Integrating Sustainable Development into Project Portfolio Management through Application of Open Innovation

Integrating Sustainable Development into Project Portfolio Management through Application of Open Innovation

Hosein Daneshpour (University of Vaasa, Finland)
Copyright: © 2017 |Pages: 18
DOI: 10.4018/978-1-5225-1949-2.ch017
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Abstract

In recent years, the idea of integration of sustainability into project management has been put forth, which requires a more comprehensive and holistic approach to project management. Integration of sustainability increases the complexity of project management. Therefore, project management organizations require a framework capable of opening up the traditional organization of the project business and providing competitive advantages. This study argues that the open innovation model presents the requisite capability to approach this issue. This research, through a structured review of the literature and an overview of the open innovation and project management knowledge areas, explains how open innovation can provide a fruitful contribution to the integration of sustainable development into project portfolio management and why it should be favoured. The findings show that open innovation can facilitate the environmental, social and economic sustainability of projects, while rendering the project organization more agile.
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Open Innovation Background

The OI model shifts firms from a closed model to an open strategy (Chesbrough, Vanhaverbeke, & West, 2006). Chesbrough (2003) coined the term “open innovation”, while highlighting that, in a world of widely-distributed knowledge, firms cannot rely entirely upon internal ideas and should utilize valuable ideas generated outside the company made by customers, suppliers and other stakeholders. Therefore, OI emphasizes that “firms can and should use both external and internal (equal importance) ideas and paths to advance their business” (Chesbrough, 2006a, p. xxiv). OI can be defined as “both a set of practices for profiting from innovation and also a cognitive mode, for creating, interpreting and researching those practices” (Chesbrough et al., 2006, p. 286). Subsequently, Chesbrough (2011) developed the concept of the OI model, broke new ground with the “open service innovation” model that considered the business model from an open service perspective, both for product and service delivery businesses, and concluded that OI is not just a method for approaching R&D.

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