Successful Open Innovation Research Articles

An Analysis of Critical Factors Affecting the Success of Open Innovation Strategies in High-Tech Firms: The Case of South Korea

High-tech firms face constant innovation and challenges due to a rapidly changing tech environment. Open innovation strategies are an important solution for fostering rapid and efficient innovation by leveraging external capabilities. This study explores the critical factors that influence open innovation strategies in high-tech companies, assessing their importance and providing key insights for promoting these strategies. Through a comprehensive literature review and expert interviews, 16 key factors impacting open innovation were identified. A hierarchical research model was developed using the ser-M (subject, environment, resource, mechanism) framework, focusing on subject, environment, resource, and mechanism for a corporate strategy analysis. A survey and an AHP analysis were conducted with 30 participants, comprising engineers and open innovation experts, all with over a decade of experience in the field within Korean high-tech companies. The analysis focused on four critical elements: subject, environment, resource, and mechanism; subject emerged as the most critical factor for successfully implementing open innovation strategies. Specifically, the will of chief executives, the direction of decision-making, and technological environment changes were found to be significant contributors. The consensus between engineers and experts confirms that while environmental and resource factors are vital, strong leadership and effective decision-making are paramount for successful open innovation in high-tech companies.

SME and Startup Collaboration in the Context of Open Innovation Projects: SMEs’ Digital Transformation

In order to achieve successful open innovation partnerships, small- and medium-sized enterprises (SMEs) need to choose very carefully whom they partner with. Open innovation has gained significant attention as a strategy for organizations to leverage external knowledge and resources to foster innovation and competitiveness. However, few studies have examined the dynamics of open innovation partnerships between startups and SMEs. This study adopts a qualitative research approach, employing multiple case studies to gather data. We mapped the reasons German medium-sized enterprises chose to partner with startups, enumerated the benefits and challenges they encountered during the projects, and uncovered the keystones of successful open innovation partnerships. Furthermore, our findings led to the discovery that startups can help SMEs to become more digital. Finally, we suggest future research topics in this field.

INNOVATIVE LEADERSHIP: NAVIGATING THE PATH OF OPEN INNOVATION MANAGEMENT

This research delves into the realm of managerial innovation, specifically focusing on the art of open innovation management. Titled "Innovative Leadership: Navigating the Path of Open Innovation Management," the study explores how leaders can effectively steer their organizations through the complexities of open innovation. Drawing on a blend of theoretical frameworks, case studies, and practical insights, the research aims to decipher the strategies and approaches that propel successful open innovation initiatives. The findings contribute to the evolving landscape of leadership in the context of fostering innovation through open collaboration.

Reputation incentive model of open innovation of scientific and technological-based SMEs considering fairness preference

The participation of external scientific research teams is an important support for the success of open innovation of scientific and technological-based small and medium enterprise (SMEs). The incentive mechanism should not only focus on traditional influencing factors but also on the scientific research innovation team’s internal characteristics and external environment. Considering the fairness preference of scientific research innovation teams, this paper constructs an open innovation reputation incentive model for scientific and technological-based SMEs and discusses the impact of relevant factors on the reputation and effort level of scientific research innovation teams under the situation of complete information and incomplete information. The results show that: (1) under the condition of complete information, the fairness preference of scientific research innovation teams is positively related to reputation incentive other than the effort level; (2) under the condition of incomplete information, the fairness preference of scientific research innovation teams has no significant impact on the reputation incentive but is negatively related to the effort level; (3) whether considering the fairness preference or not, the effort level and innovation capability of the scientific research innovation teams are positively correlated with the reputation incentive, while the effort cost, risk aversion coefficient, income distribution coefficient, and variance of external environment variable are negatively correlated with the reputation incentive; (4) the innovation ability of scientific research innovation teams is positively related to the effort level, while the effort cost, risk aversion coefficient, and variance of external environment variable are negatively related to the effort level.

Assessing the effectiveness of open innovation implementation strategies in the promotion of ambidextrous innovation in Thai small and medium-sized enterprises

The adoption of open innovation practices is becoming increasingly important for SMEs seeking to remain competitive in today's fast-paced business environment. The aim of this study is to understand the implementation of open innovation processes by SMEs while highlighting two critical processes: open innovation implementation (OII) and open ambidextrous innovation practices (OAIP). The study employes a second-order factor analysis incorporating multigroup structural invariance analysis to explore the differences in ambidextrous innovation practices across SME size categories using a sample of 615 SMEs in Thailand. The primary finding reveals and confirms a statistically significant positive relationship between the implementation of open innovation and the advancement of ambidextrous innovation practices. This relationship underlines the importance of embracing open innovation, as it fosters ambidextrous innovation, thereby enabling fresh perspectives, accelerating creativity, and facilitating knowledge exchange. Three categories of MSMEs—microenterprises, small enterprises, and medium-sized enterprises—are shown to be well positioned for adopting open innovation strategies, each demonstrating a significant ability to foster open innovation practices. In the study, practical and policy recommendations for business practitioners and policy-makers are presented, emphasizing the importance of understanding the organizational, managerial, technological, and contextual factors that underpin successful open innovation implementation. A novel structural second-order factor model that deepens our understanding of the complex relationships between open innovation processes is also introduced, offering valuable insights for academic researchers. In conclusion, this study emphasizes the importance of SMEs embracing open innovation practices and promoting ambidextrous innovation for sustained success and growth, and key strategic takeaways are proposed based on the empirical item-scale results.

Factors that make open innovation more successful than traditional approaches

PurposeFour management capabilities for successfully operationalizing open innovation are: strategy and culture, ecosystem capability, internal capability and technology enablement. Surveying more than 1,000 executives on current open innovation practices and capabilities, IBM IBV was able to identify how the different operating model capabilities interact and complement each other to drive better innovation and business performance.Design/methodology/approachTo help organizations build and improve their open innovation capabilities, the IBM Institute for Business Value (IBV) partnered with APQC to develop the Ecosystem-Enabled Innovation Maturity Model (EEIMM) - an open standards model encompassing four domain competencies required for successful open innovation. To assess the maturity and benchmark the performance of organizations’ open innovation capabilities, the IBV, in collaboration with Oxford Economics, used the EEIMM to survey over 1000 leaders responsible for open innovation at their organizations.FindingsFour management capabilities for successfully operationalizing open innovation are: strategy and culture, ecosystem capability, internal capability and technology enablement. IBV analysis found that organizations that are more advanced in developing the four building blocks see significantly better performance across key financial and innovation metrics.Practical implicationsFor every dollar of investment, the proportion of direct revenue attributed to open innovation is four times higher than for traditional innovation.Originality/valueLeading organizations are embracing open innovation as a critical component of innovation strategy and investment. They recognize that adopting open innovation yields far greater returns than traditional innovation can. Recent research by the IBM Institute for Business Value (IBM IBV) reveals, for example, that as many as 84 percent of executives now view open innovation as important for their organization’s future growth.

The limits of open innovation: Failures, risks, and costs in open innovation practice and theory

The success of open innovation has been widely acknowledged in both industrial practice and academic research. However, we understand much less about the limits of open innovation. A better understanding of this downside is nevertheless very important as there are still many organizations that struggle when trying to implement an open innovation strategy. At the same time, some research has pointed to decreasing returns to openness, or more generally to the compex relationship between open innovation and (financial) performance. This is why we call for more attention to failures, risks, and costs — and even the “dark side” — in the context of open innovation. In this editorial, we will further introduce this perspective, describe the articles published in this special issue, and offer some suggestions for future research. Overall, we believe that a better understanding of the limits of openness will allow for a more balanced view, thereby further expanding the frontiers of open innovation practice and theory.

Digitalization capability and sustainable performance in emerging markets: mediating roles of in/out-bound open innovation and coopetition strategy

PurposeStudies concentrating on digitalization and interconnected capabilities have increased over the past several decades. Digitalization capability and open innovation are perceived as sources of sustained competitiveness across disciplines. This study investigated how digitalization capability and coopetition strategy affect the sustainable performance of firms by exploring the role of internal and external factors in influencing the adoption and success of open innovation in emerging markets.Design/methodology/approachTo test the hypothesis, the authors conducted a structural equation model analysis on 509 firm datasets from the hub cities in China, an innovative battlefield where multilateral cooperation and competition are interwoven for globalization, clean development and the enhancement of economic growth.FindingsThe authors found that a firm's digitalization capability positively impacts outbound/inbound open innovation, coopetition strategy and sustainable performance. This study’s results support a series of mediating effects through outbound/inbound open innovation and coopetition strategy. Also, it provides a nuanced understanding of how digitalization capability and open innovation can affect sustainable performance in emerging markets.Originality/valueThe present study provides a nuanced understanding of how digitalization capability and in/out-bound open innovation can affect sustainable performance in emerging markets. The authors believe this model contributes to current knowledge by filling several research gaps, and this study’s findings offer valuable and practical implications for achieving open innovation and creating sustainable performance.

Open Innovation in E-government: Exploring its Practices in Tanzania

Open innovation (OI) in e-government is evolving as an important research agenda, which takes advantage of new collaborations and emerging technologies in provision of public services. The objectives of the article are (1) to examine the understanding of OI in e-government in Tanzania and the practices adopted in selected public institutions, (2) to identify the challenges of OI in e-government, and (3) to identify strategies for addressing the OI challenges. The article adopts a qualitative research method to investigate OI in e-government in Tanzanian context. The article concludes that (1) OI in e-government is still a new but significant research and practical agenda, (2) for Tanzania, OI is expected to accelerate innovation and to strengthen an OI ecosystem, (3) success of OI in e-government depends on how the government creates an enabling environment. This article makes theoretical and practical contributions in exploring OI practices in the Tanzanian public sector. Theoretical framework of OI in e-government is still emerging; thus, this article is timely. The practical recommendations of adoption of OI in e-government for the Tanzanian government add to the key contributions of this article.

Effects of Technology Endowment on Open Innovation Success in Medium-Sized Enterprises in Kenya

Technology is an infrastructural enabler that ensures success of open innovation (OI) activities in modern enterprises. The Kenyan experience indicates that the OI success strategy for medium enterprises (MEs) hinges on endowment of technological capabilities in operation and management of MEs. Notwithstanding, the aggregate entrepreneurial orientation (EO) of firms seems to be a determining factor in connecting the technological investment and stakeholders’ collaboration to activate the innovation potential of MEs. This study sought to determine the moderating role of EO on the relationship between firms’ technological endowment and OI success of service and manufacturing MEs in Kenya. The data collected were analyzed using Statistical Package for Social Scientists (SPSS) Version 23 and Smart PLS3 application software. The formulated hypotheses were tested using structural equation modelling. The results showed that Technology positively influences OI success; however, they did not confirm that EO moderates the Technology and OI success relationship. While the study recommends a strategic investment in Technology to enhance OI success, it also advises further research into the dynamics of the triple relationship between Technology, EO and OI Success to optimize their combination for enhanced organizational innovation.

Developing supply chain open innovation capability: The mediating role of the knowledge creation process, governance mechanism and technology as a driver

In the supply chain, companies are increasingly relying on the combination of internal knowledge creation and external knowledge resources to form a new “open innovation” approach. How to govern inter-organizational relationships (IOR) is a key determinant of knowledge creation, which involves both formal contracts and relationship behaviors. Formal contracts determine the roles and obligations of partners in the exchange, and relationship behavior is generated by mutual benefit from the exchange of various resources. Moreover, when the knowledge creation process requires partners to exchange knowledge, supply chain technologies such as the Internet of Things (IoT) and cloud-computing based advanced communication services are key in promoting the partners’ willingness to communicate. Therefore, this study uses the governance mechanism of the supply chain as a theoretical framework, and proposes an innovative and complete research model to explore the factors that influence open innovation capability in supply chains. PLS is used to analyze 140 samples collected from 600 organizations, the response rate is 23.3%. This study finds that supply chain technology has a stronger effect than both of the IOR issues, contractual governance and relational governance, for the exchange of tacit knowledge and explicit knowledge. The findings improve our understanding on how governance mechanism and technology drive the knowledge creation process towards open innovation success in the context of supply chains.

Analysis of Changes in Innovative Management of Global Insurers in the Pre- and Post-COVID-19 Eras

This study aims to determine the changes in the innovative management of global insurers in the pre- and post-COVID-19 eras. The keywords of the CEO messages included in the sustainability reports and annual reports of 91 global insurers were used to perform network analysis based on text mining. Specifically, (1) words related to innovation as emphasized in the CEO message of global insurers were extracted, (2) keywords related to innovation in the past three years, of 2018–2020, were compared, and (3) the characteristics of innovative management were analyzed based on the connotations in these words and their structural interpretation. The results showed that the keywords emphasized by the CEOs varied each year; “market” in 2018, “risk” and “value” in 2019, and “people” in 2020. Furthermore, mapping the open innovation success factors based on the keywords extracted according to eigenvector centrality showed that the key factors exhibiting the highest centrality represented the process in 2018, the provision of resources in 2019, and governance in 2020, indicating changes in innovative management. The significance of this study lies in suggesting a directionality of change in post-COVID-19 innovative management for stakeholders, clients, and employees of global insurers.

The fine line between success and failure: an analysis of open innovation projects

PurposeDespite the multiple calls for research on the dark side of open innovation, very few studies have approached the topic so far. This study aims to analyse successful and unsuccessful open innovation projects.Design/methodology/approachThis study uses thematic analysis to describe the factors determining their (un)success. The researchers interviewed 27 managers and owners in the manufacturing sector. Then, the respondents were asked to discuss one successful and one unsuccessful open innovation project to explore the differences in triggers and setbacks, focusing on the causes that determined the failures.FindingsFindings show that many interviewees are reluctant to identify failure cases, which somewhat explains the paucity of studies on the topic, and others do so when the failure is recognised by a third party (such as a public institution not granting funds to the project). This study discussed how this phenomenon is linked with the paradoxical relation between innovation success and failure. It is also found that triggers and setbacks determining the project's (un)success are markedly differently based on the technological intensity of the firm. Implications for scholars and practitioners are also drawn.Originality/valueThis study provides a balanced view between open innovation successes and failures to offer informative recommendations to practitioners. Furthermore, it contributes to filling the scarcity of studies related to risks and failures of open innovation projects. This gap has been addressed by studying the factors that determine the success and unsuccess of an open innovation project.

An optimized model for open innovation success in manufacturing SMES

Given the fluctuations in markets and the financial and resource constraints of SMEs, innovation is one of the solutions for improving performance, gaining competitive advantage and increasing survival probability for these companies. The paper aims to determine the best ranking of effective factors in open innovation success in manufacturing SMEs. At the first stage, the most important factors investigated using structural equation modelling based on the opinion of 275 experts. Subsequently, the impact level of each factor on the others calculated by fuzzy DEMATEL among 12 specialists’ viewpoints. In the end, optimized ranking of studied factors obtained by Ant Colony Optimization algorithm. As a result, economic factors, suppliers, competitors, partners, firm’s strategy, firm’s structure, reward system, employees, IT support, organizational learning, universities, research institutions, and ecological issues hold the first to the thirteenth rank with the highest cumulative impact on open innovation success. Developing relations with universities and research institutions for improving innovation process is recommended to manufacturing SMEs. In addition, these companies should coordinate firm’s strategy as one of the most important open innovation success factors with partners to gain competitive advantages against competitors.

What does it mean to be open? A typology of inbound open innovation strategies and their dynamic capability requirements

ABSTRACT The benefits of inbound open innovation are widely acknowledged, but not all companies are successful in their attempts to leverage external sources of innovation. Those with dynamic capabilities perform better, but developing and maintaining such capabilities generates costs. Therefore, a given company needs to find out which capabilities are worth investing in. In the current study, I adopt a contingency approach to inbound open innovation. I focus on distinct open innovation strategies that vary according to their approaches to innovative search and accessing complementary knowledge. I develop a typology of six inbound open innovation strategies based on the dimensions of managerial attention (proactive/reactive) and locus of innovation (internal/shared/external). I further report their requirements for four dynamic capabilities: sensing capability, impression management capability, absorptive capacity, and collaboration capability. The findings bring attention to often-ignored reactive strategies for inbound open innovation and provide a nuanced view of how the division of development responsibilities in different phases of the innovation process affects requirements for dynamic capabilities. The study supports managers in implementing successful inbound open innovation strategies by helping them choose a strategy that supports their organization’s overall objectives and strike a balance between underinvestment and overinvestment in dynamic capabilities.

The Influences of Open Communication by Senior Leaders and Legitimacy Judgments on Effective Open Innovation

Firms increasingly recognize open innovation as a key aspect of their innovation strategies. This study of 200 open innovation managers showed that open internal communication by senior leaders drives higher legitimacy judgments, which in turn drives open innovation success. Further, legitimacy judgments mediate the relationship between open internal communication and open innovation success. Open external communication by senior leaders moderates the indirect relationship between open internal communication and open innovation success, with more open external communication strengthening the influence on open innovation success. These results suggest firm-level open communication by senior leaders is essential for project-level open innovation success.

Guidelines for open innovation success with external product development firms

PurposeThe article offers an answer to the question, “When companies are caught between recessionary financial constraints and epic market discontinuity, what approaches actually deliver innovation efficiently and effectively?”Design/methodology/approachThe article offers guidelines for enterprises seeking to implement a form of open innovation with external product development firms that offers the prospect of being more nimble than internally-managed R&D and less expensive, risky and complex than outright merger and acquisition activity.FindingsPick the right challenges to “outsource collaboratively” to external innovation partners. One rule of thumb: partner externally when the defined challenge is something your team cannot effectively tackle–for example, new spaces, channels, materials, processes or supply chain. Outsourcing to experienced innovators can reduce internal competition, accelerate organizational learning and counteract internal turf battles. 10;Practical implicationsExperienced innovators seek authorization to manage their initiative as a portfolio of projects: instead of isolated stabs at innovation, they create a diversified array of programs, with different risk/reward ratios and different foci.Originality/valueThe author has extensive experience working as a a corporate sponsor of open innovation projects and as a contract R&D innovation manager and his teams have had to deal with programs that meander and drift because corporate politics shift, decisions are opaque and strategic communication breaks down. The guidelines offered are designed to prevent such breakdowns.

Crossing Firm Boundaries: How Boundary Spanners Search Over Time and Across Organizational Contexts

The success of open innovation depends on the individuals that stand at the interface of the firm and its external partners. These boundary spanners need to cultivate external search processes by s...

Managing Open Innovation: A Project-Level Perspective

Open innovation has become a mainstream phenomenon in the current business landscape. However, despite the fact that innovation projects generally have different attributes (e.g., complexity and uncertainty), most studies on open innovation have only considered firm-level characteristics (e.g., firm size and firm openness) to determine how to manage open innovation successfully. Project-level studies on open innovation management are still scant-There are only a few conceptual and qualitative articles on the topic, and there is a lack of quantitative insights. Based on a survey designed to collect detailed data from 201 innovation projects undertaken by American firms, this article provides a quantitative cross-project analysis of how two, key innovation project attributes (i.e., complexity and uncertainty) are related to five factors for successful open innovation management: 1) openness level, 2) external partner choice, 3) open innovation mechanism choice, 4) collaboration process formalization, and 5) internal firm practices. This exploratory study contributes to the open innovation literature by highlighting the importance of microfoundations (i.e., innovation project attributes) in successful open innovation management. This article concludes by suggesting a number of relevant project-level future research opportunities in the field of open innovation management, and some methodological recommendations on how to address such opportunities.

Investigating Factors Influential on the Success of Social Product Development initiatives

Abstract Social Product Development (SPD) is represented by tenants including crowdsourcing, open innovation, cloud-based design and manufacture (CBDM) and mass collaboration that either individually or in concert contribute to the democratization of design, manufacture and innovation. Although widely and very successfully used in thousands of documented case studies [1], these tenants have not yet fully arrived within the domain of professional and commercial industrial product development. Amongst the reasons for this are a lack of clear definitions as to what these tenants are and clear guidelines or procedures that outline how they can be used to aid the various phases of the product development process. In this paper, the authors investigate how success for each of the tenants or any combination thereof can be influenced. The tenants of Social Product Development can be mapped according to three factors; proximity to other participants (Pa), proximity to leading organization (Po) and the number of participants (N). In this paper, the authors hypothesize that these three variables are related to the success of SPD tenants. An analysis study is then conducted with expert researchers to test this hypothesis and determine whether these variables are influential on SPD success. The expert researchers determined that only one relationship, between open innovation success and organizational proximity existed, therefore rendering all other relationships non-existent and disproving the hypothesis. Results and limitations of the study are discussed before aims for further research are highlighted. These include clarifying definitions of success for Social Product Development, providing success factors for the tenants and supporting practitioners in applying SPD tenants.