeller, J. (2018). Open strategy-making with crowds and communities: Comparing Wikimedia and Creative Commons. Long Range Planning, 51(4), 561-579. ‣ Dobusch, L., Kremser, W., Seidl, D., & Werle, F. (2017). A communication perspective on open strategy and open innovation. Managementforschung, 27(1), 5-25. ‣ Heimstädt, M. (2017). Openwashing: A decoupling perspective on organizational transparency. Technological Forecasting and Social Change, 125, 77-86. ‣ Stieger, D., Matzler, K., Chatterjee, S., & Ladstaetter-Fussenegger, F. (2012). Democratizing Strategy: How Crowdsourcing Can Be Used for Strategy Dialogues. California Management Review, 54, 44-69. ‣ Whittington, R., Cailluet, L., & Yakis-Douglas, B. (2011). Opening Strategy: Evolution of a Precarious Profession. British Journal of Management, 22(3), 531-544. 44

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