Networking
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As technology becomes more complicated, complex competitive advantage is derived from expertise in integrating knowledge and technologies of others in novel and valuable ways . Research has shown that some companies have a shortage of good ideas because of inadequate networks. Managers fail to forge quality links with others outside their company .
The need to develop quality networks is vital, especially in the era of globalization, where it is difficult to obtain and maintain competitive advantages due to the ease of access to information. Therefore it is general wisdom that virtually no company should innovate on its own . Establishing networks, which could be individuals, teams, or organizations, linked by relationship, is essential to integrating knowledge and technologies internal and external to the organisation.
Developing networks (networking) can occur naturally but in most cases there is a strategic approach to developing networks that create competitive advantage for an organisation.
Most people don’t take to networking naturally. However, it is a skill that can be developed and time spent networking will save time down the road when trying to identify innovative solutions, leverage resources (including capital) and achieve success. Recent research has found that differences in individual creativity and intelligence matters less for innovation than strong connections and networks4.
The impact of networking and in turn developing collaborations for innovation is best summarized in the following two examples:
“A global survey conducted by IBM found that when CEO’s were asked where the sources of innovative ideas for their companies came from, first was employees, closely followed by business partners and also customers”.
“An economic analysis of Australian businesses found collaboration is associated with a 70% increase in the chance of achieving a creative innovation”.
These examples show the power of strong internal and external networks in facilitating innovation through the effective communication of creative ideas.
1 Dodgson M., Gann D., Salter A., The Management of Technological Innovation, Oxford University Press 2008.
2 Pisano G.P., Verganti R., Which Kind of Collaboration is Right for You, Harvard Business Review, Dec 2008.
3 Dodgson M., Gann D., Salter A., The Management of Technological Innovation, Oxford University Press 2008.
4 Fleming L., Marx M., Managing Creativity in Small Worlds, California Management Review, 2006, Vol. 48, pp. 6-27.
Links to subsections of this topic
Types of networking
Who should be in your Network?
Networking
Structuring your networks
Evaluating your Networks
Summary
Programs and Services
