Open Innovation in SMEs: Drivers and Inhibitors

Abstract

Open innovation has of late emerged as a popular innovation management concept that advocates opening up of the innovation processes in firms. Despite researchers writing against open innovation being a new concept, research into open innovation activities of firms, as evidenced by the growing number of related research papers and books, has proliferated. In this concept paper, through a scrutiny of published open innovation research work, we look at the concept of open innovation in general and then zoom in on the factors that drive and inhibit its implementation especially in SMEs. The analysis shows that the drivers of open innovation include meeting customer demand, while employee resistance in the form of not-invented-here (NIH) and not-shared-here or not-sold-here (NSH) syndromes can inhibit open innovation. The paper, with implications for practice and theory, ends with a summary of open innovation and its drivers and inhibitors.