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1 The open innovation funnel Source: Chesbrough (2003b, p.37)  

1 The open innovation funnel Source: Chesbrough (2003b, p.37)  

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14.1 INTRODUCTION The concept of open innovation primarily stems from observing changing innovation management practices in companies (Chesbrough, 2003a, 2006a). This practice-based approach explains to some extent why open innovation research has not been grounded systematically in prior management research. The failure to connect the phenomenon o...

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... Radical innovations require new insight that is technologydistant to a firm's core technology and capabilities (e.g. Vanhaverbeke & Cloodt, 2014) and, therefore, it needs to access technologydistant knowledge (e.g. Flor et al., 2018;Green, Gavin & Aiman-Smith, 1995). ...
... The comprehensive new knowledge that radical innovation requires is usually technology distant from firms' existing knowledge and presents the challenge to access larger technological distances not directly related to their core technology (e.g. Vanhaverbeke & Cloodt, 2014;Zhou et al., 2005). Evidence suggests that a firm's internal knowledge base stimulates a firm's radical innovation (e.g. ...
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This study answers the question on whether areas of agglomeration or high industry specialization constitute supportive prone-to-innovation environments for the generation of radical innovation. By drawing on the CIS distinction between incremental vs radical innovation, we disentangle the effect of industry specialization on the occurrence of radical innovations, a phenomenon mostly overlooked. By analysing a large dataset of 3,602 firms from CIS and other geographic datasets, results show that a firm's location in high industry specialization areas primarily trims incremental but not radical innovation. Firms’ internal knowledge bases do matter more for radical innovation to occur, rather than location in agglomerations. External knowledge available in regions of high industry specialization is redundant for improving a firm's internal knowledge base for radical innovation and it is more likely to merely enable incremental innovation.
... Firms frequently experience a process of trial and error to learn how to obtain knowledge from an external source but this effort involves time and other valuable resources (Ferreras-Méndez et al., 2015). Moreover, the presence of valuable external sources does not automatically suggest that the movement of external novel ideas and knowledge into organizations is a spontaneous or stress-free process (Vanhaverbeke & Cloodt, 2014). Managing external sources of innovation involves information asymmetries, and, in order to gain access to external knowledge, it is necessary to negotiate agreements. ...
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Using survey data from companies located in the Wuxi (Taihu) international science park in China, we aim to analyze to what extent science park residents experience barriers to innovation and to what extent opening up the innovation process allows them to overcome constraints and increase innovation performance. Findings indicate that surveyed firms that mostly undertake incremental innovation perceive many constraints and that the depth of external knowledge search—that is, the intensity of the relationship with external sources of knowledge—significantly influences innovation performance, mediating the relationships between innovation barriers and innovation performance. Our results allow us to explain how open innovation practices can be used to mitigate existing barriers, and therefore permeate the knowledge filter, and to theorize on the importance of institutional factors for open innovation theory in emerging economies.
... Harnessing external resources requires a distinct organizational culture and climate, which favors to germinate and invigorate the knowledge and abilities of third parties within the organization (Vanhaverbeke & Cloodt, 2014). Deriving value from the creative contributions of others requires both attitude changes in management as well as changes in the operational settings. ...
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This chapter describes the interplay between marketing and innovation, between the “emergent marketing paradigm” and open innovation, and at a further level, between “sustainable marketing paradigm” and post open innovation, not to mention how these two disciplines provide ground for each other in increasing market share, boosting firm performance and producing value-added results for society. Over the last decade, both marketing and innovation have been navigating into a new phase. The third wave of open innovation, together with the “sustainable marketing paradigm,” heralds a profound change concerning how sustainable value is created through open value networks (OVNs) in a post-innovation era.
... Thus, innovation ecosystems should be studied through an integrated theoretical lens. As Vanhaverbeke and Cloodt (2014) argue, management theories must be combined as none of them alone can fully explain how firms benefit from open innovation. Our study underlines the importance of this approach with a finer-grained look at theories that explain sociological and socio-psychological undercurrents of inter-firm openness. ...
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Existing innovation management literature significantly enhances our knowledge about ‘What’ open innovation is and ‘Why’ it is crucial for innovating superior products. However, very little is known about the process of ‘How’ firms adopt openness. We engage in a qualitative exploratory study using a grounded theory method to understand the process by which firms open and migrate from ego-systems to open innovation ecosystems. This paper reports on our findings from three rounds of 54 interviews with managers in the Macquarie Business Park, Australia. The first two rounds (n=22+22) describe the openness process, define its qualitatively different phases, and detect critical variables that trigger or inhibit phase transition. In the final round (n=10), member checks verify our interpretive model, revealing that inter-firm openness occurs in four transitory phases—realization, socialization, strategic alignment, and two-way openness. Phase transition starts somewhat spontaneously for firms but gets more complex as they proceed from ego-system to an ecosystem, and the degree of openness increases in each subsequent phase. The study has significant theoretical and practical implications for product innovation management.
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Open Innovation (OI) research has covered various organizational forms in dimensions of durability (permanent versus temporary organizing) and organizational scope (intra-or inter-organizational). Inter-organizational forms-both temporary and permanent-are regarded mainly as modes of OI. However, these organizational forms also act as initiators of OI activities to extend knowledge transfer across the inter-organizational consortium borders, which is hardly researched. To address this gap, the research presented in this article develops an OI process for inter-organizational projects (IOP) as initiators of OI. The initial model is developed by action research with an IOP of museums and educational institutions implementing a series of hackathons. The model's applicability is then evaluated for other IOPs by a survey, indicating the model's suitability for practitioners. Findings point to the importance of collaborative activities for aligning the OI initiative with both individual partners' and common project goals, while outbound activities are regarded least important despite the time-limitation of the project. The research is limited by its focus on the specific IOP environment of EU-funded projects and the small scope of the survey.
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Inter-firm openness is critical to creating an open innovation ecosystem. However, a method for measuring openness among ecosystem firms has not been developed. We demystify the largely implicit openness construct by introducing a five-dimensional, 20-item Inter-Firm Openness Scale (IFO-Scale). Using three qualitative and four quantitative data sets from two innovation hubs: Macquarie Business Park (Australia) and Silicon Valley (USA), we present the development and validation procedures in three interrelated studies. Study 1 generates a descriptive model of an open innovation ecosystem, identifies the critical openness dimensions among ecosystem firms, and refines items for measurement. Study 2 examines dimensionality and internal construct validity. Finally, Study 3 establishes the nomological- and criterion-related external construct validity. The IFO-Scale replicates across samples and demonstrates strong psychometric properties. The measure aids managers in assessing the degree of inter-firm openness in their innovation ecosystems and enable researchers to test and advance open innovation theory.
... For instance, the study by Enkel [17] presents different firm-level capabilities and processes that firms need to develop to fully adopt open innovation; their study does not suggest how to develop OI capabilities. Vanhaverbeke and Cloodt [19] pointed out the limited research on OI managerial practices as a basis to develop OIoriented entrepreneurial education. ...
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... First, even though organizations actively search for open innovation strategies for establishing a competitive advantage (Chesbrough and Bogers, 2014), it was Vanhaverbeke and Cloodt (2014) who argued that open innovation was not fully implemented into the organization's strategy. According to Vanhaverbeke and Roijakkers (2013, p. 23), "it is time to explicitly incorporate open innovation into firms' strategy." ...
... Organizational ambidexterity can be strategized to work within and beyond organizational boundaries (Lavie et al., 2010). This implies that the organization's strategic exploration should work side by side with both the exploitation of its services and products in its internal innovation process (Vanhaverbeke and Cloodt, 2014) and the exploitation of its process. "To generate incremental growth in current business requires a different form of the internal organization compared to the case when companies intend to develop completely new business in the long-run . . . ...
... 260-261). Vanhaverbeke and Cloodt (2014) indicate that open innovation needs to be connected and integrated within the organization's corporate innovation strategy. The question of how to implement the organization's corporate innovation strategy is solved by connecting the strategy to dynamic capabilities. ...
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Purpose Establishing a competitive advantage in today's dynamic environment involves optimizing an organization's exploration and exploitation strategy. This paper aims to explore how an open innovation strategy complements the organization's ambidextrous strategy in attaining a competitive advantage. Organizational ambidexterity and dynamic capability theories are also explored to investigate the impact of open innovation on the organization's ambidextrous strategy and competitive advantage – especially inbound and outbound open innovation. Design/methodology/approach The authors conducted a systematic literature review using Boolean search techniques, which was focused on the research fields of the sub-areas of general management, strategy, innovation, organization studies, information management, entrepreneurship, international business, marketing, and economics, supplemented by the snowball technique. Findings Organizations that combine their ambidextrous strategy with open innovation attributes achieve a competitive advantage through developing their dynamic capabilities by which organizations change their value proposition. This study also shows that an ambidextrous strategy should no longer be viewed as a structural solution implemented by management, but also as a bottom-up intervention. Additionally, the authors found that the organization's dynamic capabilities establish a feedback loop, which changes the organization's ambidextrous strategy to resolve the efficiency–agility paradox. Originality/value Previous research has focused on strategic orientation; however, hardly any research has investigated how the interrelatedness of open innovation, organizational ambidexterity and dynamic capabilities support a competitive advantage. The authors present a conceptual model that inspires new research avenues.
... Open innovation has established strong links to resource-based view (RBV) of the firm since the inception of the concept (West et al. 2014;Alexy, George, and Salter 2013). For example, scholars like Christensen (2006); Teece (2007); Vanhaverbeke and Cloodt (2014) have discussed that resources and capabilities help firms span organizational boundaries for innovation. In case of SMEs, owing to their size and financial resources open innovation adoption can be explained by the RBV (Radziwon and Bogers 2019) as it outlines that all the assets, resources and capabilities of a firm are unique and their integration forms the competitive advantage of the firm (Barney 1991). ...
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To manage the changing innovation landscape a key strategic decision for owner-managers of SMEs is the extent to which they adopt open innovation. Extant research however has tended to study open innovation processes in terms of a binary distinction- either open or closed. The purpose of this paper is to move beyond this dichotomous framing and identify the extent of openness in the innovation processes of SMEs in Europe. Furthermore, the study explores the association between internal firm-specific factors related to the capabilities and strategies of the firm and open innovation in SMEs. This study explores if (a) innovation objectives, (b) innovation activities, and (c) innovation expenditures, influence the extent of openness in the innovation process in SMEs. Drawing on data from the 6th Community Innovation Survey (CIS) of 9,949 SMEs from nine European countries, hypotheses are tested using hierarchical multiple regression analysis. The study contributes to the literature by showing that the extent of openness in the innovation process is low for European SMEs. SMEs are more likely to be characterised by higher levels of openness in their innovation if they prioritise product/process innovation objectives, conduct internal R&D, purchase/license external knowledge, and commitment more financial resources to innovation.
... However, embracing reverse logistics is a very complicated task requiring a firm to retrieve the knowledge and technology it lacks outside its boundaries. The resource dependence theory (Pfeffer and Salancik, 1978) assumes that firms cannot be fully self-sufficient in terms of critical resources and need to team up with innovation partners (Vanhaverbeke and Cloodt, 2014). Therefore, an interorganizational collaboration aimed to develop innovation (in the remainder of the manuscript, we will refer to them as "collaboration") is critical to identifying and using the missing resources and complementing those owned by the firm. ...
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Despite the popularity of reverse logistics in literature, the effect of different collaboration types on the likelihood to introduce reverse logistics innovation has been under-investigated. Hence, this article explores the impact of domestic collaboration with competitors, customers, suppliers, research institutions, and the breadth of collaboration on a firm's reverse logistics innovation. Four hypotheses - grounded on institutional, resource dependence, and absorptive capacity theories – are tested through generalized structural equation modelling analyses on a longitudinal sample of German firms. The results show a positive impact of vertical collaboration, horizontal collaboration, and collaboration with research institutions on the likelihood to introduce reverse logistics innovation. In contrast, collaboration breadth has a negative impact on reverse logistics, an unexpected and surprising result for the innovation management literature. The article offers recommendations to practitioners as to which partners are more likely to increase the odds of introducing reverse logistics innovation and demonstrates that – to such an aim - firms should select a limited number of partners, identifying the ones that suit their needs the most.