Dark Open Innovation in a Criminal Organizational Context:
Date
2018-03-19Abstract
The paper investigates the processes of open innovation in the context of a fraudulent
organization and, using the infamous Bernie L. Madoff Investment Securities (BLMIS)
fraud case, introduces and elaborates upon the concept of dark open innovation. The
paper’s conceptual framework is drawn from social capital theory, which is grounded on
the socio-economics of Bourdieu, Coleman and Putnam and is employed in order to make
sense of the processes that occur within dark open innovation.
Design/methodology/approach
Given the self-evident access issues, this paper is necessarily based on archival and
secondary sources taken from the court records of Madoff v New York—including victim
impact statements, the defendant’s Plea Allocution, and academic and journalistic
commentaries—which enable the identification of the processes involved in dark open
innovation. Significantly, this paper also represents an important inter-disciplinary
collaboration between academic scholars variously informed by business and history
subject domains.
Findings
Although almost invariably cast as a positive process, innovation can also be evidenced as
a negative or dark force. This is particularly relevant in open innovation contexts, which
often call for the creation of extended trust and close relationships. This paper outlines a
case of dark open innovation.
Research limitations/implications
A key implication of this study is that organizational innovation is not automatically
synonymous with human flourishing or progress. This paper challenges the automatic
assumption of innovation being positive and introduces the notion of dark open
innovation. Although this is accomplished by means of an in-depth single case, the
findings have the potential to resonate in a wide spectrum of situations.
Practical implications
Innovation is a concept that applies across a range of organization and management
domains. Criminals also innovate; thus, the paper provides valuable insights into the
organizational innovation processes especially involved in relation to dark open
innovation contexts.
Social implications
It is important to develop and fully understand the possible wider meanings of innovation
and also to recognise that innovation—particularly dark open innovation—does not
always create progress. The Caveat Emptor warning is still relevant.
Originality/value
The paper introduces the novel notion of dark open innovation.
Description
The file attached to this record is the author's final peer reviewed version.
Citation : Manning, P., Stokes, P., Visser, M., Rowland, C., Tarba, S. (2018) Dark Open Innovation in a Criminal Organizational Context: the Case of Madoff’s Ponzi Fraud. Management Decision,
ISSN : 0025-1747
Research Institute : Centre for Enterprise and Innovation (CEI)
Peer Reviewed : Yes