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HARNESSING THE VALUE OF OPEN INNOVATION: THE MODERATING ROLE OF INNOVATION MANAGEMENT

TORSTEN OLIVER SALGE

Ruhr-University Bochum, Universitaetsstrasse 150, 44780 Bochum, Germany

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THOMAS MARC BOHNÉ

The University of Auckland Business School, The University of Auckland, 12 Grafton Road, Auckland 1142, New Zealand

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TOMAS FARCHI

IAE Business School, Universidad Austral Mariano Acosta s/n, Buenos Aires B1629WWA, Argentina

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, and

ERK PETER PIENING

Faculty of Management and Economics, Leibniz University Hannover, Koenigsworther Platz 1, 30167 Hannover, Germany

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https://doi.org/10.1142/S1363919612400051Cited by:52 (Source: Crossref)

Abstract

In this paper, we develop and test a firm-level contingency model of inbound open innovation in an attempt to contribute to explaining the substantial disparities in open innovation payoff that exist between firms. Integrating elements from the resource- and knowledge-based views and the absorptive capacity literature, we propose that specific innovation management activities can play an important moderating role as they are likely to enhance firms' capacity to identify, assimilate and utilise external knowledge inputs. Drawing on longitudinal data from 1,170 German manufacturing and service firms, econometric analyses reveal that returns from open innovation are greatest when firms maintain their internal research capacity, employ a dedicated incentive system for innovation and advocate strong cross-functional collaboration. Decision-makers are thus well advised not to take positive returns from open innovation for granted. Rather, they need to achieve excellence in key innovation management activities, if their firm is to fully harness the value of openness.

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