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102 CREATIVITY AND INNOVATION MANAGEMENT

The Role of Social Networks in


Organizing Ideation, Creativity and
Innovation: An Introduction
Daniele Mascia, Mats Magnusson and Jennie Björk

Introduction tiveness. At the market level, business models


in many high-tech and science-based indus-

I n the light of intensified competition, tech-


nological complexity and institutional
instability, firms are increasingly inclined to
tries have changed. Large, highly diversified
corporations have in certain industries been
replaced by focused small- and medium-sized
actively seek competitive advantage through companies, which collaborate to combine their
innovation. Consequently, the survival, profit- capabilities for the development of new prod-
ability and growth of organizations are in ucts and services. In this context, firm bounda-
most industries intimately related to their ries become blurred and the capacity to
innovative capabilities, i.e. the capacity to develop innovation increasingly relies on the
combine resources needed to generate novel formation of network ties that allow for novel
and valuable products, processes, services, combinations of knowledge. As a conse-
business models and organizational forms. quence, traditional processes of learning have
These capabilities rely to a large extent on col- to some extent been replaced by new, highly
lective actions, stressing that innovation is a relational mechanisms that build upon the
social activity where communication and capacity to orchestrate and combine knowl-
interaction play important roles (Leonard & edge, capabilities and expertise developed in
Sensiper, 1998). This has paved the way for a diverse places and with different time-frames.
perspective on innovation in which the previ- Within technology-intensive firms, innova-
ous primary focus on human and intellectual tion has typically been fostered through the
capital increasingly needs to be complemented creation of R&D departments with dedicated
with relational (Kale, Singh & Perlmutter, resources, in which groups and teams are
2000) and social capital (Nahapiet & Ghoshal, assigned to the development of new products
1998), underlining the importance that rela- and processes. However, R&D activities are
tionships and networks play for innovation. also important because they potentially
The benefits of using external networks in increase organizations’ absorptive capacity, i.e.
order to gain input to innovation have been the capacity of firms to assimilate and apply
highlighted in the flourishing literature stream external knowledge (Cohen & Levinthal,
on Open Innovation (Chesbrough, 2003). 1990). Hence, internal R&D activities are not
Moreover, recent works have also pointed to only important in terms of their direct knowl-
the potential gains residing in collaborative edge input into innovation processes, but also
networks between people inside organizations provide opportunities to nurture internal
(see, e.g., Björk & Magnusson, 2009). learning and increase the ability to intercept
Social networks have of course always and absorb new external knowledge. The latter
played a key role in innovation, creativity and is of particular importance when organizations
ideation. However, recent changes with find themselves in situations where the speed,
regard to markets, business models, technol- frequency and magnitude of innovation are
ogies and organizational forms have further related to dispersed sources of creativity, con-
accentuated their importance. In the light of nected to each other through social networks.
salient changes that we currently observe in The adoption of new organizational models
markets and organizations, innovation stands within firms is another important source of
out as an imperative for sustained competi- change for creativity and innovation processes

Volume 24 Number 1 2015 © 2015 John Wiley & Sons Ltd


10.1111/caim.12111
THE ROLE OF SOCIAL NETWORKS: AN INTRODUCTION 103

within firms. Individuals are today more engagement, participation and commitment
autonomous in the definition and implemen- towards an organization and its innovation
tation of job tasks. Similarly, groups are becom- performance. Many actors are highly inde-
ing increasingly autonomous, diverse and pendent and do not formally belong to any
decentralized. Consequently, the importance institutions, reducing the efficacy of tradi-
of initiatives and suggestions provided by tional managerial interventions aimed at
employees, suppliers and customers has dra- changing their conduct and behaviours. Roles
matically increased, and firms have therefore like ‘contributors’ or ‘participants’ have
increased their empowerment and facilitated replaced or complemented other more typical
their participation in organizational creativity roles in innovation, such as ‘scientists’ and
and innovation. A consequence of this is that ‘inventors’. The application of formal and
innovation is becoming less sequential, but informal mechanisms of coordination, includ-
rather iterative and fuzzy. ing, for instance, organizational culture and
Altogether, the outlined changes to organi- organizational teams, is challenging in this
zations’ learning and innovation activities context.
clearly point to the increased importance of We are also observing substantial changes
developing and using social networks for in the nature and content of ties that afford
innovation. Despite a lively debate and numer- connectivity between actors. Extant research
ous empirical studies addressing this topic, has documented that the structure of collabo-
there are, however, still many aspects of how rative ties predict creativity and innovation
social networks influence the organizing of performance in a significant manner (e.g.,
innovation, creativity and ideation that need to Ahuja, 2000; Cattani & Ferriani, 2008). The
be understood in greater detail. The papers in presence (and absence) of social ties is also
this special issue are an attempt to contribute important for understanding the mechanisms
to this task. More specifically, they aim to shed that allow ideation and creativity to take place
new light on the particular micro-mechanisms within and between organizations (Burt, 2004).
in social networks that impact creative and Prior research has largely focused on alliances
innovative behaviours, as well as their result- and other formal deals entailing inter-
ing performance. The special issue consists of organizational collaboration. At the individual
this introduction and five articles, selected level, co-citations and co-authorship data have
from a total of 30 submitted manuscripts. been used extensively to explore how individ-
uals jointly collaborate to achieve innovation.
Patents and publications in the current envi-
Social Networks and Innovation ronment, however, seem to capture only a
limited portion of innovation tasks and pro-
In general, a social network is defined as a set cesses. The different nature of social actors has
of actors – typically individuals, groups and also changed the nature of their links. For
organizations – interconnected through social example, employees and customers today
ties or links. We observe that actors involved in have a wide range of opportunities to partici-
innovation processes are changing. Tradition- pate in organizational innovation through their
ally, firms and universities, R&D groups and ‘thoughts’, ‘views’, ‘suggestions’, ‘opinions’,
scientists have been investigated as pivotal ‘positions’ and ‘ideas’. All these forms of par-
actors in the processes of innovation. As ticipation generate a complex web of direct
described above, innovation is currently gen- and indirect links, which over time lead to the
erated in a more ‘democratic’ way that hinges formation of informal groups and commu-
on the empowerment of users, customers, nities. There is an increasing number of
employees and other individuals having no studies exploring structural characteristics of
formal roles in regard to innovation develop- two-mode (n × m) networks, formed by indi-
ment (e.g., Baldwin & von Hippel, 2011). viduals (n) that provide suggestions on ideas,
Researchers and administrators interested in prototypes or new products (m), that contrib-
the management of creativity and innovation ute to successful problem solving and innova-
need to recognize that the contribution of tion (e.g., Conaldi, Lomi & Tonellato, 2012;
these large communities of actors can be com- Tonellato, 2014). The understanding of how
bined with other organizational R&D activ- social structures surrounding certain ideas/
ities. The contribution that individuals’ ideas products emerge and evolve also calls for the
and suggestions provide to organizational adoption of longitudinal lenses. Network ties
innovation requires a careful consideration of are intrinsically subject to change. The rate and
important characteristics – other than their speed with which these ties change over time
knowledge and expertise – such as personality are important issues that research needs to
traits, empathy and emotional aspects of indi- address. Our ability to correctly explore and
viduals, which likely predict their level of understand the dynamics of creativity and

© 2015 John Wiley & Sons Ltd


Volume 24 Number 1 2015
104 CREATIVITY AND INNOVATION MANAGEMENT

innovation networks has largely improved in and innovation processes. First, the impact of
light of recently derived stochastic actor- social networks is explored at different levels
oriented models for the evolution of one-mode of analysis, considering individuals (custom-
and two-mode networks (Snijders, van de ers, employees and ‘embedded users’), groups
Bunt & Steglich, 2010). (R&D teams) and organizations (automotive
The context in which social networks take manufacturers). The ample variety of theoreti-
shape greatly influences patterns of network cal and conceptual frameworks is a second dis-
formation and change, in terms of, for tinct element of the selected articles. One
example, degree of stability, speed of evolu- major strength in this regard is the various
tion, emerging structures and mechanisms cognitive theories and perspectives that
that lead to change. Moreover, organizations several articles adopt to explore the complex
increasingly rely upon the use of IT tools such relation between social networks and innova-
as innovation jams, social media and other tion. Third, we would like to emphasize the
crowdsourcing solutions aimed at creating a adoption of diverse research approaches,
virtual space where individuals are called to which rely on both qualitative and quantitative
participate (Bayus, 2013; Ooms, Bell & Kok, methodologies and techniques.
2015). The resulting environment presents a The article by Sierzchula et al. (2015)
number of challenges for innovation manage- explores how automotive manufacturers use
ment research. We underscore some major alliances to acquire expertise in knowledge
implications for the creation and subsequent areas that are important in the development
evolution of social networks. First, crowd- and commercialization of electric vehicles. The
sourcing solutions substantially reduce recip- study focuses on the content of inter-firm col-
rocal awareness between individual inventors laborations in an era of technology ferment,
and contributors along with their need to be analysing to what extent the nature of alliances
co-located. Whereas individual support to (explorative vs. exploitative) is subject to
innovation is voluntary, the way actors collec- change over time, as well as the differences
tively collaborate and contribute to the innova- that incumbent firms versus start-ups exhibit
tion process is increasingly unintentional, in terms of patterns of alliance formation.
uncertain and unknown. Hence, social mecha- Firms are urged to respond to environmental
nisms that typically permeate collaborative changes through the implementation of new
ties, such as loyalty, trust and reciprocity, play alliance strategies. Inter-organizational col-
out only marginally. In contrast, we assist at an laborations change over time as new industry
amplification of which cognitive resources are conditions and characteristics emerge in the
allocated to diverse problems, ideas and new market. Drawing on alliance data from a
products, within and across organizations. sample of 24 car manufacturers in the electric
Recent studies document that comments and vehicle industry, the authors observe that
suggestions addressed to solve problems and during a time of industrial uncertainty firms
contribute to ideas represent a relevant signal establish a higher proportion of explorative (as
of the allocation of cognitive resources opposed to exploitative) alliances, and that
(Dahlander & Piezunka, 2014). Typically these patterns of (explorative vs. exploitative) alli-
efforts are beneficial for innovation. However, ance formation in a distinct area of expertise
competitive interdependences and rivalry may show substantial differences over time. The
arise when contributors exhibit common inter- study also documents that incumbent firms
ests towards the same ideas and problems are more likely than start-ups to successfully
(Hansen & Haas, 2001; Di Vincenzo et al., form alliances in the electric vehicle industry.
2014). Exploring how suggestions, ideas and Overall, these results inform us about poten-
contributions of individuals and groups are tial risks of treating all alliances in the same
articulated, challenged, revised and some- way. At the same time, they underline the need
times ignored in organizations represents an to conduct more refined analyses of firms’
avenue for fruitful research. attempts to acquire expertise in different
domains through alliance formation.
Tang and Ye (2015) investigate how diversi-
Overview of the Articles in the fied knowledge is associated with self-
Special Issue reported radical creativity in more than 30
R&D teams in China. The authors focus on
The articles included in this special issue three distinct forms of diversified knowledge
investigate several of the aspects discussed coming from (i) team members (termed ‘insid-
above in novel and insightful ways. An initial ers’), (ii) people outside each team (‘outsid-
overview reveals the rich contribution they ers’), and (iii) acquired through relevant
overall provide to the current debate on the internet sources. Interestingly, the study also
role of social networks in ideation, creativity provides evidence about the harmful impact of

© 2015 John Wiley & Sons Ltd


Volume 24 Number 1 2015
THE ROLE OF SOCIAL NETWORKS: AN INTRODUCTION 105

social networks, documenting that between- characteristics related to product use foster
ness centrality decreases the positive impact opinion leadership and domain-specific
that diversified knowledge has on teams’ characteristics, two personal predispositions
radical creativity. In general, network central- strongly related to the diffusion of new
ity intends to measure the strategic position product innovations. The specific individual
that actors have in a given network taking into relational and cognitive characteristics ana-
consideration the structure of network ties lysed are access to user networks, use experi-
linking all network actors. Betweenness cen- ence and lead-userness. Their study focuses on
trality assesses the power of single network individuals who are employees and, at the
actors in communication and knowledge flow same time, users of the firm’s products – also
networks. The authors assert that centrality known as ‘embedded users’. Interestingly,
indicates heterogeneous distribution of status authors include empathy as a mediator vari-
and power across members, as well as a lack of able to explore the impact of relational and
cohesiveness in groups and teams. Interest- cognitive characteristics on opinion leadership
ingly, the authors observe that the impact of and domain-specific characteristics. Their
diversity of knowledge on team creativity is analysis refers to ‘embedded users’ sampled in
limited when individuals acquire new knowl- four German firms developing gaming hard-
edge through the internet. Similarly, the mod- ware products. Results from structural equa-
erating role of betweenness does not seem to tion modelling reveal that domain-specific
play out in the case of knowledge diversity innovativeness is affected by use experience
provided by the internet. This is an interesting and lead-userness of employees, and that
finding pointing to the different meaning and opinion leadership is only affected by the
value that information and knowledge latter. Cognitive empathy, which is affected by
accessed throughout the internet might have access to networks of external users, use
for individuals, compared to knowledge experience and lead-userness, is in turn posi-
directly provided by peers either within or tively related to both predispositions towards
outside organizations. the diffusion of new products. We believe that
The article by Ooms, Bell and Kok (2015) the importance of this study yields on the joint
contributes to the literature on boundary- analysis of relational, cognitive and behav-
spanning tools and innovation mechanisms by ioural aspects of individual characteristics that
exploring how social media affects socializa- matter for creativity and innovation.
tion and coordination capabilities for absorp- The study by Chou, Yang and Jhan (2015)
tive capacity. The authors contribute to our investigates the process and outcome of
understanding of the micro-foundations of empowerment strategies consisting of involv-
intra-organizational capabilities relevant for ing customers in new product development
absorptive capacity, by documenting the con- through online communities. The article
ditions under which socialization and coordi- explores how customers’ emotions and their
nation capabilities are enabled by the use of subsequent propensity to contribute to
social media. By relying on multiple case product development are influenced by their
studies, they illustrate how the use of social perception to be able effectively to influence
media in external knowledge exploration pro- decision making about final products. The
cesses results in a more transparent and multi- authors provide evidence on the double-edged
directional interaction that, in turn, fosters the effect that empowering customer strategies
internal capabilities needed for absorptive through online communities has on individual
capacity development. Socialization and coor- ‘self-efficacy’, which here captures the indi-
dination are also triggered by moderational vidual belief about the ability to play an effec-
interactions by managers and experts, espe- tive role in the selection process of innovation.
cially when the moderational interactions are A portion of customers’ suggestions and
based on reciprocity. However, social media choices are disregarded and not selected in the
also generates ambiguities that may culminate final product. This reduces their passion,
in a general reluctance of individuals to par- loyalty and positive emotions, and at the same
ticipate in social media communities, as well time gives rise to negative emotions. Several
as in uncertainties about the application of experimental studies demonstrate that two
appropriability regimes to knowledge shared characteristics encompassing the process of
through online tools. We believe that the analy- empowerment, namely the size of the online
sis of conditions that afford the establishment community and the domain-specific lead user
of trust relationships in the context of social status, moderate the positive relationship
media utilization deserves careful attention in between the empowerment strategies and
future research. individual perceived impact. In particular,
In their paper, Schweisfurth and Herstatt findings indicate that the empowerment strat-
(2015) investigate how relational and cognitive egies have a greater positive effect when the

© 2015 John Wiley & Sons Ltd


Volume 24 Number 1 2015
106 CREATIVITY AND INNOVATION MANAGEMENT

community size is smaller and the domain- Apart from the apparent need to distinguish
specific lead user status is higher. Results also between different types of interaction and
demonstrate that emotions mediate the rela- communication, we would here like to empha-
tionship between the empowerment outcome size the need for studies of the genesis and
and customers’ purchase intention, and that dynamics of social networks, as well as inves-
‘lose’ outcomes lead to more negative and tigations taking into consideration the specific
fewer positive emotions which in turn reduces content and semantics of the communication
the intention to purchase new products. taking place in these networks. In addition to
Although this is certainly not the first study of this, a challenging investigation field is how
its kind (see, e.g., Amabile et al., 2005), it rep- social networks can be purposefully devel-
resents one of the few attempts thus far to oped and managed. This includes deliberate
study the role of emotions in the context of a management through, for example, priming,
more generalized democratization of the use of competition and collaboration
organizational innovation. mechanisms (Bullinger et al., 2010; Hutter
Apart from the specific insights highlighted et al., 2011; Bergendahl & Magnusson, 2014),
above, a number of more general observations and new formal and informal roles in distrib-
can be derived from the articles in this special uted innovation processes, but potentially also
issue. A first aspect that needs to be noted is the use of synchronization and rhythm in
that different networks may be beneficial for innovation, in order to allow for fruitful
different parts of the overall innovation orchestration of emergent innovation activities
process. More specifically, we see that net- among employees, communities and crowds.
works for exploration and networks for
exploitation are substantially different, under-
lining earlier works pointing to the need for Acknowledgements
more fine-grained analyses of relationships
We would like to thank all participants at the
and networks, taking into consideration, for
XIII Italian Workshop on Organization Studies
example, innovation outcomes, network struc-
(WOA2012) held in Verona for their useful
tures (Hemphälä & Magnusson, 2012) and
input to the development of this special issue.
knowledge creation processes (Bergendahl &
The development of this special issue would
Magnusson, 2015).
not have been possible without the valuable
Another interesting observation is that
feedback that reviewers provided to authors.
information from people and information
The reviewers were: Fausto Di Vincenzo,
from other sources clearly have different
Marcus Holgersson, Katja Hutter, Anna
effects. Whereas this is hardly surprising in
Karlsson, Isabella Leone, Kerstin Linnemann,
itself, it points to a need for further investiga-
Rick Middel, Susanne Nilsson, Luisa
tion of the effects of social media and the use
Pellegrini, Cristina Rossi Lamastra, Martin
of virtual systems for idea management. Argu-
Sköld and Carl Wadell.
ably face-to-face interaction, social media com-
munication and sharing of information with a
lower level of richness (Daft & Lengel, 1986) References
do not display the same effects on innovation
and creativity and these differences call for Ahuja, G. (2000) Collaboration Networks, Structural
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Yet another observation is that the effects of Amabile, T.A., Barsade, S.G., Mueller, J.S. and Staw,
B.M. (2005) Affect and Creativity at Work. Admin-
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studies can be drawn from this special issue. Bergendahl, M. and Magnusson, M. (2015) Creating
Still, studies of social networks focus primarily Ideas for Innovation – Effects of Organizational
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derived from interactions of different types. tivity and Innovation Management, 24, 87–101.

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THE ROLE OF SOCIAL NETWORKS: AN INTRODUCTION 107

Björk, J. and Magnusson, M. (2009) Where Do Good Nahapiet, J. and Ghoshal, S. (1998) Social Capital,
Innovation Ideas Come From? Exploring the Intellectual Capital and the Organizational
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Bullinger, A.C., Neyer, A.-K., Rass, M. and Media in Inbound Open Innovation: Building
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Cooperation. Creativity and Innovation Manage- Schweisfurth, T. and Herstatt, C. (2015) Embedded
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Cattani, G. and Ferriani, S. (2008) A Core/Periphery (2015) Alliance Formation in the Automobile
Perspective on Individual Creative Performance: Sector during an Era of Ferment. Creativity and
Social Networks and Cinematic Achievements in Innovation Management, 24, 109–22.
the Hollywood Film Industry. Organization Snijders, T.A.B., van de Bunt, G.G. and Steglich,
Science, 19, 824–44. C.E.G. (2010) Introduction to Stochastic Actor-
Chesbrough, H. (2003) Open Innovation: The New based Models for Network Dynamics. Social Net-
Imperative for Creating and Profiting from Technol- works, 32, 44–60.
ogy. Harvard Business School Press, Boston, MA. Tang, C. and Ye, L. (2015) Diversified Knowledge,
Chou, C., Yang, K.-P. and Jhan, J. (2015) Empower- R&D Team Centrality and Radical Creativity.
ment Strategies for Ideation through Online Creativity and Innovation Management, 24, 123–35.
Communities. Creativity and Innovation Manage- Tonellato, M. (2014) Relational coordination in an
ment, 24, 169–81. Open Source Software Project: The Role of Atten-
Cohen, W.M. and Levinthal, D.A. (1990) Absorptive tion Networks. Paper presented at the XX Organi-
Capacity: A New Perspective on Learning and zation Science Winter Conference, 6–9 February,
Innovation. Administrative Science Quarterly, 35, Steamboat Springs, Colorado.
128–52.
Conaldi, G., Lomi, A. and Tonellato, M. (2012)
Dynamic Models of Affiliation and the Network
Structure of Problem Solving in an Open Source Daniele Mascia (dmascia@rm.unicatt.it) is
Software Project. Organizational Research Methods, Assistant Professor of Organizational and
15, 385–412. Management Theory at the Catholic Uni-
Daft, R.L. and Lengel, R.H. (1986) Organizational versity of Rome, Italy. He has been Visiting
Information Requirements, Media Richness and Scholar at Chalmers University of Technol-
Structural Design. Management Science, 32, 554– ogy (Gothenburg, Sweden), KTH Royal
71. Institute of Technology (Stockholm,
Dahlander, L. and Piezunka, H. (2014) Open to Sug- Sweden), and the University of Sydney
gestion: How Organizations Elicit Suggestions Business School (Australia). His current
through Proactive and Reactive Attention. research activities centre on a wide range of
Research Policy, 43, 812–27. topics including the study of inter-personal
Di Vincenzo, F., Mascia, D., Björk, J. and Magnusson and inter-organizational networks, innova-
M. (2014) Idea Generation and Survival in an tion management, and organizational
Organizational Innovation Jam. Paper presented behaviour and design, with a particular
at the 74th Academy of Management Annual interest in the healthcare and bio-
Meeting, 1–4 August, Philadelphia, PA. pharmaceutical sectors. His work has been
Hansen, M.T. and Haas, M.R. (2001) Competing for published (or is forthcoming) in journals
Attention in Knowledge Markets: Electronic such as Industry & Innovation, International
Document Dissemination in a Management Con- Journal of Project Management, Journal of
sulting Company. Administrative Science Quar- Knowledge Management, Social Science &
terly, 46, 1–28. Medicine and Social Networks. His work has
Hemphälä, J. and Magnusson M. (2012) Networks been honoured with several awards.
for Innovation – But What Networks and What Mats Magnusson (matsmag@kth.se) is
Innovation? Creativity and Innovation Management, Professor of Product Innovation Engineer-
21, 3–16. ing at KTH Royal Institute of Technology in
Hutter, K., Hautz, J., Füller, J., Mueller, J. and Stockholm and Permanent Visiting Profes-
Matzler, K. (2011) Communitition: The Tension sor at Luiss School of Business and Manage-
between Competition and Collaboration in ment in Rome. He has previously been
Community-Based Design Contests. Creativity director of the Institute for Management of
and Innovation Management, 20, 3–21. Innovation and Technology in Sweden, and
Kale, P., Singh, H. and Perlmutter, H. (2000) Learn- Visiting Professor at the University of
ing and Protection of Proprietary Assets in Stra- Bologna and at Aalborg University. In addi-
tegic Alliances: Building Relational Capital. tion, he is chairman of the Continuous
Strategic Management Journal, 21, 217–37. Innovation Network (CINet), senior advisor
Leonard, D. and Sensiper, S. (1998) The Role of Tacit of Creativity and Innovation Management,
Knowledge in Group Innovation. California Man- and is active as a board member and con-
agement Review, 40, 112–32. sultant to several industrial firms, as well as

© 2015 John Wiley & Sons Ltd


Volume 24 Number 1 2015
108 CREATIVITY AND INNOVATION MANAGEMENT

a teacher in different executive training


programs. His research and teaching
activities concern continuous innovation,
management of ideas and knowledge, inno-
vation networks, and strategic manage-
ment, and he has published articles on
these topics in such journals as Research
Policy, Journal of Product Innovation Manage-
ment and Long Range Planning.
Jennie Björk (jenniebj@kth.se) is a
researcher at Integrated Product Develop-
ment, KTH Royal Institute of Technology in
Stockholm, Sweden. Her main research
interests are ideation, ideation manage-
ment, knowledge sharing, knowledge crea-
tion and social networks. She has recently
published her work in journals such as
Creativity and Innovation Management,
Journal of Product Innovation Management
and Industry & Innovation.

© 2015 John Wiley & Sons Ltd


Volume 24 Number 1 2015
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