Organizational characteristics and engagement in open innovation: is there a link (original) (raw)
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Journal of Management and Research, 6(1), 2019
At present, open innovation (OI) practices have gained traction in all industries, particularly in smallandmedium-sizedenterprises(SMEs). However, only a few Malaysian SMEs practice OI and there is limited literature available on OI practices in Malaysian SMEs. To address this issue, the main objective of the current study is to reveal the challenges of OI and the role of financial constraints in Malaysian SMEs. To achieve this objective, this study implemented the quantitative approach and adopted the cross-sectional research design. Questionnaires were used to collect data from three hundred (300) data managerial staff of Malaysian SMEs. Cluster sampling was used to collect the data.It was found that Malaysian SMEs faced various challenges during the implementation of the OI system. These challenges included motivating spillovers, maximizing internal innovation, and incorporation of external knowledge and intellectual property (IP) management. Moreover, it was found that sufficient finance is needed to resolve these challenges. Hence, this study contributes in the body of knowledge by developing a framework for SMEs to facilitate OI and by identifying the constraints in this framework. Therefore, the current study can be used for Malaysian SMEs to improve their OI system.
Analysis of Open Innovation Practices in Malaysian SMEs
Journal of Management Research, 2018
Open Innovation is a phenomenon that has become increasingly important due to found shorter innovation cycles, industrial R&D escalating costs as well as in the dearth of resources. Researchers have suggested various kinds of practices and ways to categorized them. However, most of prior studies only used some of the practices to measured open innovation, but the measurements were very generic as some practices are broadly defined, and the list of open innovation activities not included new activities and completed list of practices. Hence, it is crucial to identify a new list of open innovation practices and study on similar practices in developing countries to help their companies understand open innovation and its practices as well. This study reviewing prior studies on open innovation adoption published between 2003 and March 2014 and identified 36 different practices. Therefore, we created a new list of open innovation practices that cover most of strategies and practices mentioned in prior studies. This study used quantitative methodology, 400 high rank executives manager of Malaysia SMEs participated and completed the survey and further analyzed using the appropriate statistical procedures. The results indicated that Malaysian SMEs use three core processes of open innovation including coupled, outside-in, and inside-out practices in their open innovation processes, respectively.
Inbound and Outbound Open Innovation: Organization and Performances
Journal of technology management & innovation, 2014
The aim of the paper is to analyse the relationships between the openness degree of companies and their 1) context features, 2) R&D organization and 3) financial performances. The openness degree is defined after a pecuniary approach, involving all the transactions in the innovation market. Hypotheses are formulated and, then, tested on a sample of 126 world top R&D spending bio-pharmaceutical companies for the period 2008-2012. Open innovation is more pervasive among small and young companies, for most of which it represents the very core business. Inbound and outbound practices have a similar diffusion in terms of number of companies adopting them, but the cumulative values of inbound flows are higher, whereas outbound flows are more relevant when compared to the total business of the firms. Inbound practices are substitutive to internal R&D activities, while outbound ones are complementary to internal development. The performances of companies have an inverted-U shape trend versus inbound practices and a fundamentally decreasing trend versus outbound ones.
Factors Affecting Open Innovation: Evidence from Malaysia
Abstract: This paper uses Partial Least Square (PLS) as an analysis tool to test the hypothesized relationships of Managerial Ties and Organizational Citizenship Behaviours (OCBs) with Open Innovation and tests the moderating effect of appropriability regimes on these relations. 60 managers from 60 firms Malaysian firms participated in this study. The results reveal that managerial ties relate to open innovation, while non-significant findings are found with the other two hypotheses. Social Exchange and Actor-Network theories are used to explain the framework of this study. Limitations, practical and academic implications are discussed. Key words: Open Innovation, organizational citizenship behaviours, managerial ties, Malaysia.
Perceptions of Open Innovation among SMIs in Malaysia
International Invention Journal of Arts and Social Sciences, 2016
Open Innovation concept is beneficial to SMIs as it substitutes or complements the dependency on internal R and D which is not cost effective. Success and failures in Open Innovation adoption depends on various factors that has been researched to certain extent but not much is known on behavioural and cost factors. Therefore this study undertakes to analyse behavioural and cost factors that impacts open innovation adoption. Significant factors that influences behavioural are Organizational Citizenship Behaviours, Organizational Culture, Managerial Ties and in terms of costs is Transactional Costs. Appropriability Regimes is analysed as moderating role to analyse behavioural and cost relationships. Social Exchange Theory (SET) and Actor Network theory (ANT) theories applied in this study. This study also undertakes quantitative approach where cross sectional data from survey mode from 150 managers in manufacturing firms will be analysed. Purposive sampling technique used and hierarchical multiple regressions employed to test the related hypothesis variables. Theoretical and managerial contributions with the limitations and future research directions also highlighted.
An Analysis of Open Innovation Strategies in Firms in Low and Medium Technology Industries
IEEE Transactions on Engineering Management, 2019
Open innovation (OI) has been mainly associated with high-technology firms. This paper aims to analyze how firms in low and medium technology industries implement their OI strategy. In doing so, we explore common patterns in OI strategies by considering inbound, outbound, and coupled OI practices. We also examine whether there are differences in innovation performance among companies adopting a specific OI strategy. The study is carried out on a sample of 242 Spanish innovating companies. Based on the relevance of the different OI practices, we identify three types of OI firms: advanced open innovators, intermediate open innovators, and incipient open innovators. Our results reveal that advanced open innovators have a higher performance in product innovation, and that there are no differences among groups in process and organizational innovation. Index Terms-Coupled OI, inbound OI, low and medium technology industries, open innovation (OI) practices, outbound OI.
Proclivity for open innovation: Construct development and empirical validation
Innovation, 2016
Over the past decade, the concept of open innovation has received substantial attention. Research has ranged from case study representations to large-scale quantitative studies using the Community Innovation Survey data or developing novel approaches to measuring open innovation. In this study, we conceptualise and validate a firmlevel measure of proclivity for open innovation, which relates to the firm's predisposition to perform inbound and outbound open innovation activities. To do so, we focus on smaller firms, assessing their organisational and behavioural perspectives related to open innovation. Building on existing scholarly research and a field study, we begin by conceptualising the theoretical framework of the multidimensional construct. We then develop and validate its measurement scale on two cross-cultural samples. The measure contains the following dimensions: inward IP licensing and external participation, outsourcing R&D and external networking, customer involvement, employee involvement, venturing, and outward IP licensing. Our results indicate that the measure has good reliability and validity. Implications for future research are also discussed.
R&D Management, 2021
Firms are increasingly making use of Open Innovation in an attempt to get the most out of external ideas and knowledge in their innovation processes. The existing research on Open Innovation documents a broad set of practices that firms may use to implement inbound Open Innovation, which entail various degrees of integration with the external partner. There is also empirical evidence showing how firms move from a closed to an open approach to innovation over time. However, there is limited empirical work that docu- ments if and how firms that start using open innovation change and evolve the practices through which inbound open innovation is implemented over time. This paper, relying on an exploratory analysis of nine case studies, adopts a temporal perspective to examine how and why firms use different practices for inbound open innovation over time, with attempts at offering a tentative explanation of the underlying drivers triggering this evolu- tion. This paper contributes to the scholarly debate on the organisational enablers of Open Innovation and provides managers involved in open innovation activities with insights into the factors that may determine changes in their use of different inbound open innovation practices over time.
Journal of Global Entrepreneurship Research
The prime objective of the current study is to investigate the major determinants of firm's open innovation performance in Malaysian small and median-sized enterprises (SMEs). Recently, Malaysian SMEs have suffered from low open innovation performance. These SMEs are still struggling to get success in open innovation adoption. Decline in open innovation practices hampered the overall SMEs performance. To address this issue the current study adopted quantitative research approach and cross-sectional research design. A 5-point Likert scale was used to collect the data through mail survey. Two hundred (200) questionnaires were distributed among the managerial staff of SMEs in Malaysia by using area cluster sampling. Smart PLS3 (SEM) was utilized as a statistical tool. It was found that external knowledge, internal innovation and R & D department were the major determinants of firm's open innovation performance. Thus, the current study contributed in the body of knowledge by revealing the real determinants of open innovation performance and R & D department as a mediator. Therefore, the current study is beneficial for SMEs to boost up the overall performance by accelerating open innovation system.
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...