Value creation, innovation practice, and competitive advantage

PurposeThe purpose of this paper is to analyse companies listed on the FTSE MIB, in order to investigate the introduction of different types of open innovation practice as a key factor to develop a competitive advantage to pursue value creation.Design/methodology/approachThis research uses a mixed-methods sequential explanatory design. A quantitative study was conducted to determine the firms listed on the FTSE MIB that for more than 10 years have paid dividends and beat the yield of the market. The qualitative analysis was designed to provide insights into the adoption of at least one open innovation practice by the listed companies selected in the quantitative phase.FindingsThis work is based on an empirical analysis undertaken with 40 Italian companies listed on the FTSE MIB. In particular, the authors highlight 16 companies that for more than a decade have regularly paid dividends and, at the same time, have beat the FTSE MIB Index. All of these companies implemented at least one open innovation practice during the period investigated.Originality/valueThis is among the first pioneer research works based on the potential relationship among value creation, innovation practice and competitive advantage in the Italian market. This study highlights the fact that 16 out of 40 companies listed on the FTSE MIB create more value for shareholders over a long period, and all of these firms adopt different open innovation practices (e.g. partnership and collaboration with external entities; mergers and acquisitions and alliances; investment in start-ups; hackathons and call for ideas; outsourcing R&D) as a key factor to develop a sustainable competitive advantage.

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Accelerating chemical start-ups in ecosystems: the need for biotopes

European Journal of Innovation Management ◽

10.1108/ejim-10-2015-0102 ◽

2017 ◽

Vol 20 (1) ◽

pp. 135-152 ◽

Cited By ~ 6

Author(s):

Maarten J.G.M. van Gils ◽

Floris P.J.T. Rutjes

Keyword(s):

Open Innovation ◽

Organizational Capacity ◽

Innovation Process ◽

Ecosystem Model ◽

Innovation Ecosystem ◽

Content Type ◽

Start Up ◽

Innovation Practices ◽

Start Ups

Purpose The purpose of this paper is to clarify the relationship between start-ups and an innovation ecosystem. Start-ups need resources available in the ecosystem to grow, but experience organizational capacity limitations during their open innovation practices. This study frames the “open innovation” interface and discloses ways to accelerate the process of connecting start-ups’ demands to ecosystem’s supplies. Design/methodology/approach A case study was used to describe the development of a conceptual ecosystem model to frame the “open innovation” interface and its subsequent implementation at nine start-up hotspots in the Dutch chemical industry. To develop the ecosystem model, the system of innovation concept was enriched with the perspective of a chemical start-up to pinpoint critical resources for growth. Findings It is suggested that the most relevant “open innovation” interface for start-ups looking to grow is an innovation biotope: a well-defined, business-oriented cross-section of an ecosystem. All stakeholders in a biotope are carefully selected based on the entrepreneurial issue at stake: they can only enter the secured marketplace if they are able to provide dedicated solutions to start-ups. The biotope enables “open innovation in a closed system” which results in acceleration of the innovation process. Originality/value This is the first study to report on the definition and implementation of an innovation biotope as the “open innovation” interface between an ecosystem and start-ups. In addition, it provides a powerful tool, the ecosystem canvas, that can help both regional and national innovation systems to visualize their ecosystem and identify blind spots.

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Open accelerators for start-ups success: a case study

European Journal of Innovation Management ◽

10.1108/ejim-10-2015-0113 ◽

2017 ◽

Vol 20 (1) ◽

pp. 80-111 ◽

Cited By ~ 23

Author(s):

Cinzia Battistella ◽

Alberto F. De Toni ◽

Elena Pessot

Keyword(s):

Open Innovation ◽

Research Question ◽

Innovation Process ◽

Open Approach ◽

Content Type ◽

Start Up ◽

The One ◽

Innovation Practices ◽

Start Ups

Purpose The purpose of this paper is to investigate how the context of open innovation offered by accelerators can affect the successful growth of start-ups. The authors explore accelerators practices and tools in sustaining start-ups and increasing survival probability in their innovation process, with the aim of addressing the following research question: how can start-ups benefit from participation in an accelerator programme from an open innovation perspective? Design/methodology/approach A review of the literature on start-up successes and failures and on major practices in the open innovation paradigm was carried out, delineating them in the context of accelerators. Given the absence of literature on accelerator practices for supporting start-ups, and aiming at a comprehensive understanding of how the open environment within the accelerator influences a start-up’s survival (or even success) by mitigating the probability of failure, the authors conducted an exploratory case study in an English accelerator. Findings The open innovation practices mediated by an accelerator and the ones that are not covered, but that can benefit a start-up’s survival, are shown. On the one hand, main effective practices, such as dyadic co-creation with accelerator network partners and crowdsourcing, are revealed to address mostly the lack of, or wrong direction in, product, marketing and relative managerial abilities, which are not usually owned by a start-up due to its “newness”. On the other hand, some causes of failures, such as the intrinsic characteristics of founder teams, do not seem to be addressed by an open approach and neither does participation in an accelerator programme. Originality/value This paper is the first to study and link the literature on accelerators, start-ups and open innovation.

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Oops, I did it again! Knowledge leaks in open innovation networks with start-ups

European Journal of Innovation Management ◽

10.1108/ejim-11-2015-0116 ◽

2017 ◽

Vol 20 (1) ◽

pp. 50-79 ◽

Cited By ~ 11

Author(s):

Fernando G. Alberti ◽

Emanuele Pizzurno

Keyword(s):

Open Innovation ◽

Knowledge Flows ◽

Innovation Networks ◽

Policy Makers ◽

Content Type ◽

Heterogeneous Players ◽

Innovation Practices ◽

Start Ups ◽

Practical Implications

Purpose Little is known, about the role played by start-ups in open innovation networks. Start-ups – due to their nature of new and emerging companies – can largely benefit from the knowledge that can flow intentionally or unintentionally from external partners during open innovation practices. When open innovation networks are not set among peers on both sides the authors expect to have more unintended knowledge flows. Such knowledge “leaks” – as the authors named them – in open innovation networks are totally unexplored in literature. Hence, the purpose of this paper is to focus “whether and how knowledge leaks occur in open innovation networks with start-ups”. Design/methodology/approach The research design of this study relies on social network analysis methods and techniques to disentangle the role of start-ups in open innovation networks – in a major Italian aerospace cluster – vis-à-vis the three types of knowledge considered in this study. Then the authors confirmed knowledge leaks to occur through a multiplexity analysis. In the second stage of the research, the authors decided to strengthen the results, making them more vivid and thorough, relying on four case studies. Findings The paper sheds light on a totally unexplored phenomenon, theorizing on the role of start-ups in open innovation networks and suggesting intriguing implications both for theory and managers on whether and how knowledge leaks occur. Research limitations/implications The main limitations arise from the specific research context, in fact the study has been conducted in an aerospace cluster. So future studies might consider to explore knowledge leaks in non-cluster settings and in low tech industries. Practical implications The results have practical implications both for policy makers and for managers. First of all, the research confirms how open innovation often originates from a combination of different knowledge types acquired through the collaboration with heterogeneous players, start-ups included. Hence, managers may design open innovation strategies balancing their portfolio of collaborations to maximize the absorption of relevant knowledge and start-uppers may consider to engage in open innovation practices to accelerate knowledge absorption. Nevertheless, the study warns managers against the risk of knowledge leaks, especially in cases like start-ups where the eagerness to participate or the prestige associated with participating in open innovation networks with key players may hamper the control over knowledge leaks. Social implications This opens up for possible interventions for policy makers too. First of all, policy makers may consider incorporating the concept of knowledge leaks in their campaign in favour of open innovation. Second, the study may help policy makers in designing programmes for knowledge transfer partnerships amongst the various players of a cluster in a more conscious way, especially warning new to business companies, like start-ups, about possible leaks. Finally, there is also the need of developing professional figures like consultants capable of supporting start-ups in their open innovation practices. Originality/value Findings reported in the paper confirm multiplexity and heteromorphism in knowledge exchanges and shed the light on a completely unexplored field (i.e. open innovation and start-ups), focussing on knowledge leaks. Relevant implications for policy makers and managers are included in the study.

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Shareholder value and open innovation: evidence from Dividend Champions

Management Decision ◽

10.1108/md-04-2017-0408 ◽

2018 ◽

Vol 56 (6) ◽

pp. 1384-1397 ◽

Cited By ~ 8

Author(s):

Nicola Miglietta ◽

Enrico Battisti ◽

Alexeis Garcia-Perez

Keyword(s):

Open Innovation ◽

Shareholder Value ◽

Research Work ◽

Listed Companies ◽

Second Phase ◽

Content Type ◽

American States ◽

The Us ◽

Innovation Practices ◽

Pioneer Research

Purpose The purpose of this paper is to analyse the companies listed on the US stock market in order to investigate for the selected companies, called the Dividend Champions, the introduction of an open innovation practice. Design/methodology/approach This study is based on a mixed-methods sequential explanatory design. This research is based on an empirical analysis undertaken with 65 listed companies in order to examine, in the first phase, the Dividend Champions. These firms have increased their dividend yield for at least the past 40 years. In a second phase, this research studies the application of an open innovation practice for those listed companies that have systematically paid increased dividends for 60 years and have, at the same time, beat the market. Findings This study reveals seven listed companies that, for more than 60 years, have regularly paid growing dividends and, at the same time, have beat the yield of the market (i.e. six out of the seven companies). The latter include: American States Water, Dover Corporation, Emerson Electric, Genuine Parts Co., Parker-Hannifin Corporation and Procter & Gamble Co. All of these corporations have adopted or implemented a practice of open innovation. Originality/value To the authors’ knowledge, this is among the first pioneer research work, based on the potential relationship between shareholder value and open innovation. In particular, this paper highlights the fact that US-listed companies can create more value for shareholders over a long period and, at the same time, beat the market by adopting different open innovation practices.

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Open Innovation and Its Applicability in SMEs

Handbook of Research on Entrepreneurship, Innovation, and Internationalization - Advances in Business Strategy and Competitive Advantage ◽

10.4018/978-1-5225-8479-7.ch014 ◽

2019 ◽

pp. 368-389

Author(s):

Özgür Atılgan

Keyword(s):

Competitive Advantage ◽

Life Span ◽

Open Innovation ◽

Sustainable Competitive Advantage ◽

Large Firms ◽

External Knowledge ◽

Innovative Products ◽

Consumer Demands ◽

Innovation Practices ◽

Short Time

Rapidly changing consumer demands and needs have shortened the life span of products and services. Innovative products that are produced with long and intensive studies of R&D departments complete their life spans in a short time. Therefore, firms tend to search for interesting ideas developed outside the boundaries of the enterprise. Within this framework, by going beyond innovation, the concept of open innovation emerged as a remedy for the achievement of sustainable competitive advantage. Chesbrough defined open innovation as “the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation.” The research of open innovation in SMEs is primarily important since SMEs tend to open up more than large firms to reach external knowledge and technology for innovation. In this context, the aim of this chapter is to identify open innovation practices, motivations, intentions, and challenges in SMEs by systematically reviewing related concepts with open innovation in SMEs.

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Social entrepreneurship: creating social value when bridging holes

Social Enterprise Journal ◽

10.1108/sej-01-2018-0003 ◽

2018 ◽

Vol 14 (4) ◽

pp. 410-428 ◽

Cited By ~ 4

Author(s):

Suvi Kokko

Keyword(s):

Value Creation ◽

Social Enterprise ◽

Institutional Logics ◽

Social Enterprises ◽

Social Value ◽

Content Type ◽

For Profit ◽

Social Value Creation ◽

Key Factor ◽

Shared Goal

Purpose This paper aims to understand how social value is created in a context characterized by institutional complexity. By identifying stakeholders interacting in a social enterprise and the logics guiding their expected and experienced value, the study describes how social value is created when different institutional logics embedded in strong-tie networks are bridged. Design/methodology/approach Concepts of structural holes and institutional logics were applied to the empirical case of a social enterprise. Interviews provided the primary empirical material, but multiple data collection methods were used. Findings A shared goal facilitated co-existence of competing value logics, and provided common space forming multiple social value outcomes as products of the different logics. Research limitations/implications Limited to one case, this study shows that the interaction of otherwise unconnected stakeholders in a social enterprise, and their embeddedness in different institutional logics, provides one explanation for why and how social value is created. Practical implications Acknowledging and addressing gaps in knowledge and resources can lead to social value creation if social enterprises remain open to different logics. This suggests that co-existence of different logics can be a key factor for successful social value creation in social enterprises, if the competing logics are turned into complementary sources. Originality/value Dependency on logics from different networks of stakeholders shapes social enterprises to produce outcomes consistent with the different logics. The multiplicity of social value outcomes poses challenges for evaluating the success of social enterprises, especially when the tendency is to use evaluation approaches from the for-profit sector, focusing on the economic logic.

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Distrust And Dominance In Managing Alternative Work Arrangements: A Micro-Analytic Test Of Transaction Cost Theory

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v22i3.1422 ◽

2011 ◽

Vol 22 (3) ◽

Author(s):

Terry R. Adler ◽

Gabriel D. Isaacs ◽

Robert L. Steiner

Keyword(s):

Competitive Advantage ◽

Transaction Cost ◽

Value Creation ◽

Transaction Cost Theory ◽

Sustainable Competitive Advantage ◽

Font Size ◽

Alternative Work Arrangements ◽

Work Arrangements ◽

Alternative Work ◽

The Relationship

Organizations that successfully outsource may see better value-creation in creating a sustainable competitive advantage.  The objectives of this study were threefold:  a) provide a framework for studying the effects of perceived distrust that leads to dominance, b) analyze how opportunism parlays into the concept of dominance, and c) determine if the relationship between outsource partners varies by analyzing transaction characteristics.  Our research shows that firms should take caution to fully understand the effects that contract size has on a firm’s resources.

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Horizontal collaboration in response to modern slavery legislation

International Journal of Operations & Production Management ◽

10.1108/ijopm-10-2017-0611 ◽

2018 ◽

Vol 38 (12) ◽

pp. 2286-2312 ◽

Cited By ~ 9

Author(s):

Amy V. Benstead ◽

Linda C. Hendry ◽

Mark Stevenson

Keyword(s):

Supply Chain ◽

Competitive Advantage ◽

Sustainable Competitive Advantage ◽

Sustainable Supply Chain ◽

Informal Governance ◽

Content Type ◽

Ethical Trade ◽

Relational Perspective ◽

Modern Slavery ◽

Horizontal Collaboration

Purpose The purpose of this paper is to investigate how horizontal collaboration aids organisations in responding to modern slavery legislation and in gaining a socially sustainable competitive advantage. Design/methodology/approach Action research has been conducted in the textiles and fashion industry and a relational perspective adopted to interpret five collaborative initiatives taken to tackle modern slavery (e.g. joint training and supplier audits). The primary engagement has been with a multi-billion pound turnover company and its collaborations with 35 brands/retailers. A non-government organisation and a trade body have also participated. Findings Successful horizontal collaboration is dependent on both relational capital and effective (formal and informal) governance mechanisms. In collaborating, firms have generated relational rents and reduced costs creating a socially sustainable competitive advantage, as suggested by the relational perspective. Yet, limits to horizontal collaboration also exist. Research limitations/implications The focus is on one industry only, hence there is scope to extend the study to other industries or forms of collaboration taking place across industries. Practical implications Successful horizontal collaborative relationships rely on actors having a similar mindset and being able to decouple the commercial and sustainability agendas, especially when direct competitors are involved. Further, working with non-business actors can facilitate collaboration and provide knowledge and resources important for overcoming the uncertainty that is manifest when responding to new legislation. Social implications Social sustainability improvements aim to enhance ethical trade and benefit vulnerable workers. Originality/value Prior literature has focussed on vertical collaboration with few prior studies of horizontal collaboration, particularly in a socially sustainable supply chain context. Moreover, there has been limited research into modern slavery from a supply chain perspective. Both successful and unsuccessful initiatives are studied, providing insights into (in)effective collaboration.

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Measuring the impact of relational capital on customer performance in the SME B2B sector

Business Process Management Journal ◽

10.1108/bpmj-10-2016-0205 ◽

2017 ◽

Vol 23 (6) ◽

pp. 1144-1166 ◽

Cited By ~ 7

Author(s):

Lara Agostini ◽

Anna Nosella ◽

Benedetta Soranzo

Keyword(s):

Absorptive Capacity ◽

Open Innovation ◽

Moderating Effect ◽

High Tech ◽

Relational Capital ◽

Marketing Capability ◽

Content Type ◽

Innovation Practices ◽

External Actors ◽

The Impact

Purpose The purpose of this paper is to investigate the influence that different components of relational capital (marketing capability, open innovation with business and scientific partners, technological reputation, brand) have on customer performance (CP). Moreover, the moderating effect of absorptive capacity on such relationships is tested. Design/methodology/approach First, the direct relationship between the different components of relational capital and CP is analyzed through a linear regression model. Then, to test the moderating effect, two distinct regression analyses are conducted into two sub-samples, defined according to the level of absorptive capacity. The authors carried out these analyses on a sample of 150 small- and medium-sized enterprises (SMEs) in the medium- and high-tech B2B context. Findings Results of this study prove that CP is enhanced through firm marketing capability, open innovation with business partners and technological reputation, while brand and open innovation with scientific partner do not have an association with CP. In particular, the impact of marketing capability and open innovation with business actors on CP is greater for firms with higher absorptive capacity. Research limitations/implications This paper, highlighting the relevance of relational capital and absorptive capacity in improving CP, enhances our knowledge about the factors that help to strengthen the relationships with customers, which is an under-investigated issue especially for SMEs competing in B2B industries, and extends our knowledge on open innovation practices. Practical implications Findings of this paper suggest that, to achieve better CP, managers should pay special attention to nurturing their marketing capability and high-quality relationships with external actors and invest in absorptive capacity to enhance the positive effect of such linkages. Originality/value This work, combining the external perspective of relational capital and the internal organizational dimension of absorptive capacity, provides valuable insights about the knowledge and resource mix that firms might rely on to achieve better customer satisfaction and loyalty.

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Culture of excellence

Strategic Direction ◽

10.1108/sd-10-2021-0117 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

James Andrew Robertson

Keyword(s):

Competitive Advantage ◽

Case Studies ◽

Reading Time ◽

Cutting Edge ◽

Sustainable Competitive Advantage ◽

Sustainable Practices ◽

Content Type ◽

Stakeholder Pressure ◽

Pertinent Information ◽

Practical Implications

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: This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings: A culture of excellence is key to successfully implementing and sustaining entrepreneurial creativity, but stakeholder pressure is key in adopting sustainable practices in order to gain sustainable competitive advantage. Originality: The briefing saves busy executives, strategists 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.

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