Open Innovation in Small and Medium Size Enterprises-Perspective from Virtual Collaboration
Open innovation is a growing concern in today’s manufacturing industries, especially within small and medium size enterprises (SMEs). Due to the resource scarcity, SMEs need to be collaborated with the objective to share knowledge and expertise to develop innovative product, which lead them to become more competitive in market segment. In this research study, generic concept and a novel framework on open innovation are elaborated. In addition, a methodological guideline to form and execute a collaborative business network is proposed. The framework and the methodological guidelines are presented to facilitate an open innovation management within the collaborative partner industries. Moreover, associated factors to manage a successful business network with open innovation are also identified along with possible challenges. Finally, within the scope of this research study, a case business network is presented, where the concept of open innovation is orchestrated within the partner organizations via web-enabled communication portal.
A. J. J. Pullen, P. C. de Weerd-Nederhof, A. J. Groen, and O. A. M. Fisscher, “Open innovation in practice: goal complementarity and closed NPD networks to explain differences in innovation performance for SMEs in the medical devices sector,” Journal of Product Innovation Management, vol. 29, no. 6, pp. 917-934, 2012.
S. Thorgren, J. Wincent, and D. Ortqvist, “Designing interorganizational networks for innovation: an empirical examination of network configuration, formation and governance,” Journal of Engineering and Technology Management, vol. 26, no. 3, pp. 148-166, September 2009.
B. Bigliardi and F. Galati, “Which factors hinder the adoption of open innovation in SMEs?,” Technology Analysis & Strategic Management, vol. 28, no. 8, pp. 869-885, 2016.
E. S. Lakatos and L. Bacali, “The benefits of IT tools in innovation process for SME sustainability,” International Conf. Advances in Management, Economics and Social Sciences, December, 2015.
J. West and M. Bogers, “Leveraging external sources of innovation: a review of research on open innovation,” Journal of Product Innovation Management, vol. 31, no. 4, pp. 814-831, July 2014.
F. Piller, “The future of open innovation,” Proc. The R&D Management Conference, June, 2009.
E. Enkel and O. Gassmann, “Creative imitation: exploring the case of cross-industry innovation,” R&D Management, vol. 40, no. 3, pp. 256-270, June 2010.
P. Lindgren, Y. Taran, and H. Boer, “From single firm to network-based business model innovation,” International Journal of Entrepreneurship and Innovation Management, vol. 12, no. 2, pp. 122-137, August 2010.
C. Verbano, M. Crema, and K. Venturini, “The identification and characterization of open innovation profiles in Italian small and medium-sized enterprises,” Journal of Small Business Management, vol. 53, no. 4, pp. 1052-1075, October 2015.
S. Konsti-Laakso, T. Pihkala, and S. Kraus, “Facilitating SME innovation capability through business networking,” Creativity and Innovation Management, vol. 21, no. 1, pp. 93-105, March 2012.
E. von Hippel, “Democratizing innovation: the evolving phenomenon of user innovation,” International Journal of Innovation Science, vol. 1, no. 1, pp.29-40, 2009.
E. Bjorgvinsson, P. Ehn, and P-A. Hillgren, “Participatory design and “democratizing innovation”,” Proc. the 11th Biennial Participatory Design Conference, ACM Digital Library Press, December 2010, pp. 41-50.
S. Lee, G. Park, B. Yoon, and J. Park, “Open innovation in SMEs - an intermediated network model,” Research Policy, vol. 39, no. 2, pp. 290-300, March 2010.
J. J. Chrisman, J. H. Chua, A. De Massis, F. Frattini, and M.Wright, “The ability and willingness paradox in family firm innovation,” Journal of Product Innovation Management, vol. 32, no. 3, pp. 310-318, May 2015.
A. Shamsuzzoha, T. Kankaanpaa, L. M. Carneiro, R. Almeida, A. Chiodi, and R. Fornasiero, “Dynamic and collaborative business networks in the fashion industry,” International Journal of Computer Integrated Manufacturing, vol. 26, no. 1-2, pp. 125-139, 2013.
Y. Awazu, P. Baloh, K. C. Desouza, C. H. Wecht, J. Kim, and S. Jha, “Information-communication technologies open innovation,” Research-Technology Management, vol. 52, no. 1, pp. 51-58, 2009.
M. Dodgson, D. Gann, and A. Salter, “The role of technology in the shift towards open innovation: the case of Procter & Gamble,” R&D Management, vol. 36, no. 3, pp. 333-346, June 2006.
T. Chiarini and A. L. G. Silva, “Intellectual property rights and innovation system: some lessons from Brazil,” International Journal of Innovation and Learning, vol. 20, no. 3, pp. 265-288, 2016.
J. Fuller, “Refining virtual co-creation from a consumer perspective,” California Management Review, vol. 52, no. 2, pp. 98-122, 2010.
E. K. R. E. Huizingh, “Open innovation: state of the art and future perspectives,” Technovation, vol. 31, no. 1, pp. 2-9, January 2011.
M. Elmquist, T. Fredberg, and S. Ollila, “Exploring the field of open innovation,” European Journal of Innovation Management, vol. 12, no. 3, pp. 326-345, 2009.
L. Dahlander and D.M. Gann, “How open is innovation?,” Research Policy, vol. 39, no. 6, pp. 699-709, July 2010.
J. H. Sieg, M. W. Wallin, and G. V. Krogh, “Managerial challenges in open innovation: a study of innovation intermediation in the chemical industry,” R & D Management, vol. 40, no. 3, pp. 281-291, June 2010.
M. Bianchi, A. Cavaliere, D. Chiaroni, F. Frattini, and V. Chiesa, “Organisational models for open innovation in the bio-pharmaceutical industry: an exploratory analysis,” Technovation, vol. 31, no. 1, pp. 22-33, January 2011.
V. Parida, M. Westerberg, and J. Frishammar, “Inbound open innovation activities in high-tech SMEs: the impact on innovation performance,” Journal of Small Business Management, vol. 50, no. 2, pp. 283-309, April 2012.
J. H. Love and S. Roper, “SME innovation, exporting and growth: a review of existing evidence,” International Small Business Journal, vol. 33, no. 1, pp. 28-48, 2015.
S. F. Slater, J. J. Mohr, and S. Sengupta, “Radical product innovation capability: literature review, synthesis, and illustrative research positions,” Journal of Product Innovation Management, vol. 31, no. 3, pp. 552-566, May 2014.
W. Becker and J. Dietz, “R & D co-operation and innovation activities of firms - evidence for the German manufacturing industry,” Research Policy, vol. 33, no. 2, pp. 209-223, March 2004.
J. S. Metcalfe, “The economics of evolution and the economics of technology policy,” Economic Journal, vol. 104, no. 425, pp. 931-944, July 1994.
B. Clarysse, M. Wright, J. Bruneel, and A. Mahajan, “Creating value in ecosystems: crossing the chasm between knowledge and business ecosystems,” Research Policy, vol. 43, no. 7, pp. 1164-1176, September 2014.
H. V. D. Meer, “Open innovation-the Dutch treat: challenges in thinking in business models,” Creativity and Innovation Management, vol. 16, no. 2, pp. 192-202, June 2007.
N. D. Preez and L. Louw, “A framework for managing the innovation process,” Proc. Portland International Conference of Management of Engineering & Technology (PICMET 2008), IEEE Press, July, 2008, pp. 546-558.
U. Lichtenthaler and H. Ernst, “Developing reputation to overcome the imperfections in the markets for knowledge,” Research Policy, vol. 36, no. 1, pp. 37-55, February 2007.
J. L. Cummings and S. R. Holmberg, “Best-fit Alliance partners: the use of critical success factors in a comprehensive partner selection process,” Long Range Planning, vol. 45, no. 2-3, pp. 136-159, April-June 2012.
P. Fidel, W. Schlesinger, and A. Cervera, “Collaborating to innovate: effects on customer knowledge management and performance,” Journal of Business Research, vol. 68, no. 7, pp. 1426-1428, July 2015.
M. J. Adaileh and H. Z. A. AlZeat “Impact of knowledge sharing and leakage on innovative performance,” Journal of Sustainable Development, vol. 10, no. 1, pp.82-92, 2017.
J. Brant and S. Lohse, “The Open innovation model,” https://ssrn.com/abstract=2426097, 2014.
S. Brunswicker and W. Vanhaverbeke, “Open innovation in small and medium-sized enterprises (SMEs): external knowledge sources strategies and internal organizational facilitators,” Journal of Small Business Management, vol. 53, no. 4, pp. 1241-1263, October 2015.
Copyright (c) 2018 International Journal of Engineering and Technology Innovation
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Submission of a manuscript implies: that the work described has not been published before that it is not under consideration for publication elsewhere; that if and when the manuscript is accepted for publication. Authors can retain copyright in their article with no restrictions. Also, author can post the final, peer-reviewed manuscript version (postprint) to any repository or website.
From Jan. 01, 2015, IJETI will publish new articles with Creative Commons Attribution Non-Commercial License, under Creative Commons Attribution 4.0 International Public License.
The Creative Commons Attribution Non-Commercial (CC-BY-NC) License permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.