Organizing Innovative Projects to Interact with Market Dynamics:: A Coevolutionary Approach

Jan Van den Ende, Nachoem Wijnberg, Rianne Vogels and Michiel Kerstens

European Management Journal, 2003, vol. 21, issue 3, 273-284

Abstract: This paper is about the coevolutionary processes that take place between the way firms organize their innovative activities and the dynamics of the relevant markets, especially those having to do with bandwagon and network effects. We focus on the decision-making actors and propose a categorization of causes of increasing returns and definitions of bandwagon and network effects that are consistent with this aim. We investigate the extent of internal autonomy of the unit, the extent of the integration of R&D, production and other activities in the product development process, and the extent of external autonomy. Based on three cases of projects creating software products, two of them in the same firm, we develop hypotheses concerning the relation between the organization of innovation and bandwagon and network effects. Also, on the basis of the discussion of the cases and the coevolutionary framework, a number of research questions are formulated dealing with the relation between the organization of innovative activities by firms, bandwagon and network effects and long-term dynamics, especially of industry life-cycles.

Keywords: Organization; of; innovation; Increasing; returns; Project; teams (search for similar items in EconPapers)
Date: 2003
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