An Enterprise exhibits an Open Innovation focus when it is delivered through a learning oriented collaboration network within an organisation. Social Business Software (SBS) facilitates this collaboration. Learning is one of the key mechanisms to generate new knowledge and is the express purpose of collaborative relationships in an organisation.
The learning orientation toward a more collaborative enterprise environment has significant implications on how the firm innovates and retains its competitive advantage. Learning orientation is defined as the development of new knowledge or insights that have the potential to influence behavior through its values and beliefs within the culture of an organisation. (Slater and Narver, 1999)
The Successful deployment of SBS in an organisation will provide an opportunity to continually renew views on operations, processes and its resources. These learnings through collaboration will, over time, lead to enhanced organisational capabilities that cements the firms positioning in its business environment through more proactive decision making which ultimately results in competitive advantages.
SBS as a platform allows the firm to continuously learn, acquire and develop the new and relevant knowledge and skills that will keep up with and stay ahead of its competitors.
A business which has successfully deployed SBS will create an innovative firm that uses the interconnectedness of its people. This can be called a Dynamic Capability; as the platform allows a firm to quickly respond too and exploit the changing market environment. Over time this can lead to imitability. The firms capability to innovate stongly depends on its ability to gain, create and transfer knowledge and resources both within the firm and with its suppliers and customers. Collaboration and networking are becoming increasingly important to the innovation cycle within the enterprise.
To achieve this an organisation must have a viable innovation environment an environment that promotes knowledge transfer.
Organisations today have the ability through collaboration, networking and knowledge sharing to become more openly innovative. The boundary between the enterprise and its environment could be said to have become more permeable, enabling ideas and knowledge to flow more freely all underpinned by Social Business Software.