Cross‐Divisional Innovation in the Large Corporation: Thoughts and Evidence on its Value and the Role of the Early Stages of Innovation

Forty‐five years after Ansoff's seminal work on synergies, many multi‐divisional corporations still struggle to create additional value. Therefore, it is surprising that in times of open innovation, little research has been conducted on the impact of cross‐divisional product development. In our paper, we derive conceptual arguments for the relevance of joint initiatives and examine the role of cross‐divisional collaboration in the early stages of the innovation process. Our research model is tested using a quantitative survey in 110 multi‐divisional firms. We find that the extent of collaboration in the early stages of innovation strongly determines the impact of cross‐divisional products on corporate success. To achieve collaboration, our results highlight the relevance of appropriate integration mechanisms and incentives.

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