Employee-Driven Innovation to Fuel Internal Software Startups: Preliminary Findings

Abstract: To keep up with the pace of innovation, established companies are increasingly relying on internal software startups. However, succeeding with such startups is a challenging task because internal startups need to find a balance between the interests of the company and the interest of the innovator. One approach that is argued to strengthen innovation in existing companies is employee-driven innovation (EDI). This study explores this argument by examining two internal software startups in companies aligned with the principles of EDI and with a strong focus on innovation. The preliminary findings indicate that startups with EDI are characterized by commitment towards innovation, cooperative orientation, and autonomy. The findings suggest that internal software startups may be strengthened when the parent companies practice EDI.