PROFITING FROM OPENNESS: EXPLORING THE RELATIONSHIP BETWEEN PROFITS AND OPENNESS AMONG INNOVATING FIRMS (original) (raw)
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Replication note Openness and Innovation Performance Revisited
2016
Firms increasingly source new ideas and knowledge from alliances with external partners. Laursen and Salter’s (2006) seminal research shows that while such openness in innovation benefits firms, too much openness can have a negative effect on innovation performance. We provide a conceptual replication of this finding, relying on a unique longitudinal panel data set comprising three different innovation performance metrics: product and service innovations, process innovations, and marketing innovations.
Research Policy, 2013
To cope with fast-changing business environments, firms are increasingly opening up their organizational boundaries to tap into external source of knowledge. By restructuring their R&D system, firms face the challenge of balancing internal and external R&D activities to profit from external knowledge. This paper examines the influence of R&D configuration on innovative performance and the moderating role of a firm's R&D capacity. The findings suggest that firms that increasingly rely on external R&D activities have a better innovative performance, yet up to a point. Beyond this threshold, a greater share of external R&D activities reduces a firm's innovative performance. And such substitution effect is larger for firms with greater R&D capacity. Overall, this paper provides a better understanding of the open innovation paradigm by suggesting that the opportunity cost for further opening up R&D borders is higher for firms with a superior technological knowledge stock.
Strategic Management Journal, 2006
A central part of the innovation process concerns the way firms go about organizing search for new ideas that have commercial potential. New models of innovation have suggested that many innovative firms have changed the way they search for new ideas, adopting open search strategies that involve the use of a wide range of external actors and sources to help them achieve and sustain innovation. Using a large-scale sample of industrial firms, this paper links search strategy to innovative performance, finding that searching widely and deeply is curvilinearly (taking an inverted U-shape) related to performance.