Does a firm’s open innovation mode matter?

Abstract

Open innovation enabled smaller firms to become competitive rivals to multinationals since this innovation mode searches outside of firm’s boundaries for commercialization opportunities and leverages the knowledge and initiatives of external sources. The aim of this research is to approach open innovation as a multifaceted phenomenon and to address some of the fundamental questions that arise in the literature on open innovation. Such questions include: Do different open innovation modes exist? Does it matter which open innovation mode a firm chooses? How do different open innovation modes influence a firm’s innovation performance? In seeking answers to these questions, we used quantitative and qualitative research methods. Understanding the contributions of individual open innovation dimension is important for implementing effective decision-making processes. The findings have important implications for CEOs when allocating (scarce) resources to the development of open innovation-related activities. Our findings emphasize the importance of employee involvement for the successful implementation of open innovation. We suggest several steps to be followed when implementing open innovation. DOI: 10.15458/85451.45