Open Innovation Practices Research Articles

The potential of open innovation platforms: driving sustainable development goals through digital collaboration

ABSTRACT Open innovation is a pivotal driver of organisational growth. This concept involves engaging external partners and leveraging diverse knowledge sources, leading to significant advancements in sustainability. With the rise of digital platforms, the potential for open innovation to foster sustainable development has increased. However, the literature on the intersection of digitalisation, open innovation, and sustainability remains sparse and fragmented. This study aims to bridge this research gap by exploring how digital platforms facilitate open innovation practices and their impact on sustainability, particularly in alignment with the United Nations Sustainable Development Goals. By creating a comprehensive database from scientific literature published between 2019 and June 2024, this research compiles a wide range of applications, case studies, and proposed implementations of open innovation platforms. Exploratory analysis maps the landscape of these practices, focusing on their sectoral applications, technologies involved, and business impacts. Text mining techniques are employed to identify patterns and key elements within the dataset. This analysis reveals how open innovation platforms contribute to sustainability, highlighting areas where they are most effective and identifying gaps for future research. The findings offer theoretical and practical insights, providing a detailed understanding of the current state of open innovation in the digital age, and their implications for sustainable development. This study aims to inform practitioners and policymakers about leveraging digital platforms to enhance sustainability efforts.

Entrepreneurs’ decision-making in sustainable open innovation practices

Entrepreneurs’ decision-making in sustainable open innovation practices holds significant relevance in fostering environmentally conscious and socially responsible business strategies. Sustainable decision-making not only aligns with ethical principles but also addresses pressing global challenges such as climate change and resource depletion. This study aims to characterize the decision-making role played by entrepreneurs in the context of the open innovation paradigm and to understand the factors that influence entrepreneurial performance. A quantitative methodology supported by Partial Least Squares Structural Equation Modeling was adopted, considering a sample of 407 startups incubated in science and technology parks. After that, a mixed-methods approach was employed to explore the differences between sectors of activity, in which 4 ventures were involved. The results confirm that of the 9 hypotheses formulated in the relationship between the constructs, only innovation novelty is not significant for sustainable open innovation management processes, unlike innovation openness. This study offers theoretical and practical implications for startups that intend to use open innovation networks to integrate environmental and social considerations into the core of business strategies.

Innovation in perspective: The role of creativity and open innovation in B2B, B2C, and B2G business models

This study explores how creativity and open innovation practices (inbound and outbound) influence product innovation and innovative performance in small and medium-sized enterprises (SMEs) in Chile, using B2B, B2C, and B2G business models as moderating variables. Through empirical analysis based on a sample of 536 SMEs, we applied structural equation modeling to assess the relationship between creativity, open innovation practices, and their impact on product innovation. The results reveal that creativity significantly impacts product innovation and outbound practices, while inbound practices do not directly affect product innovation. Additionally, it was found that product innovation substantially improves the innovative performance of SMEs. This study contributes to the literature by demonstrating how specific open innovation practices and creativity can be leveraged to enhance innovation in SMEs. Adapting these practices should consider the particularities of different business models to maximize their effectiveness.

Digitalisation of manufacturing and innovation: the role of inbound open innovation and environmental turbulence in enabling Industry 4.0-based innovation

Industry 4.0 (I4.0) technologies have demonstrated their potential to significantly drive innovation and enhance the performance of firms. However, I4.0 implementation is complex, requiring the application of diverse fields of knowledge and skill. Furthermore, although open innovation may contribute to the implementation of I4.0 technologies, the literature is still not clear about which open innovation practices best leverage the adoption of I4.0 technologies or how they might lead to improvements in product and process innovations, particularly when firms are facing turbulent environments. The present article aims to reduce this gap by investigating the relationships between open innovation, the adoption of I4.0 technologies, and product and process innovation performance, considering technological and market turbulence as moderating variables. As a research method, we carried out a quantitative survey of 246 industrial companies in Brazil. The results revealed that inbound open innovation flows can be used to support the adoption of I4.0 technologies, which in turn improves both process and product innovation performance. Our findings also indicate that in more technologically turbulent environments, the relationship between inbound open innovation and the adoption of I4.0 is stronger. Unexpectedly, the moderating role of market turbulence was not confirmed. The discussion arising from these findings addresses theoretical implications for the digitalisation of manufacturing, innovation management and contingency theory, as well as offering practical insights for managers and policymakers interested in performing I4.0-based innovation.

Open Innovation in the Age of AI

Artificial intelligence (AI) can enhance, enable, or replace traditional open innovation (OI) practices, changing the scope and efficiency of both outside-in and inside-out OI. This article provides a comprehensive framework to analyze AI’s influence on OI, supported by illustrative examples, and outlines the key implications for organizations and researchers. The co-evolutionary relationship between AI and OI will be a central focus in both research and practice moving forward.

Unpacking innovation in digital multi-sided platform startups: making sense of path creation in generating two distinct types of innovation

Purpose This study aims to investigate the role of effectual logic as the basis of entrepreneurial action in path creation for influencing the performance of open innovation outcomes within the context of digital multi-sided platform (MSP) startups. Design/methodology/approach We utilize the PLS-SEM method with a sample of 70 Indonesian digital MSP startups that have implemented open innovation practices. Findings The empirical findings indicate a path creation between effectual logic and the open innovation process, particularly through the integration of absorptive capacity and crowds or communities management practices. Absorptive capacity development fosters incremental innovation, whereas crowds or communities management practices lead to radical innovation. Originality/value The research findings suggest that, despite limited resources and experience, young entrepreneurs can successfully implement an open innovation strategy for their digital MSP platforms by utilizing effectual logic principles, which capitalize on the external resources provided by digital platform ecosystem members.

Knowledge exchanges for collaborative innovation and organizational effectiveness: insights from Indian enterprises

PurposeThis study aims to delve into the relationship between open innovation and organizational effectiveness, expanding upon previous research that primarily focused on the impact of open innovation on firm performance.Design/methodology/approachBased on data collected from top- and middle-level managers across diverse sectors in India, the authors examined the intricate dynamics of open innovation and its effects on organizational effectiveness. The authors took two approaches to examine the data; using structural equation modeling and using the fuzzy set qualitative comparative analysis (fsQCA) approach.FindingsThis empirical evidence underscores the potential advantages of adopting open innovation practices within organizations. The contribution extends to both theoretical and practical domains.Research limitations/implicationsTheoretically, this research enriches the literature on open innovation and organizational effectiveness by providing empirical substantiation for their interconnection.Practical implicationsFrom a practical perspective, the findings offer actionable insights for practitioners and organizational leaders, suggesting that embracing open innovation can significantly enhance organizational effectiveness, ultimately fostering improved performance and competitiveness. The findings also have implications for external stakeholders aiming to engage with innovation-driven organizations for purposes of commercialization and knowledge exchange.Originality/valueThis study advocates for incorporating inbound and outbound open innovation practices within strategic decision-making processes to achieve organizational effectiveness.

Emotional Intelligence and Open Innovation Practices: The Mediating Role of Work Relationships

Emotional Intelligence and Open Innovation Practices: The Mediating Role of Work Relationships

Innovation stakeholders: Developing a sustainable paradigm to integrate intellectual property and corporate social responsibility

AbstractInnovation is usually framed in terms of expanding the knowledge frontier or the commercialization of new ideas. However, it is much more than that. Innovation is also about providing greater well‐being for society and the various stakeholders that support a firm's efforts to innovate. This article examines the paradoxical status of innovation and its related legal domain of intellectual property rights, which largely exists beyond the purview of corporate social responsibility (CSR) theory, practice, and discourse. To address this conceptual deficiency, this article interlinks intellectual property, innovation, and CSR to offer three contributions. First, this article provides a working definition of the various stakeholders that must be identified to define CSR goals related to innovation. A critical aspect of CSR is the identification of relevant stakeholders. Second, this article discusses how established CSR approaches will accommodate these innovation stakeholders. Third, this article introduces and positions the managerial strategy of open innovation as a feasible and desirable approach that ethically recognizes, engages, and balances the interests of innovation stakeholders with the interests held by the firm and society. The normative argument made is that the firm's fiduciary leaders have an ethical obligation to pursue open innovation practices as a default norm to achieve the best CSR results for the firm and its various innovation stakeholders.

Engaging with startups through corporate accelerators: the case of H‐FARM's White Label Accelerator

Corporate accelerators have emerged in recent years as an innovation mechanism that builds bridges between corporations and startups. Through inbound Open Innovation (OI) activities, established firms open their innovation processes to startups to acquire their knowledge. Previous research has focused either on independent accelerators or on corporate accelerator programs that an established firm operates internally. The literature on how accelerators orchestrate different OI practices is sparse, yet large corporations are forging ahead with corporate accelerators. Furthermore, new corporate accelerator models have emerged, rendering the corporate accelerator phenomenon more heterogenous. In this paper, adopting an OI lens, we explore the White Label Accelerator (WLA), a recent model in which an independent accelerator manages the program on behalf of a single corporate organization. Through an in‐depth case study of Technogym Wellness Accelerator, a pioneer and most important WLA in Italy set up by H‐Farm on behalf of Technogym, a large fitness and wellness company, we investigate how such accelerators function as an OI tool. We found four key dimensions that enable successful outcomes. In particular, the importance of entrepreneurial alertness as a key driver for the effective exploitation of intellectual property represents a significant finding. Our research contributes to OI and entrepreneurial finance literature and provides insightful managerial implications to corporate accelerator stakeholders and startups' managers.

Open Innovation as Fuel for the Circular Economy: an Analysis of the Italian Context

In recent years the circular economy (CE) has gained considerable interest in the academic debate as a tool for achieving sustainable development. The implementation of the circular economy model requires innovation to overcome technological, economic, environmental, social, and regulatory barriers. However, companies do not always have the means to innovate due to lack of information, limited technical skills and financial constraints; as a result, innovation remains a fragmented phenomenon. Open Innovation (OI) is a tool identified in the literature as useful for overcoming this problem and thus for the development of the CE, as it accelerates the exchange of knowledge and the realisation of the necessary innovations. Despite this, the relationship between CE and OI, and particularly the influence of OI on CE, has been little investigated. In line with this, the paper aims to explore this relationship by analysing the process through which OI supports the development of the CE, focusing on the knowledge exchange aimed at circular innovation, and categorising the actors contributing to this process and their roles. The study adopts a qualitative approach and uses methods of descriptive analysis and case studies. The sample consists of 240 Italian circular organisations that support circularity in different ways. The results made it possible to classify the main actors involved and their contributions to the CE through OI practices, revealing unseen circular activities that support classical circular activities (slowing, closing, and narrowing of material and energy circuits) and are identified in services, technology or research. As a theoretical contribution, the research provides a framework describing the actions and relationships among the actors involved in the CE initiatives, with a focus on the Living Lab practices.

Digital technology implementation: The mediating role of the duality of digital technology affordance in open innovation practices

The current wave of digital transformation has placed enterprises under dual pressure from technological changes and the challenges of openness. These two factors are closely intertwined, interact with each other, and are highly complex and uncertain. The implementation of digital technology (DT) is a key driving force, providing crucial support for enterprises to cope with an open innovation environment. Our study seeks to reveal the mechanism of the impact of DT implementation on enterprises’ open innovation practices. Initially, this study introduces a novel concept of DT affordance composed of two dimensions: technological affordance and data resource affordance. Subsequently, DT affordance is employed to elucidate why DT implementation drives open innovation practices, and the duality mediating mechanism of DT affordance is proposed. We then differentiate between two types of digital transformation modes-business pull mode and technology push mode-and explore the interaction effects of the duality of DT affordance. Enterprise survey data indicate that the dual mediating mechanism of DT affordance is significant and technological affordance plays a more substantial role in the business-pull mode. Finally, we discuss the theoretical and practical implications of our research.

Knowledge identification for open innovation: a case study of biotechnology firms

PurposeDespite the increasing studies concerning external knowledge for innovative firms or for innovations, little research demonstrates as what are those capabilities that enable firms to explore and assess high-valuable knowledge. The aim of this study is to examine those capabilities that aid innovative firms to search and identify the potential knowledge for open innovation. This study is an empirical and theoretical examination of knowledge search and identification capabilities of the UK-based biotechnology firms. The literature has been drawn from the research streams into knowledge management, open innovation and dynamic capabilities.Design/methodology/approachForty-five semi-structured interviews with senior-level innovation and R&D managers were completed, and thematic analysis using NVivo 12 was performed.FindingsEvidence from 45 interviews with senior-level innovation and R&D managers in the UK-based biotechnology firms and thematic analysis was used to develop a process framework capturing the key capabilities. By identifying the role and contribution of each of the capabilities in knowledge identification in the practices of open innovation, this study contributes to open innovation and knowledge management literature.Practical implicationsManagerial implications suggest knowledge-oriented leads greatly influence the development of identification capabilities. Hence, firms with knowledge-oriented leads are better crafted approaches to achieve competitive advantages in the practices of open innovation.Originality/valueThis study offers a new theoretical perspective and empirical evidence to view knowledge identification capabilities as the dynamic capabilities. This study offers a process framework of identification capabilities.

Open Innovation Strategies and Organization Performance of the Telecommunication Industry in Kenya

Purpose: The purpose of this study was to evaluate the relationship between open innovation strategies and organization performance of the telecommunication industry in Kenya. The study was guided by the following objectives: to examine the effect of innovations and innovation strategies on organizational performance; to establish the effect of open innovation strategies on organization performance; to assess the role of organization factors in moderating open innovation strategies; and to identify the open innovation strategies adopted in the telecommunication industry in Kenya. Methodology: The study relied on desktop research to address the existing gaps in the literature. Information for the research was obtained from published literature and information in the public domain. The information was critically reviewed, analyzed, synthesized, and conclusions were drawn. Findings: The findings of this study revealed that collaboration between firms in the telecommunication industry and various stakeholders through open innovation strategies influences the performance of the organizations in the industry. These findings suggest that organizations in the telecommunication industry in Kenya, which adopt open innovation strategies, can effectively innovate and compete in the industry, despite the dominant position of one organization. Unique Contribution to Theory, Practice and Policy: Utilizing the Open Innovation (OI) Theory and the Resource-Based View (RBV) Theory, the researcher explored the relationship between open innovation strategies and organization performance of the telecommunication industry in Kenya. The study deepened our understanding of RBV theory in explaining the dominance of one firm in the telecommunication industry. In addition, the study focused on how organizations are able to access talent and resources using the OI theory framework and therefore are able to innovate and compete. The various stakeholders including customers, suppliers and the Government of Kenya will benefit from this study by having additional insights into open innovation strategies and practices. A key recommendation is to the Communications Authority of Kenya, the regulatory body in the telecommunication industry in Kenya. The regulator should provide an enabling environment which facilitate innovations and collaboration using open innovation framework, benefitting all organizations and stakeholders in the industry.

Innovation Ecosystem in the Small and Medium Enterprises

Open innovation has so far been studied mainly in high-tech, multinational enterprises. This conceptual paper on innovation ecosystem studies scrutinizing open innovation practices that has been applied by firms focusing on small- and medium-sized enterprises (SMEs). Within the review, we defined the innovation ecosystem, explaining on the innovation issues in SMEs, open innovation as well as close innovation. SMEs pursue open innovation primarily for market-related motives such as meeting customer demands, or keeping up with competitors. Their most important challenges with open innovation are securing the trade secrets. However, SMEs have option either to proceed with open innovation or closed innovation. Open and close innovation has its benefit and weakness; therefore SMEs must identify their main objectives in the business. The future directions of this issue are discussed.

Empirical Evidence of Inbound Open Innovation Practice by Ghanaian SMEs

Inbound open innovation (IOI) is credited with high productivity in businesses. However, this is marred by resource and structural constraints in Ghanaian SMEs. Therefore, this study explores the odds of Ghanaian SMEs engaging in inbound open innovation given SMEs characteristics and IOI collaboration modes. Further, we examine the mediating effect of SMEs’ CEO characteristics in increasing or decreasing these odds. Using a sample of 657 registered SMEs’ of the Association of Ghanaian Industries, the survey data is estimated with a stepwise logistic regression model to show the multiplicative effects of the variables. The results show that the odds of engaging in inbound open innovation is higher for; SMEs located in urban areas, SMEs with partnership or company ownership structure, SMEs with research and development departments, SMEs not collaborating with universities, manufacturing SMEs, and SMEs that are relatively bigger in size. Further, these odds increase when the characteristics of CEOs of the sampled SMEs are accounted for in the model. Thus, the characteristics and traits of CEOs are only useful given the right resources and environment. Relying on the major (main) outcomes of the study further feasible suggestions are recommended.

Industry 4.0 and Smart Systems in Manufacturing: Guidelines for the Implementation of a Smart Statistical Process Control

Digital transformations in manufacturing systems confer advantages for enhancing competitiveness and ensuring the survival of companies by reducing operating costs, improving quality, and fostering innovation, falling within the overarching umbrella of Industry 4.0. This study aims to provide a framework for the integration of smart statistical digital systems into existing manufacturing control systems, exemplified with guidelines to transform an existent statistical process control into a smart statistical process control. Employing the design science research method, the research techniques include a literature review and interviews with experts who critically evaluated the proposed framework. The primary contribution lies in a set of general-purpose guidelines tailored to assist practitioners in manufacturing systems with the implementation of digital, smart technologies aligned with the principles of Industry 4.0. The resulting guidelines specifically target existing manufacturing plants seeking to adopt new technologies to maintain competitiveness. The main implication of the study is that practitioners can utilize the guidelines as a roadmap for the ongoing development and implementation of project management. Furthermore, the study paves the way for open innovation initiatives by breaking down the project into defined steps and encouraging individual or collective open contributions, which consolidates the practice of open innovation in manufacturing systems.

Causes of Failure of Open Innovation Practices in Small- and Medium-Sized Enterprises

The adoption of open innovation poses significant challenges that are important to explore. Studies in this field have mainly focused on exploring the causes of the failure of open innovation among large companies. This study addresses this research gap by employing a sample of 297 Portuguese small- and medium-sized enterprises (SMEs) to explore, through a quantitative study, whether the dimensions and causes of failure differ between large organizations and SMEs. A total of seven dimensions of causes of failure are considered, including strategy-related, organizational structure, organizational culture, knowledge and intellectual property management, management skill and action, resources, and interfirm collaboration. The findings reveal significant differences in four of these seven dimensions: the main causes of failure are related to the resources and management processes of open innovation in SMEs, while large companies face more challenges in the organizational structure and culture components. This study offers theoretical insights into the gaps in the literature to better understand the challenges facing open innovation. Furthermore, this study offers practical guidelines for SMEs to identify and mitigate these main obstacles, promoting better innovation management practices.

IMPACT OF OPEN INNOVATION ON GLOBALIZATION: A SURVEY STUDY ON CHINA

The objective of this study is to examine the role of open innovation practices to promote globalization. For this purpose, this study considered two open innovation practices: external knowledge and supplier involvement. A survey was carried out to collect primary data from the respondents. This study preferred Chinese small and medium-sized enterprises (SMEs) to examine the role of open innovation in globalization. Data were collected from the employees of SMEs in China. By employing Structural Equation Modeling, this study addressed the important insights for academicians and practitioners. It is concluded that; open innovation practices have key role to promote globalization. The promotion of open innovation practices among the Chinese SMEs can increase the globalization potential. The strategies of open innovation led to increase in business collaboration across the border business organizations. The business collaboration between the SMEs of various countries is the best way to enhance globalization by increasing the level of social capital. Therefore, those institutions who want to promote globalization should promote open innovation practices among the business organizations.

The role of knowledge assets and corporate social responsibility in creating firm value

The purpose of this paper is to investigate how knowledge assets and corporate social responsibility jointly influence the market value of a firm. In the contemporary knowledge-driven economy, where competitive advantage is based on intangible and intellectual capital, this paper emphasizes the strategic significance of knowledge assets, open innovation, and sustainable development practices in creating and maximizing market value. By employing multiple regression analysis on panel data for ten financial years, the study examines the optimal composition of knowledge assets and the impact of CSR initiatives on firm value. Key findings highlight a crucial threshold leading to the peak of market value, approximately when knowledge assets account for about 36% of a firm’s total non-current assets. Further, this study demonstrates that maintaining a balance between internally developed knowledge assets and external acquisitions significantly enhances value, correlating with the cultivation of a capitalization ability. Finally, this paper shows that corporate social responsibility emerges as a substantial driver of generating firm value, suggesting that integrating these practices into corporate strategic decisions not only aligns with ethical goals but also enhances market valuation. The insights from this study offer valuable perspectives for both academic researchers and industry professionals, advocating for a well-balanced approach to corporate asset management and underscoring the strategic importance of incorporating corporate social responsibility.