IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v8y2016i2p146-d63413.html
   My bibliography  Save this article

Open Innovation Projects in SMEs as an Engine for Sustainable Growth

Author

Listed:
  • Byungun Yoon

    () (Department of Industrial and Systems Engineering, Dongguk University, Pil-dong, 3 ga, Joong-gu, Seoul 04620, Korea)

  • Juneseuk Shin

    () (Department of Systems Engineering Management, Sungkyunkwan University, 2066, Seobu-ro, Jangan-gu, Suwon 16419, Korea)

  • Sungjoo Lee

    () (Department of Industrial Engineering, Ajou University, Wonchen-dong, Youngtong-gu, Suwon 16499, Korea)

Abstract

Most innovation activities that are inevitable for sustainable growth are coordinated via research and development (R&D) projects, which can differ widely in terms of both project and open innovation characteristics, even when conducted within the same firm. Therefore, it is important to consider the peculiarities of R&D projects when evaluating the performance of open innovation strategies, as well as to explore how the benefits and costs of open innovation are shaped by cross-level interactions. This study identifies the differences between successful and unsuccessful open innovation projects, in both firm-level and project-level terms. We focus on small and medium enterprises (SMEs), which usually lack the full set of internal resources and competences required to effectively develop, produce, and commercialize their innovations, and thus must adopt open innovation approaches more actively for sustainability. Adopting an empirical approach, we conducted a survey of 517 Korean SMEs and analyzed 241 successful and unsuccessful open innovation projects in depth. By combining measurements at the firm and project levels, this study provides new insight into the intra-organizational challenges of implementing open innovation projects, which are not only helpful to strategic decision-makers in SMEs, but also to those who make policies for them.

Suggested Citation

  • Byungun Yoon & Juneseuk Shin & Sungjoo Lee, 2016. "Open Innovation Projects in SMEs as an Engine for Sustainable Growth," Sustainability, MDPI, Open Access Journal, vol. 8(2), pages 1-27, February.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:2:p:146-:d:63413
    as

    Download full text from publisher

    File URL: http://www.mdpi.com/2071-1050/8/2/146/pdf
    Download Restriction: no

    File URL: http://www.mdpi.com/2071-1050/8/2/146/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Andrew Cumbers & Danny Mackinnon & Keith Chapman, 2003. "Innovation, Collaboration, and Learning in Regional Clusters: A Study of SMEs in the Aberdeen Oil Complex," Environment and Planning A, , vol. 35(9), pages 1689-1706, September.
    2. Ann Markusen, 2003. "Fuzzy Concepts, Scanty Evidence, Policy Distance: The Case for Rigour and Policy Relevance in Critical Regional Studies," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 701-717.
    3. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    4. Shafer, Scott M. & Smith, H. Jeff & Linder, Jane C., 2005. "The power of business models," Business Horizons, Elsevier, vol. 48(3), pages 199-207.
    5. 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.
    6. Tanya Menon & Leigh Thompson & Hoon-Seok Choi, 2006. "Tainted Knowledge vs. Tempting Knowledge: People Avoid Knowledge from Internal Rivals and Seek Knowledge from External Rivals," Management Science, INFORMS, vol. 52(8), pages 1129-1144, August.
    7. Andrew Cumbers & Danny Mackinnon & Keith Chapman, 2003. "Innovation, collaboration, and learning in regional clusters: a study of SMEs in the Aberdeen oil complex," Environment and Planning A, Pion Ltd, London, vol. 35(9), pages 1689-1706, September.
    8. Laursen, Keld & Salter, Ammon J., 2014. "The paradox of openness: Appropriability, external search and collaboration," Research Policy, Elsevier, vol. 43(5), pages 867-878.
    9. A. Spithoven & B. Clarysse & M. Knockaert, 2009. "Building Absorptive Capacity to Organise Inbound Open Innovation in Low Tech Industries," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/606, Ghent University, Faculty of Economics and Business Administration.
    10. Henkel, Joachim, 2006. "Selective revealing in open innovation processes: The case of embedded Linux," Research Policy, Elsevier, vol. 35(7), pages 953-969, September.
    11. 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.
    12. Gambardella, Alfonso & Panico, Claudio, 2014. "On the management of open innovation," Research Policy, Elsevier, vol. 43(5), pages 903-913.
    13. Cassiman, Bruno & Veugelers, Reinhilde & Zuniga, Pluvia, 2010. "Diversity of science linkages: A survey of innovation performance effects and some evidence from Flemish firms," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 4, pages 1-26.
    14. Kwanghui Lim, 2009. "The many faces of absorptive capacity: spillovers of copper interconnect technology for semiconductor chips," Industrial and Corporate Change, Oxford University Press, vol. 18(6), pages 1249-1284, December.
    15. Colombo, Massimo G. & Piva, Evila & Rossi-Lamastra, Cristina, 2014. "Open innovation and within-industry diversification in small and medium enterprises: The case of open source software firms," Research Policy, Elsevier, vol. 43(5), pages 891-902.
    16. Nola Hewitt-Dundas, 2006. "Resource and Capability Constraints to Innovation in Small and Large Plants," Small Business Economics, Springer, vol. 26(3), pages 257-277, April.
    17. Belderbos, René & Cassiman, Bruno & Faems, Dries & Leten, Bart & Van Looy, Bart, 2014. "Co-ownership of intellectual property: Exploring the value-appropriation and value-creation implications of co-patenting with different partners," Research Policy, Elsevier, vol. 43(5), pages 841-852.
    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. Juan Carlos Salazar-Elena & M. Paloma Sánchez & F. Javier Otamendi, 2016. "A Non-Parametric Delphi Approach to Foster Innovation Policy Debate in Spain," Sustainability, MDPI, Open Access Journal, vol. 8(5), pages 1-26, May.

    More about this item

    Keywords

    open innovation; comparative analysis; multi-level analysis; SME; project; sustainable growth;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    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:8:y:2016:i:2:p:146-:d:63413. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: http://www.mdpi.com/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.