Applying Cross-Industry Networks in the Early Innovation Phase

Abstract

Recognizing the pervasiveness of convergence and introducing new ways of solving problems requires multiple inter-organizational relationships beyond established industry boundaries. This chapter provides essential insights into the process steps necessary for successfully preparing for distant collaboration in cross-industry networks as well as for creating multilateral cross-industry networks. Cross-industry networks comprise an intensive exchange and development of knowledge in a process of mutual learning and adaptation through collaborative arrangements with specific innovation partners. The role of the technology managers, who identify synergic effects across the process stage of identifying potential absorptive capacity, and the function of the network managers, who act as interface between the firm and its external partners, are key for the exchange of ideas and for building expertise for the early innovation phase. Also cultural issues must be considered when implementing multilateral cross-industry networks, as processes of knowledge work beyond organizational boundaries entail organizational cognitive distance. An established network culture based on common values like trust and openness as well as shared norms, objectives and interests facilitates the sharing and transfer of knowledge.