The inconvenient truth of the relationship between open innovation activities and innovation performance

2015 ◽  
Vol 53 (3) ◽  
pp. 625-647 ◽  
Author(s):  
Colin C.J. Cheng ◽  
Eric C. Shiu
Keyword(s):  
Open Innovation ◽  
Radical Innovation ◽  
Innovation Performance ◽  
Least Square ◽  
Organizational Capabilities ◽  
Incremental Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
The Relationship ◽  
Knowledge Learning

Purpose – Despite extensive published research into the relationship between open innovation (OI) activities and performance, the nature and direction of the relationship remain inconclusive. The purpose of this paper is to investigate the relationship as to how firms’ inbound and outbound OI activities, as well as their interaction influence incremental and radical innovation performance. The authors also consider the potentially mediating roles of knowledge learning and organizational capabilities in such a relationship. Design/methodology/approach – To investigate this relationship, data were collected from a cross-industry survey of 304 leading Taiwanese-based firms. Three-stage least square analysis was employed to test the model. Findings – Analyses reveal that knowledge learning and organizational capabilities mediate the OI activities-innovation performance relationship. In addition, a firm focussing on inbound activities enhances its radical innovation performance, but hinders its incremental innovation performance, while focussing on outbound activities produces the opposite effects. Among the findings, it is worth emphasizing that the effect of the interaction between inbound and outbound activities on innovation performance can be counter-productive. Research limitations/implications – The findings demonstrate that existing studies only partially explain the effects of OI activities on innovation performance. Understanding how OI activities influence innovation performance will facilitate more informed decision making, leading to more effective use of OI activities. Practical implications – The results suggest that managers need to consider knowledge learning and organizational capabilities in order to fully capture the potential effects of OI activities. Managers also need to be aware of the limitations of OI activities. Originality/value – The theoretical model presented here offers a timely contribution to the theory base underpinning the development of OI activities for innovation performance.

Effects of open innovation breadth on industrial innovation input–output relationships

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alejandro Germán Frank ◽  
Guilherme Brittes Benitez ◽  
Mateus Ferreira Lima ◽  
João Augusto Bonzanini Bernardi
Keyword(s):  
Open Innovation ◽  
Transaction Cost Economics ◽  
Secondary Data ◽  
Moderating Effects ◽  
Input Output ◽  
Industrial Innovation ◽  
Content Type ◽  
Innovation Activities ◽  
Industrial Sectors ◽  
The Relationship

PurposeOpen innovation breadth (OIB) considers the diversity of external collaboration partners for innovation. The authors investigate the moderating effect of OIB on the relationship between industrial innovation activities (innovation inputs) and industrial innovation results (innovation outputs).Design/methodology/approachThis study is based on secondary data from the Brazilian innovation survey, representing more than 30,000 innovative companies across 55 industrial sectors.FindingsThis study’s results show that OIB has different moderating effects regarding the several innovation input–output relationships. While OIB benefits some relationships, others are hampered by the diversity of collaboration partners.Originality/valueFew studies have addressed OIB at the macro level. Using the perspective of transaction cost economics (TCE), the authors discuss the contributions and limitations of OIB at the industry level.

External technology acquisition, exploitation and process innovation performance in emerging market small and medium sized enterprises: the moderating role of organizational slack

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thammanoon Charmjuree ◽  
Yuosre F. Badir ◽  
Umar Safdar
Keyword(s):  
Open Innovation ◽  
Emerging Market ◽  
Process Innovation ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Content Type ◽  
Technology Acquisition ◽  
The Relationship ◽  
Unabsorbed Slack ◽  
Positive Effect

PurposeThis study is among the very few to examine the firm's simultaneous use of both dimensions of open innovation and its influences on the firm's process innovation performance (PIP). Specifically, the authors consider the relationship between firm's external technology acquisition (ETA) and external technology exploitation (ETE) and examine their direct, indirect and mediating effect on the firm's PIP. The authors also examine the moderating effect of the organizations' unabsorbed slack (UASL) on the relationship between ETA and ETE.Design/methodology/approachAnalyzing data collected from 311 small- and medium-sized software development firms in emerging market; Thailand, we show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP.FindingsThe authors show that both ETA and ETE have a positive effect on PIP and that ETE fully mediates the relationship between ETA and PIP. Moreover, the relationship between ETA and ETE is positively moderated by the firms' unabsorbed slack (UASL) and that the influence of ETA on PIP through ETE is stronger under higher unabsorbed slack.Originality/valueThe authors extend the “traditional” performance outcome of outbound dimension of open innovation concept, which focuses exclusively on commercialization and market (Chesbrough, 2003b), by showing that ETE positively influences the firm's PIP. Moreover, the study explains the mechanism through which ETA influence the firm's PIP by proposing that ETE fully mediates the relationship between ETA and PIP.

Understanding the relationship between organizational culture and inbound open innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Franz Barjak ◽  
Fabian Heimsch
Keyword(s):  
Corporate Culture ◽  
Open Innovation ◽  
Innovation Process ◽  
External Pressure ◽  
External Control ◽  
Specific Situation ◽  
Content Type ◽  
Process Innovations ◽  
Innovation Activities ◽  
The Relationship

PurposeThe relationship between corporate culture and inbound open innovation (OI) has been limited to two sub-constructs: a culture for openness and an innovation culture, but until now a richer conceptualization of corporate culture is missing.Design/methodology/approachThe authors apply Quinn and Rohrbaugh's (1983) competing values framework and regress these together with company internal and external control variables on five measures of inbound OI, reflecting product innovation, process innovation and the sourcing of innovation activities. The authors use data from a survey of more than 250 Swiss companies, primarily SMEs.FindingsThe importance of the firms' market environments suggests that the results are affected by the specific situation in which the firms found themselves at the time of the survey: after a strong currency shock, inbound OI activities seem to be a reaction to external pressure that favored planning and rule-oriented (formal) cultures to implement cost-cutting process innovations.Practical implicationsCompanies should develop a vision and a strategy, ensure open and transparent communication, have suitable reward and support mechanisms in place, adjust structures and processes, and institutionalize and formalize any change whenever they are confronted with a situation that requires a quick reaction and an adjustment to their degree of openness.Originality/valueThe paper clarifies the relationship between cultural traits and inbound OI, using a well-established understanding of corporate culture and differentiating between innovation types. It points to the importance of the external environment in order to understand the role of culture.

The impact of intellectual capital and knowledge flows on incremental and radical innovation

2018 ◽  
Vol 10 (2/3) ◽  
pp. 149-170 ◽  
Author(s):  
Duy Quoc Nguyen
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Intellectual Capital ◽  
Radical Innovation ◽  
Knowledge Flows ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Content Type ◽  
Radical Innovations ◽  
The Impact

PurposeThe purpose of this paper is to develop a theoretical and empirical exploration of link between organization intellectual capital and knowledge flows with its incremental and radical innovation performance.Design/methodology/approachThis paper adopts relevant literature of social capital and organizational learning to examine the impact of intellectual capital and knowledge flows on incremental and radical innovation based on surveying 95 firms. To test the research hypotheses, regression analysis is used.FindingsResults of the study show that human capital and top-down knowledge flows significantly and positively influence both incremental and radical innovations. Social capital and bottom-up knowledge flows do not have any significant impact on incremental or/and radical innovation. Organizational capital has a positive impact on incremental innovation as expected.Practical implicationsThe results offer several practical implications for business managers to harvest its knowledge bases resident in the firm’s different forms appropriately to make innovation successful. Particularly, knowledge resident in human capital and organizational capital is useful for making incremental innovation. Especially, new knowledge, new skills and new perspectives resident in human capital are crucial important for making radical innovation. Both incremental and radical innovations are positively influenced by dynamic managerial capabilities.Originality/valueThis study contributes to literature by providing new evidence linking organization intellectual capital and knowledge flows with its innovation performance. Especially, the missing link between top-down knowledge flows and radical innovation is empirically examined. Value of this study is that social capital and bottom-up knowledge flows are not universally beneficial for enhancing innovation and their impacts on innovation performance are context dependent and more sophisticated than it is recognized in the literature.

scholarly journals Measuring radical innovation project success: typical metrics don’t work

2018 ◽  
Vol 39 (4) ◽  
pp. 34-41 ◽  
Author(s):  
Jimmi Normann Kristiansen ◽  
Paavo Ritala
Keyword(s):  
Radical Innovation ◽  
Incremental Innovation ◽  
Content Type ◽  
International Firms ◽  
Innovation Activities ◽  
Innovation Projects ◽  
Innovation Project ◽  
And Performance ◽  
Depth Interviews

Purpose Firms frequently struggle with measuring the performance of their radical innovation activities. Due to the uncertainty and ambiguity involved, key performance indicators (KPIs) used for incremental innovation projects are often not useful in this context. The purpose of this paper is to explore suitable KPIs particularly useful for radical innovation projects. Design/methodology/approach This study first reviews commonly used measures for innovation projects, which is then followed by case-study evidence from three industry-leading international firms. This study includes 13 in-depth interviews with innovation managers and directors in these firms, providing insights on how they measure the progress and performance of radical innovation projects. Findings KPIs used commonly in incremental innovation showed lackluster results in the case firms and were problematic for radical innovation context. A key finding was that radical innovation project performance should be evaluated based on the process rather than on the expected outcome. Concurrently, based on the literature review and the cases, three sets of KPIs with 13 specific KPIs useful for radical innovation projects are proposed. Originality/value The paper addresses a core challenge in using established KPIs in a radical innovation context. The paper gathers and synthesizes a range of measurement points suitable for radical innovation projects and provides specific suggestions for appropriate metrics that innovation managers can use.

scholarly journals Organizational learning capability and open innovation

2018 ◽  
Vol 56 (6) ◽  
pp. 1217-1231 ◽  
Author(s):  
Marta Peris-Ortiz ◽  
Carlos Alberto Devece-Carañana ◽  
Antonio Navarro-Garcia
Keyword(s):  
Organizational Learning ◽  
Open Innovation ◽  
Dynamic Capabilities ◽  
Qualitative Comparative Analysis ◽  
Incremental Innovation ◽  
Learning Capability ◽  
Content Type ◽  
Knowledge Based ◽  
Learning Factors ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between open innovation (OI) and radical and incremental innovation success in knowledge-based companies. The company’s human resources and organizational learning capability are considered as the fundamental nexus of this relationship.Design/methodology/approachAt the conceptual level, the paper analyzes the relationships between dynamic capabilities and OI and between OI and innovation success. Fuzzy-set qualitative comparative analysis (fsQCA) was used to study how innovation is implemented in 29 companies.FindingsFsQCA identifies combinations of factors that facilitate incremental innovations. These combinations reveal the path to implementing company policies that enable incremental innovation and foster radical innovation.Research limitations/implicationsThe nature of the study sample means that the findings should be generalized with precaution. The most valuable implication is the identification of combinations of factors that help companies manage innovation.Originality/valueScarce literature links organizational learning factors and OI to different types of innovation. The use of fsQCA to analyze the cases also marks a breakthrough in the innovation literature.

Emanating the key factors of innovation performance: leveraging on the innovation culture among SMEs in Malaysia

2019 ◽  
Vol 13 (4) ◽  
pp. 559-587 ◽  
Author(s):  
Haniruzila Hanifah ◽  
Hasliza Abdul Halim ◽  
Noor Hazlina Ahmad ◽  
Ali Vafaei-Zadeh
Keyword(s):  
Partial Least Square ◽  
Innovation Performance ◽  
Least Square ◽  
Government Support ◽  
Innovation Strategy ◽  
Equation Modeling ◽  
Content Type ◽  
Innovation Culture ◽  
The Relationship

Purpose Innovation has become an approach to create value for the customer to remain competitive in the market. However, previous research on innovation performance particularly among Bumiputera small and medium-sized enterprises (SMEs) had received little intention. Hence, Bumiputera SMEs need to inculcate the innovation culture to generate innovation performance. As such, the purpose of this study is to examine the ambidextrous orientation and innovation strategy on innovation culture, and how innovation culture could mediate the relationship between ambidextrous orientation and innovation strategy and innovation performance. In addition, this study also examines the role of government support as the moderator between innovation culture and innovation performance. Design/methodology/approach Data were collected from 140 Bumiputera SMEs and analyzed using partial least square-structural equation modeling via Smart PLS. Findings Findings indicated that ambidextrous orientation (alignment and adaptability) and innovation strategy (proactive creativity strategy and growth risk orientation strategy) had a significant impact on innovation culture. Besides, innovation culture mediated the relationship between alignment, proactive creativity strategy, growth risk orientation strategy and innovation performance. Surprisingly, innovation culture does not significantly mediate the relationship between adaptability and innovation performance. However, government support plays an important role to support innovation culture and innovation performance in Bumiputera SMEs. Originality/value This study makes both theoretical and practical contributions, especially in identifying the significant role of Bumiputera SMEs in creating an innovation culture. Besides, it explained government support as an important role in strengthening the relationship between innovation culture and innovation performance. The findings of the study will provide great help to Bumiputera entrepreneurs in formulating innovation culture in Malaysian SMEs.

Enhancing radical innovation performance through intellectual capital components

2017 ◽  
Vol 18 (4) ◽  
pp. 789-806 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella
Keyword(s):  
Intellectual Capital ◽  
Radical Innovation ◽  
Innovation Performance ◽  
Content Type ◽  
Key Factor ◽  
Ic Testing ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose In today’s knowledge economy the ability to innovate and develop new products is a key factor to sustain firm performance. Within this context, analysing the role of different components of intellectual capital (IC) becomes of foremost importance, as well as an under-investigated issue for small- and medium-sized enterprises (SMEs). The purpose of this paper is to investigate the impact of human, organisational and relational capital (RC) on radical innovation performance (RIP), as well as to examine whether organisational capital (OC) and RC mediate the relationship between human capital (HC) and RIP and whether OC moderates the relationship between RC and RIP. Design/methodology/approach The methodology consisted of a factor analysis and different regression models to test for mediation and moderation. The analyses are carried out on a sample of 150 micro firms and SMEs involved in the production of machinery or instruments and located in Italy. Findings Results show that HC is directly associated to RIP, as well as OC and RC that totally mediate the relationship between HC and RIP. Moreover, OC positively moderates the relationship between RC and RIP. Originality/value This study is particularly interesting because it adopts an overarching perspective on IC testing the interplay between the different components of IC. In addition, it focusses on the SME context which is under-investigated as far as IC and performance measurement is concerned.

scholarly journals The interplay between firms’ internal and external capabilities in exploration and exploitation

2018 ◽  
Vol 56 (7) ◽  
pp. 1559-1580 ◽  
Author(s):  
César Camisón ◽  
Montserrat Boronat-Navarro ◽  
Beatriz Forés
Keyword(s):  
Radical Innovation ◽  
Positive Influence ◽  
Incremental Innovation ◽  
Hierarchical Regression ◽  
Moderating Effects ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship ◽  
Positive Effect

PurposeThe purpose of this paper is to enrich the explanation of the interplay between internal and external – or district shared – exploration and exploitation capabilities as antecedents of a firm’s radical and incremental innovation. Previous studies do not differentiate between exploration and exploitation in district shared capabilities and how they interact with internal capabilities.Design/methodology/approachThe paper uses hierarchical regression analysis to test the quadratic and moderating effects in a sample of 1,019 Spanish firms.FindingsResults show an increasingly positive effect on radical innovation of exploration capabilities, enhanced by shared capabilities in exploration. In the case of incremental innovation, the study finds evidence of an increasingly positive influence of exploitation capabilities and a concave relationship of exploration capabilities. Moreover, shared exploitation capabilities weaken the effect of internal exploitation capabilities and also have a direct effect on incremental innovation. Therefore, the two capabilities are interchangeable in the effect they have on incremental innovation.Practical implicationsDepending on the firm’s innovation strategy, intra-district firms should develop specific capabilities and/or concentrate on adopting the shared capabilities in the destination.Originality/valueThe study furthers the understanding of the relationship between exploration and radical innovation, and between exploitation and incremental innovation, which is more complex than previously depicted. The study also differentiates between exploration and exploitation in shared capabilities, enriching understanding of the competitiveness of district firms.

How does IT capability affect open innovation performance? The mediating effect of absorptive capacity

2019 ◽  
Vol 24 (1) ◽  
pp. 43-65 ◽  
Author(s):  
Suming Wu ◽  
Xiuhao Ding ◽  
Ruihong Liu ◽  
Hui Gao
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Innovation Performance ◽  
Mediating Effect ◽  
Firm Level ◽  
Content Type ◽  
Mediating Role ◽  
It Capability ◽  
The Relationship ◽  
Realized Absorptive Capacity

Purpose Open innovation and information systems have been key topics in the theoretical domain, but little empirical research thoroughly examines how information technology (IT) capability affects open innovation performance. Thus, the purpose of this paper is to explore the relationship between IT capability and open innovation performance and to expose the inner mechanism at the firm level. Design/methodology/approach This paper collected firm-level data in China; 232 usable questionnaires from different firms were collected. Then, the study used a structural equation model by AMOS for hypothesis testing. Findings The results indicate that both internal IT capability and external IT capability have positive impacts on open innovation performance; potential absorptive capacity and realized absorptive capacity mediate the relationship between external IT capability and open innovation performance. Additionally, realized absorptive capacity plays a mediating role in the relationship between internal IT capability and open innovation performance. Practical implications These findings indicate that practitioners should pay attention to the important relationship between absorptive capacity and IT capability and open innovation performance in Chinese businesses. Originality/value Existing research has emphasized the influence of IT on open innovation, but empirical studies have not thoroughly focused on the inner mechanisms of the effect of IT capability on open innovation performance. Drawing on firm capability theory, this paper classifies IT capability as internal and external IT capability and absorptive capacity as potential and realized absorptive capacity. Then, this paper confirms the mediating role of absorptive capacity between IT capability and open innovation performance.

Sign in / Sign up

Export Citation Format

Share Document