Construction of Open Innovation Ecology on the Internet: A Case Study of Xiaomi (China) Using Institutional Logic

Abstract

The characteristics of collaborative innovation and interactions among core enterprises, users, and partners are critical. Research is lacking on how to construct open innovation ecology through institutional design. This study explores how core enterprises effectively motivate users and partners to participate in innovation activities on the Internet and successfully constructing open innovation ecology, using the institutional logic theory and an exploratory case study of Xiaomi, a famous Chinese Internet enterprise. The findings are as follows: (1) three main characteristics of innovation carried out by core enterprises, users, and partners in the open innovation ecology—iterative innovation, social innovation, and joint innovation; (2) three new institutional practices—following, leading, and symbiotic mechanisms—which provide an effective institutional guarantee for interaction and innovation; (3) two kinds of institutional logic—administrative logic and social logic, which core enterprises follow to construct open innovation ecology on the Internet, and its change in innovation characteristics. Therefore, a full understanding of the changing rules of the institutional logic is fundamental for successfully building open innovation ecology. This study enriches both the open innovation ecology theory as well as the institutional logic theory. In addition, Xiaomi’s open innovation ecological development model proves that core enterprises can take the approach of building open innovation ecology. It provides a strong example to other enterprises on innovations on the Internet.

E-Money Payment: Customers’ Adopting Factors and the Implication for Open Innovation

“…The platform or application is presented as a new technology [15], the result of engineering, or a creation by an entrepreneur in a company or through collaboration between entrepreneurs, that assumes that innovation is based on firms' need to produce a successful innovation that creates added value for the firm [16,17]. The success of entrepreneurs creating innovations that create added value (in this case, e-money payment) is determined by at least three important parties, namely, innovators who are entrepreneurs, partners such as financial institutions or providers of internet facilities, and the user in the open innovation ecology [18]. Ecosystems that involve various parties can create an environment that supports and influences the success of open innovation.…”

What Cultivates a Path of Disruptive Innovation within Semiconductor Latecomers? An Exploratory Case Study of HiSilicon

“…Data analysis is a core aspect of case studies (Eisenhardt, 1989). We followed the 'validity and reliability' to reach a strong match between the theory and the case data (Ortiz et al, 2019). First, based on the official website and archival documents, we constructed a timeline to show the milestones in HiSilicon's history (see Figure 2).…”

“…Data analysis is a core aspect of case studies (Eisenhardt, 1989). We followed the ‘validity and reliability’ to reach a strong match between the theory and the case data (Ortiz et al, 2019).…”

“…Disruptive innovation, popularised by Christensen (1997), is a powerful means to assist firms with this critical process by broadening new markets and disrupting the existing market linkages (Christensen, 1997(Christensen, , 2006. Studies of disruptive innovation have already indicated some successful cases (Chen et al, 2020;Ortiz et al, 2019;Pandit et al, 2018). So, if disruptive innovation also suitable with the special nature of the semiconductor industry for latecomers to catch up?…”

Research on the Growth Development of Xiaomi Company

“…Ortiz et al investigated how core enterprises effectively motivate users and partners to participate in innovation activities on the Internet and successfully constructing open innovation ecology, using the institutional logic theory and an exploratory case study of Xiaomi, a famous Chinese Internet enterprise. And the results are as follows: (1) three main characteristics of innovation carried out by core enterprises, users, and partners in the open innovation ecology-iterative innovation, social innovation, and joint innovation; (2) three new institutional practices-following, leading, and symbiotic mechanisms-which provide an effective institutional guarantee for interaction and innovation; (3) two kinds of institutional logic-administrative logic and social logic, which core enterprises follow to construct open innovation ecology on the Internet, and its change in innovation characteristics [3]. Tan and Zhan presented how big data can assist fifth firms in new product development (NPD) to shorten the time to market, improve customers' product adoption, and reduce costs.…”