DYNAMICS OF INDUSTRY AND INNOVATION: ORGANIZATIONS, NETWORKS AND SYSTEMS

Based on two case studies from the aircraft engine industry and tire manufacturing, we contend that product, organization, and knowledge dynamics do not necessarily follow the same evolutionary path. The analysis of knowledge dynamics is central to understand the organizational implications of modular product strategies. Relying on the multiple networks approach put forward by Padgett and Powell (2003), we propose a multi-domain framework within which to analyze the introduction of infrequent, radical innovations. The successful implementation of these innovations depends on the implementation of consistent changes across the domains of product, organization, and knowledge. These changes are implemented by organizations that act as cross-domain catalysts through the mediating role of key people that span all three domains.

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