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Innovations help position a company in an uncontested market space. According to the open innovation's principles, innovations are not only gained through the research and development activities of a company. An employee's innovative behavior is supported by knowledge diffusion mechanisms and also by leadership practices. This single paper aimed at finding those management practices that enhance knowledge diffusion and, thus, innovativeness in a geographically distributed organization having several virtual teams. This single paper proposed that an IT system with related global processes together with knowledge diffusion opportunities and relevant leadership practices increased employees' innovative behavior in a virtual team.
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