How open innovation shapes strategy: an explorative multiple case study in the ICT industry
Purpose of the paper: This paper explains to what extent open strategy draws on open innovation, and how different degrees of open strategy exist because of the adoption of open innovation.
Methodology: Since the relationship between open innovation and open strategy represents an empirically under-explored research area, we adopt an exploratory multiple case study design to develop new theoretical and empirical insights pertaining to this topic.
Findings: The present study reveals that open strategy is grounded in the implementation of an open innovation approach and that, once developed, it may, in turn, affect open innovation implementation. Moreover, our results show how the degree of “openness” of the strategy depends on the extent to which the firm shares information with external stakeholders and transforms external inputs in open strategy actions/interventions.
Research limits: Given the exploratory nature of this study, the conceptual linkages between open innovation and open strategy may represent a starting point for future research in this area, which requires further empirical validation.
Practical implications: Our theoretical framework may be useful for practitioners to approach an open strategy starting from open innovation implementation. Furthermore, it displays two variables, i.e. stakeholder engagement and open communication, that managers should control to regulate the openness of their strategy.
Originality of the paper: The present study represents a first attempt to explore a theoretical connection between open innovation and open strategy from the firm’s perspective.
AFUAH A. (2000), “How Much Do Your ‘Co-opetitors’ Capabilities Matter in the Face of Technological Change?”, Strategic Management Journal, vol. 21, n. 3, pp. 387-404.
ALMIRALL E., CASADESUS-MASANELL R. (2010), “Open versus closed innovation: A model of discovery and divergence”, Academy of Management Review, vol. 35, n. 1, pp. 27-47.
ANDREWS K.R. (1971), The Concept of Corporate Strategy, Homewood, IL: Irwin.
APPLEYARD M.M., CHESBROUGH H.W. (2017), “The dynamics of open strategy: from adoption to reversion”, Long Range Planning, vol. 50, n. 3, pp. 310-321.
BAHEMIA H., SQUIRE B. (2010), “A contingent perspective of open innovation in new product development projects”, International Journal of Innovation Management, vol. 14, n. 4, pp. 603-627.
BAPTISTA J., WILSON A.D., GALLIERS R.D., BYNGHALL S. (2017), “Social media and the emergence of reflexiveness as a new capability for open strategy”, Long Range Planning, vol. 50, n. 3, pp. 322-336.
BARGE-GIL A. (2013), “Open strategies and innovation performance”, Industry and Innovation, vol. 20, n. 7, pp. 585-610.
BOGERS M., ZOBEL A.K., AFUAH A., ALMIRALL E., BRUNSWICKER S., DAHLANDER L., HAEFLIGER S. (2017), “The open innovation research landscape: Established perspectives and emerging themes across different levels of analysis”, Industry and Innovation, vol. 24, n. 1, pp. 8-40.
BOUNCKEN R.B., GAST J., KRAUS S., BOGERS M. (2015), “Coopetition: A Systematic Review, Synthesis, and Future Research Directions”, Review of Managerial Science, vol. 9, n. 3, pp. 577-601.
BROHMAN M.K., PICCOLI G., MARTIN P., ZULKERNINE F., PARASURAMAN A., WATSON R.T. (2009), “A design theory approach to building strategic net-based customer service systems”, Decision Sciences, vol. 40, n. 3, pp. 403-430.
BURRELL G., MORGAN G. (1979), Sociological paradigms and organizational analysis, Portsmouth, NH: Hei- nemann.
CAMPBELL DAVID F.J., CARAYANNIS E.G. (2016), “The Academic Firm: A New Design and Redesign Proposition for Entrepreneurship in Innovation-Driven Knowledge Economy”, Journal of Innovation and Entrepreneurship, vol. 5, n. 12, pp. 1-10.
CHESBROUGH H. (2003), “The logic of open innovation: managing intellectual property”, California Management Review, vol. 45, n. 3, pp. 33-58.
CHESBROUGH H.W., APPLEYARD M.M. (2007), “Open innovation and strategy”, California Management Review, vol. 50, n. 1, pp. 57-76.
CHESBROUGH H., BOGERS M. (2014), Explicating Open Innovation: Clarifying an Emerging Paradigm for Understanding Innovation, in New Frontiers in Open Innovation, edited by Chesbrough H., Vanhaverbeke W., West J., pp. 3-28, Oxford University Press, Oxford.
CHESBROUGH H., CROWTHER A.K. (2006), “Beyond high tech: early adopters of open innovation in other industries”, R&D Management, vol. 36, n. 3, pp. 229-236.
CHESBROUGH H., VANHAVERBEKE W., WEST J. (2014), New frontiers in open innovation, Oup Oxford.
CHESBROUGH H.W. (2006), Open Business Models: How to Thrive in the New Innovation Landscape, Harvard Business School Press, Boston MA.
CHRISTOPHER M., GAUDENZI B. (2015), “Managing risks in sustainable supply chains”, Sinergie, vol. 33, n. 96, pp. 57-74.
COHEN W.M., LEVINTHAL D.A. (1990), “Absorptive capacity: a new perspective on learning and innovation”, Administrative Science Quarterly, vol. 35, n. 1, pp. 128-152.
CUNLIFFE A.L. (2002), “Reflexive dialogical practice in management learning”, Management Learning, vol. 33, n. 1, pp. 35-61.
DE GOOYERT V., ROUWETTE E., VAN KRANENBURG H., FREEMAN E., VAN BREEN H. (2014), “Mental model renewal in inter-organizational strategizing: bridging the cognitive gap between internal and external stakeholders”, Paper presented at Workshop on Open Strategy, Said Business School, Oxford, 01.7.2014.
DAHLANDER L., GANN D.M. (2010), “How open is innovation?”, Research Policy, vol. 39, n. 6, pp. 699-709.
DAVEY M. (2014), “Entrepreneurship in the Informal Economy”, The International Journal of Entrepreneurship and Innovation, vol. 15, n. 4, pp. 287-288.
DAHLANDER L., O’MAHONY S., GANN D.M. (2014), “One foot in, one foot out: how does individuals’ external search breadth affect innovation outcomes?”, Strategic Management Journal, vol. 37, n. 2, pp. 280-302.
DOBUSCH L., KREMSER W., SEIDL D., WERLE F. (2017), “A communication perspective on open strategy and open innovation”, Managementforschung, vol. 27, n. 1, pp. 5-25.
DOBUSCH L., MÜLLER-SEITZ G. (2012), “Strategy as a practice of thousands: the case of Wikimedia”, Academy of Management Proceedings, vol. 2012, n. 1, pp. 155-172.
DODGSON M., GANN D., SALTER A. (2006), “The role of technology in the shift towards open innovation: the case of Procter and Gamble”, R&D Management, vol. 36, n. 3, pp. 333-346.
DOZ Y.L., KOSONEN M. (2008), Fast Strategy: How Strategic Agility Will Help You Stay Ahead of the Game, Harlow: Pearson.
EISENHARDT K.M., GRAEBNER M.E. (2007), “Theory building from cases: Opportunities and challenges”, Academy of Management Journal, vol. 50, n. 1, pp. 25-32.
ENKEL E., GASSMANN O., CHESBROUGH H. (2009), “Open R&D and open innovation: exploring the phenomenon”, R&D Management, vol. 39, n. 4, pp. 311-316.
FERRARIS A., GRIECO C. (2015), “The role of the innovation catalyst in social innovation-an Italian case study”, Sinergie, vol. 33, n. 97, pp. 127-144.
FEY C., BIRKINSHAW J. (2005), “External sources of knowledge, governance mode and R&D performance”, Journal of Management, vol. 31, n. 4, pp. 597-621.
FICHTER K. (2009), “Innovation communities: the role of networks of promotors in Open Innovation”, R&D Management, vol. 39, n. 4, pp. 357-371.
FRAU M., CABIDDU F., LOMBARDO S., GIROMETTI C. (2017), “Teoria della pratica e co-distruzione di valore: un modello di misurazione”, in Convegno Sinergie-SIMA “Value co-creation: le sfide di management per le imprese e per la società”, Napoli, Italia, 15-16 Giugno. ISBN 97888907394-8-4.
GASSMANN O., ENKEL E. (2004), “Towards a theory of open innovation: three core process archetypes”, R&D Management Conference, vol. 6, pp. 1-18.
GAWER A., CUSUMANO M.A. (2014), “Industry platforms and ecosystem innovation”, Journal of Product Innovation Management, vol. 31, n. 3, pp. 417-433.
GEGENHUBER T., DOBUSCH L. (2017), “Making an impression through openness: how open strategy-making practices change in the evolution of new ventures”, Long Range Planning, vol. 50, n. 3, pp. 337-354.
GHEMAWAT P. (2002), “Competition and business strategy in historical perspective”, Business History Review, vol. 76, n. 1, pp. 37-74.
GIBBS G.R. (2007), “Thematic coding and categorizing”, Analyzing Qualitative Data, Sage, pp. 38-56 London.
GORLI M., NICOLINI D., SCARATTI G. (2015), “Reflexivity in practice: tools and conditions for developing organizational authorship”, Human Relations, vol. 68, n. 8, pp. 1347-1375.
HARDY C., LAWRENCE T., PHILLIPS N. (2006), “Swimming with sharks: creating strategic change through multi-sector collaboration”, International Journal of Strategic Change Management, vol. 1, n. 1-2, pp. 96-112.
HAUTZ J., SEIDL D., WHITTINGTON R. (2017), “Open strategy: Dimensions, dilemmas, dynamics”, Long Range Planning, vol. 50, n. 3, pp. 298-309.
HENKEL J. (2006), “Selective revealing in open innovation processes: the case of embedded Linux”, Research Policy, vol. 35, n. 7, pp. 953-969.
HENKEL J., SCHÖBERL S., ALEXY O. (2014), “The emergence of openness: How and why firms adopt selective revealing in open innovation”, Research Policy, vol. 43, n. 5, pp. 879-890.
HERACLEOUS L., GOESSWEIN J., BEAUDETTE P. (2017), “Open strategy-making at the Wikimedia foundation: a dialogic perspective”, The Journal of Applied Behavioral Science, vol. 54, n. 1, pp. 5-35.
HUTTER K., NKETIA B.A., FÜLLER J. (2017), “Falling short with participation-different effects of ideation, commenting, and evaluating behavior on open strategizing”, Long Range Planning, vol. 50, n. 3, pp. 355-370.
INVERNIZZI E., BIRAGHI S., ROMENTI S. (2012), “Entrepreneurial communication and the strategic role of internal communication”, Sinergie, n. 87, pp. 149-170.
KETOKIVI M., CASTANER X. (2004), “Strategic planning as an integrative device”, Administrative Science Quarterly, vol. 49, n. 3, pp. 337-365.
KIM N., KIM D.J., LEE S. (2015), “Antecedents of open innovation at the project level: empirical analysis of Korean firms”, R&D Management, vol. 45, n. 5, pp. 411-439.
LANGLEY A. (1999), “Strategies for theorizing from process data”, Academy of Management Review, vol. 24, n. 4, pp. 691-710.
LAURSEN K., SALTER A. (2006), “Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms”, Strategic Management Journal, vol. 27, n. 2, pp. 131-150.
LICHTENTHALER U. (2008), “Open innovation in practice: an analysis of strategic approaches to technology trans- actions”, IEEE Transactions of Engineering Management, vol. 55, n. 1, pp. 148-157.
LICHTENTHALER U. (2015), “A note on outbound open innovation and firm performance”, R&D Management, vol. 45, n. 5, pp. 606-608.
LOVE J.H., ROPER S., VAHTER P. (2014), “Learning from openness: The dynamics of breadth in external innovation linkages”, Strategic Management Journal, vol. 35, n. 11, pp. 1703-1716.
LUEDICKE M.K., HUSEMANN K.C., FURNARI S., LADSTAETTER F. (2017), “Radically open strategizing: how the premium cola collective takes open strategy to the extreme”, Long Range Planning, vol. 50, n. 3, pp. 371-384.
MACK D.Z., SZULANSKI G. (2017), Opening up: how centralization affects participation and inclusion in strategy making, Long: Range Plan.
MAKADOK R., BARNEY J.B. (2001), “Strategic factor market intelligence: An application of information economics to strategy formulation and competitor intelligence”, Management Science, vol. 47, n. 12, pp. 1621-1638.
MALHOTRA A., MAJCHRZAK A., NIEMIEC R.M. (2017), “Using public crowds for open strategy formulation: mitigating the risks of knowledge gaps”, Long Range Planning, vol. 50, n. 3, pp. 397-410.
MANTERE S., VAARA E. (2008), “On the problem of participation in strategy: a critical discursive perspective”, Organization Science, vol. 19, pp. 341-358.
MARTINEZ-CONESA I., SOTO-ACOSTA P., CARAYANNIS E.G. (2017), “On the path towards open innovation: Assessing the role of knowledge management capability and environmental dynamism in SMEs”, Journal of Knowledge Management, vol. 21, n. 3, pp. 553-570.
MILES M.B., HUBERMAN A.M. (1994), Qualitative data analysis: An expanded sourcebook, Sage Publications, Beverly Hills.
MILLER D. (1983), “The correlates of entrepreneurship in three types of firms”, Management Science, vol. 29, n. 7, pp. 770-791.
MOI L., CANNAS R., FRAU M., CABIDDU F. (2018a) “Capturing customer emotions and experiences to enhance value co-creation: the Ichnusa online brand community”, Sinergie, vol. 36, n. 106 pp. 157-178.
MOI L., FRAU M., CABIDDU F. (2018b), “Exploring the Role of NVivo Software in Marketing Research”, Mercati & Competitività, vol. 4, n. 22, pp. 65-86.
MONTGOMERY C. (2008), “Putting leadership back into strategy”, Harvard Business Review, vol. 86, n. 1, pp. 54-60.
MOORE J. (1993), The Death of Competition, Harvard Business School Press, Boston, MA.
MORAN P., GHOSHAL S. (1996), “Bad for Practice: A critique of the Transaction Cost Theory”, Academy of Management Review, vol. 21, n. 1, pp. 13-47.
NAMBISAN S., BARON R.A. (2013), “Entrepreneurship in Innovation Ecosystems: Entrepreneurs’ Self-Regulatory Processes and Their Implications for New Venture Success”, Entrepreneurship Theory and Practice, vol. 37, n. 5, pp. 1071-1097.
NELSON R., WINTER S. (1982), An evolutionary theory of economic change, Belknap Press, Cambridge.
PRAHALAD C.K., RAMASWAMY V. (2004), “Co-creating unique value with customers”, Strategy and leadership, vol. 32, n. 3, pp. 4-9.
PRANDELLI E., SAWHNEY M., VERONA G. (2008), Collaborating with Customers to Innovate: Conceiving and Marketing Products in the Networking Age, Cheltenham: Edward Elgar.
RANDHAWA K., WILDEN R., HOHBERGER J. (2016), “A Bibliometric Review of Open Innovation: Setting a Research Agenda”, Journal of Product Innovation Management, vol. 36, n. 6, pp. 750-772.
RAYPORT J.F., JAWORSKI B.J. (2004), “Best face forward”, Harvard Business Review, vol. 82, n. 12, pp. 47-58.
RHEE J., PARK T., LEE D.H. (2010), “Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation”, Technovation, vol. 30, n. 1, pp. 65-75.
RIVKIN J. (2000), “Imitation of complex strategies”, Management Science, vol. 46, pp. 824-844.
ROSENBERG N. (1994), Exploring the black box: technology, economics, and history, Cambridge University Press, Cambridge.
SAEBI, T., FOSS N.J. (2015), “Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions”, European Management Journal, vol. 33, n. 3, pp. 201-213.
SALTER A., CRISCUOLO P., TER WAL A.L. (2014), “Coping with Open Innovation”, California Management Review, vol. 56, n. 2, pp. 77-94.
SCHLAGWEIN D., CONBOY K., FELLER J., LEIMEISTER J.M., MORGAN L. (2017), “Openness” with and without Information Technology: a framework and a brief history, Springer.
SCHMITT R. (2010), “Dealing with Wicked Issues: Open Strategizing and the Camisea Case”, Journal of Business Ethics, vol. 96, n. 1, pp. 11-20.
SCUOTTO V., DEL GIUDICE M., BRESCIANI S., MEISSNER D. (2017), “Knowledge-driven preferences in informal inbound open innovation modes. An explorative view on small to medium enterprises”, Journal of Knowledge Management, vol. 21, n. 3, pp. 640-655.
STAKE R.E. (1995), The art of case study research, Sage, Thousand Oaks, California.
STIEGER D., MATZLER K., CHATTERJEE S., LADSTAETTER-FUSSENEGGER F. (2012), “Democratizing Strategy: How Crowdsourcing Can Be Used for Strategy Dialogues”, California Management Review, vol. 54, n. 4, pp. 44-69.
TACKX K., VERDIN P. (2014), “Can co-creation lead to better strategy? An exploratory research”, Universite Libre de Bruxelles, Working Papers, pp. 14-027.
TAVAKOLI A., SCHLAGWEIN D., SCHODER D. (2017), “Open strategy: Literature review, re-analysis of cases and conceptualisation as a practice”, The Journal of Strategic Information Systems, vol. 26, n. 3, pp. 163-184.
TURCO C. (2016), The conversational firm: rethinking bureaucracy in the age of social media, Columbia University Press, New York.
VRONTIS D., THRASSOU A., SANTORO G., PAPA A. (2017), “Ambidexterity, external knowledge and performance in knowledge-intensive firms”, The Journal of Technology Transfer, vol. 42, n. 2, pp. 374-388.
WERLE F., SEIDL D. (2015), “The layered materiality of strategizing: epistemic objects and the interplay between material artefacts in the exploration of strategic topics”, British Journal of Management, vol. 26, n. 1, pp. 67-89.
WEST J., BOGERS M. (2017), “Open innovation: current status and research opportunities”, Innovation, vol. 19, n. 1, pp. 43-50.
WEST J., GALLAGHER S. (2006), “Challenges of Open Innovation: The Paradox of Firm Investment in Open-Source Software”, R&D Management, vol. 36, n. 3, pp. 319-331.
WESTLEY F. (1990), “Middle managers and strategy: micro- dynamics of inclusion”, Strategic Management Journal, vol. 11, n. 5, pp. 337-342.
WHITTINGTON R., CAILLUET L., YAKIS-DOUGLAS B. (2011), “Opening Strategy: Evolution of a Precarious Profession”, British Journal of Management, vol. 22, n. 3, pp. 531-544.
WILLIAMSON O. E. (1970), Corporate Control and Business Behavior, Englewood Cliffs, NJ: Prentice Hall.
YAKIS-DOUGLAS B., ANGWIN D., AHN K., MEADOWS M. (2017), “Opening M&A strategy to investors: predictors and outcomes of transparency during organisational transition”, Long Range Planning, vol. 50, n. 3, pp. 411-422.
YIN R.K. (2009), “Case study research: Design and methods”, Applied Social Research Methods Series, Los Angeles.