Learning from openness: The dynamics of breadth in external innovation linkages

Love, James H.; Roper, Stephen; Vahter, Priit

doi:10.1002/smj.2170

Cited by 269 publications

(302 citation statements)

References 33 publications

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“…In addition to their internal resources, previous studies have suggested the importance of external knowledge and resources for innovation outputs (Oerlemans et al 1998;Love et al 2014). While it is clear that for micro-firms the process of seeking knowledge outside the firm presents particular problems, recent empirical evidence does, however, suggest that some SMEs do purposively engage in collaborative innovation, and that the prevalence of collaboration among SMEs has increased in recent years (van de Vrande et al 2009).…”

Section: Hypothesis 1: Resourcesmentioning

confidence: 99%

Investigating a neglected part of Schumpeter’s creative army: what drives new-to-the-market innovation in micro-enterprises?

Roper

Hewitt‐Dundas

2017

Small Bus Econ

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Schumpeterian arguments related to creative destruction place small, entrepreneurial firms at the centre of the innovation process. The exclusion of microenterprises (with less than 10 employees) from most innovation surveys means, however, that we know relatively little about innovation among this group of firms. Here, using new survey data on a thousand micro-enterprises, we explore the determinants of new-to-the-market innovation, the basis for the Schumpeterian creative destruction (CD) process. Our results provide strong support for the interactive nature of micro-enterprise innovation and suggest the potential value of a model of interactive creative destruction (ICD). Contrary to some other recent evidence, market-based and supplier-based collaboration both prove important for new-to-the-market innovation. Our results suggest the importance of micro-enterprises as sources of new-to-the-market innovation and the potential value of including such firms in future innovation studies.

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Section: Hypothesis 1: Resourcesmentioning

confidence: 99%

Investigating a neglected part of Schumpeter’s creative army: what drives new-to-the-market innovation in micro-enterprises?

Roper

Hewitt‐Dundas

2017

Small Bus Econ

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“…Firms have to develop effective governance structures to overcome barriers and exploit benefits from participation in international coopetition for innovation. Over time, firms can learn to manage innovation relationships and develop their mechanisms and routines for managing them to obtain better results (Love et al 2014). Routines and processes need to be developed that increase the absorptive capacity to share knowledge and learn from others and thereby improve innovation behavior (Cohen and Levinthal 1990;Ritala 2012) as well as mechanisms to avoid opportunistic behavior and unintended knowledge leakage .…”

Section: Development Of Hypothesesmentioning

confidence: 99%

“…Second, our results imply that having a broad range of coopetitive partners does not necessarily lead to superior innovative performance if the range is too broad and necessitates reorganization of a firm's processes. Although breath in external collaborations can be beneficial for innovation and can have positive learning effects over time, it has been suggested that there are limits to how much (Love et al 2014). Even though a broad range of international coopetitive relationships might be motivated by goals other than innovation, for example, market expansion, our study strongly suggests that firms need to be well prepared when entering into such relationships.…”

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confidence: 99%

International coopetition for innovation: Are the benefits worth the challenges?

et al. 2017

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International coopetition has rarely been studied in relation to innovation. Further exploration of effects of international coopetition, i.e. the pursuit of simultaneous cooperation and competition, on a firm's innovation performance is especially important as such a relationship is challenging with a high propensity to fail. This observation formed the point of departure for this study, which aims to increase the understanding of the effects of international coopetition on firm innovativeness and how these effects are conditioned on the magnitude of the organizational adjustments a firm introduces. We use an unbalanced panel of 9839 firms that participated in four waves of the Swedish Community Innovation Survey between 2008 and 2014 as our empirical base. We illustrate that firms that cooperate with competitors internationally are more likely to exhibit higher propensity to introduce radical innovations, yet this effect is conditioned upon the magnitude of organizational adjustments. Overall, our study contributes to the understanding of the implications of international coopetition and what a firm needs to benefit from it.

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“…Young firms may be particularly concerned with disclosing too much of their specific knowledge and consequently losing their competitive edge to more established competitors. Moreover, firms' own experience is an important predictor of innovation success through external innovation linkages (Love et al 2014).…”

mentioning

confidence: 99%

R&D Partnerships and Innovation Performance: Can There Be Too Much of a Good Thing?

Hottenrott

Lopes-Bento

2014

SSRN Journal

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R&D collaboration facilitates the pooling of complementary skills, learning from the partner as well as the sharing of risks and costs. Research therefore repeatedly stresses the positive relationship between collaborative R&D and innovation performance. Fewer studies address the potential drawbacks of collaborative R&D. Collaborative R&D comes at the cost of coordination and monitoring, requires knowledge disclosure and involves the risk of opportunistic behavior by the partners. Thus, while for lower collaboration intensities the net gains can be high, costs may start to outweigh benefits if firms perform a higher share of their innovation projects collaboratively. For a sample of 2,735 firms located in Germany and active in a broad range of manufacturing and service sectors, this study finds that increasing the share of collaborative R&D projects in total R&D projects is associated with a higher probability of product innovation and with a higher market success of new products. While this confirms previous findings on the gains for innovation performance, we also observe that collaboration has decreasing and even negative returns on product innovation if its intensity increases above a certain threshold. Thus, the relationship between collaboration intensity and innovation follows an inverted-U shape and, on average, costs start to outweigh benefits if a firm pursues more than about two-thirds of its R&D projects in collaboration. This result is robust to conditioning market success to the introduction of new products and to accounting for the selection into collaborating. This threshold is, however, contingent on firm characteristics. Smaller and younger as well as resource constrained firms benefit from relatively higher collaboration intensities. For firms with higher collaboration complexities in terms of different partners and different stages of the R&D process at which collaboration takes place, returns start to decrease already at lower collaboration intensities.

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Learning from openness: The dynamics of breadth in external innovation linkages

Cited by 269 publications

References 33 publications

Investigating a neglected part of Schumpeter’s creative army: what drives new-to-the-market innovation in micro-enterprises?

Investigating a neglected part of Schumpeter’s creative army: what drives new-to-the-market innovation in micro-enterprises?

International coopetition for innovation: Are the benefits worth the challenges?

R&D Partnerships and Innovation Performance: Can There Be Too Much of a Good Thing?

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