Applications of open innovation to the supply chain system in the SMEs

Abstract

The close-knitted structure of a supply chain seems to leave no room for the word 'open'. Closeness builds trust, enables information sharing, benefits transportation and more. Somehow, openness started to benefit supply chain management recently, through a trend called 'open innovation'. Based on gathered anecdotes and our interviews of industry professionals, we attempted to present a more complete picture of open innovation in supply chain management, including its potential benefits, major concerns, adoption hurdles, and future solutions. Our findings identified current perceptions of supply chain practitioners on open innovation and major hurdles and difficulties of implementing open innovation in supply chain functions other than just product development. Our research contributed to the current literature of open innovation by updating its implementation status, identifying adoption and implementation issues, and proposing strategic considerations within the context of supply chain management.