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Open Innovation’s “Multiunit Back-End Problem”

Le « problème d’arrière-plan des organisations multi-unités » en matière d’innovation ouverte

Thuy Seran () and Sea Matilda Bez ()
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Thuy Seran: MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier
Sea Matilda Bez: Labex Entreprendre - UM - Université de Montpellier, MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier

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Abstract: This article examines the "multiunit back-end problem" of open innovation based on a case study of the Banque Populaire Caisse d'Epargne (BPCE) Group, a large French bank with two business units. The multiunit back-end problem occurs when internal business units who consider themselves rivals are asked to collaborate for the success of an open innovation initiative. BPCE failed several times to use external startups to accelerate its digital transformation due to rivalry between its internal business units. This article presents guidelines that firms with rival business units can use to align their front-end and back-end when working with startups to accelerate their digital transformation program.

Keywords: Multiunit back-end problem; Rivalry between units; Competitive advantage; Backend and front-end of open innovation; Digital innovation; Open innovation; Start-up program; Multiunit organization; Internal coopetition (search for similar items in EconPapers)
Date: 2021-02
New Economics Papers: this item is included in nep-cse and nep-sbm
Note: View the original document on HAL open archive server: https://hal.science/hal-03349709v2
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Published in California Management Review, 2021, 63 (2), pp.135-157. ⟨10.1177/0008125620968609⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03349709

DOI: 10.1177/0008125620968609

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