Why do organizations share their most important capital? The provision of an open innovation model based on human capital

Abstract

PurposeIn this study, an open innovation (OI) model was designed in which the organization’s human resource systems comprise the main core. To identify the various dimensions of the model, this study aims to investigate how and under what conditions the organizations update and upgrade their knowledge and experiences in the human capital (HC) systems domain within the OI framework and in line with sharing them with other organizations.Design/methodology/approachIn this qualitative study, the data were collected by means of semi-structured interviews and analyzed through grounded theory, which led to the extraction of the final model.FindingsThe implementation of the HC-based OI helps upgrade knowledge in the organization and industry knowledge, create win-win relationships and increase the interaction capital, power and credit of the organization.Originality/valueIn this study, HC systems have been regarded as the core of the OI model (rather than an intervening factor in OI). This is the main innovative aspect of the current study. In addition, the special attention paid to the inside-out approach to OI and the examination of the human and social aspects of inter-organizational knowledge sharing – particularly in the light of the fact that the study was carried out in a developing country – are the other innovative aspects of this study.