The “Open Innovation” paradigm: A contingency perspective
Abstract: The “open
innovation” model is currently being touted as a superior path for achieving
long-term success. Rather than relying on their own, limited resources for
research and development in the traditional, closed invention system, firms are
encouraged to share knowledge across firm boundaries to enhance their
innovative potential. Yet, such sharing may also have adverse consequences by
reducing the rarity of a firm’s inventions. This paper accordingly attempts to
identify and analyze the parameters that determine whether open or closed types
of innovation management are most appropriate for a given firm. Following a
contingency perspective, we examine these determinants as various internal and
external constraints (situational factors). More specifically, applying
concepts related to absorptive capacity, complementary resources, game theory
and others, we derive testable propositions and provide case study evidence
regarding the value generating properties of open innovation.
Author: Marko T. Torkkeli,
Carl Joachim Kock, Pekka A. S. Salmi
Journal Code: jptindustrigg090004
