1. Vertical Integration versus Open Innovation? From Winner Takes it All to Winners Make it All.
- Author
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Harryson, Sigvald and Lorange, Peter
- Subjects
OPEN innovation ,BUSINESS models ,DIFFUSION of innovations ,VERTICAL integration ,VALUE capture ,INNOVATION management ,INNOVATIONS in business ,DISRUPTIVE innovations - Abstract
This study explores the dynamics between the extremes of open innovation (OI)—from inclusive co-creation to exclusive vertical integration (VI). This analysis addresses the management issues of how Tesla and Porsche manage value capture and value distribution in the e-mobility industry through their contrasting approaches and strategic shifts between OI and VI. It develops a novel theoretical model juxtaposing the OI mode from open to closed with the value chain position from horizontal to vertical. Analyzing Tesla and Porsche's strategic moves offers a paradigm shift for OI practitioners. Our model can enable enhanced value capture through greater openness and more inclusive value distribution through proactive inside-out strategies in core technology areas. Instead of positioning VI and OI as static polar extremes, a novel combination of VI and OI can realize untapped potential. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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