IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i12p4652-d188577.html
   My bibliography  Save this article

A Discovery of Multiple Levels of Open Innovation in Understanding the Economic Sustainability. A Case Study in the Manufacturing Industry

Author

Listed:
  • Alireza Javanmardi Kashan

    (School of Management, Queensland University of Technology, Brisbane City QLD 4000, Australia)

  • Kavoos Mohannak

    (School of Management, Queensland University of Technology, Brisbane City QLD 4000, Australia)

  • Mirko Perano

    (Department of Management, Reald University College, 9400 Vlorë, Albania)

  • Gian Luca Casali

    (School of Management, Queensland University of Technology, Brisbane City QLD 4000, Australia)

Abstract

The aim of this paper is twofold: firstly, investigate the theory of governance and open innovation by adding the process of value creation and value capture; secondly, to discuss the potential link between open innovation and economic sustainability. With the current emphasis of the literature being on either the value creation or value capture processes, the phenomenon of open innovation is only partially understood. To help broaden this understanding, we conducted an in-depth case study of the processes behind the transformation of governance structures at Iran Khodro Company (IKCO), which led to the emergence of both value creation and capture processes. A multi project analysis (from 1994 to 2012) has point out that IKCO have created and developed a formal value creation and capture processes from the part level through to the architectural level, allowing a gradual openness at those levels and at the same time ensuring a greater economic sustainability of the IKCO business. These findings reveal the existence of four unique levels of open innovation in product development architecture. Practical implications are also provided relating the impact that each of these levels can have on the economic sustainable model of the firms in the manufacturing sector.

Suggested Citation

  • Alireza Javanmardi Kashan & Kavoos Mohannak & Mirko Perano & Gian Luca Casali, 2018. "A Discovery of Multiple Levels of Open Innovation in Understanding the Economic Sustainability. A Case Study in the Manufacturing Industry," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4652-:d:188577
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/12/4652/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/10/12/4652/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    2. Martha S. Feldman & Wanda J. Orlikowski, 2011. "Theorizing Practice and Practicing Theory," Organization Science, INFORMS, vol. 22(5), pages 1240-1253, October.
    3. Gambardella, Alfonso & Panico, Claudio, 2014. "On the management of open innovation," Research Policy, Elsevier, vol. 43(5), pages 903-913.
    4. Felin, Teppo & Zenger, Todd R., 2014. "Closed or open innovation? Problem solving and the governance choice," Research Policy, Elsevier, vol. 43(5), pages 914-925.
    5. Joachim Henkel, 2009. "Champions of revealing--the role of open source developers in commercial firms," Industrial and Corporate Change, Oxford University Press, vol. 18(3), pages 435-471, June.
    6. 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.
    7. Ulrich Lichtenthaler & Eckhard Lichtenthaler, 2009. "A Capability‐Based Framework for Open Innovation: Complementing Absorptive Capacity," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1315-1338, December.
    8. Joel West & Karim Lakhani, 2008. "Getting Clear About Communities in Open Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 15(2), pages 223-231.
    9. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    10. Harhoff, Dietmar & Scherer, Frederic M. & Vopel, Katrin, 2003. "Citations, family size, opposition and the value of patent rights," Research Policy, Elsevier, vol. 32(8), pages 1343-1363, September.
    11. Joachim Henkel & Eric von Hippel, 2005. "Welfare Implications of User Innovation," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 73-87, January.
    12. Dorothy Leonard-Barton, 1990. "A Dual Methodology for Case Studies: Synergistic Use of a Longitudinal Single Site with Replicated Multiple Sites," Organization Science, INFORMS, vol. 1(3), pages 248-266, August.
    13. Dahlander, Linus & Gann, David M., 2010. "How open is innovation?," Research Policy, Elsevier, vol. 39(6), pages 699-709, July.
    14. Nicolai J. Foss & Keld Laursen & Torben Pedersen, 2011. "Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices," Organization Science, INFORMS, vol. 22(4), pages 980-999, August.
    15. Beth A. Bechky, 2011. "Making Organizational Theory Work: Institutions, Occupations, and Negotiated Orders," Organization Science, INFORMS, vol. 22(5), pages 1157-1167, October.
    16. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    17. Daniela Rupo & Mirko Perano & Giovanna Centorrino & Alfonso Vargas-Sanchez, 2018. "A Framework Based on Sustainability, Open Innovation, and Value Cocreation Paradigms—A Case in an Italian Maritime Cluster," Sustainability, MDPI, vol. 10(3), pages 1-28, March.
    18. Markus C. Becker & Francesco Zirpoli, 2003. "Organising new product development Knowledge hollowing-out and knowledge integration," DRUID Working Papers 03-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    19. Andrew M. Pettigrew, 1990. "Longitudinal Field Research on Change: Theory and Practice," Organization Science, INFORMS, vol. 1(3), pages 267-292, August.
    20. Lars Bo Jeppesen & Karim R. Lakhani, 2010. "Marginality and Problem-Solving Effectiveness in Broadcast Search," Organization Science, INFORMS, vol. 21(5), pages 1016-1033, October.
    21. Dennis A. Gioia & James B. Thomas & Shawn M. Clark & Kumar Chittipeddi, 1994. "Symbolism and Strategic Change in Academia: The Dynamics of Sensemaking and Influence," Organization Science, INFORMS, vol. 5(3), pages 363-383, August.
    22. Georg von Krogh & Eric von Hippel, 2006. "The Promise of Research on Open Source Software," Management Science, INFORMS, vol. 52(7), pages 975-983, July.
    23. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    24. George P. Huber & Danial J. Power, 1985. "Retrospective reports of strategic‐level managers: Guidelines for increasing their accuracy," Strategic Management Journal, Wiley Blackwell, vol. 6(2), pages 171-180, April.
    25. Jordi Moreno-Gené & Laura Sánchez-Pulido & Eduard Cristobal-Fransi & Natalia Daries, 2018. "The Economic Sustainability of Snow Tourism: The Case of Ski Resorts in Austria, France, and Italy," Sustainability, MDPI, vol. 10(9), pages 1-20, August.
    26. Marc Gruber & Ian C. MacMillan & James D. Thompson, 2008. "Look Before You Leap: Market Opportunity Identification in Emerging Technology Firms," Management Science, INFORMS, vol. 54(9), pages 1652-1665, September.
    27. Joachim Henkel & Eric Hippel, 2005. "Welfare Implications of User Innovation," Springer Books, in: Albert N. Link & F. M. Scherer (ed.), Essays in Honor of Edwin Mansfield, pages 45-59, Springer.
    28. Javad Abedini & Nicolas Péridy, 2009. "The Emergence of Iran in the World Car Industry: An Estimation of its Export Potential," The World Economy, Wiley Blackwell, vol. 32(5), pages 790-818, May.
    29. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    30. JinHyo Joseph Yun & DongKyu Won & KyungBae Park, 2018. "Entrepreneurial cyclical dynamics of open innovation," Journal of Evolutionary Economics, Springer, vol. 28(5), pages 1151-1174, December.
    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. Rifat Sharmelly & Anton Klarin, 2021. "Customer Value Creation for the Emerging Market Middle Class: Perspectives from Case Studies in India," JRFM, MDPI, vol. 14(10), pages 1-18, September.
    2. Antonello Cammarano & Vincenzo Varriale & Francesca Michelino & Mauro Caputo, 2022. "Open and Crowd-Based Platforms: Impact on Organizational and Market Performance," Sustainability, MDPI, vol. 14(4), pages 1-26, February.
    3. Obradović, Tena & Vlačić, Božidar & Dabić, Marina, 2021. "Open innovation in the manufacturing industry: A review and research agenda," Technovation, Elsevier, vol. 102(C).
    4. Janne Mämmelä & Tero Juuti & Pasi Julkunen, 2019. "Technology Valuation Method for Supporting Knowledge Management in Technology Decisions to Gain Sustainability," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    5. Francesca Michelino & Antonello Cammarano & Andrea Celone & Mauro Caputo, 2019. "The Linkage between Sustainability and Innovation Performance in IT Hardware Sector," Sustainability, MDPI, vol. 11(16), pages 1-15, August.

    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. 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.
    2. Eungdo Kim & InGyu Lee & Hongbum Kim & Kwangsoo Shin, 2021. "Factors Affecting Outbound Open Innovation Performance in Bio-Pharmaceutical Industry-Focus on Out-Licensing Deals," Sustainability, MDPI, vol. 13(8), pages 1-17, April.
    3. Linder, Christian, 2019. "Customer orientation and operations: The role of manufacturing capabilities in small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 216(C), pages 105-117.
    4. Lopes, Ana Paula Vilas Boas Viveiros & de Carvalho, Marly Monteiro, 2018. "Evolution of the open innovation paradigm: Towards a contingent conceptual model," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 284-298.
    5. Makkonen, Hannu & Pohjola, Mikko & Olkkonen, Rami & Koponen, Aki, 2014. "Dynamic capabilities and firm performance in a financial crisis," Journal of Business Research, Elsevier, vol. 67(1), pages 2707-2719.
    6. Torres de Oliveira, Rui & Verreynne, Martie-Louise & Steen, John & Indulska, Marta, 2021. "Creating value by giving away: A typology of different innovation revealing strategies," Journal of Business Research, Elsevier, vol. 127(C), pages 137-150.
    7. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    8. Philipp Nitzsche & Bernd W. Wirtz & Vincent Göttel, 2016. "Innovation Success In The Context Of Inbound Open Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-38, February.
    9. Butler, Bella & Soontiens, Werner, 2015. "Offshoring of higher education services in strategic nets: A dynamic capabilities perspective," Journal of World Business, Elsevier, vol. 50(3), pages 477-490.
    10. Lewandowska Małgorzata Stefania, 2015. "Capturing Absorptive Capacity: Concepts, Determinants, Measurement Modes and Role in Open Innovation," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 45(1), pages 32-56, March.
    11. Dahlander, Linus & Piezunka, Henning, 2014. "Open to suggestions: How organizations elicit suggestions through proactive and reactive attention," Research Policy, Elsevier, vol. 43(5), pages 812-827.
    12. El Maalouf, Nicole & Bahemia, Hanna, 2023. "The implementation of inbound open innovation at the firm level: A dynamic capability perspective," Technovation, Elsevier, vol. 122(C).
    13. Thomas, V.J. & Bliemel, Martin & Shippam, Cynthia & Maine, Elicia, 2020. "Endowing university spin-offs pre-formation: Entrepreneurial capabilities for scientist-entrepreneurs," Technovation, Elsevier, vol. 96.
    14. Szalavetz Andrea, 2015. "A Dynamic Capabilities Perspective of High-Growth Firms: Organizational Aspects," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 48(1), pages 45-62, December.
    15. Joon Mo Ahn & Letizia Mortara & Tim Minshall, 2018. "Dynamic capabilities and economic crises: has openness enhanced a firm's performance in an economic downturn?," Industrial and Corporate Change, Oxford University Press, vol. 27(1), pages 49-63.
    16. Jing Zeng & Yunlu Yang & Soo Hee Lee, 2023. "Resource Orchestration and Scaling‐up of Platform‐Based Entrepreneurial Firms: The Logic of Dialectic Tuning," Journal of Management Studies, Wiley Blackwell, vol. 60(3), pages 605-638, May.
    17. Hallberg, Niklas L. & Brattström, Anna, 2019. "Concealing or revealing? Alternative paths to profiting from innovation," European Management Journal, Elsevier, vol. 37(2), pages 165-174.
    18. Aliasghar, Omid & Haar, Jarrod, 2023. "Open innovation: Are absorptive and desorptive capabilities complementary?," International Business Review, Elsevier, vol. 32(2).
    19. Lauri Paavola, 2021. "The role of (dynamic) capabilities in the transformation of a multi-organizational setting," Journal of Evolutionary Economics, Springer, vol. 31(2), pages 715-748, April.
    20. 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.

    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:gam:jsusta:v:10:y:2018:i:12:p:4652-:d:188577. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.