Startup Collaborations in the Aerospace Industry: Identifying Challenges, Fit and Practice Gaps

Abstract

This thesis explores how a Tier-1 aerospace supplier, acting as a representative case of a corporation novice to startup collaboration, can internalize startup innovation through external engagement. It identifies challenges which can be addressed either by startups’ solutions, or through collaborations with them, and examines the practice gaps between the current organizational way of working and the conditions required for successful collaborations within a highly regulated industry. Based on an abductive, qualitative research design, this study was conducted as a single-case organizational study at Company X, a global aerospace engineering and manufacturing supplier. Empirical data was collected through a series of semi-structured interviews, which was further built upon and validated through a workshop. The findings were analyzed iteratively against the data from the literature review. The research identified two broader categories of challenges which could be addressed through startup collaboration at Company X. The first cluster relates to the specific technological needs of the company, while the second cluster addresses broader systemic challenges. Startups were found to offer value as external agents of dynamic capabilities, helping the collaborating firm develop sensing, seizing and reconfiguration capabilities. Realizing this value, however, depends on bridging a set of practice gaps. The study found that Company X possesses fundamental enabling factors, including existing collaboration pathways, the structural isolation of early-stage activity and a demonstrated capability to actively shape its partner ecosystem. However, a set of strategic, cultural, structural and procedural barriers constrain systematic collaboration. The prevailing preference for confining collaboration to peripheral areas was found to be partly a symptom of these barriers rather than a principled choice, and the absence of dedicated mechanisms, champions at the project level and an alliance function at the organizational level, was found to keep collaboration efforts dispersed rather than coordinated. While the findings stem from a single case, they contribute insight into the early considerations involved when novice collaborators in regulated industries begin building the foundations for systematic startup collaboration.