Tensions in Firm-community Collaboration and the Role of Intermediaries in Exploiting Synergies

PhD start: 6/2011 until 6/2014 State of the art A growing stream of literature indicates that innovation stems not only from a firm? s internal investments, but also relies on input from external sources. In particular, users can offer valuable contributions, and collaboration between communities and firms is central to value creation (Bogers et al., 2010). However, at the interfaces between communities and firms tensions arise due to undefined boundaries and a lack of clear roles. Current research in the user innovation literature explains such tensions as dilemmas relating to for example power, where firms must balance between retaining control or providing open access for external participation to benefit from user contributions (Jarvenpaa and Lang, 2011). A relevant phenomenon in the center of these tensions is intermediaries. An intermediary is an external third party such as consultancies that may assist the firm in interacting with the community and as such obtains a substantial role in the firm? s management of tensions (Bessant and Rush, 1995). Research gap When describing the tensions as dilemmas the literature disregards a key driver for innovation that is to be found within the synergies between competing demands. This paper seeks firstly to fill that gap by explaining how organizations can attend to competing demands such as control and open participation simultaneously. Hereby, we argue that the identified tensions are paradoxes that should be embraced in order to leverage innovation ? not dilemmas to overcome. Secondly, the role of intermediaries is predominantly overlooked by existing studies describing firm-community interacting. Based on our conceptual model, the paper enriches theory by exploring the role of intermediaries and their influence on the firms? ability to attend to competing demands simultaneously. Theoretical arguments This paper introduces systems theory to the user innovation field and hereby takes the difference between the organization and the community a step further. Systems theory views organizations as an ? autopoietic? form that organizes itself on the basis of its internal elements (Luhmann, 1995). From this perspective it is not possible for organizations to interact with communities because user needs and participation will always be operated from within the internal logic of the firm. Therefore, firms have to invite users inside their organizational boundaries, in order to access the user resources and knowledge. This theoretical position has new implications on innovation when organizations invite communities to co-create. Even though organizations operate self-referentially, they also have contact to their environment and can be influenced by other organizations through the notion of structural coupling. Such coupling is needed in order to trigger positive changes in the organization, which otherwise might not have been achieved (Luhmann, 1995). Thus, the role of intermediaries and third parties becomes relevant when exploring how organizations can deal with the tensions inherent in community collaborations in a more dynamic way. Method This paper employs semi-structured interviews with eight project leaders from a consultancy firm that specializes in facilitating online user innovation communities for public and private organizations. Furthermore, we conduct interviews with firms that use consultancies when interacting with online communities and firms that collaborate with communities without any external intermediates. In deciding on our sample we have controlled for the variance of sample firms with respect to their degree of involvement of intermediaries and triangulated findings across sources. Results Firstly, our results indicate that organizations should manage the tensions of community collaboration as paradoxes and attend to dichotomies simultaneously in order to leverage the innovation potential in the long term. Secondly, the use of intermediaries and the role of a third party appear necessary for the organization to oscillate between competing demands. However, the intermediary may also create new tensions and types of dilemmas between itself and the organization in addition to those between the organization and the community. References Bessant, J. and Howard, R. (1995) Building bridges for innovation: the role of consultants in technology transfer, Research Policy Bogers, M. , Afuah, A. , Bastian, B. (2010) Users as Innovators: A Review, Critique, and Future Research Directions, Journal of Management Jarvenpaa, S. L. and Lang, K. R. (2011) Boundary Management in Online Communities: Case Studies of the Nine Inch Nails and ccMixter Music Remix Sites, Long Range Planning Luhmann, N. (1995) Social Systems, Stanford University Press, Stanford, CA