The Role of Open Innovation in New Product Development and Its Effect on Firm Performance During an Economic Crisis: A Case Study COVID-19 Vaccine

Abstract

AbstractThis study aims to explore the role of open innovation in developing a new product by relying on two main dimensions (collaboration, digital technology) of open innovation during an economic crisis and its effect on firm financial performance. A conceptual framework has been developed to explain the role of open innovation on new product development by considering open innovation's collaboration and digital technology dimensions and their effect on firm financial performance. Hence, literature related to these aspects has been reviewed. COVID-19 vaccine case study sheds light on applying the open innovation approach to product and service development. The results show the relationship between open innovation through collaboration and digital technology, positively affecting firm financial performance. One limitation lies in that this paper lacks exploratory or survey-based data. Future research can investigate the case of each company separately to get a deeper understanding of the role of open innovation in producing the COVID-19 vaccine under uncertainty. Also, future research can study different dimensions of open innovation (e.g., R&D and intellectual property) on the development of the COVID-19 vaccine. The paper suggests ways in which firms could use open innovation for the efficient exploration, acquisition, integration, and development of valuable knowledge.KeywordsOpen Innovation (OI)New product development (NPD)CollaborationDigital technology (DT)Firm performanceCOVID-19