Open Innovation and Its Applicability in SMEs

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.

Value creation, innovation practice, and competitive advantage

2019 ◽  
Vol 23 (2) ◽  
pp. 273-290 ◽  
Author(s):  
Enrico Battisti ◽  
Nicola Miglietta ◽  
Niccolò Nirino ◽  
Manuel Villasalero Diaz
Keyword(s):  
Competitive Advantage ◽  
Value Creation ◽  
Open Innovation ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Italian Market ◽  
Key Factor ◽  
Innovation Practices ◽  
Start Ups ◽  
Pioneer Research

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.

Open Innovation

2020 ◽  
Author(s):  
Jennifer Kuan
Keyword(s):  
Open Innovation ◽  
Business Models ◽  
Innovation Management ◽  
Large Firms ◽  
Technology And Innovation ◽  
Innovation Practices ◽  
Annual World ◽  
Numerous Journal

Open Innovation, published in 2003, was a ground-breaking work by Henry Chesbrough that placed technology and innovation at the center of attention for managers of large firms. The term open innovation refers to the ways in which firms can generate and commercialize innovation by engaging outside entities. The ideas have attracted the notice of scholars, spawning annual world conferences and a large literature in technology and innovation management (including numerous journal special issues) that documents diverse examples of innovations and the often novel business models needed to make the most of those innovations. The role of business models in open innovation is the focus of Open Business Models, Chesbrough’s 2006 follow-up to Open Innovation. Managers have likewise flocked to Chesbrough’s approach, as the hundreds of thousands of hits from an online search using the term open innovation can attest. Surveys show that the majority of large firms were engaging in open innovation practices in 2017, compared to only 20% in 2003 when Open Innovation was published.

scholarly journals EFFECT OF SUCCESSION MANAGEMENT ON SUSTAINABILITY OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN SOUTH EAST NIGERIA

2021 ◽  
Vol 6 (3) ◽  
Author(s):  
Agwu Kalu Ukairo ◽  
Chika George Igwesi ◽  
Mathew Chiedu Ijeh
Keyword(s):  
Competitive Advantage ◽  
Life Span ◽  
Firm Growth ◽  
Competitive Intelligence ◽  
Technological Advancement ◽  
Sustainable Competitive Advantage ◽  
Managerial Decision ◽  
Succession Management ◽  
Medium Scale ◽  
Operational Life

Many prominent and even internationally acclaimed business organizations have gone into extinction due to succession management challenges, notwithstanding their richly endowed financial and material resources. Succession management ensures seamless transition of managerial decision making of a firm to the next generation when the owner is no longer part of the business. The study investigated the effect of succession management on sustainability of Small and Medium Scale Enterprises (SMEs) in South East, Nigeria. However, the specific objectives were to ascertain the effect of competitive intelligence on the growth of SMEs; and to determine the effect of technological advancements on competitive advantage of SMEs in South East Nigeria. The study is anchored on Elgar’s Performance Theory of organization and the Resource Based Firm theory which emphasizes that the physical, organizational strategies, financial and human resources have the potential to provide firms with sustainable competitive advantage. The study adopted the survey research method, making use of structured questionnaire as instruments for data collection. Data were collected from primary and secondary sources. Hypotheses were tested using Pearson Product Moment Correlation Coefficient and the simple linear regression. It was found that succession management through well-conceived competitive intelligence positively affected the growth of SMEs; technological advancements positively affected competitive advantage of SMEs. It was, therefore, concluded that succession management through competitive intelligence and technological advancement positively affected the sustainability of SMEs through firm growth and competitive advantage. The study recommended that for SMEs to be sustained and enhance its operational life span, effective succession management should be adopted growth and competitive advantage. The study recommended that for SMEs to be sustained and enhance its operational life span, effective succession management should be adopted. JEL: B10; A02; C06 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0851/a.php" alt="Hit counter" /></p>

scholarly journals Complexity as an Antecedent for External Collaboration in New Product Development Projects

2018 ◽  
Vol 7 (4.7) ◽  
pp. 97
Author(s):  
Reza Gheshmi ◽  
Hugo Zacro ◽  
Frederic Marimon
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Open Innovation ◽  
New Product ◽  
Development Projects ◽  
Knowledge Sources ◽  
External Knowledge ◽  
Project Complexity ◽  
Different Dimensions ◽  
Innovation Practices

This study examines how project complexity in low technology-intensive small- and medium-sized enterprises (SMEs) contribute in implementation of open innovation practices, during their new product development projects. The main focus of this paper is to investigate the critical role of complexity in the project level to identifying the compatibility of those external sources involved in NPD. The low technology-intensive sector in Spain were chosen as a target context, there were many innovative SMEs operating in these industries and because these sectors were going through significant changes. Four external knowledge sources, Universities, suppliers, customers and competitors and four open innovation practices, Community, Platform, Partnership and seller-buyer agreement, in the new product development were identified. The study shows that in SMEs, project complexity plays an important role in selecting the external source and implementation of open innovation practices. The main conclusion of the study is that the external collaboration in new product development projects is determined by different dimensions of project complexities and in projects with different type of complexity, the SMEs follow different external knowledge sources and open innovation practices. The study results imply that SMEs benefit from opening up their innovation process in the new product development projects. The firms in this study employed a blend of strategies that is more compatible with dimensions of project complexity. They collaborated actively with different external knowledge source and different modes of collaboration, when they have determination of different dimensions of project complexity. Also, the study extends understanding of the strategic use of open innovation in SMEs by demonstrating how SMEs balance the risk of project complexity built on new product development and the benefit of creating a wider capability base with partnerships. 

scholarly journals Antecedents and effects of individual absorptive capacity: a micro-foundational perspective on open innovation

2017 ◽  
Vol 21 (6) ◽  
pp. 1319-1341 ◽  
Author(s):  
Sandor Lowik ◽  
Jeroen Kraaijenbrink ◽  
Aard J. Groen
Keyword(s):  
Knowledge Management ◽  
Cognitive Style ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Management Practices ◽  
Content Type ◽  
Individual Level ◽  
External Knowledge ◽  
Absorptive Capacities ◽  
Innovation Practices

Purpose The paper aims to understand how individuals differ in individual absorptive capacity – their ability to recognize, assimilate, transform and exploit external knowledge. These individual absorptive capacities are a key knowledge management building block for an organization’s open innovation practices. The study examines individual antecedents – human capital, social capital and cognition – and innovation outcomes of individual absorptive capacity. Design/methodology/approach This is a quantitative study of 147 employees in a single medium-sized Dutch industrial firm. Based on a survey and structural equation modeling, the antecedents’ prior knowledge diversity, network diversity and cognitive style are examined in relation to individual absorptive capacity. Further, the mediating effects of individual absorptive capacity on its antecedents and innovation outcome are investigated. Findings The main findings are that prior knowledge diversity, external network diversity and a bisociative cognitive style explain differences in individual absorptive capacity. A bisociative cognitive style appears to be the most important factor. Also, this study finds that individual absorptive capacity mediates between its antecedents and individual innovation performance and is therefore a relevant factor to capture value from external knowledge sources. Research limitations/implications The study extends open innovation theory by exploring individual-level factors that explain the ability to capture value from external knowledge. It suggests that differences in open innovation practices are explained by heterogeneity at the individual level. Further, it explains how individuals’ potentials for open innovation are mediated by their absorptive capacities. These insights enable future researchers to further examine individual-level factors in knowledge management practices and to explore cross-level individual-organizational interactions for open innovation. Practical implications This paper highlights that individuals’ engagements in open innovation practices are explained not only by individuals’ motivations but also by their abilities to absorb external knowledge. Further, it helps managers to design knowledge management practices to promote employees’ absorptive capacities, to improve open innovation processes. Originality/value This study investigates the neglected individual-level factors of open innovation practices from a micro-foundational and knowledge management perspective. To our best knowledge, this is the first study to examine individual-level antecedents and outcomes of individual absorptive capacity.

Project management and innovation practices: backgrounds of the sustainable competitive advantage in Southern Brazil enterprises

2019 ◽  
Vol 31 (15) ◽  
pp. 1276-1290
Author(s):  
Eliana Andréa Severo ◽  
Bruna Sbardelotto ◽  
Julio Cesar Ferro de Guimarães ◽  
Cesar Ricardo Maia de Vasconcelos
Keyword(s):  
Project Management ◽  
Competitive Advantage ◽  
Sustainable Competitive Advantage ◽  
Southern Brazil ◽  
Innovation Practices
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