Innovation Through Startup Collaboration: Build a Relationship With Your Peer Startups

Startups could foster open innovation by partnering with other startups as external sources of innovation. The ever-growing network of diverse software startups is an opportunity for these startups to gain access to significant knowledge and expertise from the broader network. This peer partnering allows them to bridge gaps in their competencies that hinder their abilities to gain traction. The collaborative network provides managers with opportunities to sustain competitive advantage but requires managerial decisions to be made carefully to avoid partners becoming competitors. Larger partnerships generate network effects that enhance the collaborative network value, largely improving the success rates of the startup community.