Implementation Of Open Innovation Research Articles

Section 1.b Introduction

Open innovation has been described as a means of assisting firms utilising ideas and knowledge from inside and outside the firm. It has been defined as “a distributed innovation process based on purposively managed knowledge flows across organisational boundaries, using pecuniary and non-pecuniary mechanisms in line with the organisations business model” (Chesbrough et al, 2014, p vi). Open innovation strategies may lead to better financial performance by reducing costs related to innovation, increasing commercialisation and financial gain.
 Understanding open innovation in some way explains how sharing knowledge with internal and external stakeholders can promote innovation. Understanding processes can reinforce the importance of engaging with customers early in concept development and design stages of new products and services. Also openness can promote co-creation between firms, customers, suppliers, academia and government. The essence of such cooperation by internal and external stakeholders creates relationships to explore common interests and goals.
 From an open innovation perspective, value creation and capture is accomplished by (i) outside-in open innovation, i.e. ideas drawn into the organisation from the external environment. This involves opening up organisation’s innovation processes to external inputs and contributions, (ii) Inside-out open innovation utilises unused or underused ideas and assets gathered from outside the organisation and (iii) Coupled open innovation links outside-in and inside-out open innovation processes combining knowledge inflows and outflows to collaboratively develop and commercialise an innovation.
 Traditionally, knowledge is considered as being held by the firm as core competences and it is assumed that this is a source of sustainable competitive advantage. Accordingly knowledge used in, and resulting from, innovation and the knowledge resulting from the innovation remains within boundaries of the firm. Open innovation opposes this view as it integrates diverse knowledge from the wider environment into the business ecosystem and creates new knowledge for multiple stakeholders.
 Due to the inter-disciplinary nature of open innovation it can be discussed and theorised from many viewpoints, such as strategy, value chain, business models, core competencies, knowledge creation and more recently in design management. Levels of analysis vary with considerable research frequently conducted at organisational level, while more is needed in areas such as inter-organisational value networks. To date, large organisation have been at the focus of open innovation research, primarily because they are able implement open innovation to some degree without strategic change. More recently, open innovation practices in SMEs have become important, as these small firms have insufficient resources to cover all innovation activities and must look beyond firm boundaries for growth opportunities. Thus, inter-organisational networks are important drivers of innovation in SMEs as they often struggle to make the best use of strong network ties. Exploring open innovation in SMEs can provide insight into how best to utilise their networks.

Open Innovation in Regional Innovation Systems: Assessment of Critical Success Factors for Implementation in SMEs

This paper aims to assess the critical success factors (CSF) to implement open innovation (OI) in companies of Regional Innovation Systems. The CSF compiled from the literature were subjected to factor analysis and grouped into five main categories. These factors were transformed into indicators to assess the CSF and verify RIS companies’ stance on OI implementation. The companies were subsequently grouped by similarity to form three distinct clusters in relation to CSF. Cluster analysis revealed a group of companies committed to OI, mostly influenced by service companies, a group of conservative companies or companies with limitations regarding OI, and a third group of companies that resisted this strategy. The results yielded interesting insights about the implementation of open innovation in Regional Innovation Systems that can help to further academic discussions on this topic. Furthermore, this paper provides indicators that managers can use as tools to identify and assess which CSF for OI have the most impact in their business context, and on which CSF they must focus their efforts and improve.

Implementing Open Innovation in Research and Technology Organisations: Approaches and Impact

Research and development organisations (RTOs) are at the heart of innovation systems. They help to connect innovation system actors to foster industrial innovation. Due to this intermediary role, they act as paradigmatic open innovation (OI) actors. In this context, RTOs need to balance their knowledge stocks and flows, while assuring their own innovation capabilities and positively impacting the innovation system they influence. Thus, RTOs need to develop collaboration approaches that support their own performance while increasing their capabilities and not threatening their competitive advantages derived from their knowledge stock. In this study we extend the OI research to research organisations analysing their OI approach and the impact on its own performance, developing a new framework for OI study in RTOs using a partial least squares structural equation modelling (PLS-SEM) approach. The research, based on a sample of Spanish RTOs, arises two substantive conclusions. First, an increased number of collaboration partners (collaboration breadth) and the use of a variety of OI practices have a strong impact on RTOs’ overall performance (scientific, transference, and economic results). Second, RTOs need to foster their aperture and promote an active management to benefit from collaborating partners, whereas managers should pay special attention to questions related to the protection and management of intellectual property when promoting the use of different OI practices. Both results also emphasise the importance of managing firms’ knowledge flows in the implementation of OI in RTOs.

The Systematic Model (ESFE) for Implementation of Open Innovation in Yuchai Group in the Peopleos Republic of China

Purpose: This paper aims to develop a systematic model of open innovation from a systematic view based on the case study of Yuchai Group‘s practices to illustrate the knowledge input and output in the open-innovation model. Design/methodology/approach: The systematic model of open innovation is constructed based on Yuchai Group‘s practices in the People‘s Republic of China from a grounded theory approach. Findings: The results show that, from the systematic view, the dynamic process of open innovation is divided into four interconnected parts: elements, integration, evaluation of performance and adjustment to the environment. For Yuchai Group, the element acquisition are much more vital than the development of ideas.

Implementing Open Innovation Using Quality Management Systems: The Role of Organizational Commitment and Customer Loyalty

Open innovation contributes to serving the customers of organizations with higher quality, as the customers become an active part of the innovation process. A successful solution for implementing open innovation can be achieved if organizations first create a total quality management (TQM) culture and then build on this foundation an ISO 9004:2018. The success of a quality management system depends first and foremost on the attitudes of the stakeholders, and the importance of technological and other conditions is only secondary. The goal in developing a successful philosophy of TQM is to build and sustain the leaderships’ and employees’ commitment, while the key to the success of ISO 9004:2018 is to establish and maintain the employees’ commitment and customer loyalty. The case study presented in this article demonstrates the need to increase the affective and normative commitment of leaders and employees in TQM, and after its implementation, there is a need to increase the employees’ continued commitment and customer loyalty in ISO 9004:2018 in order to succeed in quality management systems and open innovation.

The impact of open innovation on product development: innovation versus creative ecosystems

Developed business ecosystems exhibit open innovation as the most relevant booster of organizational development. Also, from a combined approach to innovation perspective, using collaboration among different stakeholders in order to achieve competitive advantages, open innovation serves as an important technique for new business model creation. Thus, it is especially important to enhance the impact of open innovation on organisational processes as the main driver for organizational higher performance and development. Based on literature review this paper aims at exploring the main transition from product development processes to co-creation products through implementation of open innovation, in highlighting key differentiating aspects by different types of ecosystems. Consequently, a comprehensive framework for co-creation processes in innovation and creative ecosystems, in terms of product development stages, is provided based on specific adopted criteria, emphasising the open innovation impact within innovation versus creative ecosystems.

Implementing Open Innovation in collaboration with competitors : mode to attract startups

Implementing Open Innovation in collaboration with competitors : mode to attract startups

Understanding open innovation in small and medium-sized museums and exhibition halls

PurposeThe hostile environments in which museums operate force them to be innovative. Most of them have fewer resources and are publicly owned. Because these factors may hinder their innovative potential, this paper aims to propose an open innovation model adapted to this type of organization to improve visitors’ experience.Design/methodology/approachA qualitative method based on a thematic analysis is carried out. Data sources are: (i) focus group with stakeholders from the destination and (ii) in-depth interviews with museums experts.FindingsThis new framework is important because it brings something new to a field that previous research had barely considered. The study of the implementation of open innovation in publicly owned small and medium-sized museums brings to light the growing importance of the relational, organizational, technological and experiential dimensions, their interactions and their main constituent factors.Research limitations/implicationsThe study is limited to a specific type of institution, and results should not be extrapolated to other contexts. The construct of open innovation is highly complex, and that advises future research to include other players. Quantitative methods and longitudinal techniques will contribute to tackling new challenges in future research works.Practical implicationsResults are helpful for museum managers and policymakers. Stakeholders improve their comprehension of how an open innovation model works because the paper offers a few guidelines for its active designing. A solid networking based on trust and the emphasis on improving the visitor experience determine making-decision processes.Originality/valueThe paper provides a systemic innovation management model for museums, where there is almost no previous research. It is theoretically supported in the open innovation paradigm, as well as the absorptive capacity framework. The emerging and central role of the experiential dimension constitutes another notable contribution to literature.

Framework Proposal for Open Innovation Implementation in SMEs of Regional Innovation Systems

In the literature of Open Innovation (OI), some specific themes, such as elaboration of methods, strategies and systematized processes of implementation are still little discussed. In attempted to fill this research gap, this study aims to present a proposal for a framework for the implementation of OI in Small and Medium-sized Enterprises of Regional Innovation Systems (RIS). As such, it can support the theoretical development related to OI implementation methods and tools. The constructivist method was used in the development of the framework, which represents the Implementation Process of OI (IPOI), consisting of 5 stages: (i) diagnosis of RIS; (ii) diagnosis of the enterprise; (iii) preparation; (iv) implementation; and (v) monitoring and control. The unfolding of this process in stages and measurement systems allows us to understand the elements and Critical Success Factors (CSF) that interfere in the improvement of the capacity of innovation in SMEs inserted in RIS.

Harnessing adaptive capacity to close the pandora’s box of open innovation

ABSTRACTThis paper focuses on how companies deploy structural properties of adaptive capacity (multiplexity, redundancy and loose coupling) to cope with the phenomenon of internal challenges of Open Innovation (OI) implementation, i.e. organisational and cultural changes. We developed a single case study, which offered significant findings. First, the multiplexity of relationships in OI settings helps to face the challenges of organisational and cultural changes by triggering trust formation and interaction. Second, redundancy has twofold elements: institutional logics redundancy triggers cultural change challenges which can be overcome through management practices and communications; task redundancy facilitates knowledge sharing and collaboration, thus helping to deal with organisational change challenges. Finally, loose coupling in OI settings facilitates social interconnectedness among members through management practices, helping to face organisational and cultural change challenges. We provide managerial and theoretical implication to deal with the challenges of OI in relation to both organisational and cultural changes.

Implementation of Open Innovation in The Small and Medium-Size enterprise (SMEs): A Literature Review

This study is a systematic literature review of three academic articles. It aims to investigate and explore the implementation of open innovation in SMEs. The review was conducted in three phases: (i) understanding the concept of innovation and open innovation; (ii) identifying references and (iii) exploring primary study which explains about the implementation of open innovation in SMEs. Finally, this paper examines how the concept of open innovation in SMEs is implemented in different countries. The result shows that open innovation in SMEs focus more on commercialization because marketing channels and global contacts to introduce them effectively to the market. Implementation of open innovation in SMEs has a significant impact to the company in the aspect of 1) motives and perceived challenges, 2) leadership, people, culture, and business improvement; 3) company size on the effectiveness of innovation endures.

Open innovation: it starts with the leader’s openness

ABSTRACTResearch on open innovation mostly focuses on company level aspects of this phenomenon and predominantly investigates open innovation in large firms. Individuals and especially leaders play a vital role in the successful implementation of open innovation. However, research on this important issue has only recently begun to flourish, with research showing the vast occurence of open innovation activities among small and medium-sized companies and the vital role entrepreneurs play for open innovation. In this research, we connect the fields of open innovation and entrepreneurship and employ dynamics capability literature to focus on factors on the individual level (entrepreneurs’ openness and network closeness), which affect innovation performance and strategic growth intentions of companies through absorptive capacity. We conceptualise a theoretical model and test it on entrepreneurs samples from two countries (Slovenia and United States) by means of structural equation modelling. The results suggest that entrepreneurial openness is an important antecedent of absorptive capacity and that too much focus on maintaining the same business contacts (network closeness) prevents the company from absorbing trends from outside the company and network. We also show that absorptive capacity is positively related to innovation performance and strategic growth intentions. We discuss the implications for theory and practice.

OPEN INNOVATION PRACTICE: EXPLORING OPPORTUNITIES AND POTENTIAL RISKS

In modern business reality, given a tendency towards digitalization of the economy, expanding network cooperation and the increasing role of knowledge and technology transfer, the principles of interaction between actors of innovation process are changing drastically. These factors determine a shift from the traditional “closed” innovation model towards open innovation practice. The advantages of open innovation activities are widely discussed, however, a large number of enterprises, involved in such projects face various challenges in managing open innovation. Thus, from a managerial perspective, it is essential for modern companies to find the right balance between benefits and potentially negative consequences of the open innovation model. Although it is an important issue for innovative enterprises to analyse possible risks and benefits of participation in open innovation projects, appropriate managerial instruments of exploring opportunities and threats of such collaboration are still not sufficiently researched. The purpose of the paper is to improve the typology of a company’s open innovation activities and to explore the opportunities and potential risks of open innovation in modern organizations. Methodology. To achieve the above-mentioned purpose of the research, the following scientific methods were used: structural-logical analysis, comparative analysis, systematization, formalization, graphical method. The results of the research show that companies need to develop specific innovation capabilities related to knowledge management in order to provide successful implementation of open innovation: knowledge absorptive capability, knowledge sharing capability and knowledge co-creation capability. A theoretical framework for understanding the linkages between a firm’s organizational capabilities related to knowledge management is offered as a result of the study. The improved typology of a company’s open innovation activities in accordance with the direction of knowledge flows (inbound or outbound) is presented. Based on research findings key potential risks of open innovation practice are systematized which include primarily loss of core knowledge and technologies, problems in protecting intellectual property and complexity in managing interactions with collaboration partners. Practical implications. From a managerial standpoint as a result of the conducted research, the main opportunities and risks of open innovation are defined, which should be taken into account in order to make the right decision on this type of collaboration. Appropriate managerial countermeasures are proposed in the paper to be practically applied to prevent risks of open innovation implementation. Value/originality. The improved typology of a company’s open innovation activities in accordance with the direction of knowledge flows (inbound or outbound) is presented, as well as main risks and managerial challenges of open innovation practice are systematized.

How open innovation shapes strategy: an explorative multiple case study in the ICT industry

Purpose of the paper: This paper explains to what extent open strategy draws on open innovation, and how different degrees of open strategy exist because of the adoption of open innovation. Methodology: Since the relationship between open innovation and open strategy represents an empirically under-explored research area, we adopt an exploratory multiple case study design to develop new theoretical and empirical insights pertaining to this topic. Findings: The present study reveals that open strategy is grounded in the implementation of an open innovation approach and that, once developed, it may, in turn, affect open innovation implementation. Moreover, our results show how the degree of “openness” of the strategy depends on the extent to which the firm shares information with external stakeholders and transforms external inputs in open strategy actions/interventions. Research limits: Given the exploratory nature of this study, the conceptual linkages between open innovation and open strategy may represent a starting point for future research in this area, which requires further empirical validation. Practical implications: Our theoretical framework may be useful for practitioners to approach an open strategy starting from open innovation implementation. Furthermore, it displays two variables, i.e. stakeholder engagement and open communication, that managers should control to regulate the openness of their strategy. Originality of the paper: The present study represents a first attempt to explore a theoretical connection between open innovation and open strategy from the firm’s perspective.

A quantitative model for open innovation and customer involvement

This paper investigates the extent to which business organisations in Cyprus use open innovation and customer involvement. Particularly, the product development process is investigated, and how the customer involvement actually occurs. Specifically, we examine the role of customer involvement in the idea generation process; contribution in building innovation capabilities; how co-creation contributes to competency development and goal achievement as well as the role of customer involvement in the overall business performance. Further, we investigate the necessary pre-conditions in terms of organisational culture for effective open innovation implementation. The results presented in this paper would be particularly important for business organisations but also for researchers who are interested for a closer insight in the relationship between open innovation and business performance.

WHAT DOES OPEN INNOVATION MEAN? BUSINESS VERSUS ACADEMIC PERCEPTIONS

Since the first appearance of ‘open innovation’ as a theoretical concept in 2003, the debates on its essence still continue among academics, while its interpretations within the business community also seem to differ from one company to another. Using a survey of 251 companies operating in Europe, in this research, we compare the perceptions of open innovation that exist within both the academic and business worlds, to assist in the conceptual development of the phenomenon. Our research reveals a mismatch in these perceptions, as only a few activities counted as ‘open’ by innovation scholars appear to affect companies’ self-reported state of open innovation implementation. Moreover, our research has shown differences in the interpretation of open innovation among companies of different sizes. Only free revealing, acknowledged by scholars as one of the open innovation practices, has been recognised as such a practice by all the studied firms. This paper contributes to conceptualisation of ‘open innovation’ and shares practical insights on bridging academia and business perceptions of it.

A quantitative model for open innovation and customer involvement

This paper investigates the extent to which business organisations in Cyprus use open innovation and customer involvement. Particularly, the product development process is investigated, and how the customer involvement actually occurs. Specifically, we examine the role of customer involvement in the idea generation process; contribution in building innovation capabilities; how co-creation contributes to competency development and goal achievement as well as the role of customer involvement in the overall business performance. Further, we investigate the necessary pre-conditions in terms of organisational culture for effective open innovation implementation. The results presented in this paper would be particularly important for business organisations but also for researchers who are interested for a closer insight in the relationship between open innovation and business performance.

Technology Orientation and Inbound Open Innovation at LMT Firms: An Empirical Study in Sri Lanka

Despite the growing interest in open innovation, previous studies have ignored the role of firms’ strategic capability in evoking open innovation, especially in low and medium-low technology (LMT) firms from technologically less advanced countries. This study rectifies this problem by examining the impact of technology orientation on the implementation of inbound open innovation. Also, assessing the effect of the environment on the relationship between technology orientation and inbound open innovation, this study considers technology turbulence and market potential. The hierarchical regression analysis, based on cross-sectional survey data collected from 272 LMT firms in Sri Lanka reveals that LMT firms adopt inbound open innovation at a moderate level. LMT firms value technology and face above-average level technology turbulence and market potential. Results show that both technology orientation and market potential have a significant positive effect on the implementation of inbound open innovation, but no evidence from technology turbulence. Also, technology turbulence negatively, and market potential positively moderate the relationship between technology orientation and inbound open innovation. The findings indicate that LMT firms in Sri Lanka should exploit technologically superior products to meet customers’ needs and attract the market. Also, technology orientation plays a salient role in attractive markets but not in technologically turbulent environments.

Analisis Implementasi Inovasi Terbuka : Peran Kerjasama Eksternal terhadap Inovasi Produk dan Kinerja Perusahaan (Studi Empiris pada Usaha Kecil dan Menengah (UKM) Batik di Yogyakarta)

A dynamic business environment put a high pressure on the companies to improve their innovation capabilities continously. It could be achieved by making a collaboration with external parties to capture their knowledge and technology, and then turning it into innovative products and services that companies provided. The aims of this study is to determine the effectiveness of open innovations implementation in Batik Industry in Yogyakarta on firm performance. It focuses on the analyzing of the company's ability in collaborating innovatively with external parties, such as competitors, government, and research institutions. Small Medium Enterprise (SMEs) of Batik Industry in Yogyakarta is used as the population. The sample is choosed by using convenience simple random sampling method that result in 96 SMEs. Then, the data is analysed through the Partial Least Square (PLS) method using 3 independent variables, inter-company cooperation, companies and government cooperation, and companies and research institutions cooperation that tested on firm performance. Besides, product innovation also used as intervening variable. The findings show that a collaboration between companies and government have a positive effect on product innovation, while firm collaboration with research institutions has no effect on product innovation. The role of product innovation as an intervening variable in this model is significant in mediating the effect of external parties collaboration on firm performance. Further, these findings is expected to contributed on SMEs strategies development in building innovation capabilities, particularly in open innovation implementation that would affect firm performance.
 
 Keywords: External Cooperation, Innovation, Performance

THE EFFECT OF INBOUND OPEN INNOVATION ON FIRM PERFORMANCE IN JAPANESE MANUFACTURING FIRMS: COMPARATIVE STUDY BETWEEN RESEARCH CENTRE AND BUSINESS UNIT

This study aims to investigate the inbound open innovation and firm performance in different time periods across different organisations. Specifically, a conceptual model at firm level analysis was proposed based on literature review. The model was tested with structural equation modeling, using the empirical data which were collected from 60 research centre projects and 62 business unit projects in 2008. Results reveal the causal relationship between the implementation of inbound open innovation and the firm performance in both research centre and business unit. Comparative results showed that regarding research centre, increasing the frequency of inbound open innovation, efficient interal R&D activities and the higher degree of product newness make projects stable and efficient; consequently, the success of firm performance is achieved. As for the business unit, the frequently inbound open innovation practices are necessary for terms of generating efficiency and outcomes, and efficient inter R&D stargeties are significant conditioned by the degree of product newness, contributing to the firm performance as well.