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. 

scholarly journals Innovation in the Hungarian food economy  

2017 ◽  
Vol 63 (No. 1) ◽  
pp. 43-51 ◽  
Author(s):  
Toth Jozsef ◽  
Ferto Imre
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Innovation Process ◽  
Innovation Performance ◽  
Medium Size ◽  
Food Sector ◽  
Agricultural Producers ◽  
Food Economy ◽  
The Impact ◽  
The Empirical Analysis

The paper investigates the innovation process in the Hungarian agri-food sector using the concept of open innovation. The empirical analysis is based on the data from a 2011 survey of more than 200 small and medium size agricultural producers, food processors and retailers. There is determined the impact of open innovation and a company’s absorptive capacity on the innovation performance employing two stage approaches. First, a cluster analysis is applied to categorise companies based on their open innovation absorptive capacity, firm and managerial characteristics. Second, using semi-non parametric probit models, there is found that open innovation positively influences the innovation performance for the product and market innovation. Estimations indicate that the absorptive capacity has positive impacts on the technological- and organisational innovation and on innovation propensity. The results suggest that there exists a considerable heterogeneity both within and between the supply chain segments regarding to the innovation performance.  

scholarly journals OPENNESS IN PRODUCT AND PROCESS INNOVATION

2012 ◽  
Vol 16 (04) ◽  
pp. 1250020 ◽  
Author(s):  
FANG HUANG ◽  
JOHN RICE
Keyword(s):  
Open Innovation ◽  
Large Scale ◽  
New Products ◽  
Process Innovation ◽  
Innovation Performance ◽  
External Information ◽  
Marginal Effect ◽  
Process Innovations ◽  
Product And Process Innovation ◽  
The Impact

Open innovation has generally been explored in terms of improved innovation performance vis-à-vis product/service innovation performance. However, process innovation is often ignored in the open innovation literature. In this study, we assess the impact of openness on innovation in products/services, and also on process innovation, drawing on a large-scale sample of Australian firms. In essence, we find that open innovation models are useful for firms seeking to innovate in processes as well as products and services. However, we find that openness to external information sources may, after a time, lead to decreasing marginal returns as measured by innovation performance. We also observe that, within our sample, the proposed complementarities between internal and external knowledge are generally only evident as precursors to the introduction of new products and services, and may not be as beneficial in stimulating process innovations. It is also shown by our study that investment in absorptive capacity has a declining marginal effect on the innovation performance of new processes, but not on the introduction of new products and services.

scholarly journals Breadth of external knowledge search in service sectors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dragana Radicic
Keyword(s):  
Manufacturing Firms ◽  
Innovation Performance ◽  
Single Type ◽  
Service Firms ◽  
Knowledge Sources ◽  
Content Type ◽  
External Knowledge ◽  
Process Innovations ◽  
Knowledge Search ◽  
Product And Process

PurposeThere is a dearth of empirical research on the impact of external knowledge search on innovation performance in different categories of service firms. This study explores the effectiveness of the breadth of external search on product and process innovations in German firms. In particular, the author modelled a non-linear relationship between the breadth of knowledge and product and process innovations.Design/methodology/approachDrawing on the Mannheim Innovation Panel (MIP) data for the German service firms in the period 2014–2016, the author reported findings from a bivariate probit model which took into account mutual interdependence between product and process innovations. Moreover, the model was separately estimated for knowledge-intensive business services (KIBS) and other services. For comparative purposes, the author also estimated the model for manufacturing firms.FindingsEmpirical findings uniformly indicated an inverted U-shaped effect of the breadth of knowledge on both product and process innovations. Furthermore, the results demonstrated that using up to three knowledge sources increases the probability of a joint implementation of product and process innovations. These findings hold for both KIBS firms and other services. However, those service firms that focussed on a single type of innovation experienced diminishing returns to external knowledge when exploiting more than one source of knowledge. These results indicated that a simultaneous introduction of different types of innovation required diverse knowledge sources. In contrast, when focussing on a single type of innovation, service firms experienced diminishing returns when multiple sources were used. However, this finding was only partially found for manufacturing firms. Accordingly, this study’s findings provided support for the demarcation approach, insofar as the breadth of knowledge had a heterogenous impact on innovation in manufacturing relative to service firms.Originality/valuePrevious studies on the breadth of knowledge search mostly examined its influence on innovation performance without separately analysing manufacturing and service firms. The present study focussed on service firms that were further divided into KIBS and other service firms. By investigating potentially non-linear relationships between knowledge breadth and product and process innovations, it illustrated how different innovation strategies were affected by a diverse pool of external knowledge sources.

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.

Small- and medium-scale Italian winemaking companies facing the open innovation challenge

2016 ◽  
Vol 35 (3) ◽  
pp. 327-348 ◽  
Author(s):  
Angelo Presenza ◽  
Tindara Abbate ◽  
Marta Meleddu ◽  
Fabrizio Cesaroni
Keyword(s):  
Open Innovation ◽  
Theory And Practice ◽  
Innovation Activity ◽  
Future Research ◽  
Knowledge Sources ◽  
Organizational Boundaries ◽  
External Knowledge ◽  
External Sources ◽  
The Impact ◽  
Innovation Challenge

This article examines the impact of open innovation (OI) practices on the innovation activity of low-tech small- and medium-sized enterprises (SMEs). Different external knowledge sources are considered, and the ability of SMEs to acquire and integrate external knowledge into their organizational boundaries for innovation purposes is assessed. The research draws on a sample of 191 Italian winemakers. The results show that SMEs with higher propensity to access and use external knowledge sources show a greater ability to innovate and that their absorptive capacity impacts the use of external sources. Several implications for theory and practice are drawn, underlining a number of suggestions for future research.

How Industry 4.0 technologies and open innovation can improve green innovation performance?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Faraz Mubarak ◽  
Suman Tiwari ◽  
Monika Petraite ◽  
Mobashar Mubarik ◽  
Raja Zuraidah Raja Mohd Rasi
Keyword(s):  
Open Innovation ◽  
Industry 4.0 ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Green Innovation ◽  
Content Type ◽  
The Impact ◽  
Innovation Behavior

PurposeThis study investigates the impact of Industry 4.0 technologies on green innovation performance. In this relationship, the mediating role of green innovation behavior is also studied. Moreover, open innovation is tested as a mediator between Industry 4.0 technologies and green innovation behavior.Design/methodology/approachA quantitative research method is adopted in which a structured questionnaire was used to collect data from 217 manufacturing firms of Malaysia. After collecting data, the partial least squares-structural equation modeling (PLS-SEM) technique is applied to analyze data and test the hypothesis of study.FindingsIt is found that Industry 4.0 positively impacts open innovation which leads to green innovation behavior. Also, the former lays positive impact on green innovation behavior which leads to improve green innovation performance.Research limitations/implicationsThe authors conclude that Industry 4.0 technologies can play an important role to improve green innovation performance of Malaysian manufacturing firms by managing open innovation for green innovation behavior which further improves the green innovation performance. In this context, it is recommended that strategists and policymakers should undertake the role of open innovation and Industry 4.0 technologies to promote environment-friendly innovations and to promote the green behavior in companies. The authors suggest hereby that firms should be given incentives to adopt and utilize Industry 4.0 technologies and collaborative innovation interactions – as they foster a climate for sustainable green innovations (which is also a key component to achieve competitive advantage) and a growing concern nowadays.Practical implicationsFirst of all the research contributes to achieving the broader of United Nations to promote sustainable innovation through green innovations. Moreover, the companies can also incorporate the findings and insights of this study while devising their policies to foster green innovations.Originality/valueThis research has done the novel contribution by bridging the gap between open innovation approach and sustainability fields while promoting green innovations in small and medium enterprises (SMEs). These two research fields are rarely studied in previous studies by focusing open innovation particularly. Hence, the authors suggest researchers to undertake these fields to further enhance the level of scholarship between innovation management and sustainability. Also, the authors recommend considering technological orientation and technological absorptive capacity of firms to improve green innovations. The current study has investigated the SMEs perspective in general irrespective to their sectoral differences, thus, for future researchers the authors suggest investigating the sector-wise comparison, i.e. electrical and electronics sector, chemical sector, etc.; or service and manufacturing sector differences.

How R&D originality affects open innovation under knowledge spillovers?

2019 ◽  
Vol 23 (4) ◽  
pp. 604-628
Author(s):  
Zongjun Wang ◽  
Zhenyu Jiang
Keyword(s):  
Open Innovation ◽  
Knowledge Spillovers ◽  
Negative Impact ◽  
Innovation Process ◽  
Innovation Performance ◽  
Hierarchical Regression ◽  
Content Type ◽  
Research Framework ◽  
Managerial Practices ◽  
The Impact

Purpose The purpose of this paper is to investigate how R&D originality functions in an open innovation process after the introduction of knowledge spillovers (KSs). Design/methodology/approach To examine the research framework, the authors use hierarchical regression based on questionnaire data from 211 emerging enterprises in China. Findings Consistent with the proposed framework, the authors find that the KS effect mediates the positive relationship between openness and innovation performance. In addition, R&D originality weakens the impact of the KS effect on innovation performance. Research limitations/implications One limitation is that the questionnaire survey the authors choose for data collection has some natural defects; furthermore, the testing method and research framework need to be improved. Practical implications Several implications of the findings for managerial practices are discussed. Originality/value First, the research expands the existing theoretical construct by introducing the KS effect into the open innovation process; second, the authors reveal the negative impact of R&D originality on the open innovation process.

Understanding the relationship between organizational culture and inbound open innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Franz Barjak ◽  
Fabian Heimsch
Keyword(s):  
Corporate Culture ◽  
Open Innovation ◽  
Innovation Process ◽  
External Pressure ◽  
External Control ◽  
Specific Situation ◽  
Content Type ◽  
Process Innovations ◽  
Innovation Activities ◽  
The Relationship

PurposeThe relationship between corporate culture and inbound open innovation (OI) has been limited to two sub-constructs: a culture for openness and an innovation culture, but until now a richer conceptualization of corporate culture is missing.Design/methodology/approachThe authors apply Quinn and Rohrbaugh's (1983) competing values framework and regress these together with company internal and external control variables on five measures of inbound OI, reflecting product innovation, process innovation and the sourcing of innovation activities. The authors use data from a survey of more than 250 Swiss companies, primarily SMEs.FindingsThe importance of the firms' market environments suggests that the results are affected by the specific situation in which the firms found themselves at the time of the survey: after a strong currency shock, inbound OI activities seem to be a reaction to external pressure that favored planning and rule-oriented (formal) cultures to implement cost-cutting process innovations.Practical implicationsCompanies should develop a vision and a strategy, ensure open and transparent communication, have suitable reward and support mechanisms in place, adjust structures and processes, and institutionalize and formalize any change whenever they are confronted with a situation that requires a quick reaction and an adjustment to their degree of openness.Originality/valueThe paper clarifies the relationship between cultural traits and inbound OI, using a well-established understanding of corporate culture and differentiating between innovation types. It points to the importance of the external environment in order to understand the role of culture.

scholarly journals How Intellectual Property Management Capability and Network Strategy Affect Open Technological Innovation in the Korean New Information Communications Technology Industry

2018 ◽  
Vol 10 (8) ◽  
pp. 2600 ◽  
Author(s):  
So Kim ◽  
Eungdo Kim
Keyword(s):  
Intellectual Property ◽  
Technological Innovation ◽  
Open Innovation ◽  
Communications Technology ◽  
Management Capability ◽  
New Information ◽  
Cooperation Network ◽  
Ict Industry ◽  
The Impact ◽  
Ip Management

This paper analyses factors in open innovation activity in the Korean new information and communications technology (ICT) industry, with a focus on cooperation network strategy and intellectual property (IP) management capability, by applying multiple regression models with data collected from 300 companies within the industry. The results of this analysis suggested that the intensity and variation of a company’s technological cooperation with a new ICT company has a statistically meaningful impact on its innovation. In particular, the impact depended on the type of cooperation network. Though IP management capability was also shown to have an important influence on a new ICT company’s innovation, the impact of specific actions for IP management varied by the specific type of innovation results. This study suggests that new ICT companies need to construct technological innovation networks using multiple external sources and enhance their IP management capability in order to increase their technological innovation performance. The factors influencing technological innovation are elements of open innovation, indicating the open technological innovativeness of the new ICT Industry.

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