Open Innovation Approach for Small and Medium Enterprises: An Evidence from Indian Software Product Firms (original) (raw)
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Few studies on open innovation (OI) address OI practices in small and medium-sized enterprises (SMEs) and how their use of OI and the resulting benefits differ from those of large enterprises. The lack of resources in SMEs to engage in looking outward is said to be a barrier to OI, but at the same time this shortage is cited as a motive for looking beyond organisational boundaries for technological knowledge. We investigate how OI dimensions impact the innovative performance of SMEs in comparison to large companies. The key finding is that the effects of OI practices in SMEs often differ from those in large firms. SMEs are more effective in using different OI practices simultaneously when they introduce new products on the market, whereas this is less the case for large firms. Turnover from new products in SMEs is driven by intellectual property protection mechanisms, while large firms in this case benefit more from their search strategies.
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Several studies suggest that open innovation (OI) practices positively influences innovation efforts of large and small firms. However, few studies have investigated implication of adapting OI in the SMEs context. In this study, we address the research gap by investigating the effects of four in-bound OI practices on innovative performance based on data from 252 technology-based SMEs. Our results reveal that different OI are beneficial for different innovation performances. For instance, technology sourcing is linked to radical innovation, while technology scouting is linked to incremental innovation. Based on our study, it seems worthwhile to further study OI issues in SMEs.
Open innovation in small and medium-sized enterprises: An overview
International Small Business Journal, 2013
Our introduction provides the foundation and background for this special issue on open innovation. Since the beginning of the 21st century, innovation has evolved from being the artefact of an individual or internal process within firms to an interactive process between firms and/or in collaboration with knowledge-creating institutions at both the domestic and global levels. The open innovation model suggests that firms should combine external and internal ideas and technologies as effective pathways to market when advancing and commercialising technologies. However, existing research focuses mainly on high-technology multinational firms hence, theoretically driven and empiricallybased research exploring open innovation in small and medium-sized enterprises remains relatively scarce. This special issue offers a critical contribution to this gap with four articles which explore differing aspects of open innovation within smaller firms. The introduction to this special issue commences with an overview of the relevant literature; it then describes the articles and, finally, suggests potential avenues for future research.
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This study is a systematic literature review of three academic articles. It aims to investigate and explore the implementation of open innovation in SMEs. The review was conducted in three phases: (i) understanding the concept of innovation and open innovation; (ii) identifying references and (iii) exploring primary study which explains about the implementation of open innovation in SMEs. Finally, this paper examines how the concept of open innovation in SMEs is implemented in different countries. The result shows that open innovation in SMEs focus more on commercialization because marketing channels and global contacts to introduce them effectively to the market. Implementation of open innovation in SMEs has a significant impact to the company in the aspect of 1) motives and perceived challenges, 2) leadership, people, culture, and business improvement; 3) company size on the effectiveness of innovation endures.
International Journal of Innovation Management, 2021
Open innovation (OI) assumes that businesses combine external and internal ideas as the primary means to accelerate internal innovation or access the market to commercialise their technologies. In the last decade, research interest has increased towards understanding OI in small and medium-sized enterprises (SMEs). Given the fast pace with which the literature has been developing in this area, there is a strong need to revisit the literature to investigate nuances, ambiguities, differences of opinion, discrepancies and omissions. This paper aims to systematically review OI in SMEs and survey the current state of his characteristics and determinants. 130 articles published in peer-reviewed journals are descriptively analysed, with results synthesised across current research themes. Findings suggest OI in an SME differs considerably from OI in a large business. Some characteristics and determinants are specific to OI in SMEs. The originality of the paper is rooted in the conceptual framework that illustrates how characteristics and determinants of OI in SME relate to each other in terms of input-output.
Managing Open Innovation in SMEs: A Good Practice Example of a German Software Firm
In recent years the open innovation paradigm has gained great attention in research on innovation and strategic management. Current research indicates that firms are opening up their innovation processes and adapt their business models to benefit not only from internal but also from external ideas and knowledge. So far, most of the research on open innovation has been focused on open innovation practices in large firms and has not considered open innovation in SMEs adequately. For this reason, our paper investigates organizational capabilities for managing open innovation in SMEs. Based on a case study analysis of the company CAS Software AG the researchers argue that SMEs have to build up new managerial capabilities within six dimensions of an integrated managerial system for open innovation. In addition the paper reveals the prosperous transformation process of the CAS Software AG towards an open innovator highlighting its characteristic of a guided evolution by means of a maturity model.
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Researches indicate that adoption of open innovation strategies in the entrepreneurships offers a promising way to face the ever increasing challenges due to the increasing competition within the companies and customer demand. Mostly researcher focus studying on open innovation practices in large enterprises they neglects its implication in SMEs. This study has tried to find out the parameters of challenges that are being faced by the SMEs. This study is totally based on SMEs of SOUTHERN PUNJAB from different sectors like jewelers, boutique, and Beauty parlors. A questionnaire has been made and distributed to the selected business sectors. The result show that SMEs of southern Punjab implement the practices of open innovation and to obtain information use different external resources like customers, suppliers and distributors. SMEs face different constrains in open innovation implementation. This study has tried to find out status of open innovation and the parameters of different c...
How SMEs Engage in Open Innovation: a Survey
Journal of The Knowledge Economy, 2016
Although open innovation has gained more and more attention in innovation management, even for small and medium-sized enterprises (SMEs), still lack heterogeneous explanations on how smaller firms do engage in open innovations and which source of knowledge they exploit most. In this context, this paper investigates if SMEs from different industries participate in open innovation, highlighting the role of internal and external sources at introducing new products and services. Our study shows that SMEs of Piedmont still have a closed approach to innovation and mainly rely on internal sources to develop new products and services. Moreover, with regard to external sources of knowledge, they primarily rely on one source, the customers.