Applying the hub-and-spoke model to virtual communities: the IBM innovation approach

This paper aims to analyse the contribution of virtual communities infostering innovation process by aggregating into an innovation-hub. Acting ascentre of knowledge integration and value creation, the innovation-hub is ameta-organisation, parallel to the traditional R&D labs. We believe that thisinnovation system operates according to a hub-and-spoke model in whichemployees communicate informally on the web and openly collaborate oninnovation to strengthen the firm competitiveness. Despite its strategic role,relatively little is known about the hub’s effectiveness in supportinginnovation process, connectivity, operational and motivational mechanisms. Inorder to gain insights to build a theory, we study in-depth the case of IBMinnovation-hub and define some propositions. The research contributes to fillthe theoretical gap related to the hub model and to provide suggestions formanagers about innovation strategies, by maximising the value created by theinnovation-hub.