Paavo Ritala

Paavo Ritala
LUT University · School of Business and Management

D.Sc. (Econ. & Bus.Adm.)

About

176
Publications
131,359
Reads
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Introduction
I work as a Professor of Strategy and Innovation at School of Business and Management, LUT University, Finland. I am interested in all things systemic, digital and sustainable.
Additional affiliations
December 2012 - present
Lappeenranta – Lahti University of Technology LUT
Position
  • Professor of Strategy & Innovation

Publications

Publications (176)
Article
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This paper provides a unique perspective on knowledge ecosystems by studying their organization. Grounded in empirical evidence, we propose that knowledge ecosystems consist of users and producers of knowledge that are organized around a joint knowledge search. A distinction is drawn between knowledge ecosystems searching for a knowledge domain and...
Chapter
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In management literature, “ecosystems” are increasingly invoked for improvement of environmental sustainability and the circular economy (CE), but there is conceptual as well as empirical ambiguity regarding their role, composition, and nature. This chapter reviews existing ecosystem conceptualizations, distinguishes the main applications and impli...
Article
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Ecosystems-communities of interdependent, yet hierarchically independent heterogeneous participants who collectively generate an ecosystem value proposition-often emerge through collective action, where ecosystem participants interact with each other and the external environment. When such organizational forms are emerging, they require legitimacy...
Article
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Purpose Circular business models can improve resource use in a financially and environmentally feasible way. However, companies struggle to choose among the vast variety of ways to achieve circularity within a business model. The purpose of this paper is to offer a pragmatic guide for making strategic decisions on circular business models. Design/...
Article
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For better or worse, digital technologies are reshaping everything, from customer behaviors and expectations to organizational and manufacturing systems, business models, markets, and ultimately society. To understand this overarching transformation, this paper extends the previous literature which has focused mostly on the organizational level by...
Article
Digital transformation is among the most pervasive forces disrupting business models across every industrial sector. While prior research has explored the digital transformation of business models, the effect on the value proposition as a key element of the business model has received only limited attention. Drawing on an extensive single case stud...
Conference Paper
Using a longitudinal multiple case study research design involving nine family firms (FFs) from eight countries, including both developed and emerging economies, this study unbundles the role played by values in family firm adaptation to crises such as the Covid 19 pandemic. FFs’ response to crises exhibit anomalies of mutable higher-order values,...
Article
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CFP for an SI on "Strategy in the digital transformation era"
Article
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In knowledge networks, such as best-practice networks, industry forums, and professional communities, members of different organizations exchange knowledge for mutual and individual benefit. When properly managed, knowledge networks enable time- and resource-constrained individuals to engage across organizational and industry boundaries. Such netwo...
Article
Digital platforms have disrupted traditional news organizations, with new platform-based models gaining ground. However, the incumbents can defend their positions and reap the benefits of multi-sided market structures by establishing a platform business model themselves. We examine a case study of the Austrian News Agency (APA), which gradually for...
Conference Paper
Network effects have been theorized as the defining growth mechanism in platform markets. The increase in the number of platform participants (N) fuels a virtuous cycle of growth?a network effect. However, beyond the N, what are the distinct qualitative attributes that drive the increasing value for a particular side of a platform as the number (qu...
Article
In transformational strategy contexts such as digitalization, the entrepreneurial behavior of the firm’s employees is crucial. This study examines the role of employees’ individual-level entrepreneurial orientation (IEO) in terms of proactiveness, risk-taking, and innovativeness, and their relational capital within the organization, on their perfor...
Article
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Purpose- Service ecosystems are becoming an important domain of joint value creation and resource integration, and the literature in the field is burgeoning. The recent growth in the literature warrants consolidating the findings of the existing literature, summarizing the recent development, and identifying avenues for more impactful future resear...
Article
Purpose The importance of integrating both internal and external knowledge into the product/service innovation process has been widely recognized in the knowledge management and innovation literature. Likewise, the role of the marketing and sales function as a driver of innovation has been stressed because of its market-facing role. However, limite...
Article
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In this research note, we examine Finnboat, a traditional Finnish family firm, from the interrelated perspectives of crisis behavior and innovation. The firm under study has endured three major crises: the economic recession of the 1990s, the 2008–2009 financial crisis, and the coronavirus pandemic. Our study shows that Finnboat has undertaken only...
Article
Purpose This paper aims to adopt a contextual approach to the knowledge-performance linkage by deepening into the role of marketing and sales employees’ knowledge resources in the generation and delivery of superior customer experiences (CEs) and into the motivational antecedents of knowledge acquisition and development. Design/methodology/approac...
Article
Disruptive innovation has attracted significant scholarly and managerial interest. In the existing research, there is ongoing debate about the nature of disruptive innovation and who initiates it. The related question of how incumbents can deal with disruption, let alone initiate it, has not been extensively addressed. To bridge these gaps, we conc...
Article
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Business model change is typically seen as an adaptation to market contextual changes or as experimentation to find the optimal model for a given context. We highlight an alternative rationale for business model change by showing formally that switching from a subscription-based to an ad-sponsored business model over time can generate more life cyc...
Article
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Firms’ innovative capabilities and performance increasingly rely on successful search and integration of internal and external knowledge. To this end, firms engage in various open innovation relationships, aiming to create and capture value in multi-actor contexts. This can give rise to a “paradox of openness” due to the contradictory role of knowl...
Article
Value creation and appropriation are much-studied processes in business and management fields. However, both academia and business practice have traditionally focused on how value is created and appropriated in the economic context and by economic actors. This overemphasis on economic logic has created institutionalized asymmetries in managing the...
Article
Research on inter‐organizational relationships has largely focused on the interdependence between formal organizations. In recent years, firms have encountered a new logic in which interdependent parties are not formal organizations but platform‐based ‘customer‐entrepreneurs’ that create value through illegal means. Drawing on a 5‐year‐long qualita...
Conference Paper
Coopetition (i.e., collaboration between competitors) takes place across alliance networks within an industry. Such ‘coopetition networks’ provide the embedded firms with both opportunities and challenges. However, it is not well known what drives a firm to increase the level of competitive intensity among its overall alliance network. This study e...
Article
Research on open innovation and sustainability suggests that alliances with external stakeholders help to improve innovation outcomes. This paper taps into the intersection of these literatures and investigates how alliance proactiveness and alliance portfolio coordination affect firms' sustainability-oriented innovation (SOI) outcomes. Data were c...
Article
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The management literature defines modular innovation as a way to make technological changes in product modules that does not necessarily change the product architecture. However, engineering science shows that new product modules not only change the product architecture, but they can also be used for technologically radical next generation products...
Article
Purpose The aims of this paper are to identify and classify the knowledge resources that shape intellectual capital (IC) within the marketing function, to develop and validate a related scale and to demonstrate the scale's applicability in an empirical context. Design/methodology/approach A literature-based approach was adopted to identify and cla...
Article
Industrial co-creation projects are often complex and ambiguous, involving high levels of interpretive uncertainty over processes and outcomes. To boost the effectiveness of such projects, firms have increasingly adopted virtual reality (VR) technology and have experienced unique benefits by utilizing digital artifacts—interactive objects in digita...
Article
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In making decisions about strategic and operational actions, managers commonly need to consider dualities such as long-term versus short-term, innovation versus tradition, and stability versus change. As these dualities often entail contradictory objectives, paradoxical tensions may arise in their pursuit. Despite growing interest in this topic, th...
Article
Exploration and exploitation are two generic strategies of firms' adaptation to their environments. However, the effectiveness and reliability of these approaches are not fully understood when the business environment is undergoing a major crisis. Building on organizational adaptation, strategic fit, and organizational decline streams of literature...
Article
In hotel services, the provider and customer are expected to behave according to a specific cognitive script that has been developed based on previous experiences of different actors' input and behavior. However, if either party deviates from their script, value co-destruction – rather than value co-creation – might emerge. While the existing touri...
Article
Alliances are often thought to be longer lasting and lead to better results when they are perceived as equal and fair in terms of how efforts and rewards are distributed. This study conceptualizes the value-creation-capture-equilibrium (VCCE) as the relative inputs and efforts made by alliance partners to create and capture innovation-related value...
Chapter
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The beneficial consequences that intellectual capital exerts on various aspects of organizational performance have become well established facts demonstrated in a wide range of empirical studies. However, little knowledge exists on what drives the development of intellectual capital itself. To bridge this gap in the current understanding, this chap...
Article
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The growth of digital platforms relies on the generative nature of digital resources and platforms' openness to complementary innovation. These features generate strong network effects and winner-take-all dynamics that protect incumbents from competition. However, under certain conditions, these same features render incumbent platforms vulnerable t...
Article
Social enterprises aim to create both social and financial value, requiring the creation of business models that allow both objectives to be pursued simultaneously. However, the tensions between these objectives can make this a challenging task in terms of issues such as mission drift and commercial failure. Our multiple case study of seven social...
Article
Organisational innovativeness is known to be affected by employee incentives and motivation, but the evidence is inconclusive regarding the organisational contexts and contingencies where this phenomenon takes place. To examine this issue, we adopt the Competing Value Framework of four types of organisational cultures, and hypothesise differences i...
Article
Ecosystems have recently emerged as a visible stream in organization and management research. The ecosystem concept promises a broader, systems view of organizational and technological phenomena beyond traditional firm, value chain or network boundaries. However, adopting an ecosystem approach presents a range of methodological challenges for resea...
Article
When created and captured value is unbalanced in innovation alliances, instabilities may emerge. Competitive tensions between the partners may further destabilize the value creation process. How these dynamics affect the outcomes of innovation alliances is still far from clear. This study focuses on expert power, relative private and common benefit...
Article
Even in today’s turbulent business environment, there are companies in many industries that have enjoyed decades of relatively undisturbed success. However, eventually, after such prolonged periods of calm, existing market positions are challenged. We describe such companies as ‘Sleeping Beauties’ and discuss how they can reinvent themselves throug...
Book
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The aim of this edited book is to provide a comprehensive overview of the opportunities and challenges related to innovation for sustainability. Combining work from both emerging and established scholars in different academic fields, this book provides an integrated understanding of the topic from four perspectives. First, the big picture: framewor...
Conference Paper
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Innovation ecosystems are built around new technologies, ideas, and innovations and their supporting actors and structures. However, the emergence of ecosystems is constrained by a host of institutional, system-level barriers in the existing organizational field that inhibit the legitimacy, resourcing, and growth of new initiatives. Through an empi...
Chapter
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Intellectual capital has become a prominent driver of organizational and societal performance and wellbeing. However, the role of intellectual capital in the context of sustainable organizational value and wealth creation—that is, how organizations can simultaneously create customer value while also satisfying their internal stakeholders—has been v...
Chapter
Business-originated innovation activities are increasingly seen as a driver for resolving global challenges in environmental and social issues. At best, innovation for sustainability—or sustainability-oriented innovation—is a way for firms to improve their competitiveness while also facilitating the greater good. Research and practice have shown th...
Chapter
This chapter introduces the background, aims, contents, and implications of the edited collection “Innovation for Sustainability: Business Transformations Towards a Better World”.
Article
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Abstract This article examines organization and governance of commercially influenced Open Source Software development communities by presenting a multiple-case study of six contemporary, hybrid OSS projects. The findings provide in-depth understanding on how to design the participatory nature of the software development process, while understandin...
Chapter
Value creation and appropriation are essential elements of any economic activity. In coopetition literature, value creation refers to all activities that increase value created within the context of the relationship, while value appropriation refers to capturing a share of that value. In this chapter, we first discuss the conceptual underpinnings o...
Chapter
Coopetition strategy-the way a firm collaborates with its competitors-has been suggested to potentially improve firm performance in the markets. However, the literature is scattered in terms of providing evidence of how and why coopetition strategy affects firms’ market performance. This chapter reviews the existing evidence for key mechanisms, con...
Chapter
Business and innovation ecosystems involve complex interdependencies among various actors. The concept of ecosystem is useful for analyzing strategies in which competitors are also considered complementary partners. To make this explicit, we use SEAM-a visual modeling method that builds on the enterprise architecture discipline. Using the example o...
Article
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Purpose - The purpose of this paper is to explore interactional and procedural practices in managing tensions of coopetition (simultaneous collaboration and competition between firms). Design/methodology/approach - Through an in-depth literature review of prior research within coopetition and strategy-as-practice fields, and by using two illustrat...
Article
Full-text available
Coopetition (collaboration between competitors) has the potential to provide major benefits or losses to participating firms. Entering a partnership with a competitor is a strategic decision with potential long-term consequences rendering the choice of partner of key importance. Existing research has investigated partner’s strategic attributes, but...
Article
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Purpose Firms frequently struggle with measuring the performance of their radical innovation activities. Due to the uncertainty and ambiguity involved, key performance indicators (KPIs) used for incremental innovation projects are often not useful in this context. The purpose of this paper is to explore suitable KPIs particularly useful for radica...
Article
Industrial symbiosis is an important concept for regional development in which industrial organizations seek to use one another's outputs and inputs, reduce waste and achieve economic benefits. Though the technical details of this phenomenon are well known, the roles of key individuals and, particularly, their championing processes remain unclear....
Article
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As knowledge has become a key factor of competitive advantage for organizations, regions, and nations, its measurement has gained tremendous importance. During the last two decades, the intellectual capital school of thought has produced numerous measurement frameworks and models for capturing the intangible bases of value creation, which currently...
Article
Full-text available
Coopetition (simultaneous competition and collaboration between firms) is an important driver for innovation, as competing organizations benefit from pooling resources and ideas for new products, processes and achieving benefits such as collective reputation. However, a key issue facing such relationships is the notion of value creation and capture...
Article
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Purpose Inter-firm collaborative innovation typically requires knowledge sharing among individuals employed by collaborating firms. However, it is also associated with considerable risks, especially if the knowledge sharing process is not handled using proper judgment. Such risks have been acknowledged in the literature, but the underlying empirica...
Article
Purpose Managerial decisions ultimately determine the success or failure of a business strategy, and difficulties often arise when managers must decide how best to allocate scarce resources between activities. Adopting a cognitive framing perspective, this study aims to explore managers’ accounts of decision-making problems and how they solve them...
Article
In this study, we examine the diversity of sustainable business models adopted by the largest global corporations — those listed in the S&P 500 index — over the period 2005–2014. We examine press release communications during this period, which represent public data about business-relevant events. We expect that examining this communication can rev...
Chapter
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Service science is concerned with the question of how systems can co-create value in an optimal way. In essence, innovations aim at enabling better value co-creation; but at the same time, cause disruption and tensions in the service ecosystem by challenging prevailing practices. This chapter examines the development and diffusion of a broad scale...
Article
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Technological platforms enable actors to connect their resources across markets, creating value through complementarities and network effects. The design choices related to different aspects of a platform are crucial for ensuring value creation. Building on earlier literature, we have developed a framework for platform design, involving four elemen...
Chapter
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Several authors have suggested that firm performance and value creation accrue mainly from intangible resources (e.g. Grant, 1996; Makadok, 2001; Hamilton, 2006; Ferreira and Hamilton, 2010). The intellectual capital (IC) literature is especially interested in the contents and value of such resources. IC can be defined as the sum of the intangible...
Article
Companies increasingly involve their customers in development and innovation activities (i.e. co-development). This happens particularly in business-to-business markets, where customers provide the requisite knowledge for the development of complex product and service systems that help to solve customers' problems. Existing literature indicates tha...
Article
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Purpose Knowledge is a firm’s most valuable resource, and knowledge management (KM), or the ability to leverage knowledge resources, constitutes the base for the firm’s competitive advantages. This paper contributes to the emerging discussion on the contextualization of knowledge-oriented research by examining the universality of KM practices. De...
Article
The Circular Economy (CE) has been identified as a sustainable alternative to the current linear economic model. Thus far, research on the circular economy has focused on methods for better conserving the value in material flows. As the CE is currently being adopted as a sustainable development strategy in, e.g., China and the EU, identifying and c...
Article
Business-to-business (B2B) and business network scholars have begun adopting an "ecosystem" approach to describe the increasing interdependence and co-evolution of contemporary business and innovation activities. Although the concept is useful in communicating these issues, the challenge is the lack of overall understanding of the added value of th...
Article
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Purpose This study examines the association of different configurations of Intellectual Capital (IC) and Knowledge Management Practices (KMP) with firm performance. Do firms with different profiles concerning their overall levels of IC and KMP differ in terms of innovation and market performance? Design/methodology/approach First, the firms were...
Article
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Purpose Academics and practitioners around the world have shown interest in what constitutes the relevant intellectual capital (IC) in firms. However, studies have largely neglected to examine whether IC has identical or different structural elements in various parts of the world. This study draws on institutional theory and suggests that country-...