7. Discussion
Changes in environmental conditions occur ever faster and product life cycles continue to shorten (Drechsler and Natter, 2012), making innovation efforts crucial to the survival of organizations. However, given the multidisciplinary nature of innovation (Kroon et al., 2008), the increasing complexity of technology (Holl and Rama, 2012; Ritter and Gemünden, 2004) and the tendency of firms and other organizations to focus on their core competences (Gulati et al., 2012), organizations are and will increasingly continue to open up their innovation processes to external stakeholders (Chesbrough, 2012). Therefore, in this paper, we developed the organizational innovation system concept to facilitate the execution and study of such open, collective innovation processes. An organizational innovation system contains a dynamic, layered innovation network of diverse relevant stakeholders, shaped by a set of formal and informal institutions. Through an iterative innovation process, it aids the focal innovating organization in generating, developing and commercializing innovations by providing the required supporting functions. However, diverse system imperfection can cause a suboptimal innovation process or even failure. Based on the structural components and functions of the OIS, ten categories of these potential imperfections are put forward. Furthermore, the elaborate conceptualization of the OIS concept allowed for the development of a framework for analysis of organizational innovation systems. With the development of the OIS concept, we contribute to the innovation management theory, in particular the Open Innovation and Innovation Systems perspective, in several important ways.