Exploring Relationships among Proactiveness,Risk‐Taking and Innovation Output in Family and Non‐Family Firms

In an empirical investigation of 532 Finnish firms, and using the entrepreneurial orientation (EO) literature to frame our arguments, we demonstrate that relationships among proactivity, risk‐taking and innovation output differ in family and non‐family firms. Specifically, we find evidence that risk‐taking does not affect innovation output in family firms, whereas in non‐family firms, innovation output is increased through risk‐taking. Also, proactive family firms influence their innovation output more positively than proactive non‐family firms do. This study adds important new insights to the growing knowledge of EO, which are discussed in the following for both academic and business audiences.     

Open to a Select Few? Matching Partners and Knowledge Content for Open Innovation Performance

The purpose of the paper is to illuminate the costs and benefits of crossing firm boundaries in inbound open innovation (OI) by determining the relationships among partner types, knowledge content and performance. The empirical part of the study is based on a survey of OI collaborations answered by R&D managers in 415 Italian, Finnish and Swedish firms. The results show that the depth of collaboration with different partners (academic/consultants, value chain partners, competitors and firms in other industries) is positively related to innovation performance, whereas the number of different partners and size have negative effects. The main result is that the knowledge content of the collaboration moderates the performance outcomes and the negative impact of having too many different kinds of partners. This illustrates how successful firms use selective collaboration strategies characterized by linking explorative and exploitative knowledge content to specific partners, to leverage the benefits and limit the costs of knowledge boundary crossing processes.     

Innovation Culture,Collaboration with External Partners and NPD Performance

Researchers and managers have found that the use of external knowledge in the process of new product development (NPD) helps to sustain a firm's competitiveness by strengthening its innovative performance. However, little is known about why some firms use external knowledge sources for NPD in an extensive manner while others hardly ever use them. In addition, there is disagreement about which external partners significantly contribute to the innovative performance of a firm as valuable knowledge sources. Based on the resource‐based view (RBV) of the firm and Kitchell's innovation adoption model, this paper expects a firm's innovation culture to have a significant impact on its openness to external knowledge – measured in terms of its collaborative behaviour with five different external partners – and for that behaviour to influence the firm's NPD performance. A sample of 254 technology‐based firms across several industries is used to empirically test the research model with covariance‐based structural equation modeling (SEM). The findings deepen our understanding of the discrepancies between successful pioneering firms active in technology and knowledge sourcing and others being less successful.     

Open innovation in software engineering: a systematic mapping study

Open innovation (OI) means that innovation is fostered by using both external and internal influences in the innovation process. In software engineering (SE), OI has existed for decades, while we currently see a faster and broader move towards OI in SE. We therefore survey research on how OI takes place and contributes to innovation in SE. This study aims to synthesize the research knowledge on OI in the SE domain. We launched a systematic mapping study and conducted a thematic analysis of the results. Moreover, we analyzed the strength of the evidence in the light of a rigor and relevance assessment of the research. We identified 33 publications, divided into 9 themes related to OI. 17/33 studies fall in the high–rigor/high–relevance category, suggesting the results are highly industry relevant. The research indicates that start-ups have higher tendency to opt for OI compared to incumbents. The evidence also suggests that firms assimilating knowledge into their internal R&D activities, have higher likelihood of gaining financial advantages. We concluded that OI should be adopted as a complementary approach to facilitate internal innovation and not to substitute it. Further research is advised on situated OI strategies and the interplay between OI and agile practices.     

Developing technological capabilities for Industry 4.0 adoption: An analysis of the role of inbound open innovation in small and medium-sized enterprises

To keep up with rapid technological change, firms are pushed to acquire new competencies and resources, often leveraging the external networks in which they are involved. The paper examines how firms' engagement in inbound open innovation (OI) enables the adoption of Industry 4.0 (I4.0) technologies in small and medium-sized enterprises (SMEs) through the deployment of technological capabilities. We combine the OI and dynamic capabilities frameworks to assess how the absorption of knowledge from different actors impacts the necessary technological capabilities for adopting I4.0 technologies. The capabilities are categorized in technological sensing, seizing and reconfiguring. The study is based on in-depth case studies of two selected SMEs from the footwear industry. The cases show that engaging in external collaborations, particularly with universities, pushes SMEs to renew the bundle of competencies underlying their technological capabilities. However, this effect is influenced by the OI modalities adopted by both companies. While in Company A OI takes place through a broader array of formal and informal linkages that contribute to the exploration of distant knowledge bases and the experimentation of more diverse technologies, such as the Internet of Things, Company B relies on informal networking concentrated in its own field of specialization for the adoption of manufacturing-specific I4.0 solutions, such as automated robots and 3D printing.     

The Impact of Technological Opportunities and Innovative Capabilities on Firms’ Output Innovation

In this study, we analyse the effect that external sources of knowledge and absorptive capacity exert on a firm's output innovation. In addition, we examine the moderating influence of absorptive capacity on the effect that technological opportunities have on output innovation. Empirical research was carried out on a sample of 91 Spanish firms from the ceramic tile industry. Absorptive capacity is operationalized by ‘systematic or continuous R&D’ and output innovation by ‘percentage of sales from new products’. Technological opportunities are divided into several industry and non‐industry related variables. Our results show the positive effect that both the industry's technological opportunities and a systematic approach to R&D exert on output innovation. Moreover, firms with a systematic approach to R&D usually achieve higher innovation output than firms which do not follow this approach. The innovation results of this second group decrease as a result of embedded technology acquisition.     

Performance management of public–private collaboration in innovation

The open innovation literature has highlighted that more focus should be placed on non‐pecuniary sources such as public research institutes (PRIs) and their performance management (PM), while innovation network studies have highlighted the growing importance of universities and PRIs in public‐private research partnerships. Building on PM capability and portfolio management perspectives, this research aims is to examine the relationship between knowledge resources and collaboration outcome in such public‐private collaborations, and the mediating role of senior management team's (SMT) ability to govern project portfolio approval and management processes. Examining 153 innovation commercialization collaboration projects between PRIs and firms in Singapore, our study has made several significant contributions to the existing research on innovation and performance in public‐private partnership. First, we empirically demonstrate that there is a direct positive relationship between PRIs' knowledge resources and collaboration outcome. Second, our findings establish that the PRIs' SMT ability to govern project portfolio processes mediates this positive relationship. Third, this research highlights that the SMT ability to govern project portfolio processes fully mediates the conversion of market knowledge into innovation. Only partial mediation is observed in the case of technological knowledge, which directly creates value by virtue of generating discoveries or breakthroughs.     

Supporting Innovation through HR Policy: Evidence from the UK

This paper focuses on the relationship between the importance of innovation for organizations and their human resources policy. Drawing on survey findings, we examine the coherence of organizations’ utilization of HR recruitment, training and performance management policies to support and enhance firms’ innovation performance. Through a social–psychological perspective, we situate our findings in two diverse areas: the psychological literature, exploring the measurement of innovation, and second, with regard to the internal (with each other) and external (with broader organizational objectives) integration of distinct HR policy elements. Our surveyed organizations indicate that, whilst attaching importance to innovation, they fail to consistently translate this importance into coherent HR policies. Typically, HR policy rewarded non‐managerial employees for innovation, whilst managerial staff were expected to do so as a matter of course. This inconsistency is one source of resistance which blocks the generation of new ideas, and their implementation, organization‐wide.     

Is open innovation always the best for SMEs? An exploratory analysis at the project level

Open innovation (OI) projects are increasingly adopted by small‐ and medium‐sized enterprises (SMEs). Yet, undertaking OI is not only a source of opportunities for SMEs as it can, at the same time, present risks. How SMEs manage the balance between the potential benefits and the emerging challenges of OI is still an overlooked topic in the literature. Using evidence gathered through multiple case studies and drawing upon the relational view of the firm, we explore how and why value creation opportunities and different managerial challenges emerge for SMEs pursuing OI projects. We analyze different stages of OI projects in several different contexts of their implementation. Our analysis sheds light on the different nature and dynamics of knowledge involved within OI projects as important boundary conditions affecting successful search paths, learning processes, and the development of appropriability mechanisms. By offering a contextualized view of OI in SMEs, this study also provides insights to business managers on the situational opportunities and constraints of OI, including managerial suggestions on actions to manage tensions within differing OI projects.     

When agility meets open innovation: two approaches to manage inbound projects

Open Innovation is a leading paradigm in the current landscape, and scholars have been highly focused on defining the characteristics and capabilities that firms need to implement it successfully. This research aims to understand how organizations may implement inbound OI projects. Relying on a multiple case study approach and based on primary and secondary sources, this research highlights two main approaches: team‐centred and individual‐centred. The two approaches are discussed according to previous studies, highlighting how the first one is particularly coherent with previous research on Open Innovation, while the second one offers great insights from an Agile Project Management perspective. In particular, this research suggests how the Open Innovation literature can be enriched by considering the recent advancements in the Agile literature, valuing the individual and its autonomy to embrace external ideas from an OI perspective.     

SMEs' Preference for Innovation Networks: A Choice Experimental Approach

The objective of this paper is to evaluate the importance of selected characteristics of innovation networks in affecting the decision of food SMEs when joining such networks. The paper develops and tests a series of hypotheses through a choice experiment exercise ran on a sample of 231 firms in six EU countries. The results showed that SMEs prefer networks that are composed of manufacturers and supply chain members, where information is shared confidentially among network partners, and when the network provides support to help the firm build its own networks of partners for innovation. In addition, SMEs' choice of the network is also affected by the interaction between specific network attributes and two firm characteristics, i.e. the firm's collaborative experience and innovation objectives. Based on the results, we conclude that the success of inter‐organizational networks depends on the fit between the network's design and the innovation and networking behaviour of the firms.     

Enhancing Discontinuous Innovation through Knowledge Combination: The Case of an Exploratory Unit within an Established Automotive Firm

The literature on innovation management underlines the necessity to separate the exploratory unit that builds new businesses on the basis of radical innovation from the exploitation unit that emphasizes continuous improvement. However, little research focuses on the exploratory unit in itself: the very nature of its activity, its composition, etc. The aim of this article is to analyse the exploratory unit in mobilizing results highlighted by research on organizational creativity. It is argued that in order to enhance discontinuous innovation, knowledge combination should occur and be facilitated in the exploratory unit. Hence, the research question is what organizational design at a fine‐grained level and creativity processes are likely to enhance knowledge combination and thus discontinuous innovation? Based on an in‐depth study of an exploratory unit created in an established multidivisional firm pursuing the development of discontinuous innovation and which generated several actual breakthroughs, we highlighted four key factors that enhanced knowledge combination: (i) the definition of the scope of the unit, (ii) the composition of the unit and the dual roles of its members, (iii) the boundary objects that supported the interactions between these members during the creativity process, and (iv) the arenas where new knowledge was further created.     

Coopetition in innovation activities and firms' economic performance: An empirical analysis

We use survey data to test whether it pays to cooperate in innovation activities with rivals (also referred to as coopetition) compared to other cooperative arrangements, notably with non‐rival partners. Applying an ordinary least squares regression to a large sample of French firms (N = 2957), we found evidence of a positive and significant relationship between various forms of cooperation (with and without rivals) and firms' economic performance, measured by EBITDA (earnings before interest, taxes, depreciation and amortization). Results show that cooperation with rival and non‐rivals taken together increases economic performance, but that the impact of cooperation with rivals is lower than the impact of cooperation with non‐rivals. Estimation results suggest that reaping the full cooperation benefits is not automatic and requires precision dosing and management.     

An integrated model of innovation drivers for smaller software firms

High-technology innovation is essential for economic development in industrialized societies. However, innovation practice in smaller software companies has received little attention. We derive software innovation drivers and outputs from a fragmented literature and analyze their empirical relevance using qualitative data from 25 in-depth interviews with software executives in the Silicon Fen. Repeating patterns in the data set revealed through content analysis show that the most important innovation drivers for smaller software firms are external knowledge, leadership and team processes. Specialized innovation tools and techniques are hardly used. We develop a model of software innovation drivers, together with explorative theoretical propositions.     

Which types of firm use collaborative innovative spaces?

Collaborative innovation spaces (CIS) can bring together multiple actors to enhance creativity, collaboration and knowledge exchange, sometimes leading to innovation. In this paper, we suggest that CIS can be categorized into three broad types (internal to the firm, external and virtual) and that each type is related to innovation processes, knowledge-sourcing and geographic context in specific ways. Our results, based on an original firm-level survey, reveal that there is heterogeneity with respect to firm attributes and innovation activities associated with different types of CIS. In particular, whilst innovation is associated with the use of CIS in general, radical and technological innovations are more strongly associated with internal CIS, whereas smaller firms tend to use virtual CIS. External CIS, whilst not associated with technological innovation, are associated with high-tech firms. CIS use does not vary across geographic context. These results emphasize the importance of in-person, internal, CIS for radical and technological innovation and the need to distinguish between different types of CIS in order to understand how each is associated with different types of innovation, knowledge-sourcing and firm.     

Alliance Formation in the Automobile Sector during an Era of Ferment

When developing radical innovations, firms often form collaborative relationships with external organizations to have access to additional resources. Therefore, alliance formation is influential in innovation and plays a key role in industrial change. However, most studies have not distinguished between individual alliances and instead aggregated collaborations when analysing firm external R&D efforts. Our research sought to explore manufacturer use of alliances to acquire expertise in key knowledge areas as they developed and commercialized electric vehicles. Alliances from 24 manufacturers were analysed according to type (explorative or exploitative), key knowledge area, and firm type (incumbent or start‐up). The results show distinct alliance formation patterns in different key knowledge areas. Heterogeneity of alliance formation in key knowledge areas indicates that developing a radical innovation is not as simple as acquiring new expertise. Rather it is a complex process where firms seek to develop their own knowledge base and use the expertise of other companies. This likely stems from a desire to develop technologies connected to core business models. Analysing alliance formation according to key knowledge area provides a rich account of how firms approach knowledge acquisition as they develop radical innovations during a time of industrial uncertainty.     

Does the source of external knowledge matter? Examining the role of customer co-creation and partner sourcing in knowledge creation and innovation

External knowledge is widely acknowledged to be critical for organizational innovation. However, we lack understanding of how different sources of knowledge—namely knowledge from customers and partners—influence innovation. Grounded in the knowledge-based view of the firm, we theoretically develop and empirically test a model of mechanisms through which two forms of external knowledge acquisition i.e., customer co-creation and partner sourcing, foster knowledge creation and innovation. We posit that the different forms of external knowledge acquisition contribute differentially toward innovation outcomes. Finally, we examine the moderating role of knowledge dissemination capability on the relationships between external knowledge of both forms. We test our proposed model using data gathered from 655 organizations in two knowledge intensive sectors i.e., financial and information technology. Our model explains 65 % of the variance in knowledge creation and highlights that organizations with higher degree of knowledge creation are more likely to innovate through new patents. We extend prior research on customer co-creation and organizational innovation by identifying intervening organizational variables and mechanisms that explicate the effects of external knowledge on innovation. The results provide important implications for organizations regarding the capabilities needed to utilize external knowledge for innovation.     

Beyond free software: An exploration of the business value of strategic open source

The phenomenon of open source software (OSS) has been well studied from the software development perspective, but it has received much less attention from the perspective of business value. Nevertheless, OSS, when viewed as a value creation process rather than ‘free’ software, provides businesses with value through access to knowledge and innovation capacity resident in online communities. This conceptualisation, which we label ‘strategic open source’ requires firms to rethink their strategy and processes as there is a shift in focus from ownership to openness and collaboration with external parties. Nonetheless, the emergence of OSS poses a puzzle for conceptions of organisational theory. Therefore, a theorising process is needed in order to develop a deeper understanding of how value is created and captured with OSS. Using a field study of eleven European firms, this paper explores the creation and capture of business value from strategic open source. The findings reveal that while decision makers look to open innovation initiatives like OSS for value creation and capture, there is still a desire to remain self reliant, resulting in collaborative design (of external innovations) rather than collaborative decision making with value network partners in relation to how such innovations would help create and capture value within firms.     

External Design for Reputation,Perspective and Exposure

This paper analyses why and how design‐centred industrial firms with internal design teams contract external designers. This research is based on an exploratory multiple case study methodology, with a sample of five highly reputable design‐centred industrial firms, operating in hypercompetitive industries. While some results challenge the mainstream literature on design management, others expand the existing literature, highlighting that not all firms extract the same benefits from external designers; neither do all external designers bring the same benefits to firms. The paper shows that firms with internal design teams contract external design for (1) reputation (external designers sign products and bring their reputation to the product and to the firm), (2) perspective (external designers bring a different perspective, especially when they come from a different industry from the firm), and (3) exposure (external designers bring exposure that enriches internal design teams).     

Idea generation and open innovation in SMEs: When does market‐based collaboration pay off most?

Small‐ and medium‐sized enterprises (SMEs) largely depend on proficient idea generation activities to improve their front‐end innovation performance, yet the liabilities of newness and smallness often hamper SMEs' ability to benefit from systematic idea generation. To compensate for these liabilities, many SMEs adopt an open innovation approach by collaborating with market‐based partners such as customers and suppliers. This study investigates the relationship between SMEs' systematic idea generation and front‐end performance and investigates the moderating role of market‐based partnership for SMEs. Drawing on a survey of 146 Swedish manufacturing SMEs, this study provides two key contributions. First, the systematic idea generation and front‐end performance relationship in SMEs is non‐linear. Accordingly, higher levels of front‐end performance are achieved when idea generation activities are highly systematic. Second, the returns from higher levels of systematic idea generation are positively moderated by market‐based partnerships. Thus, external cooperation with customers and suppliers pays off most toward front‐end performance when SMEs have highly systematic idea generation processes. These results indicate a contingency perspective on the role of external partnerships. They also have implications for research into the front‐end of innovation and open innovation in the context of SMEs.