Inside the Virtual Product: How Organizations Create Knowledge through Software (New Horizons in the Economics of Innovation)

What is the influence of software systems on an organization's ability to create knowledge, learn, adapt to change and innovate? While organization, management and innovation theory has primarily focused on the impact of software on measures such as process efficiency and speed, this book argues that integrated systems and digital technologies offer even more fundamental implications for the innovating firm.

A series of detailed case studies provides the foundations for a deeper theoretical and empirical understanding of the nature and dynamics of software, knowledge, organization and their complex interactions. The author demonstrates how software induces the radical reconfiguration of organizational knowledge and learning dynamics, including an organization's ability to create, store, transfer and integrate knowledge across heterogeneous organizational boundaries. The book provides a unique perspective on what organizations know and how they use that knowledge to build, sustain and renew their capabilities. This includes understanding how information systems can be designed or implemented in such a way as to favour innovation and adaptation, and to prevent unfavourable patterns of behaviour.

The book represents an in-depth and systematic attempt to characterize the fundamental influence of software over the processes that underpin an organization's ability to create and manage knowledge. Scholars and students interested in innovation, technological change and information technology, and managers in software and other hi-tech industries will find this an insightful and highly rewarding study.

Luciana D’Adderio, University of Strathclyde, UK