Moving resources across permeable project boundaries in open network contexts

This paper discusses how firms develop and use resources across a permeable project boundary and conceptualizes how a project can create value for a focal parent organization. Inspired by ideas on interaction and open innovation, we suggest a framework for analyzing the flow of resources based on the two dimensions; direction, whether the resource starts inside or outside the project, and mode, whether the resources cross the boundary once (uni-directionally) or twice (bi-directionally). The dimensions lead to four situations: Inside-out, Outside-in, Boomerang and Passing on. The framework is based on a single case study of an inter-organizational research project in plant biotechnology in a Swedish context. Through these four situations, the results show that a focal parent organization can create direct, indirect, relational potential and transactional potential value. The complex pattern of value creation in an open network context, raises the challenging question of how to capture the value created.

► This paper discusses how firms use and develop resources across a project boundary.
► The paper conceptualizes value creation for a focal parent organization.
► The results show a complex pattern of value creation in an open network context.