IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v51y2022i1s0048733321002055.html
   My bibliography  Save this article

Is open innovation imprinted on new ventures? The cooperation-inhibiting legacy of authoritarian regimes

Author

Listed:
  • Wyrwich, Michael
  • Steinberg, Philip J.
  • Noseleit, Florian
  • de Faria, Pedro

Abstract

Extant research explores the role played by individuals and, in particular, founders in defining open innovation strategies at the firm level. We join this discussion by combining insights from imprinting literature that explores the enduring impact of a founder's personal history, with inputs from literature that stresses the impact of past experience on trust formation. We suggest that founders are less likely to engage in open innovation if their experiences engender a generalized lack of trust. We use a unique database that includes East and West German founders to identify regional differences in activities conducted by authoritarian regimes that could inhibit trust. We find that founders who were exposed to high levels of secret police surveillance in the former socialist German Democratic Republic (GDR) are less likely to engage in interfirm R&D cooperation. We contribute to the literature on open innovation by exploring how a founder's social, political, and cultural backgrounds influence strategic decisions related to open innovation, and to recent imprinting literature by showing that variation in oppressive enforcement practices in authoritarian regimes, such as surveillance activities, can leave an enduring imprint. Our findings complement recent insights on ideological imprinting effects on young firms’ decision-making.

Suggested Citation

  • Wyrwich, Michael & Steinberg, Philip J. & Noseleit, Florian & de Faria, Pedro, 2022. "Is open innovation imprinted on new ventures? The cooperation-inhibiting legacy of authoritarian regimes," Research Policy, Elsevier, vol. 51(1).
    • Handle: RePEc:eee:respol:v:51:y:2022:i:1:s0048733321002055
    DOI: 10.1016/j.respol.2021.104409
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733321002055
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.respol.2021.104409?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. Soni, Aparna & Tekin, Erdal, 2020. "How Do Mass Shootings Affect Community Wellbeing?," IZA Discussion Papers 13879, Institute of Labor Economics (IZA).
    2. Nicola Fuchs-Schündeln & Paolo Masella, 2016. "Long-Lasting Effects of Socialist Education," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 428-441, July.
    3. Luca Grilli & Paul H Jensen & Samuele Murtinu & Haemin Dennis Park, 2020. "A close look at the contingencies of founders’ effect on venture performance [Tracing patterns of Growth-A first analysis of the ‘Gröna Kvisten’ high-growth firms]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(4), pages 997-1020.
    4. Lee, Sungjoo & Park, Gwangman & Yoon, Byungun & Park, Jinwoo, 2010. "Open innovation in SMEs--An intermediated network model," Research Policy, Elsevier, vol. 39(2), pages 290-300, March.
    5. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
    6. Kolotilin, Anton & Li, Hongyi, 2021. "Relational communication," Theoretical Economics, Econometric Society, vol. 16(4), November.
    7. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    8. Rainer, Helmut & Siedler, Thomas, 2009. "Does democracy foster trust?," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 251-269, June.
    9. Sascha O. Becker & Lukas Mergele & Ludger Woessmann, 2020. "The Separation and Reunification of Germany: Rethinking a Natural Experiment Interpretation of the Enduring Effects of Communism," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 143-171, Spring.
    10. Andreas Lichter & Max Löffler & Sebastian Siegloch, 2021. "The Long-Term Costs of Government Surveillance: Insights from Stasi Spying in East Germany," Journal of the European Economic Association, European Economic Association, vol. 19(2), pages 741-789.
    11. Lenard Huff & Lane Kelley, 2003. "Levels of Organizational Trust in Individualist Versus Collectivist Societies: A Seven-Nation Study," Organization Science, INFORMS, vol. 14(1), pages 81-90, February.
    12. David M. Waguespack & Eric T. Dunford & Jóhanna K. Birnir, 2018. "Cultural Imprinting, Institutions, and the Organization of New Firms," Strategy Science, INFORMS, vol. 3(2), pages 426-438, June.
    13. Rikard Larsson & Lars Bengtsson & Kristina Henriksson & Judith Sparks, 1998. "The Interorganizational Learning Dilemma: Collective Knowledge Development in Strategic Alliances," Organization Science, INFORMS, vol. 9(3), pages 285-305, June.
    14. Ferriani, Simone & Lazerson, Mark H. & Lorenzoni, Gianni, 2020. "Anchor entrepreneurship and industry catalysis: The rise of the Italian Biomedical Valley," Research Policy, Elsevier, vol. 49(8).
    15. Alberto Alesina & Nicola Fuchs-Schundeln, 2005. "Good bye Lenin (or not?): The effect of Communism on people's preferences," Harvard Institute of Economic Research Working Papers 2076, Harvard - Institute of Economic Research.
    16. Gerschewski, Johannes, 2013. "The three pillars of stability: legitimation, repression, and co-optation in autocratic regimes," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(1), pages 13-38.
    17. Pekkala Kerr, Sari & Kerr, William, 2020. "Immigrant entrepreneurship in America: Evidence from the survey of business owners 2007 & 2012," Research Policy, Elsevier, vol. 49(3).
    18. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, June.
    19. Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
    20. S. Trevis Certo & John R. Busenbark & Hyun‐soo Woo & Matthew Semadeni, 2016. "Sample selection bias and Heckman models in strategic management research," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2639-2657, December.
    21. Oecd, 2020. "OECD bundled communication price baskets," OECD Digital Economy Papers 300, OECD Publishing.
    22. repec:hal:spmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    23. Bauernschuster, Stefan & Falck, Oliver & Gold, Robert & Heblich, Stephan, 2012. "The shadows of the socialist past: Lack of self-reliance hinders entrepreneurship," European Journal of Political Economy, Elsevier, vol. 28(4), pages 485-497.
    24. de Faria, Pedro & Lima, Francisco & Santos, Rui, 2010. "Cooperation in innovation activities: The importance of partners," Research Policy, Elsevier, vol. 39(8), pages 1082-1092, October.
    25. Bernd Genser & Robert Holzmann, 2020. "Taxing German Old-age Pensions Fairly and Effciently," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(04), pages 36-40, January.
    26. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    27. Arturs Kalnins, 2018. "Multicollinearity: How common factors cause Type 1 errors in multivariate regression," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2362-2385, August.
    28. Ravi Srinivasan & Adrian Choo & Sriram Narayanan & Soumodip Sarkar & Antti Tenhiälä, 2021. "Knowledge sources, innovation objectives, and their impact on innovation performance: Quasi‐replication of Leiponen and Helfat (2010)," Strategic Management Journal, Wiley Blackwell, vol. 42(11), pages 2104-2136, November.
    29. Davide Hahn & Tommaso Minola & Kimberly A. Eddleston, 2019. "How do Scientists Contribute to the Performance of Innovative Start‐ups? An Imprinting Perspective on Open Innovation," Journal of Management Studies, Wiley Blackwell, vol. 56(5), pages 895-928, July.
    30. Anders Aslund & Simeon Djankov (ed.), 2014. "The Great Rebirth: Lessons from the Victory of Capitalism over Communism," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6970, October.
    31. Ma, Shujie & Su, Liangjun & Zhang, Yichong, 2020. "Detecting Latent Communities in Network Formation Models," Economics and Statistics Working Papers 12-2020, Singapore Management University, School of Economics.
    32. Stephen J. Carson & Anoop Madhok & Rohit Varman & George John, 2003. "Information Processing Moderators of the Effectiveness of Trust-Based Governance in Interfirm R&D Collaboration," Organization Science, INFORMS, vol. 14(1), pages 45-56, February.
    33. Klinger, Sabine & Weber, Enzo, 2020. "GDP-employment decoupling in Germany," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 82-98.
    34. Gokhan Ertug & Ilya R P Cuypers & Niels G Noorderhaven & Ben M Bensaou, 2013. "Trust between international joint venture partners: Effects of home countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(3), pages 263-282, April.
    35. Paola Giuliano & Antonio Spilimbergo, 2014. "Growing up in a Recession," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(2), pages 787-817.
    36. Brockman, Paul & Khurana, Inder K. & Zhong, Rong (Irene), 2018. "Societal trust and open innovation," Research Policy, Elsevier, vol. 47(10), pages 2048-2065.
    37. Ebersberger, Bernd & Galia, Fabrice & Laursen, Keld & Salter, Ammon, 2021. "Inbound Open Innovation and Innovation Performance: A Robustness Study," Research Policy, Elsevier, vol. 50(7).
    38. Dahlander, Linus & Gann, David M., 2010. "How open is innovation?," Research Policy, Elsevier, vol. 39(6), pages 699-709, July.
    39. Lee, Yikuan & Cavusgil, S. Tamer, 2006. "Enhancing alliance performance: The effects of contractual-based versus relational-based governance," Journal of Business Research, Elsevier, vol. 59(8), pages 896-905, August.
    40. Ulset, Svein, 1996. "R&D outsourcing and contractual governance: An empirical study of commercial R&D projects," Journal of Economic Behavior & Organization, Elsevier, vol. 30(1), pages 63-82, July.
    41. Alberto Alesina & Nicola Fuchs-Schündeln, 2007. "Goodbye Lenin (or Not?): The Effect of Communism on People," American Economic Review, American Economic Association, vol. 97(4), pages 1507-1528, September.
    42. Thilo N. H. Albers & Charlotte Bartels & Moritz Schularick, 2020. "The Distribution of Wealth in Germany, 1895-2018," ECONtribute Policy Brief Series 001, University of Bonn and University of Cologne, Germany.
    43. Elisabeth Bublitz & Kristian Nielsen & Florian Noseleit & Bram Timmermans, 2018. "Entrepreneurship, human capital, and labor demand: a story of signaling and matching," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 269-287.
    44. Peter T. Bryant, 2014. "Imprinting by Design: The Microfoundations of Entrepreneurial Adaptation," Entrepreneurship Theory and Practice, , vol. 38(5), pages 1081-1102, September.
    45. Reichlin, Lucrezia & Andreini, Paolo & Hasenzagl, Thomas & Senftleben-König, Charlotte & Strohsal, Till, 2020. "Nowcasting German GDP," CEPR Discussion Papers 14323, C.E.P.R. Discussion Papers.
    46. Michael Fritsch & Elisabeth Bublitz & Alina Sorgner & Michael Wyrwich, 2014. "How much of a socialist legacy? The re-emergence of entrepreneurship in the East German transformation to a market economy," Small Business Economics, Springer, vol. 43(2), pages 427-446, August.
    47. Cour-Thimann, Philippine & Jung, Alexander, 2020. "Interest rate setting and communication at the ECB," Working Paper Series 2443, European Central Bank.
    48. Roche, Maria P. & Conti, Annamaria & Rothaermel, Frank T., 2020. "Different founders, different venture outcomes: A comparative analysis of academic and non-academic startups," Research Policy, Elsevier, vol. 49(10).
    49. Kyle J. Mayer & Jack A. Nickerson, 2005. "Antecedents and Performance Implications of Contracting for Knowledge Workers: Evidence from Information Technology Services," Organization Science, INFORMS, vol. 16(3), pages 225-242, June.
    50. Pedro de Faria & Florian Noseleit & Bart Los, 2020. "The influence of internal barriers on open innovation," Industry and Innovation, Taylor & Francis Journals, vol. 27(3), pages 205-209, March.
    51. Michael Blastland & Alexandra L. J. Freeman & Sander van der Linden & Theresa M. Marteau & David Spiegelhalter, 2020. "Five rules for evidence communication," Nature, Nature, vol. 587(7834), pages 362-364, November.
    52. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    53. Michael Wyrwich & Michael Fritsch & Elisabeth Bublitz & Alina Sorgner, 2018. "GAW survey data linked with administrative data of the IAB (GAW-ADIAB): A documentation and review of empirical evidence and research opportunities," Jena Economics Research Papers 2018-017, Friedrich-Schiller-University Jena.
    54. Mayntz, Renate, 1998. "Socialist academies of sciences: the enforced orientation of basic research at user needs," Research Policy, Elsevier, vol. 27(8), pages 781-791, December.
    55. Bogers, Marcel & Foss, Nicolai J. & Lyngsie, Jacob, 2018. "The “human side” of open innovation: The role of employee diversity in firm-level openness," Research Policy, Elsevier, vol. 47(1), pages 218-231.
    56. Rajshree Agarwal & Rachel Croson & Joseph T. Mahoney, 2010. "The role of incentives and communication in strategic alliances: an experimental investigation," Strategic Management Journal, Wiley Blackwell, vol. 31(4), pages 413-437, April.
    57. Brüll, Eduard & Gathmann, Christina, 2020. "Evolution of the East German wage structure," ZEW Discussion Papers 20-081, ZEW - Leibniz Centre for European Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adams, Kweku & Attah-Boakye, Rexford & Yu, Honglan & Johansson, Jeaneth & Njoya, Eric Tchouamou, 2023. "Female board representation and coupled open innovation: Evidence from emerging market multinational enterprises," Technovation, Elsevier, vol. 124(C).
    2. Schäper, Thomas & Jung, Christopher & Foege, Johann Nils & Bogers, Marcel L.A.M. & Fainshmidt, Stav & Nüesch, Stephan, 2023. "The S-shaped relationship between open innovation and financial performance: A longitudinal perspective using a novel text-based measure," Research Policy, Elsevier, vol. 52(6).
    3. Eleni N. Arvaniti & Agapi Dima & Chrysostomos D. Stylios & Vagelis G. Papadakis, 2022. "A New Step-by-Step Model for Implementing Open Innovation," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    4. Valentina Peruzzi, 2024. "Open innovation in family-owned firms," Working Papers CASMEF 2401, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    5. Ogink, Ruben H.A.J. & Goossen, Martin C. & Romme, A. Georges L. & Akkermans, Henk, 2023. "Mechanisms in open innovation: A review and synthesis of the literature," Technovation, Elsevier, vol. 119(C).
    6. Bischoff, Thore Sören & Hipp, Ann & Runst, Petrik, 2022. "Firm innovation and generalized trust as a regional resource," ifh Working Papers 32/2022, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).

    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. Oliver Falck & Robert Gold & Stephan Heblich, 2017. "Lifting the iron curtain: school-age education and entrepreneurial intentions," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1111-1148.
    2. Max Deter, 2020. "Are the Losers of Communism the Winners of Capitalism? The Effects of Conformism in the GDR on Transition Success," SOEPpapers on Multidisciplinary Panel Data Research 1102, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Sorgner, Alina & Wyrwich, Michael, 2022. "Calling Baumol: What telephones can tell us about the allocation of entrepreneurial talent in the face of radical institutional changes," Journal of Business Venturing, Elsevier, vol. 37(5).
    4. Schmelz, Katrin & Ziegelmeyer, Anthony, 2019. "State coercion and control aversion: An internet study in East and West Germany," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203622, Verein für Socialpolitik / German Economic Association.
    5. Eder, Christoph & Halla, Martin, 2018. "On the Origin and Composition of the German East-West Population Gap," IZA Discussion Papers 12031, Institute of Labor Economics (IZA).
    6. Rubio-Domingo, G. & Linares, P., 2021. "The future investment costs of offshore wind: An estimation based on auction results," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    7. Costa-Font, Joan & Nicińska, Anna, 2023. "Comrades in the family? Soviet communism and demand for family insurance," LSE Research Online Documents on Economics 118472, London School of Economics and Political Science, LSE Library.
    8. Francesco Giavazzi & Ivan Petkov & Fabio Schiantarelli, 2019. "Culture: persistence and evolution," Journal of Economic Growth, Springer, vol. 24(2), pages 117-154, June.
    9. Deter, Max & Lange, Martin, 2023. "Are the supporters of socialism the losers of capitalism? Conformism in East Germany and transition success," European Journal of Political Economy, Elsevier, vol. 76(C).
    10. Andreas Lichter & Max Löffler & Sebastian Siegloch, 2021. "The Long-Term Costs of Government Surveillance: Insights from Stasi Spying in East Germany," Journal of the European Economic Association, European Economic Association, vol. 19(2), pages 741-789.
    11. Boenisch, Peter & Schneider, Lutz, 2013. "The social capital legacy of communism-results from the Berlin Wall experiment," European Journal of Political Economy, Elsevier, vol. 32(C), pages 391-411.
    12. Bianca Rochelle Parry & Errolyn Gordon, 2021. "The shadow pandemic: Inequitable gendered impacts of COVID‐19 in South Africa," Gender, Work and Organization, Wiley Blackwell, vol. 28(2), pages 795-806, March.
    13. Prince, Nick & Maye, Damian & Ilbery, Brian & Kirwan, James, 2022. "‘Real’ regulation and property relations on agricultural estates: Reducing opportunities for new entrants to agriculture," Land Use Policy, Elsevier, vol. 114(C).
    14. Rekha Krishnan & Inge Geyskens & Jan-Benedict E. M. Steenkamp, 2016. "The effectiveness of contractual and trust-based governance in strategic alliances under behavioral and environmental uncertainty," Strategic Management Journal, Wiley Blackwell, vol. 37(12), pages 2521-2542, December.
    15. Lange, Martin, 2021. "The legacy of state socialism on attitudes toward immigration," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 733-750.
    16. Slavtchev, Viktor & Wyrwich, Michael, 2017. "TV and entrepreneurship," IWH Discussion Papers 17/2017, Halle Institute for Economic Research (IWH).
    17. Schulhof, Vera & van Vuuren, Detlef & Kirchherr, Julian, 2022. "The Belt and Road Initiative (BRI): What Will it Look Like in the Future?," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    18. Ivanov, Denis, 2023. "Institutional reforms and social trust: Quasi-experimental evidence from the Caucasian states," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 829-859.
    19. Katrin Schmelz & Anthony Ziegelmeyer, 2020. "State Coercion and Control Aversion: Evidence from an Internet Study in East and West Germany," TWI Research Paper Series 117, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    20. Nikolova, Milena & Popova, Olga & Otrachshenko, Vladimir, 2022. "Stalin and the origins of mistrust," Journal of Public Economics, Elsevier, vol. 208(C).

    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:respol:v:51:y:2022:i:1:s0048733321002055. 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.elsevier.com/locate/respol .

    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.