Digital Product Innovation Within Four Classes of Innovation Networks

Abstract

The increased digitization of organizational processes and products poses new challenges for understanding product innovation. It also opens new horizons for information systems research. We analyse how ongoing pervasive digitization of product innovation reshapes knowledge creation and sharing in innovation networks. We argue that advances in digital technologies (1) increase innovation network connectivity by reducing communication costs and increasing its reach and scope and (2) increase the speed and scope of digital convergence, which increases network knowledge heterogeneity and need for integration. These developments, in turn, stretch existing innovation networks by redistributing control and increasing the demand for knowledge coordination across time and space presenting novel challenges for knowledge creation, assimilation and integration. Based on this foundation, we distinguish four types of emerging innovation networks supported by digitalization: (1) project innovation networks; (2) clan innovation networks; (3) federated innovation networks; and (4) anarchic innovation networks. Each network involves different cognitive and social translations – or ways of identifying, sharing and assimilating knowledge. We describe the role of five novel properties of digital infrastructures in supporting each type of innovation network: representational flexibility, semantic coherence, temporal and spatial traceability, knowledge brokering and linguistic calibration. We iden…