Open innovation in SMEs

Abstract

Purpose This study examines how technology-intensive small- and medium-sized enterprises (SMEs) engage in open innovation. The purpose of this paper is to add to the literature on open innovation in SMEs, which has received considerably less attention than open innovation in large companies. Also, the study adds on the literature on open innovation in the commercialization phase. Design/methodology/approach A multiple case study of 13 technology-intensive SMEs in forestry sector was conducted. The forestry sector in Finland was chosen as a target context, there were many innovative pioneering SMEs operating in the industry and because the sector was going through significant changes. Findings Three multi-firm collaboration modes in the commercialization phase were identified: networks with a lead partner, equal partnership, and partnership for external technology commercialization. The study shows that in SMEs, open innovation is used for commercialization rather than research and development. The main conclusion of the study is that the mode of collaboration in commercialization is determined by the core competence of the firm and the strategy for open innovation. Practical implications The study results imply that SMEs benefit from opening up their innovation process in the commercialization phase. The firms in this study employed a blend of strategies that capitalized on their internal strengths. They collaborated actively with external firms and outsourced from specialists. This way they were able to compensate for their internal weaknesses and gain competitive advantage. Originality/value The study extends our understanding of open innovation by providing a detailed analysis of how open innovation takes place in the commercialization phase of innovation process. Also, the study extends understanding of the strategic use of open innovation in SMEs by showing how SMEs balance the risk of losing their competitive advantage built on innovation and the benefit of creating a broader competence base with partnerships.

Relationship between Organizational Climate and Innovation Capability in New Technology-Based Firms

“…In an open innovation framework, the results obtained help to understand the role that the organizational climate has in incoming open innovation [6], which implies sharing internal resources abroad, closely linked to the processes of organizational ambidexterity, which encompasses in a broad sense, the balance of innovation processes, in this case, between the internal and external exchange of resources. On the other hand, the analysis of the results would serve to propose actions and overcome the barriers that the implementation of open innovation in NTBFs supposes [10,84] according to the particular characteristics that they possess [85].…”

Opening Science and Innovation: Opportunities for Emerging Economies

“…There is relationship between open innovation and the development of SME since knowledge allows to find new markets and influence on finances positively. Open innovation reduces innovation costs and helps knowledge management to create new ideas [Henttonen, Lehtimaki, 2017;Akinwale, 2018;Bravo-Ibarra et al, 2014]. In fact, SME could develop more innovative products and ideas by avoiding working in an isolated way [Friesike et al, 2015].…”

“…The type of SME plays a determinant role. Whereas technology-driven enterprises [Rodrigues et al, 2010;Henttonen, Lehtimaki, 2017], biotech companies and construction companies [Vlaisavljevic et al, 2020;Jamett et al, 2017] might have a stronger connection with innovation, other industries such as tourism [Iglesias-Sánchez et al, 2019] still have to define a strategy and systemized open innovation to explore its potential.…”

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“…В ходе системного обзора литературы выявлено всего 28 работ, посвященных ОН и ОИ в контексте МСБ, что свидетельствует о значительном потенциале для продолжения исследования открытости инновационных и научных проектов. Развитие МСБ находится в прямой связи с ОИ, которые помогают находить новые рынки, улучшать финансовые показатели компаний, снижать затраты на инновации и оптимизировать управление знаниями для генерации новых идей [Henttonen, Lehtimaki, 2017;Akinwale, 2018;Bravo-Ibarra et al, 2014]. Отказ от изоляционистской позиции позволяет разрабатывать более инновационные продукты и идеи [Friesike et al, 2015].…”