The Impact of the Organizational Design of Innovation Units on the Consideration of Cybersecurity

Sebastian Heierhoff, Alina Reher and Jessica Slamka

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

Abstract: Digital innovations are not only associated with opportunities for value creation but also lead to threats, for example, additional cybersecurity risks. Dealing with the conflicting requirements of innovations and cybersecurity can lead to a trade-off for organizations that companies setting up innovation units outside their core organization need to address. We conducted a cross-industry interview study to investigate the impact of organizational design of innovation units on the consideration of cybersecurity. Our results, embedded in Galbraith’s star model, reveal five types of innovation units and three patterns of organizational design that impact this consideration. The effect of these patterns ranges from an ill- or over-consideration to a cybersecurity-innovation equilibrium. Thereby, we extend the existing literature on the trade-off of innovation and cybersecurity by organizational design considerations regarding strategy, structure, and processes. This theoretical contribution has implications for the organizational design of innovation units in practice.

Date: 2022-12-12
New Economics Papers: this item is included in nep-law and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:dar:wpaper:136227

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