Effects Of Open Innovation Research Articles

Unveiling the Complex Relationship between Open Circular Innovation and Business Circularity: The Role of Circular-Based Dynamic Capabilities and Circular Ambidexterity

Following calls for more research on the circular economy and open innovation, this study sheds light on the scant mechanisms influencing the relationship between open circular innovation and business circularity. This study theorizes that achieving business circularity requires a radical shift, and those circular exploitative activities may not be an effective strategy for this transition. Therefore, circular-based dynamic capabilities and circular ambidexterity are proposed as moderated-mediation mechanisms that explain the relationship between open circular innovation and business circularity. This study employs a quantitative approach to examine the hypothesized relationships. Data were purposively collected from owners and managers of marble manufacturing units due to the significant amount of waste generated by these units. A total of 292 valid responses were analyzed using SmartPLS version 4.1.0.5. The results revealed that the combined effect of open circular innovation and circular-based dynamic capabilities stimulates circular ambidexterity, which in turn leads to business circularity. This signifies that the complementary role of circular ambidexterity and circular-based dynamic capabilities foster the implementation of business circularity. This study empirically confirmed the application of three frameworks into a single new structure called the circular resource-based view, which has been neglected in previous literature. This study concluded that an organization’s circular resources, capabilities, and competencies, when combined harmoniously with circular strategies, could lead to business circularity.

Assessing the effect of open innovation on firm performance: a study of Indian IT organisations

PurposeThere is a growing interest among academics, government agencies and private organisations to examine the scale, characteristics, and impact of Open Innovation (OI). Studies have examined these issues mainly in the context of a developed world. Because firms in developing economies face unique challenges of OI such as building networks, inter-firm interactions, collaboration for resource utilisation and knowledge sharing, these warrant an examination of the theoretical relationships between the antecedents of OI and their impact on performance as well as mediators of these relationships. Therefore, this study develops a comprehensive OI framework to measure open innovation and analyse its effect on the innovation performance of Indian IT organisations.Design/methodology/approachTheoretically, the study draws upon the Resource-Based View, Relational View, and Absorptive Capacity theories. Empirically, a survey questionnaire was distributed to Indian IT organisations through the online survey tool “Qualtrics”. The research framework was tested using the data collected from 346 Indian IT organisations.FindingsThe results highlight the positive effect of OI activities on innovation performance and the mediating role of absorptive capacity. IT organisations with a higher inbound knowledge and absorptive capacity demonstrated better innovation performance.Research limitations/implicationsThis study is limited to understanding the mediating effect of absorptive capacity for inbound innovation. Future studies into the mediating role of desorption capacity could reveal its impact on innovation performance.Practical implicationsFrom a management perspective, this knowledge will enable managers and policymakers to emphasise OI to achieve better innovation performance. This knowledge will provide both government decision-makers and IT managers with definite OI implications for innovation performance.Originality/valueThe main contribution of this study lies in exploring the interconnectedness among IT organisations and collaborative processes on OI and innovation performance. This empirical study pinpoints the causes and sources of OI that would lead to innovation performance and the mediating role of absorptive capacity in achieving innovation performance. It extends the empirical base of OI scholarship based on firms in an emerging economy.

Productivity of the Korean Biopharmaceutical Industry: Exploring the Effect of Business Model and Open Innovation

The biopharmaceutical industry in Korea is considered a key strategic industry following the semiconductor industry. However, success in the biopharmaceutical industry depends on the outcome of research and development processes that require long periods and substantial investment, resulting in a success rate of only around 2.5%–4% for new drug development. Consequently, rational strategic choices, such as determining key capabilities to pursue business, deciding where to position within the value chain and identifying collaboration partners and strategies, are more crucial in the biopharmaceutical industry compared to other industries. In this study, we divided Korean biopharmaceutical companies into research and development groups and Integrated groups, which perform both research and production, and compared their productivity using the meta-frontier methodology to verify the significance of technology gap ratio (TGR) values between groups. We also investigated the influence of open innovation activities, including the type, partners and timing, on the TGR of each group with Tobit analysis. The investigation revealed that productivity and its influencing elements varied depending on the business model. This finding suggests that this information can be utilised to develop efficient industrial policies.

Closing the Innovation Performance Gap: Open Innovation in Military Bureaucracies

This article explores the effects of open innovation on innovation performance in military bureaucracies. While the understanding of how bureaucratic organizations can benefit from open innovation is still limited, this study discovered that open innovation can have a negative effect on innovation performance. However, leveraging an innovative culture can lead to improved innovation performance in organizations characterized by high levels of structure and hierarchy, especially those where secrecy and security are of vital importance.

Demand-Side Effects of Open Innovation: The Case of Cryptocurrency Forking

Demand-Side Effects of Open Innovation: The Case of Cryptocurrency Forking

How Does Circular Economy Affect Firms’ Innovation Performance? The Interaction Effect of Open Innovation

How Does Circular Economy Affect Firms’ Innovation Performance? The Interaction Effect of Open Innovation

Managing open innovation: the roles of strategic orientation and dynamic capabilities, evidence from Ethiopian SMEs

ABSTRACT The focus of this study was to assess empirically the effects of strategic orientation open innovation through dynamic capabilities of small and medium-sized enterprises (SMEs). A cross-sectional field survey quantitative approach was applied to collect primary data from the study area. Based on the empirical data of 321 SMEs operating in the study area, the study employed structural equation modelling (SEM) to analyze the data and research hypotheses in the proposed structural regression model. The SEM analysis found that open innovation is associated with small and medium enterprises’ higher-level strategic orientation. Finally, the results indicated that dynamic capabilities mediated the path between strategic orientation and open innovation. Moreover, the study indicated that strategic orientation creates value through the dynamic capabilities of the SMEs. Hence, the ability to sense, seize, and transform external ideas, knowledge, and information along with internal resources is vital to small and medium-sized enterprises success.

Charity can still begin at home: Examining the drivers and boundary conditions of Africa-to-Africa outward foreign direct investment (OFDI)

Recent studies on ‘Africa Rising’ and ‘Africa-to-Africa Internationalization’ have propelled conversations on how African Small and Medium-Sized Enterprises (SMEs) can continue to internationalize within African countries. From the tenets of the institutional theory and the dynamic capabilities perspectives, this study proposes and tests a framework of how and when dysfunctional competition drives SMEs' outward foreign direct investments within African countries. Analysis of a survey data from 196 Ghanaian SMEs operating across the African continent indicates that cross-border open innovation mediates the relationship between dysfunctional competition and SMEs' intra- Africa OFDI activities. Further analysis revealed that SMEs' strategic agility plays a double-edged sword moderating role in enhancing the effects of dysfunctional competitions and cross-border open innovation on intra-Africa OFDI. These findings have significant implications for the international business and finance literature as well as the management and growth of African SMEs.

Antecedents and outcomes of open innovation over the past 20 years: A framework and meta‐analysis

AbstractThe open innovation paradigm emphasizes that firms can improve their innovation performance by collaborating with other firms. However, there is no consensus in the open innovation literature regarding what drives firms' implementation of inbound and outbound open innovation and how the two types of open innovation influence innovation and firm performance. The present meta‐analysis synthesizes previous research to advance our understanding of open innovation by reexamining its antecedents and its moderating effects on innovation and firm performance. Using data from 157 articles, our results show that appropriation strategy, formal organizational structure, learning culture and top manager competence drive inbound open innovation, while innovation strategy, appropriation strategy, learning culture, and top manager competence drive outbound open innovation. In addition, we find that absorptive capacity positively moderates the positive impact of inbound and outbound open innovation on innovation performance. However, industry type (i.e., high‐ and low‐tech) is not found to moderate the effect of open innovation on innovation or firm performance, suggesting that both high‐ and low‐tech firms can equally reap benefits from open innovation. Furthermore, this study also partially supports the moderating effects of firm size and cultural value (individualism vs. collectivism) on the open innovation—performance relationship. These findings collectively suggest that the effects of inbound and outbound open innovation on performance are subject to contextual factors. Although this meta‐analysis does not allow us to generate new theories in the open innovation literature, it offers valuable insights to both academics and practitioners regarding factors affecting the implementation of open innovation and its performance implications.

Effect of open innovation on firm performance through type of innovation: Evidence from SMES in Malang City, East Java, Indonesia

Effect of open innovation on firm performance through type of innovation: Evidence from SMES in Malang City, East Java, Indonesia

Emerging enablers of green low-carbon development: Do digital economy and open innovation matter?

As emerging drivers, the enabling role of digital economy (DIE) and open innovation (OPI) in green low-carbon development (GLD) may be underestimated. In the context of digital development and knowledge sharing, the study examines the direct enabling impact and spatial interdependence of DIE and OPI on GLD in China from multidimensional perspectives of adjacency, geography and economy. The results show that DIE and OPI can not only positively promote local GLD by means of technological innovation and green information sharing, but also possess a vital impact on the GLD of geographically close or economically similar areas through spillover effect. Besides, the diffusion effect of DIE, which positively affects green low-carbon development in similar regions, is proven to transcend the negative siphon effect. Compared with open innovation, digital economy plays a stronger direct and indirect spillover role, becoming a priority enabler for GLD. Moreover, the spillover effects of digital economy and open innovation on green low-carbon development exhibit geographical boundaries. Based on these findings, governments can promote green low-carbon development by integrating digital technologies, fostering collaborative innovation and facilitating regional cooperation.

The influence of open innovation on the synergistic innovation capability of Chinese manufacturing firms: the mediating role of tacit knowledge acquisition

PurposeChina has climbed from 22nd in the Global Innovation Index Rankings in 2017 to 11th in the 2022 due to the transition of its manufacturing firms from assemblers to system integrators. This paper examines how firms can enhance their innovation capability through inbound and outbound open innovation.Design/methodology/approachThis paper applies both open innovation and a knowledge-based view and proposes a conceptual framework that encompasses innovation capability and the significance of tacit knowledge acquisition. A questionnaire was designed to collect relevant data from 139 Chinese manufacturing firms in six regions to test this framework.FindingsThe authors found that inbound open innovation has a stronger impact than outbound open innovation on synergistic innovation capability. The acquisition of skill-based tacit knowledge has a slightly stronger intermediary role between open innovation (no matter inbound or outbound) and synergistic innovation capability than cognitive tacit knowledge does.Practical implicationsFirms should improve external tacit knowledge acquisition efforts to generate new knowledge, inspire the innovation passion of employees and implement ambidextrous open innovation.Originality/valueThis paper makes a good first step to analyze the effect of ambidextrous open innovation on the synergistic innovation capability of Chinese manufacturing firms. It verifies the role of skill-based and cognitive tacit knowledge acquisition and provides new reflections on open innovation strategy in emerging economies, thus enriching open innovation and knowledge-based theories.

The Effect of Open Innovation on Firm Performance: Research Gaps

Open innovation can be considered as the critical branch of innovation management. It is an emerging field of research that is important for achieving sustainable competitive advantages through enhancing firm performance. This study aims to identify the research gaps in the effect of open innovation and firm performance based on the systematic literature review process. Depending on the systematic approach current study expects to find out research gaps and it targets to develop a conceptual framework to minimize the identified research gaps in the effect of open innovation and firm performance for future empirical investigations. An extensive literature review was implemented to achieve the research objectives through the adaptation of the desk research strategy. The systematic literature review process explored the effect of open innovation and firm performance was not entirely positive. Further, it discovered the three research gaps between open innovation and firm performance mainly. A conceptual framework was developed to minimize the identified research gaps by identifying a new variable to the established relationship. The literature survey and logical arguments provide a solid foundation to build up the conceptual framework. It was proposed to be tested empirically in the research context of listed companies in Sri Lanka by future researchers.

Effects of open innovation on eco-innovation in meta-organizations: evidence from Korean SMEs

Effects of open innovation on eco-innovation in meta-organizations: evidence from Korean SMEs

Business intelligence on firm s performance: The mediation effects of open innovation and financial performance

Purpose- In order to recognize and adapt to the changing demands and desires of their customers, businesses must become more inventive. This is made necessary by the quickly evolving multinational business environment and the extraordinary technological breakthroughs. Due to assure firm performance, these intelligence businesses must be able to respond to the complex dynamics in the global marketplace successfully, accurately, efficiently, and fast. Open innovation can be created to enhance performance by using knowledge learned about outside projects, rival businesses, clients, and new technologies. The purpose of this study is to ascertain the impact of business intelligence on a firm's performance with the mediation effect of open innovation on financial performance. Methodology- The statistical population for this study consists of 200 managers from internet technology and software enterprises. There are 132 company managers in the sample. A questionnaire that was distributed and gathered using a non-probability sampling technique is the data collection tool in this study. The research data were also examined using Smart-PLS and SPSS software. In this study, both descriptive and inferential analyses were used. Findings- Data analysis using PLS software and research findings demonstrate that business intelligence and open innovation have a positive influence on financial and firm performance. The findings also show that open innovation and financial performance play the roles of mediators. Conclusion- The results demonstrate that higher business intelligence levels enhance firm performance. In today's fast-paced and competitive company world, managing and optimizing business performance is essential for maintaining viability as well as maximizing firm profitability. In order to access performance, effective business performance management will combine business analytics with open innovation. Business intelligence can therefore offer a foundation for comprehending which data is pertinent for open innovation and company business improvement. Keywords: Business intelligence, firm performance, financial performance, open innovation JEL Codes: M20, L25, O36

How open innovation drives intellectual capital to superior organizational resilience: evidence from China's ICT sector

PurposeOpen innovation is regarded as the driven factor for organizational resilience, but open innovation's role and effect mechanism in leveraging organizational resilience has been limited explored. The purpose of this paper is to investigate the relationships between two types of open innovation and organizational resilience and the mediating effect of intellectual capital on open innovation and organizational resilience.Design/methodology/approachAfter a literature review, a research model including open innovation, intellectual capital and organizational resilience is proposed. Survey data are collected from information and communication technologies (ICT) sector in China and analyzed by using partial least squares–structural equation modeling (PLS-SEM) and Bootstrapping procedure to present results of each hypothesis test.FindingsResults indicate that inbound open innovation has a significant and direct impact on organizational resilience, while outbound open innovation has not. In addition, all three dimensions of intellectual capital were significantly correlated with organizational resilience and had mediating roles in the indirect effect of inbound open innovation and organizational resilience. Nevertheless, only social capital played a mediating role in the relationship between outbound open innovation and organizational resilience.Originality/valueThe study explores the relationships among open innovation, intellectual capital and organizational resilience in a comprehensive model, which is the first known study to highlight that open innovation can enhance organizational resilience through intellectual capital, and provides valuable suggestions for improving organizational resilience.

Effects of open innovation in startups: Theory and evidence

A robust literature has provided compelling evidence showing how open innovation impacts incumbent firms. However, only a paucity of research has linked open innovation strategies to different types of innovation in startups. This paper fills this gap in the literature by focusing on if, how and why open innovation enhances innovative activity in newly created firms. In particular, the paper examines how the role of both the specific external partner as well as the geographical location of partner matters in how product and process innovation is shaped in startups. The empirical evidence garnered in this paper suggest that not only do startups benefit from open innovation, but also the extent of product innovation and the propensity to innovate new processes in startups are significantly affected by specific external partner and its geographical location. The positive impact of open innovation reflects the heterogeneous effects of knowledge embedded in different partner types and the role that technological, institutional, and competitive arrangements play domestically and internationally in startup innovation. This study provides new light on how and why open innovation benefits not just incumbents but also startups as well.

Opening up early or late? The effect of open innovation before and after product launch on new product market performance

Despite a growing literature on open innovation in new product development (NPD), little is known about when openness is most beneficial during the innovation process. This study investigates the effectiveness of opening up NPD projects early or late, or before or after product launch, leading to four intertemporal NPD strategies: closed-closed, closed-open, open-closed, and open-open. Utilizing novel data of product innovation and market performance of 536 digital games, the authors study the effects of intertemporal NPD strategies on new product market performance under moderating effects of technological capability, marketing capability, and project complexity. The results indicate that the early open (open-closed) NPD strategy outperforms the late open (closed-open) strategy. Furthermore, the positive effect of open NPD strategies is stronger when technological capability is high, but weaker when marketing capability is high and when projects are complex. This study contributes to the literature by proposing a typology of NPD strategies that conceptualizes open innovation before and after product launch, and by demonstrating that NPD benefits from early openness, although firms decide to close the NPD project after launch. Managerially, this study offers empirical evidence that open NPD strategies with a consideration of project contingencies are important predictors of new product success.

Exploring the role of organizational creativity and open innovation in enhancing SMEs performance

Although the importance of fostering organizational creativity and open innovation is becoming more widely acknowledged, there are still few empirical evidence on the impact of creativity and innovation on enhancing SMEs performance. Moreover, previous study argued that the effect of creativity and innovation is still inconclusive, especially in SMEs. SMEs sometimes perceive that research and development is a costly activity and it doesn’t view as the activity that can directly improve performance. This study aims to examine the effect of organizational creativity and open innovation on SMEs performance. Data used in this study was collected from 206 SMEs located in several regions of Indonesia. The collected data then being analysed using PLS-SEM and this study found that all the hypotheses constructed were accepted. The findings indicate that organizational creativity and open innovation are significantly and positively influence SMEs performance. On the other hand, this study also treats organizational creativity as a second order variable that is formed from a combination of individual creativity, group creativity, internal environment, and knowledge creation where most study only consider individual and group creativity as aspect that formed organizational creativity. The result of this study provide evidence that organizational creativity that is formed by those four aspects has the ability to directly improve SME performance. Theoretically, this study contribute to the debate on how organizational creativity and open innovation can directly improve SMEs performance. Practically, this study provides insight to SMEs manager regarding how organizational creativity and open innovation can contribute to SMEs performance.

The Signal of Post Catch-up in Open Innovation Dynamics

The digital transformation can serve as a window of opportunity for those late-comers who are equipped with the capability to create complementary assets for grabbing new opportunities of technological leapfrogging as a way of catch-up while penalising the forerunner. In this context, we want to answer the following research question. Is there any difference in open innovation effect on the firm according to the changing of belonging sectorial innovation system from catch-up to post-catch-up? We statistically analysed the moderating effects of open innovation between catching-up, and the performance with the patents which were registered in United States Patent and Trademark Office, which were applied from China in telecommunication, from South Korea in Semiconductors, and from Japan in biotechnology on 1995–1999, and 2005–2009. We found three results from this study: first, from this research, as the signal of post catching-up, open innovation effects on the performance of firm, and the moderating effects of open innovation between catching-up, and the performance of the firm were found; second, the appearance of new dominant design after post catching-up was explained through the powerful open innovation and third, open innovation could be a useful new strategy for firms in the post catching-up to use.