The Effect of Open Innovation on Firm Performance: Research Gaps (original) (raw)
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Impact of Open Innovation on Firm Performance: A Literature Review
South Asian Journal of Business Insights
This study investigates how the open innovation paradigm influences firm performance by synthesizing the existing literature on open innovation and firm performance. This study provides a better understanding of the concept of open innovation based on the current literature. The selection criteria were executed by the PRISMA article selection process linking open innovation and firm performance, published in peer-reviewed journals from 2015 to June 2021. The search string was tailored by Ebsco host, Elsevier, Emerald Insight and Sage publishers considering the inclusion and exclusion criteria. The descriptive method was used to analyze the selected articles. Numerous studies investigated that open innovation positively impacts firm performance, and few researchers demonstrated that open innovation has a U-shaped relationship with firm performance. Some studies discovered negative and mixed results on open innovation and firm performance. Due to the contradictory findings, more inves...
IEEE Access
Open innovation involves external parties of the organization in innovation activities within the organization, resulting in the flow of knowledge and information internally and externally (inbound and outbound). Given the advantages of having external support in the internal innovation process, organizations are starting to adopt the open innovation model to help them achieve and sustain innovation. The parties involved in open innovation are suppliers, consumers, competitors, and society. Such involvement will increase the organization's ability to achieve better performance. This study aims to provide a more updated, comprehensive, and clearer picture of the importance of organizational readiness to innovate, especially through open innovation. This study also seeks to present a more comprehensive identification of the impact of open innovation on company performance by using a systematic literature study. The systematic literature review conducted in this study can serve as a basis for future research that discusses policy strategies to improve organizational performance through the implementation of open innovation. Based on a systematic literature review, 33 main articles were obtained in accordance with the research objectives including different types of open innovation manifestations and specific open innovation practices implemented by organizations.
ARE WE HAPPY TOGETHER? A META-ANALYTIC REVIEW OF THE IMPACT OF OPEN INNOVATION ON FIRM PERFORMANCE
International Journal of Innovation Management Vol. 25, No. 9 (November 2021) 2130004 (44 pages), 2021
The study draws on dynamic capabilities theory and evidence-based research to provide the first meta-analysis on the open innovation (OI)-firm performance relationship from 2003 to 2020. Both subgroup and meta-analytic regression analyses were employed to analyse 106 independent peer-reviewed articles, encompassing 557,642 firms and 138 effects. Results showed a positive, significant relationship between OI and overall firm performance (r = 0.20) while revealing numerous contingencies. Particularly, we found that the effect of OI on non-financial performance (r = 0.20) is larger than that on financial performance (r = 0.19), while the disaggregate results revealed that inbound OI has the strongest effect on firm performance (r = 0.23), followed by outbound OI (r = 0.19) and coupled OI (r = 0.14). Furthermore, it was found that the mixed results are driven by both contextual factors (i.e., firm size, culture, study region, sector, and industry intensity) and measurement moderators (i.e., study measure and data type). Both the theoretical and managerial implications of these findings are elucidatedly discussed.
International Journal of Technology Management, 2016
The research presented in this paper explores the effect of inbound, outbound and coupled open innovation practices on firms' performances in the biopharmaceutical industry. Specifically, although existing researches on open innovation effectiveness have separately investigated the effect of open innovation practices on innovation and financial performance, this study evaluates the concurrent effect of these practices on both such performance dimensions in a single framework. We state the importance for a manager to explore concurrently the influence of specific open innovation practices both on innovation and economic-financial performance. We empirically test our framework on a sample of 120 companies listed on the NASDAQ biotechnology index.
Open innovation: from technology exploitation to creation of superior performance
Asia Pacific Journal of Innovation and Entrepreneurship
Purpose Nowadays, to develop innovative activities in research and development units, it is desirable to rely on the concept of open innovation to take actions towards the identification of external capabilities of an organization and external knowledge acquisition. Therefore, this study aims to evaluate the impact of external technology acquisition (ETA), external technology exploitation (ETE) and culture of innovation (IC) on open innovation (OI) using SEM approach and then examine the amount of the impact of open innovation on organizational performance (OP) and value creation (VC). Design/methodology/approach This study was an applied survey in terms of research purpose and data collection method. The statistical population included all companies in Yazd Science and Technology Park (STP). To collect the data, 109 questionnaires were distributed. The content validity of the questionnaire was confirmed by experts’ comments, and Cronbach’s alpha coefficient was calculated equal to ...
The effects of open innovation on firm performance: a capacity approach
Open innovation (OI) has been an important research theme for over a decade, but, despite its importance, the theoretical framework has been under-researched. When considering the complexity of OI involving a wide range of innovation activities, capacities which utilize various firm resources will play a critical role in OI implementation. A firm will choose a relevant OI mode according to its capacities. However, as little is known about OI capacities, we do not know how capacities affect firms’ performance and how they differ from a group of firms to another. This study investigated the OI capacity framework. The relationships between six OI capacities - inventive, absorptive, transformative, connective, innovative and desorptive - and financial performance were empirically tested using Korean Innovation Survey (KIS) 2008 data. A research model was analysed using structural equation modeling, and potential differences between groups of firms were also investigated. The results sug...
Open Innovation: An Approach for Enhancing Performance in Innovative SMEs
SSRN Electronic Journal, 2000
This paper attempts to investigate the relationship between open innovation (OI) and firm performance in small and medium-sized enterprises (SMEs). Based on survey data from 306 Korean innovative SMEs, the results of this study show that 1) both broad and intense engagement in OI and cooperation with external partners are positively associated with firm performance 2) technology and market-oriented OI modes (R&D collaboration, customer involvement and open sourcing), involving relatively low degree of changes, can positively contribute to performance and 3) highly innovating SMEs benefit from working with non-competing partners, such as customers, consultancy/intermediaries and public research institutes.
Explicating the Effects of Organisational Open Innovation Capabilities on Performance
Innovation : Organization & Management, 2022
This research explores the effect of three role perspectives on open innovation (OI) capabilities – transfer, absorption and brokerage – on OI performance at the organisational level. The authors argue that OI capabilities contain three different perspectives on the roles played in the ecosystem and can be continuously reshaped and enhanced through the organisational dynamic capabilities (DCs) of sensing, seizing and reconfiguring. Also, the mediation effects of organisational infrastructure and the socio-psychological atmosphere between the OI capabilities of three role perspectives and OI performance are analysed. Data were collected using a self-administered structured questionnaire from 262 actors in corporations. The collected data were analysed using the partial least squares (PLS) structural equation modelling (SEM) technique with SmartPLS 3.0 software. In this regard, the findings reveal that an organisation’s transfer capability directly affects OI performance, whereas absorption and brokerage capabilities indirectly affect OI performance through infrastructure and the socio-psychological atmosphere. Thus, organisational OI transfer, absorption and brokerage capabilities affect OI performance either directly or indirectly. This research aims to provide a theoretical framework to understand the multi-dimensional nature of organisational OI capabilities (which should be dynamically reshaped) and their relationships with OI performance.
Open Innovation as a Tool of Strategic Management
2018
The open innovation phenomenon has developed from a small club of innovation practitioners, mostly active in high-tech industries, to a widely discussed and implemented innovation practice. Simultaneously, a small community of management researchers has recently developed into an established research field. Once a field grows rapidly there is a danger that it may become a short-term fashion. This special issue reports on recent research evidence to further develop the open innovation research field. South Moravian in Czech Republic region started to support companies and help them with organization of open innovation session. The tool perspective: Opening up the innovation process requires a set of instruments. Those tools, for example, enable customers to create or configure their own product with tools kits or enable companies to integrate external problem solvers or idea creators. Currently a broad awareness of open innovation and its relevance to corporate R&D. Aim of paper is research and measure the results after ten years since Open innovation has been supported by region government in South Moravian region in Czech republic and was implemented in innovation strategy of this region. Regional strategy is partnership of South Moravian companies, local scientists, public authorities and other parties connected to development in the region. Open innovation has become important part of strategic management and has become a well-established, though still somewhat fragmented, academic discipline.
OPEN INNOVATION PRACTICES AND THEIR EFFECT ON INNOVATION PERFORMANCE
International Journal of Innovation and Technology Management, 2012
This paper develops an indicator framework for examining open innovation practices and their impact on performance. The analysis, which is based on Community Innovation Survey (CIS) data for Austria, Belgium, Denmark and Norway, yields a number of interesting results. First, we find that open innovation practices have a strong impact on innovation performance. Second, results suggest that that broad-based approaches yield the strongest impacts, and that the collective of open innovation strategies appear more important than individual practices. Third, intramural investments are still important for innovative performance, stressing that open innovation is not a substitute for internal knowledge building.