Open Innovation Settings Research Articles

Exploring prescriptive and agile management of university-based living labs

ABSTRACT University-based living labs serve as open innovation platforms that foster collaborative research and experimentation across various disciplines. These labs bring together academics, citizens, community organisations, companies, and other entities to collectively address complex contemporary issues. The labs’ managers are expected to adopt flexible, agile management approaches to support the openness of their lab to stakeholders. Flexible management approaches create various challenges, as the labs are often expected also to comply with traditional project management principles of deadlines, project deliverables, budget restrictions, and quality conditions as set by their project sponsors and host organisation. The combination of prescriptive and agile project management approaches in such open innovation settings has been relatively underexplored in higher education research. Drawing on the theoretical literature on boundary work and project management, we analyse how the managers of a Dutch university-based living lab execute flexible project management styles in a setting that is dominated by prescriptive project management traditions. Based on information from 20 interviews and document analysis we identify five areas of tension between agile and prescriptive project management. Living lab managers, supported by researchers, buffer these tensions through boundary work that shapes the openness of the projects in rather unexpected ways.

Open innovation in a smart city context: the case of Sejong smart city initiative

Open innovation in a smart city context: the case of Sejong smart city initiative

Business Model Innovation through Open Innovation: Empirical Evidence from the Automotive Industry

Although open innovation (OI) has been characterized as one key driver for business model innovation (BMI), the literature lacks an in-depth understanding of how OI influences the business models (BM) of new ventures. However, such an understanding is crucial for improving the value creation and value capture for technological innovations in inbound OI settings. Based upon a unique dataset of 19 new ventures from 7 countries, which participated in Europe’s largest OI platform, this study finds that OI leads to an expansion in the customer segment, a greater focus in the value proposition, a shorter (but deeper) value chain, and challenges to the revenue model. The paper highlights important theoretical contributions for the BMI and OI literature, and derives tangible managerial guidance for entering OI partnerships.

Modeling Support for Mass Collaboration in Open Innovation Initiatives—The Facilitation Process Model 2.0

Many governments and organizations recognize the potential of open innovation (OI) models to create value with large numbers of people beyond the organization. It can be challenging, however, to design an effective collaborative process for a massive group. Collaboration engineering (CE) is an approach for the design and deployment of repeatable collaborative work practices that can be executed by practitioners themselves without the ongoing support of external collaboration engineers. To manage the complexity of the design process, they use a modeling technique called facilitation process models (FPM) to capture high-level design decisions that serve different purposes, such as documenting and communicating a design, etc. FPM, however, was developed to support designs for groups of fewer than 100 people. It does not yet represent design elements that become important when designing for groups of hundreds or thousands of participants, which can be found in many OI settings. We use a design science approach to identify the limitations of the original FPM and derive requirements for extending FPM. This article contributes to the CE and to the OI literature by offering an FPM 2.0 that assists CE designers to design new OI processes, with a special focus on outside-in OI.

Learning to Be Creative: A Mutually Exciting Spatiotemporal Point Process Model for Idea Generation in Open Innovation

This study investigates the creative idea generation process in an open innovation platform. The idea generation process is simultaneously influenced by multiple activities: knowledge acquisition from participants’ interactions with each other’s ideas, deliberate practice through persistent participation, and learning through failures. Due to the dynamic interplay across these activities, it is challenging to identify each activity’s influence on creative ideation outcomes using reduced-form regression analysis. To overcome these challenges, we employ a comprehensive empirical framework, the mutually exciting spatiotemporal point process model with unobserved heterogeneity, which endogenizes the occurrences of these activities in continuous time and allows for user-dependent effects. By utilizing the activity stream data of 13,028 participants from 2010 to 2016 in an open innovation platform, we uncovered synergistic effects of these activities on creative outcomes. We find that knowledge acquired through interaction with others (i.e., stimulus ideas) plays a vital role in the creative ideation process, but their effect is more nuanced than what we have known so far. In contrast to the prior belief that distant analogies, stimulus ideas outside of a problem domain, spur creativity, we find that distant analogies lead to failures. Yet, we further find that such failures are indispensable to the creative ideation process because failures motivate idea generators (1) to acquire more knowledge by increasing their future interactions with other participants’ ideas (learning from others), and (2) to persist in generating ideas that lead to improvements in their ability to apply the acquired knowledge and to identify innovation tasks that are relevant to their stock of acquired knowledge (learning by doing). Our results indicate that failures are a stronger driver of the learning activities than successes. Based on our findings, we offer insights on how to cultivate creativity in an open innovation setting.

Coordination Approaches to Foster Open Innovation R&D Projects Performance

Abstract Open innovation R&D projects involve teams from different organizations, which may affect the team’s ability to communicate since people are from different locations and companies, which may have different priorities, procedures, goals, and expectations. To succeed in the project, the team needs coordination mechanisms that facilitate teamwork. However, in the open innovation R&D projects, the coordination approach that fosters project performance is not evident. Using structural equation modeling analysis (PLS-SEM) with a sample of 50 open innovation R&D projects, we assessed the relationship with the project performance of two coordination approaches (organic or mechanistic) focusing on the communication strategies used. We find evidence that both organic and mechanistic approaches are positively associated with performance, which means that each approach has its role in fostering the project's performance. Consequently, such projects benefit both from open, continuous, and informal communication flow and from a more formal procedure of sharing information through a clear definition of project objectives, evolution, and challenges. This research extends prior research on coordinating teamwork for an open innovation setting.

Open Innovation in SMEs: Potential and Realized Absorptive Capacity for Interorganizational Learning in Dyad Collaborations with Academia

Due to a variety of barriers to develop innovation, small and medium enterprises (SMEs) find it necessary to collaborate with external sources of knowledge. The current study analyses the collaboration between SMEs and academia over an open innovation setting in Mexico. An absorptive capacity (ACAP) approach has been applied to understanding the process of developing new knowledge for achieving innovation. A two-part questionnaire was developed with the aim of assessing the ACAP of a new joint research unit. Data was collected from a local group of SMEs that collaborated as dyads with academia supported by a government program of innovation in Mexico. The result shows that there was a moderate potential and realized ACAP in the sample; these results are mutually related with both parts of the questionnaire which supports our findings. In conclusion, exploitation of new knowledge is a complex dimension for creating value from collaboration, which makes the outcome difficult to measure using traditional means. It can be argued that exploiting new knowledge for innovation is an iterative process of learning when exploring new sources of knowledge from academia.

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.

Learning to be Creative: A Mutually Exciting Spatial Point Process Model for Idea Generation in Open Innovation

This study investigates the creative idea generation process in an open innovation platform. Idea generation process is simultaneously influenced by multiple activities: knowledge acquisition from participants' interactions with each others' ideas, deliberate practice through persistent participation, and learning through failures. Due to the dynamic interplay across these activities, it is challenging to identify each activity's influence on creative ideation outcomes using reduced-form regression analysis. To overcome these challenges, we employ a comprehensive empirical framework, the mutually exciting spatio-temporal point process model with unobserved heterogeneity, which endogenizes the occurrences of these activities in continuous time and allows for user-dependent effects. By utilizing the activity stream data of 13,028 participants from 2010 to 2016 in an open innovation platform, we uncovered synergistic effects of these activities on creative outcomes. We find that knowledge acquired through interaction with others (i.e., stimulus ideas) plays a vital role in the creative ideation process, but their effect is more nuanced than what we have known so far. In contrast to the prior belief that distant analogies, stimulus ideas outside of a problem domain, spur creativity, we find that distant analogies lead to failures. Yet, we further find that such failures are indispensable to the creative ideation process because failures motivate idea generators (1) to acquire more knowledge by increasing their future interactions with other participants' ideas (learning from others), and (2) to persist in generating ideas that lead to improvements in their ability to apply the acquired knowledge and to identify innovation tasks that are relevant to their stock of acquired knowledge (learning by doing). Our results indicate that failures are a stronger driver of the learning activities than successes. Based on our findings, we offer insights on how to cultivate creativity in an open innovation setting.

How social media can fuel innovation in businesses: a strategic roadmap

Purpose This paper aims to present a framework to guide managerial action for social media (SM) strategies for innovation by exploring its constituent elements – the “what” (SM types), the “who” (stakeholders to be reached), the “for” (innovation types) and the “how” (innovation process stages), as well as the value, benefits and barriers. Design/methodology/approach A comprehensive and critical review of literature at the intersection of SM and innovation guides the development of a typology of SM types and their use across innovation types and stages. Findings SM type and use tend to differ across innovation processes. The authors identify four types of SM in use across four stages of innovation, supporting six types of innovation, influenced by five categories of barriers, benefits and stakeholders each. Research limitations/implications The research provides an integrative set of building blocks to consider for developing further studies of SM and innovation. Practical implications By highlighting the intertwined aspects of SM and innovation in an open and collaborative environment, the paper calls for development of an SM readiness organisational diagnosis. It empowers managers with a coherent framework of different elements they should take into consideration when defining their SM strategies for innovation. Originality/value Research on SM adoption and the extent of its usage for innovation purposes is still at its infancy. Given the increasingly open and collaborative innovation settings, the authors draw managerial attention to the need of SM strategies for innovation activities and provide a coherent analytical framework to guide action for organisational diagnosis.

The structural characteristics of innovation ecosystem: a fashion case

PurposeThe purpose of this paper is to provide empirical evidence of open innovation mechanism specific to aesthetic innovation. Prior research have drawn its research attention to technological innovation and focussed on the biopharmaceutical and technological sectors as the main research contexts. Thus, to gain a wider picture of the structural characteristics of innovation ecosystem, this paper aims to complement the existing technological-centred literature and provides understanding of aesthetic innovation by focussing on exploring the role of actors and intermediaries in either facilitating or inhibiting innovation in the creative sector.Design/methodology/approachThis is an exploratory study and the qualitative method was employed. With aim to explore aesthetic innovation in the creative sector, this research grounded its context in the UK designer fashion sector, which is part of the creative industries. Data were collected through a series of semi-structured interviews with respondents being purposely selected so as to ensure representativeness. A wider range of participants within the designer fashion sector was covered. Such multiple-sourced data collection approach allowed this research to triangulate data so that research trustworthiness was enhanced.FindingsThe result suggests the role of a broker in beyond traditionally facilitating knowledge exchange. This paper provides empirical evidence regarding the critical role of a broker in shaping the open innovation mechanism when it comes to aesthetic innovation. A broker in fact occupies a strategic position that allows it to negotiate relationships among the connected organisations and thus to govern the interaction mechanism of the innovation ecosystem as a whole. Given the empowered broker in such setting, the relationship between innovation creators and innovation seekers is controlled by a broker, which leads to risk that an innovation creator may not fully appropriate the value that it creates.Research limitations/implicationsThe main limitation of this study is its specific context, that is, the UK designer fashion industry. Such focus limits the scope of generalisation particularly its application to the entire creative sector. Thus, it is suggested that future research may consider to explore other creative industries so that the understanding of the open innovation mechanism from a structural perspective applied to aesthetic innovation can be enhanced.Originality/valueThis paper outlines the structural mechanism of open innovation applied to aesthetic innovation. The result contributes to the literature by complementing the findings derived from technology-centred research. Also, empirical evidence of this study is particularly of value to policy makers in the aspect of creative sector development. The suggested implications provide strategies of innovation ecosystem that could benefit individual actors involved in this open innovation setting and ensure prosper of the sector as a whole.

Searching for Partners in Open Innovation Settings: How to Overcome the Constraints of Local Search

The search for partners in open innovation settings often consumes substantial time and managerial attention. Yet, organizations tend to get trapped in local search, which typically leads to collaboration with partners already known to them. To improve the search for partners, this article develops a tool that exploits the power of state-of-the-art information technology. In a sample of 33 search queries conducted in six innovation intermediaries, it studies differences between search with and without the use of our tool. The tests confirm the tool’s effectiveness and efficiency, and highlight the importance of searching with keywords that represent the core roles and activities of a firm, next to keywords referring to market and technology characteristics. Network visualization and semantic algorithms thus appear to facilitate the effort to identify distant partners. The article also finds that local partners are not that easy to find as commonly assumed.

Unlocking the full potential of open innovation in the life sciences through a classification system

A common understanding of expectations and requirements is critical for boosting research-driven business opportunities in open innovation (OI) settings. Transparent communication requires common definitions and standards for OI to align the expectations of both parties. Here, we suggest a five-level classification system for OI models, reflecting the degree of openness. The aim of this classification system is to reduce contract negotiation complexity and times between two parties looking to engage in OI. Systematizing definitions and contractual terms for OI in the life sciences helps to reduce entry barriers and boosts collaborative value generation. By providing a contractual framework with predefined rules, science will be allowed to move more freely, thus maximizing the potential of OI.

Absorptive capacity in low-tech industry: Case Study of Indonesian Manufacturing Companies

Innovation has widely recognized as an important factor for driving competitiveness of many firms. In order to generate innovative performances, firms need to improve their capabilities in absorbing knowledge and technology from external sources, which is so called absorptive capacity. This paper will analyze what kind of sources of innovation in manufacturing sectors especially for low tech industries. Focusing on innovation activities, this paper aims to identify what kind of determinants in influencing the difference of absorptive capacity in low tech industries. The source of data is derived from Innovation Survey 2011 held by Center for Science and Technology Development Studies. The survey conducted for 1360 firms in manufacturing sector, in which most of the distribution is mainly consisted of low technology sectors. Instead of quantitative approach, the result is also supported by in depth interview from selected firms observed in 2013. This paper addresses multiple case studies as the qualitative approach, including firms in food and beverages, and jewelry art and design. According to the results, most of low tech companies searched their external sources of knowledge from their market, and customers were the main driver for their innovation output. In respond to this situation, this paper proposes an idea of open innovation for enhancing industrial competitiveness. As policy insights, the sources of competitive advantage in an open innovation setting will encourage the firm to the internal organizational processes that allow a firm to recognize, assimilate and exploit knowledge.

Patenting motives, technology strategies, and open innovation

PurposeThe purpose of this paper is to empirically investigate firms’ motives to patent in general, and more specifically how some of these motives depend upon firms’ technology strategies and especially their level of open innovation.Design/methodology/approachThe paper is based on a questionnaire survey sent to chief technology officers (or equivalent) of the largest R&D spenders among Swedish large firms (e.g. ABB, AstraZeneca, Ericsson, and Volvo) and among Swedish small and medium-sized enterprises. Principal component analysis and multiple linear regressions were used to check the impact from open innovation upon the importance of 21 different motives to patent, with a specific focus on protection and bargaining related motives.FindingsThe most important motive to patent is to protect product technologies, but protecting freedom to operate is almost as important, followed by a number of other motives. Increasing importance of open innovation in firms is related to stronger bargaining motives to patent, and even stronger protection motives. In fact, when comparing with closed innovation, the results show that open innovation is more strongly positively related with all different motives to patent except for one (to attract customers). This indicates that firms find it more important to patent when engaged in open innovation than when engaged in closed innovation.Originality/valueThe paper reports results from the first study that links patenting motives to technology strategies. It contributes to an emerging stream of empirical studies investigating the role of patents in external technology strategies and open innovation, showing that the motives to patent are strengthened within open innovation settings.

Walking into the room with IP: exploring start-ups’ IP licensing strategy

PurposeThe purpose of this paper is to explore the trends and features of one of the most visible intellectual property (IP) management practices, IP licensing, in the context of start-ups, accessing external technology at the outset of their lifetime. In particular, it compares start-ups and incumbent firms, in terms of licensing strategy pursued, role of in-licensed technologies relative to the internal innovation process and successively implemented IP management strategies.Design/methodology/approachA mixed-method study is presented using quantitative data on licensing deals from the US Securities and Exchange Commission and cases on start-up companies involved in inbound technology licensing.FindingsEvidence indicates start-ups have different IP licensing strategies than incumbents, and their successive IP management strategies are more flexible than for incumbents.Originality/valueThe authors shed light on IP licensing, which is gaining momentum in open innovation (OI) settings, in an understudied segment of SMEs, namely, start-ups. The authors display interesting evidence of the portion of start-ups that license-in from external companies, indicating that this practice is more widespread than literature would suggest; the authors demonstrate that licensing-in is a valuable strategy for start-up companies, possibly providing additional channels for acquiring know-how on the market. The authors therefore contribute to, and advance, entrepreneurship, IP and OI literature.

The governance of inter-firm co-development projects in an open innovation setting

Purpose The purpose of this paper is to examine the governance of inter-firm co-development in an open innovation setting and show how a stage-gate product development process can be used to support this relationship. Design/methodology/approach The authors adopt a qualitative case-study approach informed by ethnomethodology. Data were obtained via semi-structured interviews and document analysis. Findings They found that in an open innovation setting – where the producing partner relies on a research partner for all product development activities – a stage-gate product development process can act as a governance mechanism, as it enables the development of trust and cooperation which supports the co-development relationship. Research limitations/implications The implication of this finding is that a stage-gate process can be a flexible governance mechanism, which can adapt over time in relation to the needs of the co-development partners in an open innovation setting. This also lays the groundwork for future research to explore the applicability of this tool in other settings, e.g. outsourcing arrangements as well as help guide the design and implementation of future governance mechanisms. Originality/value In the context of accounting research, this paper helps practitioners and academics understand how a stage-gate process can be used as a governance mechanism to manage and control co-development projects in an open innovation setting.

Complexity approach to joint value discovery in service innovation management

The paper uses complexity ideas to consider servitisation dynamics in industrial companies. The purpose is to advance complexity modelling in service innovation management and the dynamics of servitisation, an area which has so far spawned only limited research. Service innovation management is modelled as a dynamic process of joint value discovery that increases the potential for radical or architectural innovation through increased marketplace exploration as global industrial firms move from product-based to service-oriented business models. Building on prior servitisation research, this study is an outcome of a three-year process-oriented action research project in two global industrial companies. The study identifies four phases in the transition to servitisation and uses phase transition modelling from complexity science to describe a typology of dynamically stable innovation business models in industrial firms. The model can be used to better understand, predict and guide the process, mechanisms, and outcomes of increased capacity for joint value discovery. The theoretical developments presented are particularly useful in guiding leadership of innovation in broader organisational, networked, and open innovation settings, contributing to the development of new service innovation strategies as well as an approach to systemic leadership of innovation activity more broadly.

The Architecture of Evaluation Processes in Open Innovation Settings

Developing and commercializing novel ideas is central to innovation processes. As the outcome of such ideas cannot fully be foreseen, the evaluation of them is crucial. With the rise of the interne...

The Complementing Roles of Online and Offline Channels for Open Innovation

This paper considers the complementary role of online and offline channels in Open Innovation settings. While recent research points out the importance of IS in the Open Innovation process, the act...