Effects of open innovation strategies on innovation performance of SMEs: evidence from China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chang Lu ◽  
Bo Yu ◽  
Jing Zhang ◽  
Dan Xu

Purpose The purpose of this study is to investigate the relationships between two types of open innovation (OI) strategies (OI breadth and depth) and innovation performance of small- and medium-sized enterprises (SMEs) in China. The study examines how firms’ absorptive capacity and government institutional support affect these relationships. Design/methodology/approach Survey data from 236 manufacturing SMEs in China were used to test the proposed model using hierarchical regression analysis. Findings The results show that both OI breadth and depth are positively related to innovation performance of SMEs. Moreover, this study finds that realized absorptive capacity serves as a mediator in the relationships between OI breadth and depth and innovation performance. The potential absorptive capacity and government institutional support moderate the relationship between OI breadth and innovation performance. Originality/value The effectiveness of OI strategies is significantly different among SMEs. One possible explanation is that SMEs adopt different types of OI strategies. Another is that a firm’s absorptive capacity and government institutional support may influence the effectiveness of OI. This study integrates these two possible reasons by investigating the effect of the interplay between different OI strategies, absorptive capacity and government institutional support on SMEs’ innovation performance. This study enriches the research on the relationships between OI strategies and innovation performance of SMEs in the Chinese context.

2018 ◽  
Vol 12 (4) ◽  
pp. 720-740 ◽  
Author(s):  
Huiping Zhou ◽  
Yanhong Yao ◽  
Huanhuan Chen

Purpose This paper aims to explore the direct effects of open innovation (OI) on firms’ innovative performance, and to examine the moderating effects of knowledge attributes, including knowledge distance, knowledge embeddedness and partner opportunism on this relationship. Design/methodology/approach Survey data of 247 samples from China were used to test the proposed model through hierarchical regression analysis. Findings The findings indicate that the dimensions of OI are positively related to innovative performance. The results also reveal that knowledge distance positively moderates the relationship between inbound OI and innovative performance, whereas knowledge embeddedness negatively affects that relationship. Knowledge embeddedness negatively affects the relationship between inbound OI and innovative performance, whereas knowledge distance positively moderates that relationship. Thus, a new finding is proposed that knowledge attributes could align effectively with specific OI type to achieve superior innovation outcomes. In addition, the empirical results suggest that partner opportunism plays a negative moderating role on the relationship between outbound OI and innovative performance. Originality/value The proposed view that a firm’s innovation outputs will be superior when its knowledge attributes effectively align with OI enriches studies of the OI context and expands the literature of both the resource-based view and the knowledge-based view. Furthermore, this study provides insights into how OI benefits can be influenced by external contexts from the perspective of partners’ opportunistic behaviour.


2019 ◽  
Vol 24 (1) ◽  
pp. 43-65 ◽  
Author(s):  
Suming Wu ◽  
Xiuhao Ding ◽  
Ruihong Liu ◽  
Hui Gao

Purpose Open innovation and information systems have been key topics in the theoretical domain, but little empirical research thoroughly examines how information technology (IT) capability affects open innovation performance. Thus, the purpose of this paper is to explore the relationship between IT capability and open innovation performance and to expose the inner mechanism at the firm level. Design/methodology/approach This paper collected firm-level data in China; 232 usable questionnaires from different firms were collected. Then, the study used a structural equation model by AMOS for hypothesis testing. Findings The results indicate that both internal IT capability and external IT capability have positive impacts on open innovation performance; potential absorptive capacity and realized absorptive capacity mediate the relationship between external IT capability and open innovation performance. Additionally, realized absorptive capacity plays a mediating role in the relationship between internal IT capability and open innovation performance. Practical implications These findings indicate that practitioners should pay attention to the important relationship between absorptive capacity and IT capability and open innovation performance in Chinese businesses. Originality/value Existing research has emphasized the influence of IT on open innovation, but empirical studies have not thoroughly focused on the inner mechanisms of the effect of IT capability on open innovation performance. Drawing on firm capability theory, this paper classifies IT capability as internal and external IT capability and absorptive capacity as potential and realized absorptive capacity. Then, this paper confirms the mediating role of absorptive capacity between IT capability and open innovation performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohit Srivastava

Purpose Under given environmental uncertainties, the purpose of this paper is to examine the effect of brokers on the networking behaviour of small- and medium-sized enterprise (SMEs) and the subsequent impact on the performance of SMEs. The following five different types of brokers were tested, namely, coordinator, representative, cosmopolitan, liaison and gatekeeper brokers. Design/methodology/approach Data were collected through an online survey and analyzed by using the hierarchical regression method. Findings The results from the hierarchical regression analysis of 198 Czech firms showed that coordinator and representative brokers moderate the relationship between environmental uncertainty and networking behaviour. However, under high environmental uncertainty, the coordinator broker worked best, whereas in the host country, under low environmental uncertainty, the representative broker worked best. Originality/value The findings of this study have useful implications for SMEs in selecting an appropriate broker for strengthening their networking behaviour in the international market. This study aimed to explore the effectiveness of various types of brokers on networking behaviour during their internationalization of SMEs. More specifically, this study examined if and how, given the uncertainties in the international market, multiple brokers help SME executives develop networking behaviour.


2017 ◽  
Vol 23 (6) ◽  
pp. 1245-1269 ◽  
Author(s):  
Ana Burcharth ◽  
Mette Præst Knudsen ◽  
Helle Alsted Søndergaard

Purpose The purpose of this paper is to examine how organisational activities that formally provide employees with work autonomy explain the performance of open innovation (OI). Design/methodology/approach The study reports the results of mediation analyses conducted on the basis of survey data from 307 firms. Findings The economic benefits of both inbound and outbound OI are fully captured only if firms provide employees with time, freedom and independence. The results show that employee autonomy fully mediates the relationship between openness and innovation sales, while the adoption of inbound OI is positively associated with the introduction of new products. Practical implications The opening of innovation induces managers to provide employees with discretion, as OI requires high levels of flexibility and experimentation. Originality/value The paper addresses theoretically and empirically the role of job design in the implementation of OI, while also distinguishing between the effects of inbound and outbound practices on innovation performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thammanoon Charmjuree ◽  
Yuosre F. Badir ◽  
Umar Safdar

PurposeThis study is among the very few to examine the firm's simultaneous use of both dimensions of open innovation and its influences on the firm's process innovation performance (PIP). Specifically, the authors consider the relationship between firm's external technology acquisition (ETA) and external technology exploitation (ETE) and examine their direct, indirect and mediating effect on the firm's PIP. The authors also examine the moderating effect of the organizations' unabsorbed slack (UASL) on the relationship between ETA and ETE.Design/methodology/approachAnalyzing data collected from 311 small- and medium-sized software development firms in emerging market; Thailand, we show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP.FindingsThe authors show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP. Moreover, the relationship between ETA and ETE is positively moderated by the firms' unabsorbed slack (UASL) and that the influence of ETA on PIP through ETE is stronger under higher unabsorbed slack.Originality/valueThe authors extend the “traditional” performance outcome of outbound dimension of open innovation concept, which focuses exclusively on commercialization and market (Chesbrough, 2003b), by showing that ETE positively influences the firm's PIP. Moreover, the study explains the mechanism through which ETA influence the firm's PIP by proposing that ETE fully mediates the relationship between ETA and PIP.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The authors explore the links between top management social networks and innovation performance in cultural and creative industries in China and propose that the relationship between social networks and innovation performance are mediated by organizational learning. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deonir De Toni ◽  
Ricardo Antonio Reche ◽  
Gabriel Sperandio Milan

PurposeThis study aims to propose and test a theoretical model that contemplates antecedent constructs of organizational performance, as well as the interaction among them.Design/methodology/approachA survey was conducted with 151 Brazilian exclusive stores in the planned furniture segment. The data analysis was performed using two statistical techniques, focused on hierarchical regression and mediation and moderation tests.FindingsAmong the main results of the survey are the direct and significant effects of value-based pricing and innovation strategies and the indirect effect of market orientation on market performance. As for moderation, the authors identified that profitability moderates the relationship between value-based pricing and market performance, and the degree of sales projection moderates the relationship between market orientation and market performance.Originality/valueThe insertion of value-based pricing as a variable in quantitative analysis of market performance meets the lack of academic research. When the constructs are combined or interacted with each other, they have a stronger and more significant effect on performance. In addition, this work proposes two moderating variables that can interfere in the relationship between the analyzed constructs (profitability and sales projection). It was identified that the relationships between the constructs and that the orientation towards the market (despite not directly impacting market performance) interfere with the relationship based on mediation of variable innovation strategies and value-based pricing.


2020 ◽  
Vol 24 (3) ◽  
pp. 655-674
Author(s):  
Robert Ogulin ◽  
Gustavo Guzman ◽  
Subasinghage Maduka Nuwangi

Purpose This paper aims to develop a conceptual taxonomy for building requisite knowledge capabilities for different supply chain network (SCN) types. Specifically, it examines knowledge capabilities required for three types of SCNs: efficient, collaborative and agile SCNs. Design/methodology/approach This paper integrates two bodies of thought (i.e. knowledge management and organisational learning) and applies them to SCNs. An abductive research process is used to develop this conceptual taxonomy. Findings The conceptual taxonomy details three archetypical knowledge capabilities – exploitation, exploration and ambidextrous. Those knowledge capabilities are required for efficient, collaborative and agile SCNs, respectively. Research limitations/implications This paper is conceptual and theory-based. The next stages of the research seek to further strengthen the explanatory value of the taxonomy through empirical validation. Practical implications The taxonomy developed in this paper provides a valuable and pragmatic tool for managerial decision-making in the context of SCNs. Specifically, it provides a roadmap for practitioners since the study develops an understanding of the relationship between knowledge capabilities and types of SCNs. Originality/value This is one of the earliest studies that attempt to unearth requisite knowledge capabilities for different types of SCNs.


2019 ◽  
Vol 121 (2) ◽  
pp. 242-258 ◽  
Author(s):  
Valentina Cillo ◽  
Riccardo Rialti ◽  
Bernardo Bertoldi ◽  
Francesco Ciampi

Purpose The purpose of this paper is to analyze the relationship between knowledge management capabilities and successful open innovation within agri-food businesses. This particular piece of research focuses on agri-food businesses which utilize crowdfunding platforms. Design/methodology/approach The research adopts a survey-based methodology, which is useful in enhancing the generalization of results. The final sample includes 80 cases for the analysis. The model and the hypotheses were tested through a hierarchical regression model. Findings This research assesses the importance of knowledge management capabilities for successful open innovation in crowdfunding for agri-food businesses. In particular, it emerged that IT-based knowledge exploitation capabilities are enablers of open innovation strategies. Additionally, it emerged that knowledge exploration capabilities can positively mediate the relationship between IT-based knowledge exploitation capabilities and open innovation in the context of agri-food businesses. Originality/value To the authors’ best knowledge, few researchers have explored this topic and, as such, there is a need to better conceptualize this intriguing phenomenon and to provide empirical evidence to support it.


Author(s):  
Angel Martinez-Sanchez ◽  
Manuela Perez-Perez ◽  
Silvia Vicente-Oliva

Purpose The purpose of this paper is to analyze the relationship between agile production (flexible production technology) and absorptive capacity. Design/methodology/approach We use a database of 1,864 Spanish industrial firms from the Survey of Business Strategies (the largest Spanish database of its kind). Our theoretical approach is based on the resource-based view and the dynamic capabilities perspective. The methodology includes descriptive statistics analysis and lineal regression with moderator effect. Findings High-agile firms with greater absorptive capacity are more innovative and better performers than low-agile firms. Absorptive capacity moderates the relationship between flexible production technology and innovation performance. Research limitations/implications This is a cross-sectional study, which may limit the establishment of causal relationships. We give evidence to the importance of studying absorptive capacity in the agile production implementation process. Practical implications There are several managerial implications. First, agile production systems should be integrated into the firm’s innovation system because the continuous improvement of agile production has to be reinforced by the outputs of external knowledge and in-house innovation activities. Second firms that use external sources of knowledge to improve production processes could leverage that benefit better, not only in Operations but also in innovation performance. The adoption of flexible production technology cannot be kept apart from the firm´s organizational learning processes based on external knowledge. Our results also support the contribution of clusters of collaborative firms to improve their production processes throughout absorptive capacity and thus the implementation of agile production systems. Originality/value This is the first study, to the best of our knowledge, has involved the role of absorptive capacity, as an internal capability/competence, to influence the relationship between agility/flexible technology and innovation performance.


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