Analysis of Open Innovation Practices in Malaysian SMEs

Abstract

Open Innovation is a phenomenon that has become increasingly important due to found shorter innovation cycles, industrial R&D escalating costs as well as in the dearth of resources. Researchers have suggested various kinds of practices and ways to categorized them. However, most of prior studies only used some of the practices to measured open innovation, but the measurements were very generic as some practices are broadly defined, and the list of open innovation activities not included new activities and completed list of practices. Hence, it is crucial to identify a new list of open innovation practices and study on similar practices in developing countries to help their companies understand open innovation and its practices as well. This study reviewing prior studies on open innovation adoption published between 2003 and March 2014 and identified 36 different practices. Therefore, we created a new list of open innovation practices that cover most of strategies and practices mentioned in prior studies. This study used quantitative methodology, 400 high rank executives manager of Malaysia SMEs participated and completed the survey and further analyzed using the appropriate statistical procedures. The results indicated that Malaysian SMEs use three core processes of open innovation including coupled, outside-in, and inside-out practices in their open innovation processes, respectively.