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The Relation between Different Open Innovation Practices and Firm’s Innovation Performance

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  • Kaja Rangus

    (University of Ljubljana, Slovenia)

Abstract

Case study representations and quantitative research in the field of open innovation indicate significant association of open innovation with a firm’s innovation performance. However, open innovation is not dichotomous, it consists of several distinct practices. This study aims to contribute to the existing knowledge on open innovation in organisations by disentangling among different open innovation practices, (i.e. inward ip licensing and external participation, out sourcing R&D and external networking, customer involvement, employee involvement, and venturing) and indicating their relation to a firm’s innovation performance.We conceptualize a model in which we propose that all open innovation practices significantly relate to a firm’s innovation performance. We tested the model on a sample of 693 companies from three countries, and found the most significant relation between employee involvement and firm’s innovation performance. Based on a semi-structured interview with a head of open innovation at renowned multinational company, we provide suggestions on how to implement open innovation. We conclude the paper with the discussion of the results for business practitioners, suggesting effective approaches for incorporation of open innovation in their business practice.

Suggested Citation

  • Kaja Rangus, 2017. "The Relation between Different Open Innovation Practices and Firm’s Innovation Performance," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 15(1 (Spring), pages 61-79.
    • Handle: RePEc:mgt:youmgt:v:15:y:2017:i:1:p:61-79
    DOI: 10.26493/1854-6935.15.61-79
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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