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Dynamic openness for network-enabled product and process innovation : a panel-data analysis
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Kesidou, Effie, Narasimham, Ram, Ozusaglam, Serdal and Wong, Chee Yew (2022) Dynamic openness for network-enabled product and process innovation : a panel-data analysis. International Journal of Operations and Production Management, 42 (3). pp. 257-279. doi:10.1108/IJOPM-06-2021-0380 ISSN 0144-3577.
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WRAP-dynamic-openness-network-enabled-product-process-innovation-Ozusaglam-2022.pdf - Accepted Version - Requires a PDF viewer. Available under License Creative Commons: Attribution-Noncommercial 4.0. Download (528Kb) | Preview |
Official URL: https://doi.org/10.1108/IJOPM-06-2021-0380
Abstract
Purpose:
Prior research on open innovation has not investigated changes in knowledge acquisition strategies of firms over time overlooking how learning from past knowledge acquisition can change subsequent search strategies. Also, prior research has focused principally on product innovation overlooking process innovation. The purpose of the paper is to introduce the concept of dynamic openness, which is defined as temporal changes in external knowledge search strategy. We explore four dynamic openness strategies – closing down, opening up, persistent open and persistent closed – and examine the impact of these strategies on both product and process innovation.
Design/methodology/approach:
The authors used a panel dataset of 16,021 firms based on five waves (2009–2017) of the UK Community Innovation Survey (UKIS). All models are estimated using firm and year fixed effects (FE) method to control for endogeneity that arises from unobserved heterogeneity. Endogeneity and robustness tests were carried out to ensure the validity of results.
Findings:
The results show that firms do use dynamic openness strategies over time leveraging learning from past searches. Specifically, the study indicates that closing down is not an effective strategy for either type of innovation. For process innovation, firms should pursue opening up strategy rather than persistent open strategy, whereas for product innovation firms could pursue either strategy, highlighting important contextual differences.
Originality/value:
The paper contributes to the literature on knowledge acquisition in open innovation: (1) by theorizing the underlying reasons – learning from past collaborations, absorptive capacity and external knowledge heterogeneity – why firms pursue one dynamic openness strategy over another and (2) by extending literature by delineating the dynamic openness strategies that firms should pursue in process innovation vs product innovation.
Item Type: | Journal Article | ||||||||
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Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce Q Science > QA Mathematics T Technology > T Technology (General) T Technology > TS Manufactures |
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Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||||
Library of Congress Subject Headings (LCSH): | Knowledge acquisition (Expert systems), Knowledge representation (Information theory), Technological innovations -- Management, Product design, Product management -- Research, New business enterprises | ||||||||
Journal or Publication Title: | International Journal of Operations and Production Management | ||||||||
Publisher: | Emerald Group Publishing Ltd. | ||||||||
ISSN: | 0144-3577 | ||||||||
Official Date: | 10 March 2022 | ||||||||
Dates: |
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Volume: | 42 | ||||||||
Number: | 3 | ||||||||
Page Range: | pp. 257-279 | ||||||||
DOI: | 10.1108/IJOPM-06-2021-0380 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Reuse Statement (publisher, data, author rights): | This author accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please contact permissions@emerald.com | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Copyright Holders: | Copyright © 2022, Emerald Publishing Limited | ||||||||
Date of first compliant deposit: | 1 February 2022 | ||||||||
Date of first compliant Open Access: | 25 February 2022 | ||||||||
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