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Extra info for Open Business Innovation Leadership: The Emergence of the Stakeholder University
Density (widening): The increased interconnections inside and among organizations determines the appearance of integrated networks as the most innovation-oriented organizational structures. Business processes are increasingly more interconnected between firms, regions, and countries, in a boundaryless space in which “networks of locations are more important than hierarchies of places” (Castells, 2000). Firms recognize the importance of being interconnected to achieve a sustainable Alessandro Margherita and Francesca Grippa 11 advantage, as the case of Toyota demonstrates.
The early decades of the 1900s were characterized by small and local businesses and, around 1950, there was an emergence of large and centralized corporations. The way of doing business in the new millennium is through mechanisms such as empowerment, outsourcing and networked organizations that allow higher complexity management through increased interdependence. Each stage requires more communication and more coordination efforts and has potential benefits over previous periods (Malone, 2004).
C. Freeman and L. G. Soete (1999) The Economics of Industry Innovation (Boston, MA: MIT Press). S. Ghoshal and C. A. Bartlett (1997) The Individualized Corporation (New York, NY: Harper Collins). G. Hamel (2000) Leading the Revolution (Boston, MA: HBS Press). R. Kalakota and M. ). N. D. Kondratieff (1926) “Die Langen Wellen der Konjunctur,” Archiv für Sozialwissenschaft und Sozialpolitik, 56(3) pp. 573–609. J. F. Moore (1993) “Predators and Prey: A New Ecology of Competition,” Harvard Business Review, 71(3) pp.