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Abstract
Open innovation and distributed ledger technology (DLT) are both based on the underlying principles of distribution and sharing. While open innovation is about sharing knowledge to improve innovation processes and performance, DLT is a distributed data ledger that is utilized to enhance efficiency, reduce costs, and ensure immutability, traceability, security, and transparency. In this paper, we investigate the barriers to open innovation currently faced by small and medium-sized companies (SMEs) that DLT can solve. To achieve this goal, we conducted semi-structured interviews with 11 experts in open innovation and DLTs from Spain, Germany, Australia, and India. The results of our exploratory study show that DLTs can help to solve several problems, including external barriers, such as problems with contracts, financing, lack of trust, raw materials, lack of information, domestic and international market limitations, IP rights, and governmental regulations as well as bureaucracy. Internal challenges include insufficient funding, organizational systems that are out of date, and lack of trust. When it comes to difficulties associated with the management of open innovation, external barriers are frequently caused by customers' demands, while internal barriers are frequently caused by organizational culture or human nature, which cannot be improved by DLTs. Finally, SMEs might face new obstacles when integrating DLTs, such as integration problems, complex transition phases, and high setup costs as well as problems with attracting and retaining qualified employees.
Highlights
Open innovation, which is defined as “a distributed innovation process based on purposely managed knowledge flows across organiza tional boundaries, using pecuniary and nonpecuniary mechanisms in line with the organization’s business model” (Chesbrough & Bogers, 2014, p. 1), has been studied extensively in recent years
The question remains: which distributed ledger technology (DLT) can solve open innovation barriers to sized companies (SMEs)? some research has been done on the open innovation barriers that SMEs currently face (Spithoven et al, 2013), and some solutions have been proposed (Saget al., 2016), previous research has not investigated the consequences of a DLT uptake by SMEs and how it can facilitate the adoption of open innovation in detail
All respondents (R) agree that DLT has the potential to boost open innovation in SMEs. They believe that trust plays an important role when it comes to sharing information, ideas, and new technologies
Summary
Open innovation, which is defined as “a distributed innovation process based on purposely managed knowledge flows across organiza tional boundaries, using pecuniary and nonpecuniary mechanisms in line with the organization’s business model” (Chesbrough & Bogers, 2014, p. 1), has been studied extensively in recent years. A thorough investigation of the potential of DLT to remove SMEs’ barriers to open innovation is largely missing to date This constitutes an important research gap since DLT allows for the recording, sharing, and synchronization of transactions and data in an immutable, secure, transparent, and traceable manner across a distributed network of different participants (Treiblmaier, 2019). It eliminates the need for third party intermediaries to ensure trust, validation of transactions, and transfer of value. The results are presented and, in the fifth section, we conclude our study and highlight some limitations as well as avenues for future research
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