Open innovation strategies at multinationals

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!

Open!Innovation!Strategies!at!Multinationals:!!

The!Role!of!Start8Ups

!

How$do$startups$and$corporates$collaborate$successfully$to$increase$*

their$competiveness$in$their$market?$

! ! ! ! ! ! !

Bart!Johannes!Petrus!Bloothoofd!

! Academic!Year!201682017! $$ $

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!

Master!Thesis!

$ Open!Innovation!Strategies!at!Multinationals:!The!Role!of!Start8Ups! ! How$do$start*ups$and$corporates$collaborate$successfully$to$increase$their$ competiveness$in$their$market?$ $ $ Student$$ $ $ Bart!J.!P.!Bloothoofd$ $ Student$number$$ $ 23382!(2402)! Contact$$ $ $ https://nl.linkedin.com/in/bartbloothoofd! Master$$ $ $ Master!of!Science!! Track$$$ $ $ Management! University$$ $ $ Nova!Lisboa! Faculty$$ $ $ School!of!Business!and!Economics! Supervisor$$ $ $ Miguel!Muñoz!Duarte! Second$reader$$ $ ! Date$$ $ $ $ 0680182016! $

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Abstract!!

! This!multiple!case!study!provides!new!insights!on!the!research!field!of! open!innovation.!The!research!examined!how!corporates!and!start8ups!could!both! benefit!from!each!other’s!strengths!and!enhance!the!competitive!advantage!of! both!partners.!After!investigating!8!different!start8up!corporate!collaborations,! this!study!proposes!a!model!for!future!research.!The!model!includes!the! importance!of!initially!setting!up!a!strong!network!before!entering!a!partnership;! moderators!as!trust,!commitment,!level!of!integration,!governance!mode,!strategic! fit!and!personal!traits;!and!the!two!ways!to!generate!a!competitive!advantage!by! either!capturing!more!value!or!increase!the!innovation!performance.!Besides!the! theoretical!contribution,!this!research!provides!managers!of!both!a!start8up!and!a! corporate!a!framework!on!how!they!both!could!work!more!efficiently!in!the! future.!! ! ! Final$theoretical$model:$see$‘conclusion’$on$page$51.$ !

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Acknowledgements!!

After!years!of!studying!the!end!is!now!really!near.!For!me!the!last!6,5!years! have!been!a!real!pleasure,!which!started!at!the!Hotel!Management!School!in! Maastricht.!At!that!time!I!just!turned!18!and!was!experiencing!a!totally!different! world!than!I!was!used!to.!If!you!would!have!asked!me!in!that!time!if!it!would!take! me!6,5!years!to!finish!my!studies,!I!would!have!told!you,!are!you!crazy?! Nevertheless,!I!do!not!regret!anything!I!have!done!during!those!6,5!years.!! During!my!time!at!the!Hotel!Management!School!I!have!made!friends!for! life!and!immediately!felt!at!home.!The!school!gave!me!the!feeling!that!everything! was!possible!and!nothing!is!weird!or!strange.!This!gave!me!the!confidence!to! move!to!China!for!6!months!and!again!moving!out!of!my!comfort!zone.!This!was! the!best!time!of!my!life!and!I!sometimes!look!back!on!it!with!the!regret!that!this! time!is!over.!Next!I!made!another!stop!in!our!capital,!Amsterdam,!to!experience! once!again!that!nothing!is!strange!or!weird.!Therefore!I!took!a!leap!of!faith!and! applied!for!a!Double!Degree!Master!which!provided!me!the!opportunity!to!once! again!go!abroad.!This!time!Lisbon!was!the!place!to!go!to,!never!have!I!ever!had! such!an!intense!5!months.!After!hearing!the!stories!of!exchange!students!during! my!bachelor,!I!was!not!prepared!for!the!intense!working!pressure!of!Nova.! Nevertheless,!the!Double!Degree!group!got!together!and!had!lots!of!fun!too!!When! I!returned!in!Maastricht!I!looked!for!my!next!challenge!and!confronted!my! parents!again!with!the!fact!that!I!wanted!to!extend!my!studies!another!year!by! doing!a!board!year!for!Integrand.!After!this!rollercoaster!of!experiences,!I!needed! to!calm!down!and!focus!on!my!master!thesis.!Thank!you!Thomas!Prevoo!(Philips)! for!helping!me!with!the!pain!of!coming!up!with!an!interesting!topic.!! Another!thank!you!to!my!supervisor,!Wilko!Letterie,!for!providing!me!with! feedback!during!the!process.!Furthermore,!I!would!like!to!thank!all!the!companies! that!were!willing!to!talk!to!me!during!this!half!year.!Finally,!I!want!to!thank!my! parents!for!always!supporting!my!decisions!during!my!studies.!! ! Utrecht,!19th_{!of!December!} Bart!Bloothoofd!

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1!INTRODUCTION! 6!

1.1!PROBLEM!ANALYSIS! 6!

1.2!KNOWLEDGE!GAP!IN!OPEN!INNOVATION! 7!

1.3!THESIS!OUTLINE! 8!

2!THEORETICAL!FRAMEWORK! 9!

2.1!START8UPS!VERSUS!CORPORATES! 9!

2.2!OPEN!VERSUS!CLOSED!INNOVATION! 10!

2.2.1!CLOSED!INNOVATION! 10!

2.2.2!OPEN!INNOVATION! 11!

2.3!RELATION!BETWEEN!OPEN!INNOVATION!AND!COMPETIVENESS! 14!

2.3.1!MEDIATING!FACTORS! 14! 2.4!WORKING!PROPOSITIONS! 16! 2.4.1!TRUST! 16! 2.4.2!COLLABORATION!DEVELOPS!OVER!TIME! 17! 2.4.3!DEGREE!OF!INTEGRATION! 18! 2.4.4!GOVERNANCE!MODEL! 19!

2.5!STUDY’S!THEORETICAL!FRAMEWORK! 21!

3!RESEARCH!DESIGN! 22!

3.1!UNIT!OF!ANALYSIS!&!CASES! 22!

3.2!DATA!COLLECTION! 25!

3.2.1!EXPERT!INTERVIEWS! 25!

3.2.2!INTERVIEW!PROTOCOL!OF!THE!CASE!STUDIES! 26!

3.3!DATA!ANALYSIS! 27!

3.4!QUALITY!OF!THE!RESEARCH!DESIGN! 27!

4!RESULTS! 29!

4.1!EXPERT!INTERVIEWS! 29!

4.1.1!REFLECTION!ON!THE!RESEARCH!QUESTION! 30!

4.1.2!REFLECTION!ON!THE!WORKING!PROPOSITIONS! 30!

4.2!PHILIPS!HEALTHCARE!AND!TRAXTAL! 31!

4.2.1!REASON!FOR!COLLABORATION! 32!

4.3!KLM!AND!SEATFROG! 33!

4.3.1!REASON!FOR!COLLABORATION! 33! 4.3.2!REFLECTION!ON!THE!RESEARCH!QUESTION! 34! 4.3.3!REFLECTION!ON!THE!WORKING!PROPOSITIONS! 34! 4.4!NUON!AND!YIPPIE! 34! 4.4.1!REASON!FOR!COLLABORATION! 35! 4.4.2!REFLECTION!ON!THE!RESEARCH!QUESTION! 35! 4.4.3!REFLECTION!ON!THE!WORKING!PROPOSITIONS! 36!

4.5!ABN!AMRO!AND!THINK! 36!

4.6!INTERPOLIS!AND!SEATS2MEET! 37!

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4.8!ASR!AND!YEZZER! 40!

4.9!ABN!AMRO!AND!ONDERNEMERSTRAINING! 42!

4.9.1!REASON!FOR!COLLABORATION! 42! 4.9.2!REFLECTION!ON!THE!RESEARCH!QUESTION! 43! 4.8.3!REFLECTION!ON!THE!WORKING!PROPOSITIONS! 43! 4.10!ADDITIONAL!FINDINGS! 43! 4.10.1!COMMITMENT! 43! 4.10.2!NETWORK! 44! 4.10.3!PERSONAL!TRAITS! 45! 5!DISCUSSION! 46!

5.1!COMPARISON!TO!THE!WORKING!PROPOSITIONS! 46!

5.1.1!WORKING!PROPOSITION!1:!TRUST! 46! 5.1.2!WORKING!PROPOSITION!2:!DEVELOPMENT!OVER!TIME! 47! 5.1.3!WORKING!PROPOSITION!3:!INTEGRATION! 48! 5.1.4!WORKING!PROPOSITION!4:!GOVERNANCE!MODE! 49! 5.2!OTHER!INFLUENCERS! 51! 5.2.1!COMMITMENT! 51! 5.2.2!NETWORK! 52! 5.2.3!PERSONAL!TRAITS! 52! 5.3!FULL!THEORETICAL!MODEL! 53! 5.4!LIMITATIONS! 54! 5.4.1!GENERALIZING!MODERATING!EFFECTS! 54! 5.4.2!DATA!PER!CASE! 54!

5.4.3!SELF8REPORTED!DATA! 55!

5.4.4!FREEDOM!DURING!THE!INTERVIEWS! 55! 6!CONCLUSION! 56! 6.1!THEORETICAL!IMPLICATIONS! 56! 6.2!PRACTICAL!IMPLICATIONS! 57! 7!REFERENCES! 59! 8!APPENDIX! FOUT!!BLADWIJZER!NIET!GEDEFINIEERD.!

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1!Introduction!

For!years!companies!like!Philips!and!ING!have!been!able!to!dominate!the! market!with!their!size!and!resources,!but!were!not!really!able!to!disrupt!the! market!with!completely!new!innovations.!In!contrast,!start8ups!have!been! booming!the!last!couple!of!years!and!are!able!to!be!disruptive!and!able!to!reinvent! themselves!at!a!rapid!pace.!Furthermore,!they!are!far!better!able!to!cater!the! needs!of!the!market!than!large!multinational!firms!have!been!doing!for!the!last! couple!of!years.!Yoon!&!Hughes!(2016)!mention!that!58%!of!the!start8ups!are! successful!in!figuring!out!what!the!market!wants.!Unfortunately,!these!start8ups! are!not!always!able!to!get!the!attention!of!the!crowd.!Therefore!some!key! European!(ex)politicians!therefore!plea!for!more!corporate8start!up! collaborations.!One!of!those!key!figures!in!the!Netherlands!opened!the!Philips! Innovations!Awards!last!year!with!the!following!statement!“Corporates!should! embrace!start8ups!to!stay!ahead!of!the!game”.!As!companies!are!moving!towards! embracing!start8ups!in!their!innovation!processes!there!is!a!need!for!a!framework! that!leads!to!successful!collaborations!as!many!collaborations!currently!fail.! Therefore!this!study!aims!to!set!up!a!managerial!framework!that!can!be!used!to! optimize!current!collaborations.!! 1.1!Problem!Analysis! ! According!to!the!Dutch!Statistics!(CBS)!(2015a)!multinational!firms! accounted!for!1.9!million!jobs!in!the!Netherlands!in!2015.!On!top!of!that!they!are! responsible!for!two8third!of!the!total!turnover!generated!in!the!Netherlands!in! 2015.!When!those!companies!are!not!able!to!be!competitive!anymore!in!the! current!markets,!because!start8ups!are!far!better!able!in!catering!the!needs!of!the! market,!it!will!have!immense!consequences!for!the!economy!of!the!Netherlands! (Gupta!&!Wilemon,!1996);!corporates!will!struggle!to!survive!and!start8ups!will! gain!market!share.!Adding!the!temporary!and!experimenting!nature!of!start8ups! (Blank!&!Dorf,!2012),!you!could!end!up!with!a!highly!unstable!economic! environment.!! With!this!in!mind!the!Dutch!government!recognized!the!importance!of! open!innovation!in!2011!and!introduced!the!“top!sector!policy”.!This!policy!has! the!objective!to!promote!innovation!in!nine!different!sectors!that!are!highly!

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important!to!the!Dutch!economy!(Top!Sectoren,!2016).!Within!these!nine!sectors! the!Netherlands!wants!to!outperform!any!country!in!the!world!in!knowledge.!The! backbone!of!the!top!sector!policy!is!open!innovation!which!includes!the! collaboration!between!businesses,!academic!institutions!and!(local)!governments! and!thereby!creating!a!strong!economic!environment.!! Some!initiatives!were!started!to!promote!the!collaborations!between! previously!mentioned!parties.!Many!universities!have!started!centres!of! entrepreneurship!to!stimulate!entrepreneurship!in!the!student!community!and! stimulate!closer!relationship!between!start8ups!and!the!academic!world.! Furthermore,!StartupDelta!started!the!COSTA!initiative!to!help!corporates! understand!how!they!can!collaborate!with!start8ups!(Sluijters,!2016).!Also!the! company!Yellow!Walnut!initiated!a!program!called!Growth!Class!where! corporates!and!start8ups!intensively!work!together!for!half!a!year!to!fulfil!the! innovation!need!of!corporates!to!stay!competitive!(Sluijter,!2016).!Nevertheless,! these!initiatives!are!still!in!their!first!stage!of!development!and!therefore!more! research!is!needed!on!how!to!make!these!collaborations!successful.! 1.2!Knowledge!Gap!in!Open!Innovation! Since!the!introduction!of!the!term!‘open!innovation’!by!Henry!Chesbrough! in!2003!many!scholars!have!done!extensive!research!on!this!topic!(Christensen!et! al.,!2005,!Vanhaverbeke,!2006,!and!Gassmann,!2006).!The!open!innovation!model! captured!several!changes!in!the!approach!of!a!corporate!to!strategic!management! of!technology!that!has!been!happening!for!multiple!years!in!reaction!to!the!rapid! development!of!new!technology!(Bayus,!1994),!globalisation!of!markets!and! competition!(Gupta!and!Wilemon,!1996),!and!increased!turbulence!(Wolf,!2006).! The!changes!include!an!increased!reliance!on!external!sources!for!the! development!of!technology!(Roberts,!2001),!globalisation!of!innovation!activities! and!industrial!R&D!(Jones!&!Teegen,!2002),!an!enhanced!attitude!towards!the!use! of!multiple!channels!for!technology!exploitation!(Chesbrough,!2003)!and!finally! the!end!of!the!linear!model!of!innovation!(Ortt!&!Smits,!2006).!! Cohen!and!Levinthal!(1990)!describe!that!most!innovations!come!from! borrowing!and!recognize!the!value!of!new!information!gathered!externally!and! commercialized!internally.!Therefore,!it!is!logical!that!companies!start!looking!for!

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external!alliances!to!stimulate!innovation.!Nonaka!and!Takeuchi!(1995)!have! stretched!the!importance!of!alliances!as!the!potential!of!borrowing!depends!on! the!differences!in!the!firm’s!knowledge!base.!Consequently!Weiblen!and! Chesbrough!(2015)!looked!into!the!possibility!to!include!start8ups,!as!an!external! partner,!in!open!innovation!processes!of!corporates!as!the!knowledge!bases!of! both!firms!are!completely!different.!Blank!and!Dorf!(2012)!stress!that!when!the! agility!and!business!model!innovations!of!start8ups!is!combined!with!the! exploitation!capabilities!of!corporates,!it!could!lead!to!successful!disruptive! innovations!outside!the!current!business!model!of!the!corporate.!! Although!the!potential!value!of!start8up!corporate!collaborations!has!been! recognized,!not!much!is!known!about!the!‘how’.!Until!now!hardly!any!evidence! has!been!gathered!about!the!essential!key!factors!that!lead!to!a!successful! collaboration!between!a!start8up!and!corporate.!Therefore,!this!study!focuses!on! gathering!this!essential!information.! ! The!main!research!question!of!my!thesis!will!be:!! ! How$do$start*ups$and$corporates$collaborate$successfully$to$increase$ their$competiveness$in$their$market?$ 1.3!Thesis!Outline! ! First!the!theoretical!framework!will!be!discussed!in!chapter!2!which! describes!the!difference!between!a!start8up!and!corporate,!elaborates!on!the!use! of!open!innovation!in!corporates!and!highlights!the!connection!this!strategy!has! to!gain!a!competitive!advantage.!Chapter!3!will!discuss!the!methodology!which!is! used!during!this!qualitative!research.!Next!a!within!case!analysis!is!described!in! chapter!4!which!is!followed!by!chapter!5!that!provides!a!cross8analysis!of!the! researched!cases.!This!chapter!closes!off!with!the!full!theoretical!model!and! limitations!of!my!study.!Finally,!in!chapter!6!both!the!theoretical!and!practical! implications!are!mentioned!and!the!base!for!future!research!is!paved.!!

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2!Theoretical!Framework!

2.1!Start8ups!Versus!Corporates! For!this!research!it!is!essential!that!a!clear!distinction!needs!to!be!made! between!a!start8up!and!established!firms.!Especially!for!start8ups!there!are! multiple!interpretations!possible.!When!the!definition!of!start8up!is!searched!for! in!a!dictionary!it!is!described!as!“a!company!that!is!just!established”!(Van!Dale,! 2016).!For!this!research!a!better!understanding!of!a!start8up!is!needed.!Due!to!the! relative!newness!of!the!term!‘start8up’!not!many!definitions!have!been!described! in!the!literature.!Blank!and!Dorf!(2012)!define!a!start8up!as!a!temporary! organization!in!search!of!a!repeatable!and!scalable!business!model.!According!to! Thiel!(2014)!the!repeatability!and!scalability!of!the!business!model!sets!start8ups! apart!from!regular!Small!and!Medium!sized!Enterprises!(SME).!SME’s!normally! operate!in!a!more!geographically!and!growth!constrained!environment!(Thiel,! 2014).!! Ries!(2011)!has!a!different!perspective!on!the!definition!of!a!start8up,! which!is!described!as:!“A!start8up!is!a!human!institution!designed!to!create!a!new! product!or!service!under!conditions!of!extreme!uncertainty”.!This!definition!does! not!include!any!size,!sector!or!industry!restrictions.!Ries!(2011)!emphasizes!the! conditions!under!which!a!start8up!operates!which!are!conditions!of!extreme! uncertainty!where!the!business!model,!customers!and!markets!are!unknown.!In! contrast,!there!are!established!firms!who!exactly!know!these!conditions.! Complementary,!Blank!&!Dorf!(2012)!recognize!this!difference!as!well,!because! they!describe!that!due!to!the!large!size!and!culture,!disruptive!innovations!are! extremely!difficult!within!established!firms.!Therefore!start8ups!differ!from! established!firms!not!merely!in!size,!but!also!in!the!environment!they!operate!in! and!type!of!business!model!that!they!try!to!exploit.!! Blank!&!Dorf!(2012)!stipulated!the!agility!of!a!start8up!is!also!what!sets!it! apart!from!an!established!firm.!They!describe!agility!as!an!interactive!and! incremental!approach!to!product!or!service!development!on!the!basis!of!customer! and!market!feedback.!This!translates!in!minimal!viable!products!(MVPs)!which! are!used!to!enter!a!market!quickly!and!get!customers!involved!from!the!very!

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beginning!of!development!(Moogk,!2012).!To!conclude!an!overview!of!the! differences!between!corporates!and!start8ups!for!this!research!are!summarized!in! table!1.! ! Corporate! Start8up! Goal! Exploit!the!existing! business!model! Seek!for!a!scalable!and! profitable!business!model! Approach! Product!development! Customer!development!

Nature! Established!! Contemporary!!

Nature!of!innovation! Incremental!! Radical!

Risk!behaviour! Risk!averse!! Operates!in!an!extremely! unsure!environment!!

Revenue! >!1!billion! <!10!million!

Table$1.$Differences$between$corporates$and$start*ups! 2.2!Open!Versus!Closed!Innovation! Innovation!is!one!of!the!two!factors!that!are!crucial!for!the!success!of!a! company!(Drucker,!1973!and!Srinivasan!et!al.,!2009).!The!innovation!literature! has!been!citing!the!importance!of!innovation!to!the!success!of!the!firm,!where! some!of!them!even!discuss!it!is!the!key!element!to!superior!firm!performance! (Han!et!al.,!1998!and!Weerawardena!et!al.,!2006).!Taking!into!account!the! technological!advances,!the!globalizing!competitive!landscape!and!ever!changing! business!environment,!firms!are!not!able!to!innovate!in!isolation!anymore! (Dahlander!&!Gann,!2010).!Ngo!and!O’Cass!(2013)!recognize!this!as!they!describe! that!the!marketing!literature!is!increasingly!focusing!on!the!interaction!between! firms!and!customers!to!create!products!or!services!of!greater!value!for!both! parties.!Summarizing,!firms!are!starting!to!have!some!incentives!to!open!up!their! innovation!process.!To!fully!understand!the!differences!between!open!and!closed! innovation,!both!will!be!discussed!in!the!next!paragraphs.!An!important!note! needs!to!be!addressed;!Enkel!et!al.!(2009)!argue!that!innovation!strategies!follow! a!continuum!and!therefore!have!a!certain!degree!of!openness.!! 2.2.1!Closed!Innovation! Smith!(2010)!describes!that!a!firm!follows!the!principles!of!closed! innovation!when!the!firm!uses!its!own!internal!resources!and!capabilities!to!

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complete!every!stage!of!their!innovation!process.!Rothwell!(1994)!states!four! different!processes!that!could!be!typed!as!closed!innovation;!Technology!Push! model;!Demand!Pull!model;!Coupling!model;!and!the!Integrated!model.!The!first! relies!on!increased!expenditure!on!research!and!development!which!should!result! in!more!technology!and!consequently!more!innovation.!For!the!second!model!the! market!is!the!source!of!new!opportunities!for!innovation.!The!third!model! combines!the!previous!two!and!incorporates!feedback!loops!between!several! steps!of!the!process.!The!final!model!relies!on!the!teams’!ability!to!integrate!the! various!functions!of!the!innovation!process!from!the!start.!Chesbrough!(2004)! adds!that!the!underlying!assumption!of!closed!innovation!is!that!innovation! requires!control!and!external!ideas!or!technologies!lack!quality!and!are!not!easily! assessable.!!This!logic!created!a!virtuous!circle!if!everything!went!well!(seen!in! figure!1)!(Chesbrough,!2006).! ! ! Figure$1.$The$Virtuous$Circle$of$Closed$Innovation$(Chesbrough,$2006)$ 2.2.2!Open!Innovation! As!Dahlander!&!Gann!(2010)!already!identified,!firms!are!not!able!to! innovate!successfully!in!isolation.!This!is!confirmed!by!the!findings!of!Gassman! (2006)!who!states!that!firms!have!opened!up!their!innovation!processes!and! obtained!a!substantial!part!of!their!technologies!from!external!sources!because! the!‘do!it!yourself’!mentality!was!simply!outdated.!A!clear!trend!towards! innovation!collaborations!outside!the!scope!of!the!firm!can!be!observed!(Garcia!et!

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al.,!2014).!Chesbrough!(2006)!describes!open!innovation!as!a!paradigm!that! assumes!that!firms!also!need!to!exploit!internal!and!external!ideas,!both!internal! and!external!paths!to!market,!when!the!firm!wants!to!improve!their!technology.! Chesbrough!et!al.!(2014)!defined!it!more!precise!by!stating!that!open!innovation! is!a!process!of!systematically!exploring!for,!retaining!and!exploiting!of!knowledge! inside!and!outside!the!boundaries!of!the!firm!throughout!the!innovation!process.! Moreover,!Clarke!et!al.!(2012)!mention!that!the!shift!towards!open!innovation!is! highly!relevant!for!industries!with!great!uncertainty,!a!high!degree!of!complexity! and!have!an!increase!of!diversification!of!technologies.!! The!literature!review!of!Huizingh!(2011)!has!established!a!framework!to! classify!previous!research!to!further!develop!the!open!innovation!paradigm.!First,! Chesbrough!and!Crowther!(2006)!distinguished!the!difference!between!inbound! and!outbound!open!innovation!dimensions.!Inbound!open!innovation!uses! external!knowledge!which!is!exploited!internally!(Huizingh,!2011).!Chesbrough! (2003)!states!that!inbound!open!innovation!is!especially!useful!to!fill!gaps!and! fixing!‘blind!spots’!in!the!current!performance!of!the!firm!in!order!to!keep!the! innovation!process!aligned!with!firm’s!strategy.!A!distinction!of!four!types!of! activities!for!inbound!open!innovation!can!be!made!(Chesbrough,!2003).!First,!the! firm!hosts!an!event!or!project!externally!that!brings!forth!new!ideas!for!current! business!challenges.!Second,!the!firm!could!set!up!a!venture!capitalist!fund!and! invests!in!smaller!companies!that!develop!technologies!which!are!needed! internally.!Chesbrough!(2003)!mentions!that!venture!capitalist!methods!are! extremely!useful!to!learn!about!the!market!and!far!more!effective!than!a!regular! market!research.!Campbell!et!al.!(2003)!refer!to!this!as!‘innovation!venturing’! where!the!established!firm!guides!and!supports!the!start8up!with!resources!and! knowledge!and!have!the!possibility!to!be!an!early!adaptor!of!the!technology.! Third,!the!firm!insources!a!specific!technology!from!an!external!organization!and! for!further!development!and!commercialization!it!uses!its!own!resources!(Smith,! 2010).!Fourth,!the!firm!acquires!the!technology!which!is!desired.!The!firm! becomes!the!owner!of!the!technology!and!is!able!to!use!it!in!their!business! processes.!It!is!common!that!an!acquisition!is!the!result!of!an!earlier!venture! investment!by!the!firm,!because!the!technology!has!become!of!great!importance! for!their!strategy!(Chesbrough,!2003).!!

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In!contrast,!outbound!open!innovation!uses!internal!ideas!that!are! internally!developed!but!commercialized!via!external!organizations!(Chesbrough! and!Crowther,!2006).!Chesbrough!(2003)!identifies!two!different!activities!for! outbound!open!innovation.!First,!technology!licensing!is!used!when!the!firm!has! developed!a!technology!or!idea!that!cannot!be!exploited!within!the!current! business!model.!By!licensing!the!technology!to!an!external!organization,!the!firm! is!still!able!to!capture!the!value!of!the!innovation.!Second,!there!is!a!spin8off!which! happens!when!the!established!firm!and!an!university!both!have!the!incentive!to! collaborate.!The!firm!funds!academic!research!of!which!the!outcomes!can!be!used! within!the!operations!of!the!firm.!! Bianchi!et!al.!(2011)!elaborated!more!on!the!inbound8outbound!activities! by!dividing!the!activities!defined!by!Chesbrough!(2003)!into!three!different! groups.!The!first!group!consists!of!non8equity!alliances,!in!other!words! partnerships,!which!entails!that!both!partner!firms!collaborate!to!pursue!common! innovation!objectives.!The!second!group!is!through!purchasing!and!the!supply!of! scientific!knowledge!and!technologies!and!therefore!outsourcing!parts!of!their! innovation!process!(Bianchi!et!al,!2011).!The!final!group!entails!licensing,!which!is! explained!earlier!in!this!chapter.!! !Besides!the!outbound8inbound!open!innovation!dimensions!defined!by! Chesbrough!and!Crowther!(2006),!a!second!open!innovation!dimension!is! addressed!by!Vrande!et!al.!(2006)!namely!the!distinction!between!equity!and! non8equity!involvement!of!the!corporate!in!the!start8up.!Structuring!all!the! activities!established!by!authors!which!are!mentioned!in!this!chapter,!a!matrix! could!be!formed.!The!matrix!can!be!found!as!table!2!below.!An!important!note! needs!to!be!addressed!because!the!classification!is!from!a!one8sided!perspective! and!due!to!the!nature!of!this!study;!the!perspective!of!the!corporate!is!taken! regarding!the!open!innovation!activities.! ! ! ! ! ! !

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! Inbound! Outbound! Equity! Technology!in8licensing! Acquisition! Purchasing! Corporate!Venturing! Technology!licensing! Spin8off! Supply!of!services! Corporate!incubation! Non8Equity! External!innovation! project! Non8equity!alliance! Crowdsourcing! Startup!program!! Non8equity!alliance! Revealing!internal! resources! Startup!program! Table$2.$Matrix$of$the$dimensions$of$open$innovation$alliances$ 2.3!Relation!between!Open!Innovation!and!Competiveness! The!literature!does!not!describe!a!direct!relationship!between!open! innovation!and!the!competiveness!of!a!firm.!In!order!to!determine!if!a! collaboration!between!a!start8up!and!a!corporate!is!successful,!the!understanding! of!the!relationship!between!open!innovation!and!competitiveness!is!important.! The!literature!describes!two!mediating!factors!in!the!relationship.!Kumar!et!al.! (2012)!state!that!open!innovation!activities!lead!to!an!increase!of!innovation! performance,!which!finally!leads!to!a!stronger!competitive!position!of!the!firm.! Besides!innovation!performance,!value!captured!is!a!mediating!factor!(Oughton!et! al.,!2013).!! 2.3.1!Mediating!Factors! 2.3.1.1$Innovation$Performance$ Kumar!et!al.!(2012)!states!that!innovation!performance!is!triggered!by! open!innovation!and!leads!to!an!increase!of!innovation!performance.!Guan!et!al.! (2006)!were!able!to!relate!an!increase!in!innovation!performance!to!a!stronger! competitive!position!in!the!market.!Enzing!et!al.!(2011)!confirmed!this!research! by!describing!that!the!ability!to!innovate!positively!relates!to!long8term!market! performance.!There!are!four!different!factors!determine!innovation!performance! (Garcia!Martinez!et!al.,!2014,!and!Oughton!et!al.,!2013).!Suggested!is!that!

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innovation!efficiency!&!speed,!value!added!and!commercialization!efficiency! determine!the!ability!to!innovate!successfully.!! At!first,!the!literature!describes!two!concepts!that!constitute!to!innovation! efficiency!and!speed,!namely!development!costs!and!resource!assimilation.!Garcia! Martinez!et!al.!(2014)!researched!that!open!innovation!can!increase!innovation! efficiency!by!reducing!development!costs!by!collaborating!closely!with!suppliers.! Furthermore,!Enkel!et!al.!(2009)!acknowledges!this!by!finding!that!multiple! multinationals!have!been!able!to!increase!the!efficiency!of!their!research!and! development!thanks!to!open!innovation!strategies.!Finally,!Sarkar!and!Costa! (2008)!describe!that!the!assimilation!of!new!capabilities!and!resources!positively! influences!the!innovation!efficiency!by!fastening!the!innovation!process.!! Second,!value!added!is!of!importance.!Vanhaverbeke!and!Cloodt!(2006)! describe!that!value!can!be!created!in!four!different!ways,!namely!increasing! efficiency!that!leads!to!faster!processes,!increasing!convenience!for!the!customer,! enable!the!customer!to!do!things!he!was!not!able!to!do!before!or!bundle! complementary!goods.!According!to!Amit!and!Zott!(2001)!and!Gomes8Cassares! (2003)!the!value!created!can!be!raised!efficiently!by!alliances!and!collaborations.!! Third,!Enzing!et!al.!(2011)!state!that!a!faster!introduction!of!products!leads! to!an!increase!in!competitiveness.!This!is!confirmed!by!the!research!done!by! Sarkar!&!Costa!(2008)!that!describe!how!Procter!and!Gamble!was!able!to!reduce! the!time8to8market!of!their!new!Pringles!thanks!to!close!collaboration!with!their! supplier!of!packaging!materials.!Furthermore,!Sarkar!and!Costa!(2008)!explain! how!Calgene!(an!agrochemical!and!agricultural!biotechnology!corporation)!was! able!to!increase!the!speed!of!commercialization!by!operating!an!effective!open! innovation!network!of!local!farmers,!consumers,!packers!and!seed!manufactures.! By!setting!up!this!network!they!were!not!only!able!to!increase!time8to8market,!but! also!increase!the!acceptance!rate!of!the!product!and!therefore!decrease!market! risk!(Sarkar!&!Costa,!2008).!! 2.3.1.2$Value$Capture$ ! Besides!the!creation!of!value!through!innovation,!Oughton!et!al.!(2013)! and!Vanhaverbeke!et!al.!(2007)!argue!that!value!capturing!is!an!important!factor! that!mediates!between!open!innovation!and!competitiveness.!Moreover,!

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Vanhaverbeke!et!al.!(2007)!describe!that!capturing!a!part!of!the!value!that!was! created!thanks!to!the!collaboration!contributes!to!the!overall!value!of!the!firm!and! therefore!increasing!its!competitiveness.!A!mechanism!for!dividing!the!created! value!is!essential!for!the!exploitation!of!the!innovation!and!eventually!increasing! the!competitiveness!of!the!firm!(Oughton!et!al.,!2013).!Many!forms!of!value! capturing!can!be!discussed!which!means!that!it!is!not!only!monetary!value!that! need!to!be!divided.!! 2.4!Working!propositions!! ! An!essential!part!of!this!research!design!is!well8formulated!working! propositions.!These!propositions!are!statements!about!concepts!that!can!be! assessed!true!or!false!(Blumberg,!Cooper,!&!Schindler,!2005).!Yin!(1994)!notes! that!formulating!working!propositions!before!the!actual!case!study!begins,!will! help!the!researcher!look!for!relevant!cases,!find!the!right!data,!and!help!him! formulating!the!right!interview!questions.!! ! With!start8ups!becoming!more!dominant!in!the!current!market!and!the! opening!up!of!R&D!processes!by!corporates!(Gassmann,!2006;!Huizingh,!2010),!it! emphasises!the!importance!of!extending!the!research!field!of!open!innovation!and! the!involvement!of!start8ups!(Van!de!Vrande!et!al.,!2009).!According!to!Ili!et!al.! (2010)!better!insights!are!needed!about!the!management!of!open!innovation! processes.!All!companies!small!or!large!are!in!the!need!for!specific!knowledge! because!of!the!increasing!relevancy!of!open!innovation!(Van!de!Vrande!et!al.,! 2009).!Therefore!it!is!important!to!find!the!underlying!reasons!for!successful! collaborations!between!start8ups!and!corporates,!so!they!can!become!increasingly! successful.!Based!on!the!research!done!by!collaboration!theorists!(Tuckman,! 1965,!Peterson,!1992,!Bailey!&!Koney,!2000,!Henly,!2007)!and!suggestions!in!the! literature!of!open!innovation!(Kumar!et!al.,!2012,!Oughton!et!al.,!2013,!Weiblen!&! Chesbrough,!2015)!four!working!propositions!are!defined!related!to!trust,! development!time,!integration!and!governance.!! 2.4.1!Trust! The!first!working!proposition!is!related!to!trust!which!is!formulated!as! follows:!before!a!start8up!and!corporate!can!successfully!collaborate!an!inter8 personal!relationship!needs!to!be!established.!According!to!Gajda!(2004)!

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successful!collaborations!depend!on!positive!personal!relations!and!emotional! connections!between!both!parties.!Bailey!and!Koney!(2000)!also!recognize!this!as! they!state!that!although!collaborations!focus!on!two!or!multiple!organizations,! implementing!inter8organizational!efforts!have!a!lot!to!do!with!individual! relationships.!Therefore,!it!is!extremely!important!to!pay!attention!to!the!human! aspects!of!the!process.!! Gajda!(2004)!notes!that!trust!is!developed!between!partners!only!when! there!is!an!easily!accessible!and!functioning!system!of!communication.!Such!a! communication!system!can!only!be!developed!when!all!involved!parties! contribute!enough!time,!effort!and!energy.!Hess!and!Siegwart!(2013)!contribute! by!stating!that!informal!factors!like!trust!are!often!ignored!but!are!very!important! to!be!aware!of.!Idelchik!and!Kogan!(2012)!add!that!trust!and!commitment!needs! to!come!from!all!involved!parties!before!the!collaboration!can!be!successful.!!! ‘Before$a$start*up$and$corporate$can$successfully$collaborate$a$high$ level$of$trust$needs$to$be$established’$ 2.4.2!Collaboration!develops!over!time! ! Tuckman!(1965)!describes!that!the!process!of!successful!collaborations!is! a!process!that!can!be!divided!into!four!different!stages.!During!these!stages!all!the! parties!involved!“form,!storm,!norm!and!perform”!as!collaborative!partners.!This! model!has!become!well!known!and!Tuckman!and!Jensen!(1977)!added!the!fifth! stage!“adjourn”.!More!recently,!Baily!and!Koney!(2000)!described!the!process!of! strategic!collaborating!as!“assemble,!order,!perform!and!transform”.!! ! During!the!first!stage,!forming,!many!uncertainties!exist!but!during!this! stage!the!value!of!coming!together!needs!to!be!discussed!and!a!shared!mission! and!vision!needs!to!be!established!(Tuckman,!1965).!During!the!second!stage,! which!is!called!‘storming’,!norms!and!strategies!will!be!developed!and!measurable! goals,!objectives!and!indicators!need!to!be!determined!by!the!partners!(Baily!and! Koney,!2000).!Afterwards,!more!concrete!systems!can!be!developed,!like! communication!lines,!forms!of!leadership!and!decision8making!structures.!The! collaboration!can!now!move!into!the!third!stage!of!performance!in!which!the! objectives!need!to!be!met!(Gajda,!2004).!In!the!fourth!stage!of!the!collaboration,! adjourning,!the!collaboration!partners!implement!continuous!evaluations!and!

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access!the!findings!to!determine!whether!modifications!in!the!alliance!need!to!be! implemented!(Tuckman!&!Jensen,!1977).!! Although!the!stages!of!alliance!development!are!considered!to!be! somewhat!idealistic,!it!is!generally!accepted!that!the!core!of!the!stages!holds!firm! which!is!that!partners!will!go!through!predictable!stages!before!effective! performance!is!realised!(Rickards!&!Moger,!2000).!Therefore,!the!second!working! proposition!will!be:!! ! The$collaboration$between$start*ups$and$corporates$need$to$pass$ through$the$stages$of$forming,$storming,$and$norming$before$it$can$be$ successful.$ 2.4.3!Degree!of!integration! ! The!third!working!proposition!is!about!the!degree!of!commitment!of!both! partners!and!is!formulated!as!follows;!an!alliance!between!a!start8up!and! corporate!can!only!be!successful!when!there!is!a!certain!degree!of!integration!of! both!partners.!! ! Collaboration!theorists!have!described!that!there!are!multiple!types!and! varying!degrees!of!ties!that!develop!between!partners!that!want!to!work!together! in!some!way.!The!literature!mentions!that!collaborative!efforts!can!be!seen!as!a! continuum!of!low!to!high!integration!(Gajda,!2004).!The!level!of!commitment!is! determined!by!the!intensity!of!integration!of!processes,!strategy!and!structure.!! Peterson!(1991)!describes!that!there!is!a!three8point!integration!continuum!for! collaborations!which!starts!with!corporation,!whereby!independent!entities!give! each!other!information!that!could!benefit!their!organizations.!Following!is! coordination,!whereby!independent!groups!align!their!activities!or!services!to! support!mutually!beneficial!goals.!At!last!collaboration!was!defined,!whereby!the! individual!parties!trade!in!some!degree!of!independence!to!realize!a!shared!goal.! In!addition!to!Person’s!(1991)!findings,!Hogue!(1993)!states!that!there!are!five! levels!of!collaboration!that!can!be!used!to!define!current!or!future!relationships.! The!five!levels!are!networking,!corporation,!coordination,!coalition!and! collaboration.!The!points!on!the!continuum!are!distinguished!based!on!the! decision8making!process,!the!organizations!structure!and!reason!for!existence!of!

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the!partnership!(Hogue,!1993).!“Collaboration”!is!the!highest!form!of!partnership! in!this!continuum.!! ! Furthermore,!Baily!and!Koney!(2000)!added!one!extra!point!on!the! continuum!of!Peterson!(1991)!and!Hogue!(1993)!which!is!‘coadunation’.!They! state!that!this!should!be!the!most!intense!point!on!the!integration!continuum,! which!indicates!complete!delamination!of!autonomy!of!one!partner!in!order!to! strengthen!the!surviving!organization.!Figure!2!visually!displays!the!multiple! levels!of!integration!on!the!continuum.!! ! An$alliance$between$a$start*up$and$corporate$can$only$be$successful$when$ there$is$a$high$degree$of$integration$of$both$partners.$ ! Figure$2.$The$continuum$of$integration$(Gajda,$2004)$ 2.4.4!Governance!model! ! Henly!(2007)!describes!that!most!of!the!collaborations!between!two! entities!fail!because!there!is!a!lack!of!clear!objectives.!The!objectives!of!the! collaboration!drive!further!decisions!(Michl,!Gold!&!Picot,!2013).!So!a!well8 defined!strategy!is!needed!that!determines!how!the!partnership!will!create,! capture!and!deliver!value!(Markham!et!al.,!2005).!Based!on!the!developed! strategy!the!applicable!governance!mode!can!be!determined!(Dushnitsky!&! Shaver,!2009).!In!order!to!choose!the!right!governance!mode!several!aspects!need! to!be!considered,!which!will!be!described!in!the!next!paragraphs.!! ! One!of!the!most!important!considerations!is!about!the!organization! structure.!The!organization!structure!can!be!classified!according!to!the!two!axes! displayed!in!table!2!which!displays!the!open!innovation!typography.!The!first!axis!

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that!needs!to!be!considered!is!the!equity!dimension.!According!to!Weiblen!and! Chesbrough!(2015)!and!equity8stake!structure!makes!sense!when!the!corporate!is! looking!for!control,!insight!and!direct!financial!benefits.!Although!Henley!(2007)! found!positive!effects!when!small!equity!stakes!were!involved!because!it! increased!the!commitment!of!both!parties,!the!down!side!is!that!it!brings! additional!costs!(Weiblen!&!Chesbrough,!2015).!In!contrast,!non8equity! collaborations!are!preferred!when!the!corporate’s!goal!is!to!respond!quicker!to! opportunities!or!wants!to!increase!the!performance!of!its!R&D!department! (Weiblen!&!Chesbrough,!2015).!The!second!axis!is!the!inside8out!or!outside8in! dimension.!Ferrary!(2011)!describes!that!both!approaches!could!lead!to!the! highest!innovation!performance!possible.!The!choice!rather!depends!on!the! objectives!defined!by!the!collaboration!(Weiblen!&!Chesbrough,!2015).!When!the! objective!is!to!seek!external!creativity!to!fill!a!certain!knowledge!gap!than!an! outside8in!approach!makes!the!most!sense!(Weiblen!&!Chesbrough,!2015).!! ! Another!consideration!is!that!according!to!Hess!and!Siegwart!(2013)!the! governance!structure!need!to!match!the!internally!structures!of!the!partnered! company.!In!case!of!corporate8start8up!collaboration!the!corporate!needs!to! develop!teams!that!match!the!agility!that!comes!naturally!to!the!start8up.!! ! The!final!consideration!is!if!the!collaboration!is!specifically!assigned!to!a! certain!department!or!just!to!the!whole!organization!(Markham!et!al.,!2005).!The! first!option!could!be!great!for!accountability,!but!less!suitable!for!long8term!goals.! Furthermore,!it!would!be!perfect!for!the!development!of!new!products,!markets! and!channels!and!growing!the!business!on!the!short8term.!The!second!option! would!foster!a!more!long8term!collaboration!between!both!entities!(Markham!et! al.,!2005).!! ! !Considering!all!those!aspects!described!above,!the!fourth!working! proposition!includes!the!importance!of!the!right!governance!model:!! ! A$collaboration$between$corporates$and$start*ups$can$only$be$successful$when$ both$have$agreed$to$a$simple$governance$mode.$

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2.5!Study’s!Theoretical!Framework! ! !In!conclusion,!this!study!expects!that!a!collaboration!between!a!start8up! and!corporate!will!be!built!on!a!certain!high!level!of!trust,!needs!to!develop!over!a! certain!timespan,!requires!a!certain!high!degree!of!integration!of!both!parties!and! needs!to!have!a!suitable!governance!model.! ! Research!Question:!‘How!do!start8ups!and!corporates!collaborate!successfully! to!increase!their!competiveness!in!their!market?’! ! Context:!Open!innovation! ! Collaboration!structure! !! Competitive!advantage!

Alliance!strategies! Result!in! Successful!collaboration!

WP!1.!Build!a!level!of!trust! WP!2.!Take!time!! WP!3.!Integrate!both!parties! WP!4.!Choose!a!governance!model! ! A)! Increased!innovation! performance! B)! Increased!ability!to! capture!value!

!

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3!Research!Design!

! During!this!research!a!multiple8case!study!design!was!chosen!for!a!couple! reasons.!First,!according!to!Yin!(1994)!case!studies!do!have!an!advantage!over!an! experiment,!archival!analysis!or!survey!when!the!research!question!starts!with! ‘how’!or!‘why’.!Quantitative!research!focuses!on!the!question!whether!and!to!what! extent!a!change!in!x!causes!a!change!in!y.!In!contrast,!qualitative!research!is!more! interested!in!how!x!plays!a!role!in!causing!y!and!what!connects!x!and!y!(Maxwell,! 2004).!Second,!open!innovation!gives!this!research!a!unique!context!of!which! boundaries!are!not!clearly!defined!and!is!still!a!relatively!new!concept!and! therefore!a!case!study!is!the!best!fit!for!this!research!question!(Yin,!1994,!and! Maxwell,!2004).!Third,!as!the!theory!about!the!collaboration!between!start8ups! and!corporates!has!been!underexplored!it!suits!well!for!a!case!study!(Yin,!1994).!! ! Nevertheless,!several!researchers!prefer!surveys!or!experiments!to!a!case! study!design!(Yin,!1994).!They!worry!it!provides!too!little!foundation!for! generalization,!but!they!incorrectly!assume!that!these!research!results!aim!for!the! same!statistical!generalizability!as!survey!results,!yet!it!aims!to!generalize!to!a! broader!theory!(Yin,!1994).!!! 3.1!Unit!of!Analysis!&!Cases! ! The!unit!of!analysis!will!be!the!‘collaboration!between!corporate!and!start8 up’.!When!a!case!study!is!considered!a!choice!needs!to!be!made!between!an!in8 depth!single!case!study!of!a!unique!phenomenon!or!case,!and!a!multiple!case! study!where!multiple!similar!cases!is!investigated!(Yin,!1994).!This!study!uses!a! multiple!case!study!design;!because!this!design!is!considered!to!be!more!robust!as! data!gathered!from!multiple!cases!may!be!more!credible!than!from!one!case! (Blumberg!et!al.,!2005).!Furthermore!Short!et!al.!(2009)!recommends!a!minimum! of!five!different!cases;!this!study!relies!on!eight!different!cases!divided!into!2! groups.!The!first!group!consists!out!of!5!cases!from!a!corporate!perspective,! whereas!the!second!group!consists!out!of!3!cases!from!a!start8up!perspective.! Eisenhardt!(1989)!mentions!that!incorporating!polar!types!helps!researchers!to! scope!emergent!theory.!!

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According!to!Yin!(1994)!and!Maxwell!(2004)!the!cases!for!this!research! should!be!selected!based!on!prerequisite!criteria,!and!thus!should!follow!a! purposive!sampling!strategy.!In!contrast!to!a!survey!research!design!that!is!based! on!statistical!reasoning!to!gather!a!sample,!case!study!research!relies!on! theoretical!sampling!as!random!selection!is!not!necessary!nor!preferably! (Eisenhardt,!1989).!According!to!Kuzel!(1992)!when!the!selection!criteria!should! be!based!on!broad!information!and!perspectives!on!the!subject!of!the!case!study.! Yin!(1994)!adds!that!this!will!minimize!bias!and!will!allow!a!broader!range!of! explanations!and!leaves!room!for!deeper!or!new!insights.!! ! A!couple!of!criteria!were!used!when!searching!for!cases.!The!first!is!the! definition!of!start8up!and!corporate,!which!was!adapted!from!the!literature! research!done!in!the!previous!chapters!and!can!be!found!in!table!1.!Size!was!not! chosen!to!be!a!determined!factor!to!define!a!start8up,!but!the!culture!and!business! practise!has!been!found!more!relevant!in!the!context!of!open!innovation.!Next! only!collaborations!were!chosen!that!faced!similar!environments!regarding! infrastructure,!availability!of!technology,!governmental!regimes!and!stability.! Therefore,!cases!were!only!selected!if!both!firms!were!established!in!countries! that!are!in!the!high!end!of!the!innovation!performance!index!(Cornell!University! et!al.,!2016).!Furthermore,!only!collaborations!between!a!corporate!and!start8up! where!chosen!when!there!was!a!co8creation!of!a!new!or!additional!proposition!to! the!market!and!not!merely!a!transfer!of!money.!! As!it!is!very!difficult!to!find!out!which!collaboration!exists!or!did!exist!in! the!past,!well8known!platforms!like!start8up!hubs,!the!StartupDelta!and! GrowthClass!were!approached!to!gather!the!right!cases.!Furthermore,!I!utilized! my!connections!within!Philips!to!get!in!touch!with!the!people!responsible!for!their! open!innovation!strategy.!The!table!below!summarizes!the!data!sample!and! generic!information!related!to!the!cases.!

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Collaboration* Philips!(! Traxtal! KLM!(! SeatFrog! NUON!–! Yippie!! ABN! AMRO(! Think! Interpolis!–! Seats2Meet! Sparkholder! (!Rabobank! Jezzer!(! ASR! Ondernemingstraining! –!ABN!AMRO! Group* 1! 1! 1! 1! 1! 2! 2! 2! Industry* Medical! Engineering!

Traveling! Energy! Financing! Insurance! Financing! Insurance! Training!and! Development! Inside3out*vs*

Outside3in* innovation*

Outside(in! Outside(in! Outside( in!

Outside( in!

Outside(in! Outside(in! Outside(in! Outside(in!

Degree*of* integration*

Fully!after! acquisition!

Limited! Limited! Average! Limited! Average! Average! Limited! Equity*stake*

by*corporate*

Yes! No! No! No! No! No! No! No!

Key* Informant* Wim! Crooijmans! Maarten! Greve! Arjan!de! Jong! Bart! Verboom! Bob!van! Leeuwen! Bastiaan! Burgwal! Adriaan! van!Loon! Coen!van!Delft! Additional* data*sources* Corporate! website,! news! websites! Corporate! website,! news! websites! Corporate! website! Corporate! website! Corporate! website! Corporate! website! Corporate! website,! news! websites! Corporate!website!

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! 3.2$Data$Collection$ ! Data!collection!can!be!done!in!three!different!manners:!interviews,! documents!and!archives,!and!observations!(Blumberg!et!al.,!2005),!and!can!often! be!done!simultaneously!(Yin,!1994).!For!this!research!the!most!important!source! of!data!is!interviews!with!key!players!in!the!collaborations.!The!interviews!were! semi!structured!which!allows!for!new!insights!and!considerations!and!explore!all! factors!related!to!the!topic!(Yin,!1994).!Furthermore,!additional!sources!of! evidence!like!annual!reports,!newspaper!articles!and!other!documents!were!used! to!place!the!gathered!data!into!context.! 3.2.1$Expert$Interviews$$ ! In!order!to!get!to!know!more!on!the!topic!of!open!innovation!and!the!role! of!startJup!corporate!collaborations,!two!expert!interviews!were!conducted.! During!those!unstructured!interviews!the!main!topic!was!‘how!do!startJups!and! corporates!collaborate!successful’.!The!interviews!covered!different!topics!that! were!related!to!the!theoretical!framework,!for!example:!open!innovation! processes,!fundamentals!for!successful!alliances,!and!the!effect!of!these!strategies! on!innovation!performance!and!increased!competitiveness.!The!interviews!were! used!to!verify!the!theoretical!framework,!to!get!familiar!with!the!topic!and!to! make!sure!the!right!questions!were!included!in!the!case!interviews.!Interviews! lasted!up!to!1!hour!and!were!recorded!by!audio!so!a!summary!could!be!made.!All! these!expert!interviews!were!conducted!before!the!case!interviews!and!were!used! to!refine!the!interview!protocol.!! !

Expert$ Role$ Field$of$expertise$

Jitse!Duysters! Rotterdam!School!of! Management,!PhD! candidate!

Strategic!Management! and!Entrepreneurship!! Annette!Wassenaar! Owner!of!Growth!Class! StartJup!and!corporate!

collaborations!

!

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3.2.2$Interview$Protocol$of$the$case$studies$$ ! The!interviews!were!conducted!with!key!players!in!the!collaboration,!most! of!them!were!the!owner/director!of!the!startJup.!When!possible,!a!second! interview!was!conducted!with!the!involved!employee!of!the!corporate!to!validate! the!results!found!in!the!first!interview!(Eisenhardt,!1989).!! ! The!interview!guide!is!part!of!the!more!extensive!case!study!protocol!and! can!be!found!in!appendix!1!and!2.!The!interview!questions!are!based!on!the! theoretical!framework!which!has!been!constructed!in!the!first!part!of!this!thesis.! During!the!interviews!the!interviewees!were!asked!to!explain!their!background! and!involvement!in!the!collaboration.!Afterwards!the!background!of!the!research! was!explained!and!some!agreements!regarding!confidentiality!were!taken!care!of.! Next!the!interview!continued!semiJstructured!with!questions!that!were! categorized!into!four!different!topics:!evidence!of!collaboration!(i),!evidence!of! open!innovation!leading!to!the!collaboration!(ii),!evidence!of!a!sequence!of!events! (iii),!evidence!of!interpersonal!influencers!(iiii).!According!to!Maxwell!(2004)!it!is! better!to!ask!about!specific!events!instead!of!questioning!about!generalizations! and!or!opinions.!Therefore,!the!interviewees!were!asked!to!describe!situations! where!they!dealt!directly!with!the!collaboration!partner.!These!were!discussed! extensively!in!order!to!obtain!information!whether!certain!key!factors!influenced! their!alliance.!! ! Yin!(1994)!describes!that!the!use!of!theoretical!propositions!is!very!useful! to!structure!research,!but!thinking!about!rival!explanations!is!very!useful!to! enhance!theory!building.!In!this!case!other!ways!to!explain!the!observed! phenomenon!are!discussed!and!eliminated!to!increase!validity!of!the!results.!! ! Blumberg!et!al.!(2005)!describes!that!it!is!very!useful!to!pilot!test!interview! guides!before!used!to!detect!weaknesses,!train!the!interviewer!and!limit!jargon.! Therefore!the!interview!guide!was!pilot!tested!by!interviewing!one!International! Business!student!that!entered!the!role!of!key!player!of!a!corporate!startJup! collaboration.!Maxwell!(2004)!further!stretches!the!importance!of!pilot!testing! because!the!skills!of!the!interviewer!determine!the!quality!of!the!research!design.! ! The!interviews!were!conducted!in!Dutch!and!lasted!approximately!1!hour.! They!were!recorded!and!fully!transcribed!afterwards.!The!transcripts!were!made! available!to!the!interviewee!so!they!were!able!to!check!for!errors!and!validate!

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their!answers.!Furthermore,!the!transcripts!are!confidential!and!only!accessible! for!the!researcher,!the!supervisor!and!second!reader!of!the!Maastricht!University.!! 3.3$Data$Analysis$ ! Maxwell!(2004)!describes!that!many!case!studies!only!use!coding,!which!is! a!method!to!highlight!key!issues!within!transcripts!so!cases!can!be!compared,!and! therefore!it!might!appear!that!this!is!the!only!part!of!qualitative!analysis.!For!this! research!not!only!coding!is!performed!to!analyse!the!data.!According!to! Eisenhardt!(1989)!field!notes!that!were!taken!during!the!interviews!are! extremely!valuable!and!according!to!Yin!(1994)!making!flowcharts!can!be!useful! to!understand!the!sequence!of!events.!The!interview!transcripts!have!been!coded! by!the!use!of!a!computer!assisted!qualitative!data!analysis!tool,!due!to!the!size!of! the!collected!data.!Coding!makes!it!able!to!fracture!data!to!compare!different! items!that!are!categorized!the!same!(Maxwell,!2004).!The!computerJassisted! software!that!was!acquired!is!Atlas.ti!and!was!used!according!to!the!manual.! During!the!process!of!coding!the!procedure!of!open,!axial!and!selective!coding! was!used!that!Boeije!(2009)!described.!The!results!can!be!found!in!the!appendix! 3.$The!complication!of!computer!assisted!coding!is!fragmentation!(Maxwell,! 2004),!which!was!overcome!by!creating!flow!charts!of!the!major!themes!per! interview!(Yin,!1994).!! 3.4$Quality$of$the$Research$Design$ ! There!are!four!characteristics!that!determine!the!overall!quality!of!this! research!design,!namely!construct!validity,!internal!validity,!external!validity!and! reliability.!To!ensure!an!adequate!level!of!construct!validity,!which!requires!a! correct!establishment!of!operational!measures!for!the!concepts!used!(Yin,!1994),! this!study!used!several!techniques.!When!possible!the!study!used!several!sources! of!evidence!(triangulation):!both!the!perspective!of!the!corporate!and!startJup! where!included!in!the!case!selection!and!secondary!sources!(Eisenhardt,!1989).!In! addition!the!interviews!were!fully!transcribed!and!recorded,!which!allowed!the! interviewer!to!pay!full!attention!to!the!interview.!Furthermore,!the!transcripts! were!send!to!the!interviewees!to!verify!the!transcribed!data!and!any! interpretations,!which!enhances!the!construct!validity!according!to!Yin!(1994).! Additionally,!internal!validity!is!ensured!by!thinking!of!rival!explanation!for!the!

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findings!(Eisenhardt,!1989).!Excluding!possible!variables!that!could!influence!the! investigated!relationship!is!an!important!requirement!for!internal!validity!and!is! hard!to!overcome!in!any!caseJstudy!design!(Seymour,!2012)!and!thus!the! potential!threats!are!discussed!later!in!the!limitations.!External!validity!is! referring!to!the!generalizability!of!the!finding!(Yin,!1994).!As!this!study!is!based! on!the!replication!logic,!the!findings!cannot!be!generalized!to!a!population,!but!are! used!to!establish!theoretical!propositions.!At!last,!Seymour!(2012)!describes!two! different!ways!to!ensure!reliability!for!case!study!research.!At!first!a!wellJ designed!research!protocol!was!necessary!to!ensure!that!other!researches!are! able!to!investigate!the!same!cases!and!be!able!to!reach!the!same!conclusions.! Second,!by!giving!the!interviewees!enough!time!to!respond!and!express!their! ideas,!asking!for!clarification!on!possible!misunderstandings!and!being!open!for! additional!input,!consistency!was!achieved!throughout!all!interviews!(Yin,!1994).! Concluding,!by!taking!into!account!all!the!measures!taken!the!quality!of!this! research!design!is!guaranteed.!!

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4$Results$$

The!upcoming!chapter!gives!a!detailed!description!of!the!conducted!expert! interviews!to!verify!the!working!propositions,!and!the!cases!used!for!this! research.!Each!case!is!analysed!based!on!four!different!elements:!the!general! description!of!the!collaboration!and!involved!partners,!the!reason!of! collaboration,!the!key!findings!related!to!the!main!research!question!and!the! reflection!on!the!established!working!propositions.!In!appendix!4!evidence!per! expert!interview!related!to!the!working!propositions!can!be!found.!In!appendix!5! and!6!the!evidence!per!case!per!working!proposition!can!be!found.!Also,! flowcharts!can!be!found!in!appendix!7!J!14!to!get!a!more!elaborate!picture!of!the! collaborations!over!time!which!support!the!findings!of!working!proposition!3.! !$$$ One!note!needs!to!be!mentioned:!all!the!text!between!quotation!marks! correspond!with!the!text!that!can!be!found!in!the!transcripts,!but!as!the! interviews!were!conducted!in!Dutch!the!transcripts!are!an!approximation!of!what! has!been!said.!Therefore,!all!transcripts!were!approved!by!the!interviewees!which! ensures!correctness!and!validity!of!the!statements.!! 4.1$Expert$Interviews$$$ This!research!included!two!expert!interviews!with!a!PhD!candidate!at!the! Erasmus!University!and!the!founder!of!GrowthClass.!Jitse!Duysters!is!currently! working!on!his!PhD!for!the!department!of!Strategic!Management!and! Entrepreneurship.!During!his!PhD!he!is!involved!in!the!COSTA!initiative!which!is! initiated!by!several!Dutch!multinationals!and!the!Erasmus!University.!The! initiative!stands!for!COrporate!and!STArtJups!and!it!focuses!on!stimulating! collaborations!between!corporates!and!startJups.!Furthermore,!the!initiative!does! research!into!the!‘how’!question!so!they!try!to!figure!out!what!the!best!way!of! collaboration!is!between!corporates!and!startJups.!The!second!interview!was! done!with!the!founder!of!GrowthClass!which!is!a!startJup!that!brings!together! corporates!and!startJups!in!a!special!program!that!last!for!a!couple!of!months.! During!this!program!both!corporates!and!startJups!share!their!experiences!and! help!solve!each!other’s!challenges.!!!

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4.1.1$Reflection$on$the$research$question$$ ! During!the!interviews!the!research!question!was!discussed!and!the! relevance!of!the!qualitative!approach!towards!this!question.!Jitse!explained! during!the!interview!that!is!increasingly!relevant!to!do!research!in!this!area!as! corporates!struggle!with!ambidexterity.!In!order!to!achieve!both!exploration!as! exploitation,!Jitse!mentions!that!corporates!need!to!adapt!a!more!open!innovation! approach.!He!recognizes!that!not!much!research!has!been!done!to!figure!out!how! corporates!and!startJups!could!work!more!efficiently.!He!mentions!that!this!is!also! the!reason!why!the!COSTA!initiative!was!initiated!by!StartupDelta.!! ! Next!Annette!was!interviewed!who!also!recognized!the!increased!need!of! information!on!how!corporates!and!startJups!could!work!together!more! efficiently.!She!mentions!that!this!is!also!the!reason!why!she!and!her!business! partner!Adriaan!van!Loon!started!GrowthClass.!Both!founders!have!extensive! experience!with!working!for!corporates!and!founding!startJups.!Annette!explains! that!GrowthClass!wants!to!facilitate!growth!for!both!startJups!and!corporates!by! facilitating!coJcreation.!Nevertheless!she!said!that!it!is!increasingly!successful!as! we!continuously!change!the!program,!but!have!not!figured!out!yet!the!perfect! program.!She!explains!that!this!research!could!be!very!interesting!to!optimize! their!program!and!facilitate!corporate!and!startJup!collaborations!more! effectively.!! 4.1.2$Reflection$on$the$working$propositions$ During!the!interviews!also!the!relevance!of!the!working!propositions!were! discussed.!Jitse!mentioned!that!many!corporates!struggle!with!trust!issues! regarding!startJups!because!they!do!not!have!a!proven!business!yet!and!there!are! concerns!that!startJups!do!not!have!the!processing!power!to!handle!the!massive! volumes.!Jitse!mentions!that!startJups!often!underestimate!the!capabilities!you! need!to!poses!to!work!effectively!with!corporates.!Also!Annette!describes!trust!as! an!important!influencer,!but!from!a!different!perspective.!Annette!mentioned!that! many!collaborations!are!not!started!due!to!lack!of!personal!connection.!Therefore! confirming!the!importance!of!trust!as!possible!influencer.!! ! Relating!to!the!second!working!proposition,!Jitse!is!less!clear!on!the!value! of!the!chosen!model.!Nevertheless,!he!does!recognize!that!the!building!of!trust!is!

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important!but!he!is!unsure!which!model!could!be!applicable!in!this!context.! Annette!sees!the!value!of!the!model!of!Tuckman,!whereas!she!recognizes!some!of! the!steps!taken!place!in!the!GrowthClass!model.!She!recognizes!that!the!group! grows!throughout!the!program!and!establishes!their!own!rules!and!regulations.! As!both!describe!that!some!sort!of!process!can!be!identified,!working!proposition! was!found!important!to!highlight!during!the!case!interviews.!! ! Jitse!does!recognize!that!a!certain!degree!of!integration!between!both! partners!is!needed!to!have!a!successful!collaboration.!He!mentions!that!research! has!been!done!into!venturing!departments!of!corporate,!which!have!concluded! that!they!are!less!effective!than!direct!collaborations!with!startJups.!Annette! approaches!this!question!from!a!different!perspective.!She!argues!that!corporates! increasingly!are!moving!away!from!equity!stakes!which!improves!the! effectiveness!of!the!collaboration!because!the!startJup!is!less!bothered!by! corporate!politics!and!culture.!Therefore!supporting!the!relevance!of!working! proposition!three.!! Also!the!importance!of!the!governance!mode!was!discussed.!Jitse!explains! that!it!is!extremely!important!for!a!corporate!to!know!what!the!aim!of!the! collaboration!is.!When!a!more!strategic!collaboration!is!wanted,!maybe!an!equity! stake!could!be!interesting,!whereas!only!a!oneJtime!challenge!needs!to!be!solved!a! more!lowJcost!option!is!preferred.!Annette!elaborates!on!that!with!stating!that! equity!is!important!for!a!startJup!but!could!also!the!destroy!the!uniqueness!of!the! startJup!because!interference!of!a!corporate!could!diminish!the!agility!and! culture.!Therefore!it!is!vital!to!pay!attention!to!the!appropriate!governance!mode! during!a!collaboration.!! 4.2$Philips$Healthcare$and$Traxtal$$ Royal!Philips!is!a!Dutch!technology!company!with!their!global! headquarters!situated!in!Amsterdam.!It!was!founded!by!Gerard!and!Frederik! Philips!in!Eindhoven!in!1891!and!currently!is!operating!worldwide!with!the! primary!focus!on!electronics,!healthcare!and!lighting.!The!company!currently! employs!around!105.000!employees!in!over!60!countries.!Philips!is!organized!in! three!large!divisions:!Philips!Consumer!Lifestyle,!Philips!Healthcare!and!Philips! Lighting.!The!healthcare!division!currently!generates!42%!of!the!total!revenue!of!

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Royal!Philips!and!employs!around!37.000!employees!in!100!countries.!Their! mission!is!to!improve!people’s!lives!through!meaningful!innovations.!In!order!to! fulfil!this!mission!better,!Philips!started!working!with!Traxtal!in!2006.!Traxtal!was! an!in!Canada!founded!startJup!that!was!focussed!on!the!field!of!minimally! invasive!instruments!and!software!for!imageJguided!intervention!(IGI)!and! therapy.!The!company!was!founded!in!1996!in!Toronto!by!a!couple!of!which!the! husband!was!a!renowned!medical!researcher.!Traxtal’s!navigation!solutions! functioned!as!a!GPS!for!medical!instruments!during!operations,!which!made! interventional!radiology!procedures!increasingly!accurate!and!decreased! radiation!exposure!and!interventional!time.!!! 4.2.1$Reason$for$collaboration$$ As!CEO!Philps!Healthcare!Rusckowski!said!during!an!interview!“ImageJ guided!procedures!are!one!of!the!most!important!breakthroughs!in!the!healthcare! industry!in!decades.!This!acquisition!allows!Philips!to!significantly!enhance!its! abilities!in!this!rapidly!emerging!field,!and!will!help!us!further!realize!our! ambition!to!offer!the!best!quality!of!care!in!the!most!efficient!way!possible”! (Business!Wire,!2009).!Also!during!the!case!study!the!breakthrough!of!imageJ guided!therapies!(IGT)!was!mentioned,!but!also!the!challenges.!Crooijmans! mentioned!several!difficulties!“You!cannot!see!what!you!are!doing!inside!the! body,!so!you!need!to!trust!on!the!instruments!that!enter!the!body!and!you!need!to! trust!on!the!images.!With!xJrays!we!can!look!inside!the!body!but!it!is!damaging! because!too!much!radiation!and!you!will!harm!the!patient.!Next!it!is!not!3D!and! you!cannot!see!the!instrument!clearly.”!According!to!Crooijmans!Traxtal!was!able! to!make!instruments!and!software!in!combination!with!our!CT!hardware!that! could!give!an!accurate!3D!image!of!the!body!and!positioning!of!the!instrument! during!medical!procedures.!! 4.2.2$Reflection$on$the$research$question$$ Crooijmans!mentioned!that!Philips!was!able!to!enter!the!market!of!imageJ guided!therapies!thanks!to!the!partnership!with!Traxtal!and!therefore! successfully!increased!their!innovation!capabilities!in!this!area.!They! subsequently!used!their!own!value!capturing!capabilities!to!capitalize!the! innovations!and!helped!Traxtal!to!capture!the!value!that!was!generated.!

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According!to!Crooijmans!the!acquisition!and!partnership!was!only!merely! successful!due!to!some!mistakes!that!were!made!during!the!process.!He!said!the! following!“The!painful!thing!about!it!is!that!we!assessed!the!business!proposition! the!right!way,!but!we!were!not!able!to!exploit!it!on!the!intended!markets.!Prostate! worked!out!fine!two!years!ago,!but!longue!is!still!in!the!archive!and!we!have! missed!the!window!of!opportunity”.!Mainly!due!to!internal!politics!at!Philips!the! full!potential!of!the!acquisition!was!lost.!! 4.2.3$Reflection$on$the$working$propositions$ WP1$ WP2$ WP3$ WP4$ ✓$ ✓! _~! ✓! ✓!:!Clear!evidence!to!support!working!proposition;!~!:!Evidence!in!case,!but!not!clearly! stated;!J!:!No!evidence!in!case.!;!n/a!:!Not!applicable!on!this!case.!! 4.3$KLM$and$SeatFrog$ KLM!is!currently!the!oldest!airline!still!flying!under!their!original!name.!It! is!a!Dutch!operated!airline!with!their!headquarters!in!Amstelveen!nearby!their! hub!at!Amsterdam!Schiphol!Airport.!In!2003!the!company!merged!with!Air!France! which!resulted!in!the!holding!Air!France!–!KLM!while!both!companies!kept! operating!independent.!KLM!offers!their!passenger!133!destinations!that!can!be! reached!with!a!direct!flight!while!operating!119!aircrafts!resulting!in!a!revenue!of! almost!10!billion!euro.!To!optimize!the!revenue!of!the!current!operations,!KLM! decided!to!collaborate!with!SeatFrog.!SeatFrog!is!a!startup!which!is!based!in! Sydney!Australia!and!invented!a!bidding!system!for!upgrades!to!business!and!first! class!seats.!The!startJup!was!founded!by!Lain!Griffin!and!recently!raised!a! substantial!amount!from!Howzat!Partners.!Currently!the!business!is!in!their!initial! starting!phase!and!trying!to!scale!their!business.!! 4.3.1$Reason$for$collaboration$$ Greve!explains!that!his!department!is!always!looking!for!new!services!to! add!to!the!KLM!portfolio.!They!base!their!operations!on!three!pillars,!startJup! scouting,!stimulating!open!innovation,!and!the!Dutch!Hackathon.!Greve!mentions! that!KLM!is!involved!in!the!Mainport!Innovation!Fund!which!main!purpose!is!“to! accelerate!innovation!so!we!can!use!the!services!in!the!end.!We!are!really!there!to!

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get!inspired!by!the!innovation!that!happens!in!the!fund”.!SeatFrog!was!one!of!the! startups!that!came!in!touch!with!KLM!through!this!fund.!According!to!Greve! KLM’s!ancillary!team!was!looking!for!additional!sales!on!seats,!so!he!introduced! them!to!the!SeatFrog!team.!SeatFrog!offers!a!biddingsystem!for!upgrades!just! before!departure!so!KLM!can!optimize!seat!revenue!close!to!departure.!! 4.3.2$Reflection$on$the$research$question$$ Greve!mentions!that!thanks!to!the!Mainport!Innovation!Fund!KLM!is!able! to!get!inspired!and!on!top!of!new!technologies,!but!it!also!stimulates!employees!to! think!about!the!future!of!their!department.!Greve!describes!“We!do!not!only! invest!in!products!that!are!viable!now,!but!if!it!represents!the!future!we!are!happy! to!invest!in!it!without!being!a!client.!It!sounds!contradicting,!but!I!think!it!gives!us! more!leverage!to!tell!our!colleagues!in!the!business!to!have!a!look!at!the!startups! in!the!fund!when!they!start!accelerating”.!This!helps!KLM!to!improve!their! innovation!performance,!as!they!are!better!able!to!pick!up!new!technologies!and! react!to!them!more!adequately.!Greve!also!mentions!“In!contrast!to!a!large! venture!capitalist!we!provide!not!only!money,!but!also!inside!information!about! the!industry”!and!“We!also!sometimes!push!people!from!our!business!forward! because!we!notice!that!a!startJup!has!a!problem!in!that!area”.!In!this!way!KLM! makes!sure!that!SeatFrog!is!able!to!capture!the!value!of!their!innovation!faster!as! it!will!become!a!viable!business!model!quicker!thanks!to!external!knowledge!and! help.! 4.3.3$Reflection$on$the$working$propositions$$ WP1$ WP2$ WP3$ WP4$ ~$ ~! ✓! ✓! ✓!:!Clear!evidence!to!support!working!proposition;!~!:!Evidence!in!case,!but!not!clearly! stated;!J!:!No!evidence!in!case.!;!n/a!:!Not!applicable!on!this!case.!! 4.4$Nuon$and$Yippie$ Nuon!is!a!utility!company!that!operates!in!the!Netherlands,!UK!and! Belgium.!Nuon!sells!and!delivers,!gas,!electricity,!heat!and!additional!services!to! more!than!3million!users!in!the!Netherlands!alone.!The!company!was!started!in! 1999!when!it!was!formed!out!of!multiple!independent!energy!providers!in!the!

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Netherlands.!In!2009,!49%!of!Nuon!was!bought!by!Vattenfall!which!increased!her! stake!in!the!company!to!100%!by!2014.!The!company!currently!employs!around! 4500!employees!and!turns!over!about!3!billion!euro!every!year.!To!make!sure!the! loyalty!of!current!customers!is!valued,!Nuon!introduced!a!collaboration!with! Yippie.!Yippie!is!a!Dutch!startup!that!was!founded!in!2013!by!Maurice!Kroon!who! was!irritated!by!the!price!comparison!websites.!During!The!Next!Web!conference! in!2014!they!launched!their!first!pilot!and!was!awarded!multiple!times!afterwards! for!their!innovation.!They!have!the!mission!to!provide!a!transparent!shopping! experience!for!the!customer!and!seamless!interaction!between!seller!and!buyer!to! create!the!best!deal!for!both.!! 4.4.1$Reason$for$collaboration$$ De!Jong!mentioned!that!Nuon!has!a!loyalty!program!for!its!customers!and! they!can!gather!points!as!long!as!they!are!customer!of!Nuon.!These!points!can!be! used!to!pay!for!products!in!the!Nuon!store,!but!according!to!De!Jong!this!story!had! a!major!issue!“Nuon!has!an!agreement!with!a!procurement!partner!that!our! customers!can!choose!out!of!70!to!100!products.!This!is!very!limited.!I!am!also! customer!at!Nuon!and!collect!points.!Eventually!I!thought,!what!should!I!buy,!so! just!before!I!left!at!Nuon!I!quickly!purchased!a!90Jpart!tool!kit.!This!was! something!only!interested!me!a!bit,!all!the!other!things!were!just!nothing”.!De! Jong!mentioned!that!Yippie!!was!a!tool!that!made!it!possible!to!transform!your! Nuon!points!into!Yippie!!points!and!pay!with!them!at!any!reseller!they!have!a! contract!with.!This!enabled!the!customers!of!Nuon!to!spend!their!loyalty!points!on! a!product!they!really!want!and!buy!it!at!their!trusted!reseller!like!Bol.com.!! 4.4.2$Reflection$on$the$research$question$$ According!to!De!Jong!Nuon!was!able!to!innovate!to!customer!needs!thanks! to!the!collaboration!with!Yippie.!As!he!mentions!“At!that!point!in!time!we!had!a! discussion!about!the!loyalty!program.!So!when!Yippie!!came!by,!we!saw!an! opportunity”.!Therefore!Nuon!was!able!to!improve!their!loyalty!program!by!an! innovation!coJcreated!with!a!startJup.!Consequently!Nuon!increased!their! innovation!performance!and!created!a!more!competitive!loyalty!program!and! strengthens!their!position!on!the!energy!market.!Also!Yippie!!was!able!to!increase! their!customer!base!because!suddenly!all!Nuon!customers!were!Yippie!!

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customers.!Therefore!they!were!able!to!capture!the!value!of!their!innovation! better!and!strengthen!their!competitive!position!in!the!market.!! 4.4.3$Reflection$on$the$working$propositions$$ WP1$ WP2$ WP3$ WP4$ ✓$ J! ✓! ~! ✓!:!Clear!evidence!to!support!working!proposition;!~!:!Evidence!in!case,!but!not!clearly! stated;!J!:!No!evidence!in!case.!;!n/a!:!Not!applicable!on!this!case.!! 4.5$ABN$AMRO$and$Think$ ABN!AMRO!is!a!Dutch!stateJowned!bank!with!their!headquarters!in! Amsterdam.!Currently!they!are!the!third!largest!bank!of!the!Netherlands.!Back!in! 2007!it!was!still!the!second!largest!bank!in!the!Netherlands!and!ranked!eightJ largest!in!Europe!in!terms!of!assets.!After!a!takeJover!by!a!consortium!of!banks!in! 2007!some!of!the!banks!got!in!problems!and!therefore!the!Dutch!government!had! to!bail!out!the!acquired!bank!from!Fortis!and!Royal!Bank!of!Scotland.!Now!the! bank!has!about!390!billion!of!assets,!profit!of!around!2!billion!and!22.000! employees.!In!2015!ABN!AMRO!started!to!work!with!Think!to!address!the! increased!importance!of!personal!finance!management.!Think!is!a!startJup!from! Sweden!which!makes!your!personal!expenditures!easily!visible!per!sub!group!in! an!app.!This!allows!you!to!monitor!your!expenditures!per!month!and!make!sure! you!are!not!spending!too!much!on!certain!articles,!products!or!services.!!!! 4.5.1$Reason$for$collaboration$$ Verboom!describes!that!the!project!started!in!the!innovation!centre!where! the!subject!of!personal!finance!management!was!discussed!but!after!several! meeting!with!an!expert!in!this!area!nothing!concrete!was!started.!Verboom! continues!“Afterwards!the!project!was!shifted!to!a!different!department!within! the!bank!but!eventually!it!landed!at!digital!banking!again!and!at!that!time! someone!introduced!Think.!So!we!started!conversations!with!them!to!make!sure! it!was!clear!what!they!could!do!for!us.!They!developed!in!two!hours!on!site!a! prototype!with!our!branding!so!we!could!test!it.!This!gave!us!trust!that!they!were! able!to!develop!it!properly”.!Think!was!able!to!react!quickly!to!the!needs!of!ABN!

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AMRO!and!was!willing!to!coJcreate!a!whitelabel!app!so!it!was!clearly!visible!that! ABN!AMRO!added!a!new!service!to!their!portfolio!with!their!branding.!! 4.5.2$Reflection$on$the$research$question$$ Verboom!mentions!that!in!every!collaboration!there!are!some!objectives! that!are!really!important!“In!the!digital!banking!area!you!see!some!returning! objectives,!like!the!NPS!(Net!Promoter!Score)!so!better!and!happier!customers”.! This!was!also!in!the!collaboration!with!Think.!As!mentioned!ABN!AMRO! recognized!that!personal!finance!management!was!a!topic!that!is!important!to! customers,!but!Verboom!mentioned!that!they!were!not!skilled!enough!to!solve!it! themselves.!He!described!“It!started!in!the!innovation!centreer!where!we!were! thinking!of!personal!finance!management!and!they!said!you!should!have!a! conversation!with!Brad!King!who!is!a!guru!in!this!area!and!also!has!a!small! business”.!Therefore!ABN!AMRO!was!able!to!increase!their!innovation! performance!thanks!to!Think.!They!were!also!able!to!better!capture!the!value!they! created!as!they!got!access!to!the!customers!of!ABN!AMRO!and!increased!their! credibility!and!reputation.!Verboom!describes!this!as!following!“we!have! credibility!and!reputation!to!offer!and!that!is!why!we!also!made!agreements!about! the!use!of!our!logo!or!powered!by!ABN!AMRO.!What!we!also!figured!out!at!what! time!do!we!connect!the!developed!product!to!our!own!distribution!channels”.!! 4.5.3$Reflection$on$the$working$propositions$$ WP1$ WP2$ WP3$ WP4$ ✓$ ~! ✓! ✓! ✓!:!Clear!evidence!to!support!working!proposition;!~!:!Evidence!in!case,!but!not!clearly! stated;!J!:!No!evidence!in!case.!;!n/a!:!Not!applicable!on!this!case.!! 4.6$Interpolis$and$Seats2meet$ Interpolis!is!one!of!the!largest!insurers!of!the!Netherlands!which!employs! around!2500!employees.!Interpolis!was!founded!in!1969!because!several!small! local!insurers!bundled!their!forces!in!a!larger!corporation.!That!developed!over! time!and!in!1990!Rabobank!incorporated!the!insurer!in!their!organization.! Rabobank!owned!the!insurer!until!2005!when!it!traded!the!organization!for!37%! of!the!Achmea!holding!which!is!the!largest!insurer!group!in!the!Netherlands.!Now!