IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v124y2023ics0166497223000433.html
   My bibliography  Save this article

Open innovation in nascent ventures: Does openness influence the speed of reaching critical milestones?

Author

Listed:
  • Toroslu, Adrian
  • Herrmann, Andrea M.
  • Chappin, Maryse M.H.
  • Schemmann, Brita
  • Castaldi, Carolina

Abstract

Research on open innovation (OI) has demonstrated the benefits of openness for firm innovation processes, but studies have mostly offered cross-sectional insights on incumbent firms. This study offers a more dynamic perspective on the relevance of OI for nascent ventures. Combining entrepreneurship and OI theories, we argue that it is key for resource-scarce nascent ventures to achieve critical venture-creation milestones. While OI can help these ventures to leverage salient external partnerships, we argue that it affects their speed of reaching these milestones. We test our hypotheses on a longitudinal sample focusing on external collaboration practices of nascent ventures in the renewable energy or information and communications technology industries. Our results show that, while engaging in R&D collaborations slows down nascent ventures’ product development and sustainable profit generation activities, joining industry associations does not have a slow-down effect. Our results complement the OI literature by warning about the downsides of openness for nascent ventures, particularly during the venture creation phase, where speed is a high priority.

Suggested Citation

  • Toroslu, Adrian & Herrmann, Andrea M. & Chappin, Maryse M.H. & Schemmann, Brita & Castaldi, Carolina, 2023. "Open innovation in nascent ventures: Does openness influence the speed of reaching critical milestones?," Technovation, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:techno:v:124:y:2023:i:c:s0166497223000433
    DOI: 10.1016/j.technovation.2023.102732
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497223000433
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.technovation.2023.102732?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Timothy B. Folta & Frédéric Delmar & Karl Wennberg, 2010. "Hybrid Entrepreneurship," Management Science, INFORMS, vol. 56(2), pages 253-269, February.
    2. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    3. Nobuya Fukugawa, 2006. "Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan," Small Business Economics, Springer, vol. 27(2), pages 181-193, October.
    4. Mike Wright & Paul Westhead & Deniz Ucbasaran, 2009. "Information Search and Opportunity Identification:The Importance of Prior Business Ownership Experience," Post-Print hal-02312516, HAL.
    5. Andrea M. Herrmann, 2019. "A plea for varieties of entrepreneurship," Small Business Economics, Springer, vol. 52(2), pages 331-343, February.
    6. Peter Vogel, 2017. "From Venture Idea to Venture Opportunity," Entrepreneurship Theory and Practice, , vol. 41(6), pages 943-971, November.
    7. Delmar, Frédéric & McKelvie, Alexander & Wennberg, Karl, 2013. "Untangling the relationships among growth, profitability and survival in new firms," Ratio Working Papers 205, The Ratio Institute.
    8. Weilei (Stone) Shi & John E. Prescott, 2011. "Sequence Patterns of Firms' Acquisition and Alliance Behaviour and their Performance Implications," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1044-1070, July.
    9. Li Tian & Jing Yu Yang & Liqun Wei, 2019. "Speed to Legal Registration and Nascent Venture Performance: A Temporal Dilemma for Nascent Entrepreneurs in an Emerging Economy," Journal of Small Business Management, Taylor & Francis Journals, vol. 57(2), pages 476-495, April.
    10. Bijedić, Teita & Löher, Jonas & Nielen, Sebastian & Schlömer-Laufen, Nadine & Herrmann, Andrea & Zimmermann, Maximilian, 2020. "Von der Idee bis zum Gewinn - eine empirische Analyse der Entwicklungsprozesse von Neugründungen," IfM-Materialien 281, Institut für Mittelstandsforschung (IfM) Bonn.
    11. Hagedoorn, John, 2002. "Inter-firm R&D partnerships: an overview of major trends and patterns since 1960," Research Policy, Elsevier, vol. 31(4), pages 477-492, May.
    12. Marcel Bogers & Ann-Kristin Zobel & Allan Afuah & Esteve Almirall & Sabine Brunswicker & Linus Dahlander & Lars Frederiksen & Annabelle Gawer & Marc Gruber & Stefan Haefliger & John Hagedoorn & Dennis, 2017. "The open innovation research landscape: established perspectives and emerging themes across different levels of analysis," Industry and Innovation, Taylor & Francis Journals, vol. 24(1), pages 8-40, January.
    13. Delmar, Frederic & Shane, Scott, 2004. "Legitimating first: organizing activities and the survival of new ventures," Journal of Business Venturing, Elsevier, vol. 19(3), pages 385-410, May.
    14. Ko, Stephen & Butler, John E., 2007. "Creativity: A key link to entrepreneurial behavior," Business Horizons, Elsevier, vol. 50(5), pages 365-372.
    15. Cheryl Gaimon & Jennifer Bailey, 2013. "Knowledge Management for the Entrepreneurial Venture," Production and Operations Management, Production and Operations Management Society, vol. 22(6), pages 1429-1438, November.
    16. Joel West & Karim Lakhani, 2008. "Getting Clear About Communities in Open Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 15(2), pages 223-231.
    17. Qin, Fei & Wright, Mike & Gao, Jian, 2017. "Are ‘sea turtles’ slower? Returnee entrepreneurs, venture resources and speed of entrepreneurial entry," Journal of Business Venturing, Elsevier, vol. 32(6), pages 694-706.
    18. Paul Westhead & Mike Wright, 1998. "Novice, Portfolio, and Serial Founders in Rural and Urban Areas," Entrepreneurship Theory and Practice, , vol. 22(4), pages 63-100, July.
    19. Diana Hechavarría & Charles Matthews & Paul Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    20. Reynolds, Paul & Miller, Brenda, 1992. "New firm gestation: Conception, birth, and implications for research," Journal of Business Venturing, Elsevier, vol. 7(5), pages 405-417, September.
    21. Zhu, Xiaoxuan & Xiao, Zhenxin & Dong, Maggie Chuoyan & Gu, Jibao, 2019. "The fit between firms’ open innovation and business model for new product development speed: A contingent perspective," Technovation, Elsevier, vol. 86, pages 75-85.
    22. Frank T. Rothaermel & David L. Deeds, 2004. "Exploration and exploitation alliances in biotechnology: a system of new product development," Strategic Management Journal, Wiley Blackwell, vol. 25(3), pages 201-221, March.
    23. Frank T. Rothaermel, 2001. "Incumbent's advantage through exploiting complementary assets via interfirm cooperation," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 687-699, June.
    24. Tsai, Kuen-Hung, 2009. "Collaborative networks and product innovation performance: Toward a contingency perspective," Research Policy, Elsevier, vol. 38(5), pages 765-778, June.
    25. Clarysse, Bart & Moray, Nathalie, 2004. "A process study of entrepreneurial team formation: the case of a research-based spin-off," Journal of Business Venturing, Elsevier, vol. 19(1), pages 55-79, January.
    26. Iain M. Cockburn & Rebecca M. Henderson, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 157-182, June.
    27. Joan‐lluis Capelleras & Francis J. Greene & Hugo Kantis & Rodrigo Rabetino, 2010. "Venture Creation Speed and Subsequent Growth: Evidence from South America," Journal of Small Business Management, Taylor & Francis Journals, vol. 48(3), pages 302-324, July.
    28. Du, Jingshu & Leten, Bart & Vanhaverbeke, Wim, 2014. "Managing open innovation projects with science-based and market-based partners," Research Policy, Elsevier, vol. 43(5), pages 828-840.
    29. Diana M. Hechavarría & Charles H. Matthews & Paul D. Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    30. Kathleen M. Eisenhardt & Claudia Bird Schoonhoven, 1996. "Resource-based View of Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms," Organization Science, INFORMS, vol. 7(2), pages 136-150, April.
    31. Joan-Lluis Capelleras & Francis J. Greene, 2008. "The determinants and growth implications of venture creation speed," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 20(4), pages 317-343, July.
    32. Frédéric Delmar & Scott Shane, 2006. "Does Experience Matter? : The Effect of Founding Team Experience on the Survival and Sales of Newly Founded Ventures," Post-Print hal-02311638, HAL.
    33. Lukas Held & Andrea M. Herrmann & Allard Mossel, 2018. "Team formation processes in new ventures," Small Business Economics, Springer, vol. 51(2), pages 441-464, August.
    34. Leiponen, Aija & Byma, Justin, 2009. "If you cannot block, you better run: Small firms, cooperative innovation, and appropriation strategies," Research Policy, Elsevier, vol. 38(9), pages 1478-1488, November.
    35. Uriel Stettner & Dovev Lavie, 2014. "Ambidexterity under scrutiny: Exploration and exploitation via internal organization, alliances, and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 35(13), pages 1903-1929, December.
    36. Robert Huggins & Piers Thompson, 2017. "Entrepreneurial networks and open innovation: the role of strategic and embedded ties," Industry and Innovation, Taylor & Francis Journals, vol. 24(4), pages 403-435, May.
    37. Seung Ho Park & Gerardo R. Ungson, 2001. "Interfirm Rivalry and Managerial Complexity: A Conceptual Framework of Alliance Failure," Organization Science, INFORMS, vol. 12(1), pages 37-53, February.
    38. Shan, Peng & Song, Michael & Ju, Xiaofeng, 2016. "Entrepreneurial orientation and performance: Is innovation speed a missing link?," Journal of Business Research, Elsevier, vol. 69(2), pages 683-690.
    39. Burke, Andrew E. & Hanley, Aoife, 2009. "Market concentration and business survival in static v dynamic industries," Kiel Working Papers 1517, Kiel Institute for the World Economy (IfW Kiel).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Du, Jingshu & Leten, Bart & Vanhaverbeke, Wim, 2014. "Managing open innovation projects with science-based and market-based partners," Research Policy, Elsevier, vol. 43(5), pages 828-840.
    2. Jacob, Jojo & Belderbos, René & Lokshin, Boris, 2023. "Entangled modes: Boundaries to effective international knowledge sourcing through technology alliances and technology-based acquisitions," Technovation, Elsevier, vol. 122(C).
    3. Czarnitzki, Dirk & Hottenrott, Hanna, 2012. "Collaborative R&D as a strategy to attenuate financing constraints," ZEW Discussion Papers 12-049, ZEW - Leibniz Centre for European Economic Research.
    4. Qin, Fei & Wright, Mike & Gao, Jian, 2017. "Are ‘sea turtles’ slower? Returnee entrepreneurs, venture resources and speed of entrepreneurial entry," Journal of Business Venturing, Elsevier, vol. 32(6), pages 694-706.
    5. Kwangsoo Shin & Gunno Park & Jae Young Choi & Minkyung Choy, 2017. "Factors Affecting the Survival of SMEs: A Study of Biotechnology Firms in South Korea," Sustainability, MDPI, vol. 9(1), pages 1-18, January.
    6. Partanen, Jukka & Kohtamäki, Marko & Patel, Pankaj C. & Parida, Vinit, 2020. "Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow," International Journal of Production Economics, Elsevier, vol. 221(C).
    7. Stienstra, Miranda, 2020. "The determinants and performance implications of alliance partner acquisition," Other publications TiSEM 7fdee0c2-d4d2-4f5b-95e3-2, Tilburg University, School of Economics and Management.
    8. Susan Müller & Alyssa Lara Kirst & Heiko Bergmann & Barbara Bird, 2023. "Entrepreneurs’ actions and venture success: a structured literature review and suggestions for future research," Small Business Economics, Springer, vol. 60(1), pages 199-226, January.
    9. Toft-Kehler, Rasmus & Wennberg, Karl & Kim, Phillip H., 2014. "Practice makes perfect: Entrepreneurial-experience curves and venture performance," Journal of Business Venturing, Elsevier, vol. 29(4), pages 453-470.
    10. Per Davidsson & Jan Henrik Gruenhagen, 2021. "Fulfilling the Process Promise: A Review and Agenda for New Venture Creation Process Research," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1083-1118, September.
    11. Kuebart, Andreas, 2022. "Open creative labs as functional infrastructure for entrepreneurial ecosystems: Using sequence analysis to explore tempo-spatial trajectories of startups in Berlin," Research Policy, Elsevier, vol. 51(9).
    12. Zhang, Jing & Baden-Fuller, Charles & Mangematin, Vincent, 2007. "Technological knowledge base, R&D organization structure and alliance formation: Evidence from the biopharmaceutical industry," Research Policy, Elsevier, vol. 36(4), pages 515-528, May.
    13. Andrea M. Herrmann & Cornelia Storz & Lukas Held, 2022. "Whom do nascent ventures search for? Resource scarcity and linkage formation activities during new product development processes," Small Business Economics, Springer, vol. 58(1), pages 475-496, January.
    14. Fan, Terence & Schwab, Andreas & Geng, Xuesong, 2021. "Habitual entrepreneurship in digital platform ecosystems: A time-contingent model of learning from prior software project experiences," Journal of Business Venturing, Elsevier, vol. 36(5).
    15. Adrián Kovács & Bart Looy & Bruno Cassiman, 2015. "Exploring the scope of open innovation: a bibliometric review of a decade of research," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 951-983, September.
    16. Kobarg, Sebastian & Stumpf-Wollersheim, Jutta & Welpe, Isabell M., 2019. "More is not always better: Effects of collaboration breadth and depth on radical and incremental innovation performance at the project level," Research Policy, Elsevier, vol. 48(1), pages 1-10.
    17. Owusu Sarpong & Peter Teirlinck, 2018. "The influence of functional and geographical diversity in collaboration on product innovation performance in SMEs," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1667-1695, December.
    18. Maria Di Guardo & Kathryn Harrigan, 2012. "Mapping research on strategic alliances and innovation: a co-citation analysis," The Journal of Technology Transfer, Springer, vol. 37(6), pages 789-811, December.
    19. Jing Zhang & Charles Baden-Fuller & Vincent Mangematin, 2007. "Technological Knowledge Base, R&D Organization Structure and Alliance Formation: Evidence from the Biopharmaceutical Industry," Post-Print hal-00424512, HAL.
    20. Qin Yang, 2018. "Geographical Diversity of Alliance Portfolio and Firm Innovation: The Roles of Resource Characteristics and Governance Structures," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(06), pages 1-22, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:techno:v:124:y:2023:i:c:s0166497223000433. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/01664972 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.