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The Tension Between Open Innovation and Appropriability in Marine Renewable Energy SMEs: Examining the Role of the Chief Executive Officer

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  • Gillian Barrett
  • Frank Crowley
  • Lisa Noonan

Abstract

Marine renewable energy small and medium‐sized enterprises (SMEs) are vital in addressing climate change through radical innovation in a complex, high cost, and high‐risk sector. Open innovation (OI) is a strategic approach for SMEs to acquire external knowledge, important for creating their radical devices. However, OI strategies may result in R&D leakage, requiring SMEs to consider the balance between appropriation and OI. Founders/CEOs play a critical role in managing this tension, yet little is known about how they manage the OI–appropriation nexus. This study examines whether appropriability enables or hinders OI and how the founder/CEO's background influences the relationship. Using an explanatory, sequential mixed‐methods design, a positive relationship between appropriation and OI is identified. The founders/CEOs' education, passion, and practical experience have a strong influence on OI adoption. This study advances the OI–appropriation literature, shining a light on the neglected but important human‐side context of SME innovation management.

Suggested Citation

  • Gillian Barrett & Frank Crowley & Lisa Noonan, 2026. "The Tension Between Open Innovation and Appropriability in Marine Renewable Energy SMEs: Examining the Role of the Chief Executive Officer," Business Strategy and the Environment, Wiley Blackwell, vol. 35(1), pages 945-966, January.
    • Handle: RePEc:bla:bstrat:v:35:y:2026:i:1:p:945-966
    DOI: 10.1002/bse.70200
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