Open Innovation as a Business Entrepreneurship Strategy

2020 ◽  
pp. 201-231
Author(s):  
Miguel Angel Gomez-Borja ◽  
Carlota Lorenzo-Romero ◽  
Leticia del-Pozo Ruiz
Keyword(s):  
Open Innovation ◽  
Business Management ◽  
Digital Environment ◽  
Management Actions ◽  
Online Business ◽  
Innovation Strategies ◽  
The Relationship

The relationship established through online channels between customers and organizations defines a new and challenging scenario. Within a digital environment and through innovation strategies based on joint participation, it is possible to interact with the customer in a more personalized way with more differentiating actions. To identify the relevance of current online business management actions, this chapter proposes an approximation to the term open innovation. Authors posit the growing relevance for organizations of the application of innovation strategies through external inputs, the interaction between various agents and crowdsourcing actions. They discuss the new role of the consumers as co-creating agents of value in the new ecosystems of entrepreneurship.

Investigating open innovation strategies and firm performance: the moderating role of technological capability and market information management capability

2020 ◽  
Vol 35 (1) ◽  
pp. 23-39 ◽  
Author(s):  
Suqin Liao ◽  
Lihua Fu ◽  
Zhiying Liu
Keyword(s):  
Firm Performance ◽  
Information Management ◽  
Open Innovation ◽  
Technological Capability ◽  
Market Information ◽  
Content Type ◽  
Management Capability ◽  
Innovation Strategies ◽  
The Relationship

Purpose This study aims to assess how firm functional capability moderates the relationship between two types of open innovation and performance, with a special focus on the role of technological capability and the join effect market information management capability. This paper develops and tests a research model, which assesses how the performance implications of two open innovation forms are shaped by the technological capability and how such an effect is contingent on market information management capability. Design/methodology/approach Survey data were collected from 238 Chinese high-tech enterprises. Structural equation modeling and linear regression were used to test the data. Then, the main research questions were answered. Findings Empirically results show that technological capability strengthens the influence of inbound open innovation on firm performance. However, the moderate effect of technological capability on the relationship between outbound open innovation and firm performance remains unsupported. A higher technological capability with a high level of market information management capability increases the efficacy of outbound open innovation in gaining superior performance. Additional analysis shows that when firms implement inbound activities and possess a strong technological capability, they will achieve higher performance if they possess a moderate level of market information management capability, compared with a high or low level. Originality/value This paper provides new evidence on the benefits of different open innovation strategies on firm’s performance and, more importantly, the specific firm-level contingencies (technological capability and market information management capability) under which these benefits are more likely to be enhanced. It clarifies what the capabilities are and how they interact to foster the robust open innovation strategies, which sheds new light on the boundary conditions that affect the open innovations–firm performance relationship.

scholarly journals The Mediating Role of Absorptive Capacity in the Relationship between Research Community Participation and Open Innovation

2021 ◽  
Vol 124 ◽  
pp. 08010
Author(s):  
Rabiah Eladwiah Abdul Rahim ◽  
Nor’ashikin Ali ◽  
Juraifa Jais
Keyword(s):  
Community Participation ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Structural Equation ◽  
Research Community ◽  
Management Support ◽  
Top Management Support ◽  
Mediating Role ◽  
The Relationship

This study aims to investigate the factors influencing research community participation and open innovation through the mediating role of absorptive capacity from the lens of Resource Based View and Dynamic Capability perspectives. Based on a survey of 115 senior engineering faculties from three research universities in Malaysia, this study applies the Structural Equation Modelling (SEM) to investigate the research model. The findings demonstrate that top management support has a major impact on research community participation. The findings also suggest that absorptive capacity mediates the association between research community participation and open innovation capability. This study provides a theoretical basis on the resources and capability that are pertinent for open innovation. From a practical perspective, the relationships among research community participation, absorptive capacity, and open innovation suggest how universities can promote research community participation and assess their absorptive capacity to achieve open innovation.

Information Systems for the Management of the Organizations

2018 ◽  
pp. 96-116
Author(s):  
José Rascão
Keyword(s):  
Decision Making ◽  
Information Systems ◽  
Information Management ◽  
Global Economy ◽  
Business Management ◽  
Key Concepts ◽  
Relationship Of ◽  
The Relationship ◽  
Role Of Information

This chapter investigates the key concepts of information systems, as well as the role of information in the information management activities, in terms of supporting decision making by different organizations' managers in the literature of information sciences and business sciences. The information has become, in the global economy, a source of value for organizations, assuming a key role in contributing to the development of the performance of the same. The relationship of information management with business management helps the process of decision making.

The Role of Internet of Things, Knowledge Management, and Open Innovation in SME Sustainability

2020 ◽  
pp. 295-303
Author(s):  
Muhammad Imran ◽  
Jawad Iqbal ◽  
Hassan Mujtaba Nawaz Saleem
Keyword(s):  
Decision Making ◽  
Knowledge Management ◽  
Internet Of Things ◽  
Open Innovation ◽  
Knowledge Generation ◽  
The Internet ◽  
Process Framework ◽  
The Relationship ◽  
The Internet Of Things

The main objective of the chapter is to discuss the relationship between internet of things and knowledge management; knowledge management and open innovation; open innovation and SMEs sustainability. The relationship between the constructs developed and discuss on the behalf of past studies. The present chapter found that Internet of Things is playing an important role in knowledge generation and management, further, knowledge management is very important for open innovation environment in SMEs. Moreover, the open innovation sustains the SMEs performance. In respect of implications, the owner / managers of SMEs should consider the Internet of Things, knowledge management, and open innovation capabilities during the decision making for SME sustainability. Moreover, this is a process framework which brings the effect of one variable to other variables. However, the future studies should empirically validate the proposed research framework.

R&D volatility and market value: the role of executive overconfidence

2019 ◽  
Vol 14 (2) ◽  
pp. 411-431
Author(s):  
Benlu Hai ◽  
Qingzhu Gao ◽  
Ximing Yin ◽  
Jin Chen
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Market Value ◽  
Data Set ◽  
Content Type ◽  
Dynamic Perspective ◽  
Innovation Strategies ◽  
The Impact ◽  
The Relationship

Purpose Significant increase or decrease in research and development (R&D) expenditure may have an immense impact on market value. Based on the punctuated equilibrium theory, this paper aims to empirically analyze the impact of R&D volatilities on market value and the moderating effect of executive overconfidence. Design/methodology/approach The study uses the panel data set that covers 902 Shanghai and Shenzhen A-share manufacturing listed firms and multiple regression method to test the theoretical hypotheses. Findings The results show that both positive and negative R&D volatilities have a robust and significant positive impact on the market value. Further analysis shows that the executive overconfidence positively moderates the relationship between R&D volatilities and market value. Research limitations/implications In a rapidly changing and highly competitive environment, firms should recognize that the balance of innovation strategies will help to bring higher market value. Furthermore, firms could improve corporate governance to make the best of managerial characteristics, such as overconfidence, on the innovation decision-making process. Originality/value By pushing the static perspective to a dynamic perspective and empirically documenting the role of executive overconfidence, this study contributes to the literature on the relationship between R&D expenditure and market value, generating theoretical and practical insights for firms to improve innovation governance and innovation strategies to achieve better business performance.

IT’S ALL IN THE MIX: HOW USER-DESIGNED PRODUCTS AND COMPANY-DESIGNED PRODUCTS CAN PEACEFULLY COEXIST

2019 ◽  
Vol 24 (07) ◽  
pp. 2050067
Author(s):  
MICHAEL SCHULZ ◽  
FRANZISKA VÖLCKNER
Keyword(s):  
Open Innovation ◽  
Market Entry ◽  
Purchase Intentions ◽  
Product Portfolio ◽  
Innovation Ability ◽  
Entry Strategy ◽  
The Relationship ◽  
Relevant Factors ◽  
Unexpected Consequences

Across industries, companies operate open innovation platforms that encourage users to share ideas and become product designers. Likewise, companies explicitly promote products based on user ideas as “user-designed” (e.g., McDonald’s MyBurger, LEGO Ideas). This paper introduces and empirically investigates two managerially relevant factors that can influence the effect of user-designed products on consumers’ reactions. Specifically, Studies 1a and 1b reveal an inverted U-shaped relationship between the share of user-designed products in a company’s product portfolio and consumers’ purchase intentions, which is mediated by consumers’ perceptions of the company’s innovation ability. Study 2 examines the role of the market entry strategy for user-designed products. While the inverted U-shaped effect holds for followers, the relationship between the share of user-designed products and consumers’ purchase intentions becomes U-shaped for first movers. These results suggest that user-designed products can have unexpected consequences that managers need to be aware of and consider in their actions.

scholarly journals KNOWLEDGE-ORIENTED LEADERSHIP AND OPEN INNOVATION: THE MEDIATING ROLE OF KNOWLEDGE PROCESS AND INFRASTRUCTURE CAPABILITY

2020 ◽  
pp. 2150028
Author(s):  
MUHAMMAD USMAN SHEHZAD ◽  
KATE DAVIS ◽  
MUHAMMAD SHAKIL AHMAD
Keyword(s):  
Open Innovation ◽  
Health Sector ◽  
Process Capability ◽  
Equation Modeling ◽  
Causal Relationships ◽  
Knowledge Process ◽  
Mediating Role ◽  
Knowledge Infrastructure ◽  
The Relationship

Purpose: The study aims to examine the causal relationships among knowledge-oriented leadership (KOL), open innovation (OI), knowledge infrastructure capability (KIC) and knowledge process capability (KPC). This study also explored the mediating role of knowledge infrastructure capability (KIC) and knowledge process capability (KPC) in the relationship between knowledge-oriented leadership and open innovation. Design/methodology/approach: The study collected primary data via a standardized questionnaire comprising a sample of 305 pharmaceutical and health sector employees in Pakistan. Hypotheses were tested through structural equation modeling. Findings: The results display the significant causal relationships among the variables and knowledge infrastructure and process capability and these significantly mediate the relationship between knowledge-oriented leadership and two-dimensional open innovation. Furthermore, this study found an insignificant effect of KOL on inbound open innovation. Limitation: The findings of the paper are based on the data collected from the Pakistan pharmaceutical and health sector. In future, to accommodate the issue of generalizability, the framework can be used for samples from other countries. Practical Implication: This study provides evidence that leadership is one of the most crucial sources that can aid in organizational effectiveness when dealing with knowledge by developing infrastructure and improving processes to enhance innovative outcomes.

On the path towards open innovation: assessing the role of knowledge management capability and environmental dynamism in SMEs

2017 ◽  
Vol 21 (3) ◽  
pp. 553-570 ◽  
Author(s):  
Isabel Martinez-Conesa ◽  
Pedro Soto-Acosta ◽  
Elias George Carayannis
Keyword(s):  
Knowledge Management ◽  
Open Innovation ◽  
Equation Modeling ◽  
Research Model ◽  
Environmental Dynamism ◽  
Content Type ◽  
Integrative Research ◽  
The Impact ◽  
The Relationship

Purpose This study aims to shed light on the internal and external antecedents of open innovation (OI) in the context of small- and medium-sized enterprises (SMEs), with a special focus on the role of knowledge management (KM) capability. The paper develops and tests an integrative research model which assesses the effect of internal factors on KM capability; the impact of organizational and external factors, namely, KM capability and environmental dynamism, on OI; and whether environmental dynamism moderates the relationship between KM capability and OI. Design/methodology/approach Drawing on the knowledge-based view and the social exchange and the contingency theories, this paper develops an integrative research model which analyzes several relations between organizational antecedents of KM capability and its effect on OI by using covariance-based structural equation modeling on a data set of Spanish SMEs. Findings Results confirm that information technology-supported operations and commitment-based human resource practices have a positive and significant influence on KM capability. In contrast, results do not find support for the relationship between interdepartmental connectedness and KM capability, whereas both KM capability and environmental dynamism have a direct influence on OI. Originality/value This paper adds to existing research on OI, as it is the first study that addresses the critical role of KM capability for the implementation of OI.

High-performance work systems and open innovation: moderating role of IT capability

2020 ◽  
Vol 120 (8) ◽  
pp. 1441-1457
Author(s):  
Jia Zheng ◽  
Hefu Liu ◽  
Jingmei Zhou
Keyword(s):  
Open Innovation ◽  
High Performance ◽  
Work Systems ◽  
Content Type ◽  
High Performance Work Systems ◽  
It Capability ◽  
Role Of It ◽  
The Relationship ◽  
Moderating Role

PurposeThis study aims to explore the impact of high-performance work systems (HPWS) on open innovation and the moderating role of information technology (IT) capability on the relationship between HPWS and open innovation.Design/methodology/approachThis study conducted a questionnaire survey in the industrial parks of the Yangzi River Delta in China and obtained 108 useful responses.FindingsHPWS positively impacts open innovation. IT exploration capability strengthens the relationship between HPWS and open innovation, whereas IT exploitation capability and ambidexterity do not strengthen such relationship.Research limitations/implicationsFirms should use HPWS to improve employees' motivation of external learning and searching for enhancing innovation openness. They should acknowledge the enabling role of IT exploration capability in facilitating employees' learning and searching toward open innovation and discreetly develop IT exploitation capability and ambidexterity during external knowledge searching, which may not achieve the desired facilitation purpose.Originality/valueThis study contributes to human resource management (HRM) by suggesting that a new antecedent, which is HPWS in our case, should be taken into account when considering the influence of HRM in the process of open innovation. This study has important implications for HPWS, IT capability and open innovation; open innovation can be improved by using HPWS and IT capability. This study also expands IT ambidexterity to HRM and innovation studies.

HUMAN RESOURCE PRACTICES AND OPEN INNOVATION

2013 ◽  
Vol 17 (06) ◽  
pp. 1340019 ◽  
Author(s):  
DARIA PODMETINA ◽  
DARIA VOLCHEK ◽  
JUSTYNA DĄBROWSKA ◽  
IRINA FIEGENBAUM
Keyword(s):  
Human Resource ◽  
Open Innovation ◽  
New Products ◽  
Human Resource Practices ◽  
Internal Motivation ◽  
Hr Practices ◽  
Innovation Strategies ◽  
Human Side ◽  
Innovation Approach

The human side of open innovation (OI) has not been extensively studied; however, when companies develop new products or services, it is essential to foster corporate innovativeness, and managing personnel is a key to this. Human resource (HR) practices are an essential means by which companies can influence and shape the skillset, attitudes, and behaviour of individuals to do their work and can systematise the work of the whole organisation. In this paper, we aim to contribute to understanding the role of HR in open innovation, by analysing the HR practices in companies operating under an open innovation approach. We test our model with the PLS-SEM method, using Smart PLS software. Our findings suggest that personnel education is essential in supporting corporate open innovation strategies. Internal motivation systems prove to be valuable assets to support internal and external openness in OI implementation. High appreciation of personnel and its value to company are important for increasing external and internal openness.

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