Outsourcing Innovation
In March of 2012, Boeing agreed to collaborate with China's Comac, which is actually something of a rival to Boeing in the commercial aerospace market (Toh, 2012). They partnered in an effort to curb the aviation industry's contribution to climate change. This is a classic example of a partnership formed to stimulate and manage innovation outside the boundaries of any given firm. This first partnership between Boeing and Comac aims to develop a single-aisle passenger aircraft. Boeing is partnering with a rival to challenge a market in which it already enjoys a significant advantage.
In your research, consider how organizations should exercise care when implementing alliances that produce innovation without harming the competitive standing of the alliance partners.
With these thoughts in mind:
- Using the models in the Baloh, et al., article and your additional research, evaluate ways in which HR can manage the outsourcing of innovation.
- Describe the methods HR can use to manage the outsourcing of innovation as a foundation of understanding.
- How can HR play a significant role in ensuring that the organization maintains its competitive advantage when managing the outsourcing of innovation? Provide a brief rationale.