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Organizing for Inbound Open Innovation: How External Consultants and a Dedicated R&D Unit Influence Product Innovation Performance

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In this article, the authors focus on a relevant yet overlooked category of moderating factors: organization of research and development (R&D), and explore two organizational mechanisms: one informal and externaloriented (involvement of external consultants in R&D activities) and one formalized and internal-oriented (existence of a dedicated research unit), in the acquisition of technological knowledge through outsourcing, a particular contractual form for inbound open innovation.
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This article is published in Journal of Product Innovation Management.The article was published on 2016-07-01 and is currently open access. It has received 105 citations till now. The article focuses on the topics: Open innovation & Product innovation.

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Citations
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Open innovation: status quo and quo vadis - an analysis of a research field

TL;DR: Open innovation is now a widely used concept in academia, industry, and policy-making as discussed by the authors , however, the social and economic changes imposed by the emerging processes of transition towards a more digital and sustainable society raise questions on how the open innovation field of studies is evolving to meet new, emerging needs.
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When and How Does Open Innovation Enhance Innovation Output? A Meta-Analysis

TL;DR: In this paper , a meta-analysis approach was used to identify the main contextual factors and statistically test the significance of these factors in influencing the effect of open innovation on innovation output.
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The role of communication between partners in the process of strategic alliances: a systematic literature review

TL;DR: In this article , a systematic literature review was carried out, using the Web of Science database to obtain data, associating the terms "communication" and "strategic alliances", which resulted in 240 scientific articles (published between 1993 and March 2021).
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Explicating the effects of organisational open innovation capabilities on performance

TL;DR: In this article , the authors explored three role perspectives of open innovation capabilities (transfer, absorption, and brokerage) and their effect on OI performance at the organisational level and provided a theoretical framework to understand the multi-dimensional nature of organisational OI capabilities.
References
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Journal ArticleDOI

Absorptive capacity: a new perspective on learning and innovation

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.
Journal ArticleDOI

Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology

TL;DR: In this paper, the authors argue that what firms do better than markets is the sharing and transfer of the knowledge of individuals and groups within an organization, and that knowledge is held by individuals but is also expressed in regularities by which members cooperate in a social community (i.e., group, organization, or network).
Journal ArticleDOI

Absorptive Capacity: A Review, Reconceptualization, and Extension

TL;DR: In this paper, the authors identify key dimensions of absorptive capacity and offer a reconceptualization of this construct, and distinguish between a firm's potential and realized capacity, and then advance a model outlining the conditions when the firm's realized capacities can differentially influence the creation and sustenance of its competitive advantage.
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Deliberate Learning and the Evolution of Dynamic Capabilities

TL;DR: The argument is made that dynamic capabilities are shaped by the coevolution of these learning mechanisms, and the relative effectiveness of these capability-building mechanisms is analyzed here as contingent upon selected features of the task to be learned, such as its frequency, homogeneity, and degree of causal ambiguity.
Journal ArticleDOI

Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms

TL;DR: 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.
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Frequently Asked Questions (10)
Q1. What contributions have the authors mentioned in the paper "Organizing for inbound open innovation: how external consultants and a dedicated r&d unit influence product innovation performance" ?

This article focuses on a relevant yet overlooked category of moderating factors: organization of R & D. Drawing on a capabilities perspective and using a longitudinal dataset of 841 Spanish manufacturing firms observed over the period 1999-2007, this article provides a fine-grained analysis of the moderation effects of the two organizational mechanisms. The study provides guidance on how to improve the benefits of inbound open innovation using two different mechanisms: external R & D consultants or a dedicated R & D unit. 

This study has several limitations, which suggest future research efforts. Future research is encouraged to study the micro-dynamics through which R & D organizational mechanisms influence the firm ’ s capabilities for managing IOI, not only at the firm level of analysis but also at the project and individual levels. Going beyond the findings of this study, future research should adopt a contingency perspective to scrutinize under what contextual factors managers should apply each of the two organizational mechanisms. Future studies should also broaden the scope of the analysis, including service sectors, other contractual forms for acquiring external technological knowledge, as well as other managerial and organizational levers that can be used to support IOI ( e. g., types of incentives given to R & D employees ). 

By leveraging complementarities between heterogeneous knowledge bases and generating novel combinations, a dedicated R&D unit improves the firm’s capability to combine and integrate external technology with its internal knowledge basis. 

the results of the empirical analysis suggest that by combining the use of external consultants with the presence of a dedicated R&D unit, their moderation effects on the IOI-performance relationship may cancel out. 

He is Director of the MBA & Executive MBA Division and of the ICT & Digital Learning Division of MIP, the Graduate School of Business of Politecnico di Milano. 

By leveraging the thick extended social networks of the external consultants, firms can access the most suitable partners whose R&D services contribute to higher product innovation performance. 

In particular, shirking and other opportunistic behaviors typically arise when the technological knowledge is transferred from the contractor to the focal firm. 

Because some firms stopped providing information during the sample period for several reasons and because only firms whose data were available for at least three consecutive years are included, the article is based on an unbalanced panel of 841 firms, consisting of 6,161 firm-year observations. 

Hypothesis H1 predicts that the involvement of external consultants in R&D activitiespositively moderates the IOI-performance relationship. 

Because the sign and the significance of the coefficients 𝛽4 and 𝛽5 only indicate how and whether each moderating variable influences the IOI-performance relationship, a test is conducted on a combination of parameters in Equation [3] that allow estimation of both the linear and the squared terms of R&D outsourcing in the presence of the moderating factor 𝑀𝑖𝑡, as follows:{ 𝐿𝑖𝑛𝑒𝑎𝑟 𝑡𝑒𝑟𝑚 𝑜𝑓 𝑅&𝐷_𝑂𝑢𝑡𝑠𝑜𝑢𝑟𝑐𝑖𝑛𝑔𝑖𝑡 = 𝛽1 + 𝛽4𝑆𝑞𝑢𝑎𝑟𝑒𝑑 𝑡𝑒𝑟𝑚 𝑜𝑓 𝑅&𝐷_𝑂𝑢𝑡𝑠𝑜𝑢𝑟𝑐𝑖𝑛𝑔𝑖𝑡 = 𝛽2 + 𝛽5 [4]