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1、OpenInnovationandStrategyHenryW.ChesbroughMelissaM.Appleyardnewbreedofinnovation—openinnovation—isforcingfirmstoreassesstheirleadershippositions,whichreflecttheperformanceoutcomesoftheirbusinessstrategies.ItistimelytojuxtaposeAsomenewphenomenaininnovationwiththetraditional
2、acade-micviewofbusinessstrategy.Morespecifically,wewishtoexaminetheincreas-ingadoptionofmoreopenapproachestoinnovation,andseehowwellthisadoptioncanbeexplainedwiththeoriesofbusinessstrategy.Inourview,openinnovationiscreatingnewempiricalphenomenathatexistuneasilywithwell-es
3、tablishedtheoriesofbusinessstrategy.Traditionalbusinessstrategyhasguidedfirmstodevelopdefensiblepositionsagainsttheforcesofcompetitionandpowerinthevaluechain,implyingtheimportanceofconstructingbarrierstocompeti-tion,ratherthanpromotingopenness.Recently,however,firmsandeven
4、wholeindustries,suchasthesoftwareindustry,areexperimentingwithnovelbusinessmodelsbasedonharnessingcollectivecreativitythroughopeninnovation.Theapparentsuccessofsomeoftheseexperimentschallengesprevailingviewsofstrategy.Atthesametime,recentdevelopmentsindicatethatmanyofthe
5、seexper-imentersnowaregrapplingwithissuesrelatedtovaluecaptureandsustainabil-ityoftheirbusinessmodels,aswellasissuesofcorporateinfluenceandthepotentialco-optionofopeninitiatives.Inourview,theimplicationsoftheseissuesbringusbacktotraditionalbusinessstrategy,whichcaninformt
6、hequestChesbroughreceivedsupportfromtheCenterforOpenInnovationattheHaasSchoolofBusinessandtheAlfredP.SloanFoundation.AppleyardreceivedsupportfromtheNationalScienceFoundationunderGrantNo.0438736.JonPerrandPatrickSullivanablyassistedwiththeinterviewsofOpenSourceSoftwarelea
7、ders.Anyopinions,findings,andconclusionsorrecommendationsexpressedinthismaterialarethoseoftheauthorsanddonotnecessarilyreflecttheviewsoftheabovefundingsourcesoranyotherindividualsororganizations.CALIFORNIAMANAGEMENTREVIEWVOL.50,NO.1FALL200757OpenInnovationandStrategyforsus
8、tainablebusinessmodels.Ifwearetomakestrategicsenseofinnovationcommunities,ecosystems,networks,andtheiri
