Open Innovation Performance Research Articles

Does the impact of open innovation depend on contextual factors? A case of the Korean biopharmaceutical industry.

Investments in the strategic development of the biopharmaceutical industry are increasing in both developed and developing countries. The biopharmaceutical industry is a technology-intensive industry where securing original technology and intellectual property rights is important. The role of open innovation is becoming more important due to the enormous research and development (R&D) funds and long development period in the early development process, and open innovation (OI) is becoming more important in the corporate world. Many empirical studies have been conducted on the impact on performance. However, the contextual factors that affect the relationship between OI activities and innovation performance have received relatively little attention, and studies from the perspective of developing countries catching up with developed countries are even rarer. Accordingly, this study examined the moderating effects (government R&D support, absorptive capacity, and alliance management capacity) that affect open innovation and innovation performance in the biopharmaceutical industry using data from Korea, one of the most representative latecomer countries in the biopharmaceutical industry. The basic information, OI activities, and patent achievements of Korean biopharmaceutical firms were collected and organized into a database. Samples with missing or incorrect information were excluded, and 527 firms were analyzed. Negative binomial regression analysis was performed considering the characteristics of patent performance, which is the dependent variable, and a time lag of one to two years was assumed considering the time required to generate results. OI in the form of technological cooperation, rather than technology purchasing, has a positive effect on patent performance. Meanwhile, the greater the absorptive capacity and government R&D support, the greater the positive impact of technological cooperation on patent performance. Conversely, the greater the alliance management capacity, the greater the positive impact of technological cooperation. These results indicate that the impact of OI activities on technological innovation performance may vary depending on context.

Exploring the impact of social capital on business performance: The role of dynamic capabilities, open innovation and government support

This study examines the relationships between social capital (encompassing structural, cognitive, and relational dimensions), dynamic capabilities, open innovation (both inbound and outbound), government support, and business performance in Vietnam. Using a quantitative approach, data were collected from 289 respondents and analyzed using Partial Least Squares Structural Equation Modeling. The findings show that social capital positively influences both dynamic capabilities and open innovation. While dynamic capabilities have a significant impact on business performance, open innovation enhances government support but does not directly affect business performance. Additionally, dynamic capabilities mediate the relationship between social capital and business performance, and government support partially mediates the relationship between open innovation and business performance. These results underscore the importance of government support and dynamic capabilities in leveraging social capital for enhanced business performance, while also highlighting the need for further investigation into the direct impacts of open innovation on performance.

Digitalization as a Driver of Open Innovation Performance: The Role of Appropriability Concerns

Digitalization as a Driver of Open Innovation Performance: The Role of Appropriability Concerns

The Impact Of Open Innovation And Knowledge Management On Sme Performance In Yogyakarta

This research examines the impact of knowledge management, open innovation, and innovation capabilities on the performance of SMEs in the Special Region of Yogyakarta. Although previous studies on open innovation in the Indonesian context have been conducted, specific results from this region still need to be included, and certain variables related to performance improvement in SMEs still need to be explored. Therefore, this study seeks to address these gaps, with 202 respondents contributing to the research. Data analysis was conducted using SPSS and PLS-SEM with the SmartPLS tool. The findings indicate that the variables of knowledge management, open innovation, and innovation capabilities have a positive impact on SME performance. This research aims to enrich the literature on open innovation and SME performance. The study also provides valuable insights for business practitioners and stakeholders on how to implement these variables to enhance business or company performance.

The Belt and Road, Open Innovation and Enterprise Innovation Performance

The Belt and Road, Open Innovation and Enterprise Innovation Performance

Organizational Practices’ Role in Managing Open Innovation and Business Performance

Given the ever-changing world of technological advances, and due to the fact that business entities strive for efficiency and cost reduction, open innovation (OI) has become the focus of academic and scholarly discussions. Furthermore, to increase their competitiveness, small and medium enterprises (SMEs) have started implementing OI practices. This study aims to investigate the impact of SMEs’ internal organizational practices on OI and the impact of the latter on SMEs’ business performance. This quantitative study, which was based on gathering insights from SMEs, sought to answer two research questions related to the effects of organizational practices on the adoption and management of OI processes in SMEs and the role of OI in accelerating the business performance of SMEs. The findings revealed that not all SMEs’ internal organizational practices have a positive impact on both OI and SMEs’ business performance. This study is among the earliest studies in the UAE and GCC region to explore the impact of specific internal organizational practices on SME OI adoption and its business performance. The present study contributes theoretically and practically to OI literature and assists SME managers in evaluating their internal organizational practices’ suitability for OI adoption.

Exploring the Relationship between Open Innovation and Innovation Performance in Big Data Environment: The Moderating Effects of Innovation Expropriability

In the era of big data, the industry environment is complex and volatile, and enterprises need to innovate their business models by creating innovative value networks and reconstructing transaction systems to avoid being eroded in the process of global economic transformation. The traditional closed innovation processes are no longer deemed suitable for advancing firm innovation. Instead, open innovation has become a pivotal strategic choice in the quest to foster innovative developments. This study builds upon the paradox of open innovation (OI) in the age of big data, and introduces the innovation expropriability theory. Utilizing survey data from high-tech industrial park firms in the Yangtze River Delta region of China, it empirically examines the influence of open innovation on firm innovation performance (FIP). Furthermore, it explores the independent and joint moderating effects of rival absorptive capacity (RAC) and appropriability regimes (ARs). The findings reveal that OI significantly improves FIP. The effect of OI on FIP is positively moderated by ARs, while the independent moderating effect of RAC is not significant. However, a joint moderating effect is observed between RAC and ARs. Further investigation reveals that the moderating role of RAC depends on the presence of ARs, indicating a matching relationship between RAC and ARs. This research holds significant implications for firms in implementing open innovation strategies and ensuring effective intellectual property protection to enhance innovation performance in the era of big data.

Relationship between open innovation and innovation performance within high-tech firms: The mediating role of knowledge management capability

In the current competitive global marketplace, innovation is key for high-tech firms to thrive. Open innovation offers a promising approach, but its effectiveness remains unclear. Therefore, this research explored the connection between open innovation, knowledge management capability, and innovation performance within high-tech firms. We used a mediation approach to highlight the central role of knowledge management capability in the relationship between open innovation and innovation performance. We used a survey questionnaire approach to collect data from the 462 employees of high-tech firms on open innovation, knowledge management capability, and innovation performance using a convenient sampling technique. We used partial least square structural equations modeling through PLS-SEM statistics. Results indicated that open innovation has a direct, positive and significant connection with innovation performance. Similarly, the current research serves as a pioneering exploration into mediation analysis, highlighting the mediating role of knowledge management capability that influences the relationship between open innovation and innovation performance. Empirical studies offer valuable insights for leaders of high-tech firms, guiding them to identify effective knowledge management practices and determine the ideal extent of open innovation to boost innovation performance. The current study reveals novel insights into the benefits of knowledge management capability in enhancing open innovation efforts within firms. This research provides valuable implications and future research directions.

Trust (in)congruence, open innovation, and circular economy performance: Polynomial regression and response surface analyses

Engaging partner firms in open innovation is critical to overcoming internal resource/capability constraints to achieve firm and supply chain circular economy (CE) performance, yet scholars have not examined this link empirically. Further, while researchers have repeatedly emphasized trust as a key driver of open innovation performance, little is known from a dyadic trust perspective (e.g., congruence vs. incongruence, high–high congruence vs. low–low congruence). To fill these gaps, we propose a theoretical model based on the social exchange theory (SET) and test it using a dyadic dataset of listed Chinese manufacturing firms. The results suggest that 1) rather than unilateral trust from the focal firm or its partners, trust congruence is more predictive of successful open process and product innovations, 2) regarding congruence types (low–low vs. high–high), congruence at higher levels of trust facilitates open product innovation more than low–low trust congruence; interestingly, such an effect is not significant for open process innovation, 3) open process innovation has a positive influence on the focal firm's CE performance, but its impact on supply chain CE performance is not statistically significant, and 4) open product innovation has a significantly positive impact on the focal firm and supply chain CE performance. Our findings still hold after analyzing time-lagged models and alternative measurements as robustness checks. Our study provides meaningful theoretical contributions to the literature and useful, practical insights for managing inter-organizational relationships, open innovation, and CE performance.

Entrepreneurial Dynamics: Investigating the Success Factors in Start-Ups and Franchises in Egypt

Abstract This study embarks on a comprehensive comparative analysis of start-up ventures and franchise operations within Egypt’s burgeoning pharmacy industry, with a key focus on delineating the challenges and success determinants inherent in each business model. Adopting a mixed-method research design, the study utilizes surveys and questionnaires to extract empirical data on pivotal variables such as customer satisfaction, brand image, relationship quality, and trust, thereby evaluating their collective influence on the overarching success of the business entities under scrutiny. A critical facet of this research is the exploration of communication's role in fortifying open innovation performance during business negotiations, particularly within the start-up milieu. This insight is invaluable, underscoring the significance of strategic communication in cultivating customer loyalty and trust, which are paramount in the nascent stages of business development. In summation, the research offers profound insights into the disparate operational dynamics characterizing start-ups and franchises in Egypt. This study not only illuminates the pathways to business success in the competitive Egyptian pharmacy sector but also contributes significantly to the broader discourse on entrepreneurship and business strategy in emerging markets. JEL classification numbers: D25, M13, M31. Keywords: Franchisee entrepreneurs, Start-ups, Customer satisfaction, Pharmacy industry.

Customer orientation, open innovation and enterprise performance, evidence from Ethiopian SMEs

Customer orientation, open innovation and enterprise performance, evidence from Ethiopian SMEs

Investigating the Role of Innovation Capabilities and the Impact of Knowledge Transfer and Open Innovation Implementation on SME Performance in Yogyakarta

The study aims to examine the role of innovation capabilities and the impact of knowledge transfer and open innovation on the SMEs’ performance in Yogyakarta, Indonesia. Although previous research on open innovation has been conducted in Indonesia, it has not been specific to this region, and there are variables that still need to be explored concerning improving SMEs’ performance. Therefore, this study aims to fill this gap through research. An online questionnaire with a five-point Likert points was distributed to respondents who work actively and occupy functional positions in SMEs in Yogyakarta. A total of 202 respondents contributed to this study. Data were analyzed using SPSS and PLS-SEM with the SmartPLS tool. The results of this research reveal that the variables of knowledge transfer and open innovation positively influence SMEs performance and Innovation capabilities have a role in this relationship. Openness to innovation triggered by innovation capabilities will later encourage business practitioners to continuously innovate in their business performance, such as innovation in improving product quality. In this case, businesses need to consider the critical role of knowledge transfer in improving business performance. This study contributes to enriching the literature related to the concept of open innovation and SME performance. Additionally, the results of this study provide valuable insights for business practitioners to implement these three variables to enhance of their business performance.

Social Media as a Tool to Facilitate Human Capital Relations to Open Innovation and Business Performance

Social Media as a Tool to Facilitate Human Capital Relations to Open Innovation and Business Performance

Open innovation in hospitality and tourism services: a bibliometric analysis

Purpose This study aims to analyzed the development of open innovation research knowledge and its application in the tourism sector during the past 17 years, with the aim of understanding the scientific activity and impact of existing research. In addition, this research identifies trending thematic lines and provides recommendations for future research on this topic. Design/methodology/approach A bibliometric analysis was carried out from the Scopus database, in which 110 studies related to open innovation in tourism were identified. The analysis of the papers was done with the Bibliometrix and Vosviewer tools. Findings The results show that there is a recent and growing interest among academics, especially since 2017. Moreover, four main lines of work were identified: overtourism and sustainability, value cocreation, open innovation and competitive advantage and its impact on organizations belonging to the hotel sector and the relationship between external knowledge and internal sources in innovation management and open innovation performance. Originality/value The relationship with other stakeholders involved in the customer experience value creation in the tourism sector depends to a large extent on the joint offer that hotels, restaurants, tour operators and tourist offices, can provide in a tourist destination. Therefore, having external sources to innovate from will improve their innovative and organizational performance. However, there are no bibliometric analyses on the application of the open innovation paradigm in this sector. Thus, this research contributes to fill this gap, as well as to identify the most recurrent themes that show how open innovation is developing in tourism, providing academics and researchers with guidelines for future research.

Improving Innovation Performance by Means of Open Innovation: The Role of Entrepreneurial Orientation and Information Technology Capability

Prior studies indicate that firms yield varying results while adapting to open innovation (OI). They suggest an optimum OI level using the concepts of external search breadth and depth, whose antecedents’ relationships with innovation performance (IP) have been inadequately examined. This study explores how information technology capability (ITC) and entrepreneurial orientation (EO) influence a firm’s external search strategies and impact its IP. A survey of listed German firms ([Formula: see text]) found no support for a curvilinear relationship between open external search strategies and IP. Moreover, the assumption that ITC positively affects the relationship between external search strategy openness and IP was unsupported, proposing a negative moderating impact of ITC. The study observes that EO has differential moderating and direct effects on external search strategy effectiveness and its collective impact on IP.

Artificial intelligence capabilities, open innovation, and business performance – Empirical insights from multinational B2B companies

In contrast to the operational nature of business-to-consumer (B2C) enterprises, business-to-business (B2B) organizations emphasizes offering specialized products and services to their clients, which are businesses. Recognizing that B2B organizations are dealing with complex metadata in an ever-changing business context, artificial intelligence (AI) technologies possess the potential in assisting them analyse massive amounts of data, generating actionable insights, and formulating revolutionary ideas, potentially improving collaboration and innovation. As a result, this study adopts an empirical research approach to analyse the relationship among AI capabilities, open innovation, and business performance, with an emphasis on B2B companies, based on the theoretical foundations of social-technical system and contingency theories. This study investigated the relationship between AI capabilities and open innovation practices, as well as the effect they have on business performance, using survey data collected from 398 B2B multinational companies and structural equation modelling. The findings indicate that AI capabilities have a favourable effect on open innovation practices, which subsequently leads to an improvement in business performance. Notably, the impact of AI capabilities on business performance was found to be partially mediated. The examination of the moderating effect of environmental dynamism reveals that it exerts a significant influence on the relationship between AI capabilities and outbound open innovation. However, it does not have a significant moderating impact on the causal interaction of AI capabilities on both business performance and inbound open innovation. The ramifications of these findings are significant for managers and policymakers who are interested in fostering innovation and enhancing competitiveness within the B2B sector. The results underscore the crucial role of cultivating AI capabilities.

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.

The mechanism of TMT network characteristics on enterprises’ open innovation: A theoretical framework and meta-analysis

Based on the theories of social networks and Knowledge-Based View, this paper explores the mechanism of top management team network on enterprises' open innovation, using knowledge collaboration as an intermediate variable. Working from analysis of existing literature, this paper builds a theoretical framework and performs Meta regression analysis. This paper adopts the technical means of Meta-analysis to collect and quantitatively analyze 35 independent and empirical literatures from 2001 to 2019, and thoroughly inquires the relationship between TMT network characteristics and open innovation. The research discovers that TMT network centricity, network sparseness, and knowledge diversity all have a positive impact on enterprises’ open innovation, and that knowledge collaboration plays an intermediary role. Enterprises should actively utilize the social network relationships of TMT members to obtain diverse knowledge resources, promote knowledge collaboration, and improve the efficiency of knowledge sharing and creation, thereby promoting the improvement of open innovation performance.

The impact of forum content on data science open innovation performance: A system dynamics-based causal machine learning approach

Open innovation in data science generally takes the form of public competitions where teams exchange messages and solutions by competing and collaborating simultaneously. Team behaviours are widely heterogeneous in terms of the performance of their solutions and the participation in knowledge creation. We present a novel research framework for open innovation by integrating system dynamics and structural topic modelling to extract open factors and adopting a machine learning-based difference-in-differences estimator to understand the impact of team behaviour on their performance using data from Kaggle's competition. Our results identify four team behaviour categories—active, learner, lurker, and passive— in data science open innovation competitions which depend on the performance of their solutions and actions related to posting and reading messages in the forum. Furthermore, the activities of model evaluation, community support, and business understanding are the top three most positive and significant factors affecting team performance. Our research contributes to the literature by highlighting the value of forum feedback and exploring the data science activities in the forum discussion, in relation to innovation performance, to enrich the empirical understanding of open innovation. Research implications for researchers and practitioners participating in, organising, and supporting data science open innovation activities are provided.

Knowledge sharing and innovation performance: The mediating role of open innovation

AbstractThe investigation into the performance of small and medium‐sized enterprises (SMEs) driven by open innovation has received relatively limited attention in academic research. Businesses can enhance their innovation efforts and develop new products or services by using open innovation strategies to tap into internal expertise or examine external facts. The authors examined the rationales and outcomes of open innovation in SMEs by drawing upon existing theories related to the resource‐based and knowledge‐based perspectives of firms. A conceptual model was proposed. The hypotheses were tested using Partial Least Squares (PLS). Data collected from 429 SMEs were analyzed using SmartPLS 4. The current research indicates that open innovation serves as a mediator between knowledge sharing and innovation performance, with knowledge sharing exerting a positive influence on open innovation and innovation performance. The findings of this study emphasize the increased opportunities presented by open innovation theory and practice, providing insights into the formulation of strategies for the future development of Chinese SMEs.