Open innovation in specialized SMEs: the case of supercars

Abstract

Purpose: The purpose of this paper is to explore the influence that adopting open innovation (OI) has on the innovativeness and performance of specialized small and medium-sized enterprises (SMEs). This paper also examines the adoption of OI within a firmâ\u80\u99s practices and models, and within the three dimensions of firm sustainability. Design/methodology/approach: Survey data from 48 specialized SMEs manufacturing supercars were analyzed using partial least squares structural equation modeling. SmartPLS software was used to conduct a path analysis and test the proposed framework. Findings: The findings suggest that high adoption of OI models tends to increase firm innovativeness. Similarly, the adoption of OI practices has a positive effect on innovativeness but to a lesser extent than OI models. The moderation results of innovativeness further show that OI models and practices can benefit the performance of SMEs. Specifically, two dimensions of performance â\u80\u93 environmental and social performance â\u80\u93 were found to be greatly influenced by OI. Research limitations/implications: Due to parsimony in the investigated model, this study only focuses on OI adoption as practices and models without considering its drivers or other contingency factors. Practical implications: This paper could help practitioners in SMEs better understand the benefits of adopting OI to be more innovative but also more sustainable. Originality/value: This study contributes to the literature on the role of OI practices and models regarding the dimensions of firm sustainability performance by being the first paper to investigate this relationship in the context of small and medium manufacturers of supercars

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Open innovation in (young) SMEs

“…Presenza et al (2016) highlight in regard to lowtechnology SMEs, that OI activities increase the firm's ability to innovate and that customers are regarded as the most important external source for innovation. Besides increasing innovativeness, Ramirez-Portilla et al (2017) demonstrate that adopting OI practices further supports SMEs to become more sustainable and resource-efficient and increases their overall competitiveness. Furthermore, Kim and Park (2010) found that adopting external R&D corporations has a positive significant impact on SME's innovation output, whereas external ideas have a negative impact and external knowledge has no impact.…”

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“…Ramirez-Portilla et al 98 analyse data from 48 specialised SMEs involved in manufacturing supercars. They affirm that the adoption of OI models and practices tends to increase firm innovativeness and improve the performance of SMEs.…”