Linking open innovation, innovation barriers and performance of Indonesian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Arif Hartono ◽  
Abdur Rafik
Keyword(s):  
Open Innovation ◽  
Innovation Performance ◽  
Content Type ◽  
Barriers To Innovation ◽  
External Knowledge ◽  
Wide Range ◽  
Innovation Barriers ◽  
Knowledge Search ◽  
The Impact ◽  
Firm Openness

Purpose This study aims to examine open innovation that consists a wide range of external knowledge search activities, such external search breadth and depth, external R&D, cooperation and acquisition activities, as a response to different innovation barriers faced by Indonesian firms. Design/methodology/approach Data are derived from Indonesia innovation survey. Exploratory factor analysis is used to identify and combine innovation barriers variables. Ordered logistic estimation is used to measure the impact of innovation barriers on firm openness decision. Logistic regression is used to measure the impact of innovation barriers on firm openness indicators such as external R&D, cooperation and acquisition as the variables are binary. Finally, Tobit regression is used to measure the impact of firm openness decision on innovation performance. Findings The main findings indicate that different barriers to innovation lead to different firms’ openness decisions, and different decisions on openness have differentiated influence on innovation performance. Originality/value This study contributes to the innovation barrier literature by empirically testing whether experiencing barriers to innovation is associated with a broader external knowledge search activity. Previous studies tend to link innovation barriers with a narrow activity as indicated by external knowledge searching widely and deeply.

External knowledge search paths in open innovation processes of small and medium enterprises

2019 ◽  
Vol 23 (3) ◽  
pp. 524-550
Author(s):  
Preecha Chaochotechuang ◽  
Farhad Daneshgar ◽  
Stefania Mariano
Keyword(s):  
Open Innovation ◽  
Small And Medium Enterprises ◽  
Search Space ◽  
Exploratory Research ◽  
Content Type ◽  
External Knowledge ◽  
Search Heuristics ◽  
Knowledge Search ◽  
Medium Enterprises ◽  
Innovation Processes

Purpose The purpose of this paper is to advance knowledge by exploring how small and medium enterprises (SMEs) search for external knowledge in their open innovation processes, and how the search can be advanced. Design/methodology/approach This exploratory research employs a qualitative multiple case study design. A literature review of open innovation in SMEs and external knowledge search is used to build the premises of this study. Semi-structured interviews with eight SMEs are employed to collect subsequent exploratory empirical data. Findings This exploratory study revealed that SMEs adopted a combination of cognitive and experiential search heuristics where cognitive search was practiced during the innovation research process when searching for external knowledge, whilst experiential search was practiced during the innovation development process. Concerning the search space, this study found that SMEs mainly explored local knowledge, and occasionally pursued distant knowledge when confronted with complex problems. The reason for the above behavior was explained to be related to the reduction of costs and risks associated with innovation activities. Originality/value External knowledge plays a pivotal role in open innovation. Although extant studies have shed some light on how large firms search for external knowledge, however, it is not clear how SMEs search for external knowledge. Moreover, this study focuses on learning about both the search space and the search heuristics at both the research and the development stages of the innovation process.

Knowledge search and open innovation performance in an emerging market

2017 ◽  
Vol 55 (4) ◽  
pp. 634-647 ◽  
Author(s):  
Dan Zhang ◽  
Shengxiao Li ◽  
Dengpan Zheng
Keyword(s):  
Open Innovation ◽  
Positive Relationship ◽  
Emerging Market ◽  
Research Work ◽  
Innovation Performance ◽  
Hierarchical Regression ◽  
Content Type ◽  
Good Relationship ◽  
Knowledge Search ◽  
The Government

Purpose The purpose of this paper is to examine how knowledge search (KS) affects open innovation performance (OIP) in consideration of appropriability hazard in an emerging market context. Design/methodology/approach The authors identify two types of appropriability hazard related to KS activities in the improvement of OIP: partner-related and market-related hazards, and construct a model of KS to the OIP with the government-enterprise relationship and market focus (MF) as moderating factors of the analysis framework, using the hierarchical regression analysis based on a survey sample of 258 Chinese companies. Findings The authors find that KS has a stronger positive relationship with OIP in international market-focused enterprises compared with domestic market-focused enterprises. In addition, using a configuration approach, the authors find that KS is more positively related to OIP when enterprises have an international MF and a good relationship with the government, but less in other MF government and enterprises relationship configurations. Originality/value This paper contributes to previous research work by identifying two types of appropriability hazard related to KS activities in emerging market countries: partner-related and market-related hazards. The authors argue that a positive relationship between KS and OIP is more likely to occur if these appropriability hazards can be mitigated by export MF and a good relationship with the government which has not been demonstrated in previous research.

Unpacking the relationship between external IT capability and open innovation performance: evidence from China

2020 ◽  
Vol 26 (7) ◽  
pp. 1789-1805 ◽  
Author(s):  
Su-Ming Wu ◽  
Xiu-Hao Ding
Keyword(s):  
Information Technology ◽  
Open Innovation ◽  
Knowledge Integration ◽  
Search Strategy ◽  
Innovation Performance ◽  
External Information ◽  
Content Type ◽  
External Knowledge ◽  
It Capability ◽  
The Relationship

PurposeInformation technology plays a critical role in the open innovation process. The purpose of this study is to explore the inner mechanism of external information technology (IT) capability that affects open innovation performance.Design/methodology/approachIn this paper, responses to 232 questionnaires from different firms were collected in China. Then, the proposed hypotheses were tested using regression analysis by statistical product and service solutions (SPSS).FindingsThe results indicate that external knowledge integration plays a mediating role in the relationship between external IT capability and open innovation performance, openness breadth positively moderates the influence of external IT capability on external knowledge integration and openness depth negatively moderates the relationship between external IT capability and external knowledge integration.Practical implicationsThe results, which are based on Chinese responses, provide useful suggestions for firms in China. To use external IT capability to improve open innovation performance, firms should not only stress the role of external knowledge integration but also consider their search strategy.Originality/valueBoth researchers and practitioners are interested in the relationship between information technology and open innovation. However, the way in which the inner mechanism of external IT capability affects open innovation performance has not been thoroughly researched. Based on knowledge integration theory, the authors construct a model that includes external IT capability, external knowledge integration, search strategy and open innovation performance. The results of this paper confirm the mediating and moderating roles of external knowledge integration and search strategy, respectively.

scholarly journals External knowledge search for innovation: the role of firms’ innovation strategy and industry context

2018 ◽  
Vol 22 (2) ◽  
pp. 280-298 ◽  
Author(s):  
Mercedes Segarra-Ciprés ◽  
Juan Carlos Bou-Llusar
Keyword(s):  
Current Approach ◽  
Innovation Performance ◽  
Situational Factors ◽  
Innovation Strategy ◽  
Content Type ◽  
External Knowledge ◽  
Knowledge Search ◽  
Contingent Approach ◽  
High Level ◽  
Internal And External Factors

Purpose This paper aims to analyze the extent to which the influence of external knowledge search on innovation performance is contingent on both a firm’s innovation strategy and the industry context in which it operates. Design/methodology/approach The paper adopts a contingent approach that centers analysis on the influence of situational factors, either exogenous or endogenous to the organization, as determinants of the external knowledge search in promoting the firm’s innovation performance. The empirical study is based on a large sample of 18,955 firms operating in 29 industries that belong to 13 European countries. Findings This analysis reveals that a broad knowledge search is more effective for firms that innovate in new goods, while a deeper knowledge search is more effective for firms that innovate in new services. The results of this study also indicate that external knowledge search varies across industries, with search depth being used more in industries in which the knowledge development process is cumulative and appropriable, while the external breadth search is preferred in industries with a high level of technological opportunity. Originality/value The current approach implies recognizing that the knowledge search strategies may not always be effective, and that firms should align the search strategy to both internal and external factors. Analyzing the influence of these factors can help managers to better choose the type of knowledge search (e.g. intensive or extensive search) that best aligns with the firm’s innovation objectives.

Openness and firm innovation performance: the moderating effect of ambidextrous knowledge search strategy

2020 ◽  
Vol 24 (2) ◽  
pp. 301-323 ◽  
Author(s):  
Chunhsien Wang ◽  
Tachia Chin ◽  
Jie-Heng Lin
Keyword(s):  
Search Strategy ◽  
High Technology ◽  
Innovation Performance ◽  
Innovation Activity ◽  
Content Type ◽  
External Knowledge ◽  
Technology Firms ◽  
Knowledge Strategy ◽  
High Technology Firms ◽  
Knowledge Search

Purpose Openness to external knowledge has recently gained popularity as a means for firms to complement and leverage internal knowledge in the pursuit of innovation outcomes. However, conflicting evidence exists regarding the role of openness in external knowledge acquisition. This paper aims to propose that openness to external knowledge has a nonlinear effect on innovation performance and that this nonlinear relationship is contingent on an ambidextrous knowledge search strategy. Design/methodology/approach Based on original large-scale survey of 246 interfirm collaborations in the high-technology industry, it is found that the impact of openness to external knowledge on innovation performance exhibits an inverted-U shape and that this relationship is affected by an ambidextrous knowledge search strategy. Findings The results indicate that an ambidextrous knowledge strategy that addresses the depth and breadth of external knowledge significantly influences a firm’s ability to derive benefits from increased openness to external knowledge. Empirically, the authors provide an original contribution to high-technology firms by exploring how and why an ambidextrous knowledge strategy can be a critical catalyst spurring innovation performance. Research limitations/implications The research scope is limited to a single industry. Further research could extend the theoretical framework to multiple industries, which may increase the likelihood of innovation theory development. Practical implications The results suggest that firms opening up the boundaries of their innovation activity to engage in external knowledge are able to leverage their in-house innovation to enhance their innovation performance. The authors advocate that in innovation management domains, greater emphasis is needed on how openness to external knowledge has more positive impacts not only on innovation performance but also on innovation implemented management. Originality/value This study is among the first to investigate the ambidextrous knowledge search effect on the external knowledge of high-technology firms. This paper contributes to the theoretical and practical literature concerning openness innovation and knowledge management by reflecting on the ambidextrous knowledge search strategy.

Exploring the impact of TMTs’ overseas experiences on innovation performance of Chinese enterprises

2019 ◽  
Vol 13 (4) ◽  
pp. 1044-1085 ◽  
Author(s):  
Lin Yang ◽  
Chenwu Xu ◽  
Guoguang Wan
Keyword(s):  
Innovation Performance ◽  
Mediating Effect ◽  
Strategic Decision ◽  
Top Management ◽  
Content Type ◽  
Industrial Experience ◽  
Wide Range ◽  
Functional Experience ◽  
The Impact ◽  
The Relationship

Purpose Drawing on the related insights from the upper echelon perspective, modern cognitive theory and path dependence theory, this paper aims to first integrate top management teams (TMTs) overseas experiences, research and development (R&D) strategic decision-making and innovation performance into a uniform theoretical framework and try to understand TMTs’ overseas experiences accounting for both the direct and indirect mechanisms of the variables involved within the transition economy of China. Design/methodology/approach The paper adopts research sample from the listed companies on the Growth Enterprises Market Board (GEMB) of Shenzhen Stock Exchange of China due to their stronger innovation consciousness. The research data are mainly from the WIND database of China, as the data issued in this database must be checked and approved by China’s legal institutions including China Securities Regulatory Commission and its authorized agencies. The samples cover different types of ownership and the vast majority of industries of China, which makes the objects a wide range of coverage and representativeness. In addition, according to suggestions of Podsakoff et al. (2003), the authors design the controlling measures from two aspects of data collection and statistical analysis to reduce the homologous error as much as possible. Findings Empirical results show that innovation performance is positively affected by the centrality overseas functional experience and industrial experience but negatively affected by the heterogeneity of overseas functional experience of TMT. Meanwhile, R&D intensity and modes play partially mediating effect in the relationship between TMTs’ overseas functional experience centrality and industrial experience heterogeneity and innovation performance, but for the relationship between overseas functional experience heterogeneity and innovation performance, R&D intensity leads to fully mediating effect. Originality/value This study contributes toward filling the gaps by elucidating the effect of TMTs’ overseas experiences on the innovation performance, identifying the mediating role of R&D strategic decision-makings in this relationship and empirically examining the acting mechanisms and paths of the variables involved in the Chinese context. In addition, practitioners could use these findings to improve their selection and training processes regarding both the top management members and the designing of the R&D strategies.

Open and closed knowledge sourcing

2017 ◽  
Vol 117 (6) ◽  
pp. 1166-1184 ◽  
Author(s):  
Juyeon Ham ◽  
Byounggu Choi ◽  
Jae-Nam Lee
Keyword(s):  
Open Innovation ◽  
Small And Medium Enterprises ◽  
Innovation Performance ◽  
Knowledge Sourcing ◽  
Content Type ◽  
External Knowledge ◽  
Negative Effect ◽  
Medium Enterprises ◽  
The Relationship ◽  
Internal Knowledge

Purpose Many studies have investigated the relationship between the adoption of open innovation and performance in large firms. However, limited research is available with regard to the use of open innovation in small and medium enterprises (SMEs). SMEs are important because of their contribution to innovation in almost all economies. The purpose of this paper is to extend the current literature by focusing on SMEs. Using complementarity and knowledge-based theories, this study develops three hypotheses to identify the effect of knowledge sourcing approaches for innovation on SMEs’ innovation performance. Design/methodology/approach Surveys collected from 196 SMEs in Korea were analyzed using the supermodularity function to test the hypotheses. Findings Results indicate that an external knowledge-oriented approach has no significant effect, whereas an internal knowledge-oriented (i.e. closed) approach has a positive effect on innovation performance. Interestingly, this study found that open innovation has a negative effect on SMEs’ innovation performance (i.e. both internal knowledge-oriented and external knowledge-oriented approaches have a substitutive relationship). Originality/value This study sheds new light on open innovation and knowledge management research by identifying the relationship between knowledge sourcing approaches for innovation, and innovation performance in SMEs. Practical implications highlight that open innovation could impede SMEs’ innovation performance.

scholarly journals SEARCHING WIDELY OR DEEPLY? THE IMPACT OF OPEN INNOVATION ON INNOVATION AND INNOVATION PERFORMANCE AMONG INDONESIAN MANUFACTURING FIRMS

2018 ◽  
Vol 33 (2) ◽  
pp. 123
Author(s):  
Arif Hartono ◽  
Ratih Kusumawardhani
Keyword(s):  
Technological Innovation ◽  
Open Innovation ◽  
Innovation Process ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
External Knowledge ◽  
Process Innovations ◽  
Innovation Surveys ◽  
External Sources ◽  
The Impact

Since the term Open Innovation (OI) was coined by Henry Chesbrough in 2003, OI studies have been frequently conducted. Surprisingly, OI insights, in the context of Indonesian firms, are scarce. Furthermore, there are no existing OI studies that use data derived from innovation surveys. Hence, this study attempts to close the gap in the literature, by providing insights into Indonesian firms’ openness toward external knowledge, and its impact on innovation performance. The main aim of this study is to investigate the impact of OI practices on Indonesian manufacturing firms’ propensity to innovate (i.e. their product, process, organization, and marketing) and innovation performance. Product and process innovations are grouped under the term technological innovation, while organization and marketing innovations are classified as non-technological innovation. Data used in this study were derived from the Indonesia Innovation Survey (IIS) 2011 that covered the period from 2009-2010. Following Laursen and Salter’s (2006) study, OI indicators consist of external search breadth (i.e. the number of external sources or search channels that firms rely upon in their innovative activities) and depth (the extent to which firms draw deeply from the different external sources or search channels) in innovation process. Undertaking logistic and tobit regressions, this study shows that in general, both breadth and depth significantly and positively affect technological and non-technological innovation, as well as innovation performance. However, the over-search on external knowledge, measured by breadth squared and depth squared, negatively and significantly influence innovation and innovation performance. This indicates that too much external knowledge, sourced during the innovation process will diminish the return of innovation. This study also finds an indication of a complementary relationship existing between internal R&D and external knowledge; meaning that the implementation of one knowledge-sourcing strategy (either sourcing from internal R&D or external knowledge) increases the marginal returns from another. Lastly, important implications related to theoretical and innovation strategies are proposed. 

Cognitive proximity and innovation performance: are collaborators equal?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mari O' Connor ◽  
Justin Doran ◽  
Nóirín McCarthy
Keyword(s):  
Innovation Policy ◽  
Probit Model ◽  
Innovation Performance ◽  
Community Innovation Survey ◽  
Firm Level ◽  
Content Type ◽  
External Knowledge ◽  
Innovation Output ◽  
Backward Linkages ◽  
The Impact

PurposeThis paper combines the concepts of search depth and cognitive proximity to investigate the impact of intense collaboration with different external agents on firms' innovation performance. It empirically tests whether firms that draw deeply on cognitively proximate collaborative partners are more innovative than those collaborating intensively with cognitively distant partners. It explores whether the impact of each external agent is equally important in determining the innovation output of firms.Design/methodology/approachUsing data from the Irish Community Innovation Survey 2012–2014, this paper employs a probit model to empirically test the impact of collaboration with cognitively proximate and distant sources of external knowledge to establish whether their impact on innovation performance is uniform.FindingsThe results show that not all collaborators equally impact firm innovation performance. Firms who indicate that knowledge sourced from backward linkages with suppliers is highly important are more likely to engage in both product and process innovation, with the effect more pronounced for the former. The extent of this is greatest for backward linkages compared to forward, horizontal and public linkages. Public linkages have the weakest impact on innovation output which raises questions from a policy perspective given the focus on university–industry collaboration for innovation. The findings indicate that collaboration with cognitively proximate sources of knowledge benefits firms' innovation output.Originality/valueThe study provides empirical evidence on the role of intense collaboration with cognitively proximate and distant external knowledge sources to explore their impact on the subsequent innovation performance of firms. The results can be used to help shape firm-level innovation policy, and indeed national policy, to promote innovation performance.

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