Open innovation practices in SMEs and large enterprises
TL;DR: In this paper, the authors investigate how OI dimensions impact the innovative performance of SMEs in comparison to large companies and find that 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.
Abstract: 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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TL;DR: The contribution and evolution of open innovation since the publication of Chesbrough's 2003 Open Innovation book, and suggest likely directions going forward, are reviewed in this paper, where they link the articles of this special issue to three key trends in open innovation research: better measurement, resolving the role of appropriability and linking that research to the management and economics literature.
747 citations
TL;DR: In this article, the authors explore how SMEs engage in external knowledge sourcing, a form of inbound open innovation, and empirically conceptualize a typology of strategic types of external sourcing, namely minimal, supply-chain, technology-oriented, application-oriented and full-scope sourcing.
Abstract: In this paper we explore how small and medium-sized enterprises (SMEs) engage in external knowledge sourcing, a form of inbound open innovation. We draw upon a sample of 1,411 SMEs and empirically conceptualize a typology of strategic types of external knowledge sourcing, namely minimal, supply-chain, technology-oriented, application-oriented, and full-scope sourcing. Each strategy reflects the nature of external interactions and is linked to a distinct mixture of four internal practices for managing innovation. Both full-scope and application-oriented sourcing offer performance benefits and are associated with a stronger focus on managing innovation. However, they differ in their managerial focus on strategic and operational aspects.
413 citations
TL;DR: In this article, the authors examined the antecedents and outcome of open innovation in SMEs and found that top management knowledge value and knowledge creating practices influence open innovation, which, in turn, influences organizational performance.
274 citations
TL;DR: In this paper, the role of ICTs and big data in intra-and interorganizational ties and the consequent effects on enterprises' innovation performance is investigated via structural equation modeling (SEM).
Abstract: The literature suggests that increasing investments in information and communication technologies (ICTs), knowledge exchange and sharing help SMEs tackle the current global and dynamic environment. Given that much of the useful knowledge resides outside the enterprises’ boundaries, these technological tools foster the gathering of big data and information. Despite these premises, few studies have considered the role of ICTs and big data in intra- and inter-organizational ties and the consequent effects on enterprises’ innovation performance. The paper investigates whether ICTs oriented to intra-organizational (in-house research and development [R&D]) and inter-organizational (open innovation) processes improve SMEs’ innovation performance. Therefore, via structural equation modelling (SEM), the study analyses a sample of 239 knowledge-intensive SMEs located in Italy. The noteworthy results are that ICTs oriented to intra- and inter-organizational innovation processes improve both these processes in generating new products and/or services. On this basis, managerial and academic implications are provided, along with avenues for further research.
269 citations
TL;DR: In this paper, the effects of organizational antecedents and innovation climate on OI as well as its consequences on firm performance in SMEs are analyzed. But most of the existing literature still relies on case studies and conceptual frameworks, with little empirical research in the specific context of small and medium enterprises (SMEs).
262 citations
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TL;DR: In this paper, the authors argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities.
Abstract: In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures. **
31,623 citations
TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.
16,377 citations
TL;DR: In this paper, the authors show that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
Abstract: Growth in this model is driven by technological change that arises from intentional investment decisions made by profit-maximizing agents. The distinguishing feature of the technology as an input is that it is neither a conventional good nor a public good; it is a nonrival, partially excludable good. Because of the nonconvexity introduced by a nonrival good, price-taking competition cannot be supported. Instead, the equilibrium is one with monopolistic competition. The main conclusions are that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
12,469 citations
10,217 citations
Book•
01 Mar 2003TL;DR: Open Innovation: The New Imperative for Creating and Profiting From Technology as discussed by the authors is a book by Henry Chesbrough, which discusses the importance of open innovation for creating and profiting from technology.
Abstract: The article reviews the book “Open Innovation: The New Imperative for Creating and Profiting From Technology,” by Henry Chesbrough.
8,644 citations