Cross-Divisional Innovation in the Large Corporation: Thoughts and Evidence on Its Value and the Role of the Early Stages of Innovation
October 2, 2012 Editor 0
Forty-five years after Ansoff’s seminal work on synergies, many multi-divisional corporations still struggle to create additional value. Therefore, it is surprising that in times of open innovation, little research has been conducted on the impact of cross-divisional product development.
In our paper, we derive conceptual arguments for the relevance of joint initiatives and examine the role of cross-divisional collaboration in the early stages of the innovation process. Our research model is tested using a quantitative survey in 110 multi-divisional firms. We find that the extent of collaboration in the early stages of innovation strongly determines the impact of cross-divisional products on corporate success. To achieve collaboration, our results highlight the relevance of appropriate integration mechanisms and incentives.
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