Investigating the microfoundations of socioeconomic impact of university-industry relations

This research project explores the microfoundations that underlie the transmission of knowledge from university to industry and that will ultimately lead to socioeconomic impact.

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Click to download the program for the 2017-symposium.

Abstract

Leveraging external sources of knowledge has become a vital element of innovation strategy, especially in emerging markets, where many firms lack the sophisticated knowledge required to innovate. However, extant research in this domain puts little emphasis on emerging economies and also typically treats openness as a firm-level concept. In contrast, this study investigates how individual employees rely on both internal and external knowledge to increase their innovative work output (and, secondarily, their customer acquisition performance) and how their supervising manager’s characteristics moderate these mechanisms. Using hierarchical linear modeling of data collected from 123 employees and 50 managers in telecommunications companies in the emerging market of Vietnam, we find support for our hypothesized relationships. These findings have important implications for research and practice as they highlight the role of the individual employee in open innovation, the need for considering a more distributed set of organizational functions, and the relevance for emerging markets.

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Abstract

Open innovation has become a mainstream phenomenon in the current business landscape. However, despite the fact that innovation projects generally have different attributes (e.g., complexity and uncertainty), most studies on open innovation have only considered firm-level characteristics (e.g., firm size and firm openness) to determine how to manage open innovation successfully. Project-level studies on open innovation management are still scant—There are only a few conceptual and qualitative articles on the topic, and there is a lack of quantitative insights. Based on a survey designed to collect detailed data from 201 innovation projects undertaken by American firms, this article provides a quantitative cross-project analysis of how two, key innovation project attributes (i.e., complexity and uncertainty) are related to five factors for successful open innovation management: 1) openness level, 2) external partner choice, 3) open innovation mechanism choice, 4) collaboration process formalization, and 5) internal firm practices. This exploratory study contributes to the open innovation literature by highlighting the importance of microfoundations (i.e., innovation project attributes) in successful open innovation management. This article concludes by suggesting a number of relevant project-level future research opportunities in the field of open innovation management, and some methodological recommendations on how to address such opportunities.

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Abstract

While open innovation has been increasingly adopted in developed countries, firms from emerging markets such as Brazil markedly fall behind this trend. Our understanding of the reasons behind this phenomenon remains nevertheless limited, since most research focuses on the industrialized world. In this paper, we aim to inspire the academic community to investigate the issue of why companies from emerging economies such as Brazil have limited open innovation strategies, when they need to draw on external partners as to overcome the institutional, resource and capability constraints they are subject to. We build on the argument that latecomer firms in emerging economies need to actively use open innovation more than ever, as to overcome internal rigidities and spur the innovative resources and capabilities required for the digital transformation and for addressing grand societal challenges. In reviewing current research on openness and especially in the Brazilian setting, we contend that it is a relevant empirical context to study, giving the potential to uncover unique mechanisms and theoretical relations by asking (and possibly answering) novel research questions. Building on a conceptual framework that links various implementation levels of open innovation, we identify themes that are either less well researched or contested and thereby suggest challenges and opportunities for future research.

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Abstract

Open innovation has become well established as a new imperative for organizing innovation. In line with the increased use in industry, it has also attracted a lot of attention in academia. However, understanding the full benefits and possible limits of open innovation still remains a challenge. We draw on strategic management theory to describe some of these benefits and limits. More specifically, we develop a dynamic capabilities framework as a way to better understand the strategic management of open innovation, which can then help to better explain both success and failure in open innovation. With this background, as guest editors we introduce select papers published in this Special Section of California Management Review that were originally presented at the fifth annual World Open Innovation Conference, held in San Francisco, California, in December of 2018.

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Abstract

Open innovation is now a widely used concept in academia, business, and policy making. This article describes the state of open innovation at the intersection of research, practice, and policy. It discusses some key trends (e.g., digital transformation), challenges (e.g., uncertainty), and potential solutions (e.g., EU funding programs) in the context of open innovation and innovation policy. With this background, the authors introduce select papers published in this Special Section of California Management Review that were originally presented at the second annual World Open Innovation Conference, held in Santa Clara, California, in December of 2015.

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Abstract

Purpose – This paper describes the case of how the Danish beer manufacturer, Carlsberg, developed the Green Fiber Bottle as part of its sustainability program through an open innovation approach in collaboration with complementary partners. It thereby illustrates how a grand challenge associated with sustainability can be effectively addressed through open innovation and reveals the opportunities and challenges that emerge in that context.
Design/methodology/approach – The paper summarizes some key elements of the case and, in particular, discusses some of the lessons learned, which can be further explored in future research, practice, and policy.
Findings – The case suggests a number of key issues that are relevant when attempting to address grand challenges, in general, and sustainability in the food and beverage (F&B) industry, in particular, namely: leveraging open innovation in the face of sustainability as a grand challenge; sustainability beyond a solid business case; opportunities and challenges in the face of new business models; the importance of early wins for addressing societal challenges for signals and scaling; and the importance of the Nordic context and long-term vision.
Originality/value – The case describes a recent (and to some extent still ongoing) initiative of how a particular F&B company has explored new approaches to developing its sustainability program. Therefore, it highlights some of the unique characteristics of this case. This paper also lays the groundwork for the establishment of “Sustainable Open Innovation” as a domain in its own right.
Keywords Open innovation, Sustainable development, Management, Food and beverage industry, SDGs,
Grand challenges
Paper type Research paper

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Abstract

The use of external knowledge for innovation (i.e., inbound or outside-in open innovation) has received substantial attention in the innovation literature. However, the “human side” of open innovation is still poorly understood. We consider the role of employee characteristics with respect to predicting firm-level openness. Drawing on the human capital, learning and creativity literatures, we theorize that knowledge diversity of the firm’s employees is positively associated with employees’ ability to identify and absorb external knowledge, which aggregates to increased firm-level openness that is, firms’ use of external knowledge in their pursuit of innovation. Based on a combination of three data sources, namely, two survey data sources and register data, we find support for our hypothesis that employees’ educational diversity is positively associated with firm-level openness. However, we find no direct association between employees’ work history diversity and firm level openness but rather—as also hypothesized—a conditional relationship based on educational background, which implies that diverse work history only has a positive impact at higher levels of educational diversity. To reduce endogeneity concerns, we undertake a series of robustness checks.

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Abstract

Firms’ capability to develop sustainability-oriented innovation (SOI) can be enhanced by stakeholder engagement (SE) in order to acquire a wide range of external knowledge to support innovation efforts and outcomes. While we understand some of the transactional and relational attributes at stake for firms to leverage engagement with external stakeholders, we do not yet fully understand all the underlying mechanisms that are conducive to greater SOI outputs. At the same time, stakeholder theory emphasizes the importance of such engagement for firms’ financial performance (FP), even though the related findings are far from conclusive. Therefore, this paper suggests and tests a mediation model to investigate the associations between SE, SOI and FP. Based on data collected from 101 mineral companies in Norway, the results show that both transactional and relational interactions are important for improving SOI outputs, and that SOI fully mediates the association between SE and FP (measured by profitability). This suggests that external engagement activities do not directly link to FP, and that the financial benefit begins to appear once a firm is able to transform the acquired knowledge from external stakeholders into innovative outputs. Such open innovation approach thus requires a sustainability orientation to ultimately materialize into a performance benefit.

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Abstract

This study examines the relationship between the diversity of partners that a startup cooperates with and its innovation performance. Open innovation is important for startups as they need to open their boundaries to overcome the liabilities of newness. Based on data from the Spanish Innovation Technology Panel (PITEC) from 2004 to 2013, we find that startups benefit to a greater extent than incumbent firms from cooperation breadth. Moreover, we find that this effect is stronger for high-tech startups in particular. We therefore conclude that the breadth of cooperation partners plays an important role in knowledge exploration and exploitation in startups. This study contributes to the link between open innovation and entrepreneurship, it advances our knowledge on the role of breadth as a mechanism to integrate heterogeneous knowledge and access to complementary assets, and it also sheds light on some of the contingencies in terms of which types of startups will benefit most.

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Abstract

In this article, we attempt to extend and nuance the debate on intellectual property (IP) strategy, appropriation, and open innovation in dynamic and systemic innovation contexts. We present the case of four generations of mobile telecommunications systems (covering the period 1980–2015), and describe and analyze the co-evolution of strategic IP management and innovation ecosystems. Throughout this development, technologies and technological relationships were governed with different and shifting degrees of formality. Simultaneously, firms differentiated technology accessibility across actors and technologies to benefit from openness and appropriation of innovation. Our analysis shows that the discussion of competitiveness and appropriability needs to be expanded from the focal appropriability regime and complementary assets to the larger context of the innovation ecosystem and its cooperative and competitive actor relations, with dispersed complementary and substitute assets and technologies. Consequently, the shaping of complementary and substitute appropriability regimes is central when strategizing in dynamic and systemic innovation contexts. This holds important implications for the management of open innovation, innovation ecosystems, platforms, and coopetition.

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Extant research has found superior performance of firms located in clusters. However, it is unclear whether this is based on mere proximity or other unobserved factors. We extend this literature by developing a framework to examine in what way institutions promote open innovation processes between clustered firms. Specifically, we develop a set of hypotheses to investigate to what extent structural and relational elements in a cluster organization affect the open innovation culture. Our model integrates effects of agglomeration, networks, information asymmetries and trust on open innovation culture. We focus on the underlying organizational norms established in clustered firms in relation to open innovation. Specifically, we measure open innovation culture in terms of not-invented- and not-sold-here syndromes, which is facilitated by the integration of trust and reduced by information asymmetry within the cluster region. We test this framework using novel and unique data from member and non-member firms of a cluster initiative in a German high-tech cluster. Our findings from moderation analysis show that a regulatory body in the cluster significantly influences the emergence of both inbound and outbound open innovation activities by member firms in the cluster initiative through increased effects of trust and information asymmetries. Thereby, our paper contributes to literatures of open innovation, including networks of small and medium sized enterprises (SMEs), and cluster policy.

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Small- and medium-sized enterprises (SMEs) face the inherent tension of depending on external partners to complement their internal innovation activities while having limited resources to manage such open innovation processes. Given the importance of collaborative efforts between multiple stakeholders, we address the open innovation challenges from the SME perspective at the business-ecosystem level. We present an inductive case study of a particular regional ecosystem and focus on the inter-organizational collaboration between SMEs and other stakeholders in the ecosystem. With this focus, we explore how SMEs perceive, organize, and manage open innovation through strong collaborative ties with other ecosystem members. We identify a particular set of challenges for the SMEs due to the misalignment between their business model and that of their ecosystem. Specific findings include the link between innovation type expressed by diverging understandings of the notion of innovation across the ecosystem and the innovation form (here, open innovation), which should be organized and managed on multiple levels of analysis (SME, inter-organizational, and ecosystem). These findings highlight specific attention points for managing and developing open innovation in a regional business ecosystem, and they contribute both to the business-ecosystem literature as well as open innovation literature.

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Abstract

In recent years, public sector organizations have increasingly focused on citizen contribution by adopting instruments known from open innovation. By collaborating with the periphery and leveraging external knowledge, government institutions initiate social innovation and stimulate a positive change for society. This article examines the involvement of citizens in an ideation platform initiated by a local government and investigates the motivations affecting participation intensity. Drawing on self‐determination theory, we analyze what motivates citizens to participate in an open government platform and how these motivations influence participation quantity. Based on a survey among platform users and the analysis of usage data from the platform operator, we find that motivations of citizen participation in public administration greatly vary across forms of participation. Whereas, intrinsic motivation is positively associated with producing and consuming platform content, external and introjected regulation negatively relate to individuals’ active contribution. At the same time, external regulation is positively associated with evaluation behavior.

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This study explores how a community uses open innovation over time to tackle a global societal challenge. we conduct an in‐depth case study of OpenMRS, an open‐source software community providing affordable medical record‐keeping software in developing nations. We develop a process model that describes how inbound, outbound, and coupled open innovation influenced the community through four discrete phases of community development. We explain how the founders’ vision led to the creation of the community, and how increasing community participation and community governance facilitated its growth. Interestingly, we found that economic opportunities made possible by open innovation may paradoxically create challenges to community sustainability. Ultimately, this study expands our understanding of open innovation communities in different settings, and their role in addressing societal challenges.

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Abstract

For developing countries to catch up, it is vital that they develop emerging technologies and the system that supports that development. The literature suggests developing a technological innovation system (TIS) framework to investigate the development of technologies in a country. Nonetheless, most of this research focuses on developed countries without taking into account developing countries. Therefore, in this paper, we have two main goals. First, reviewing the indicators introduced to the functional analysis of TISs and modifying these indicators based on developing countries’ circumstances. Second, applying this framework to the specific case of Iran’s renewable energy program by using these indicators for analyzing Iran’s photovoltaic TIS to identify the problems. Accordingly, we review indicators used for a functional analysis by considering the needs of developing countries, and we propose a list of indicators that can be used for assessing functions in developing countries’ TISs. The results show that, to evaluate some functions of TIS, we need to use new indicators in developing countries. Finally, we propose some policy recommendations to tackle these functional problems.

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Abstract

Crowdfunding presents many opportunities for moving towards a sustainable society, with specific interest for sustainable entrepreneurs and innovators. In order to examine the potential role of crowdfunding in this context, we position this Special Issue (SI) within the larger stream of sustainability transitions literature, and in particular in relation to one of the field’s key frameworks, i.e. the Multi-Level Perspective (MLP). We argue that crowdfunding represents a novel socio-technical practice with the potential of upscaling and transforming financial and – potentially – sustainability regimes. This introductory article contains an overview of the articles, described by using the MLP typology. Some authors describe the role of crowdfunding in enabling user-producer and user-consumer interaction at an early stage; others focus on crowdfunding as a tool for user-legitimators and user-citizens. In terms of future research, the novelty of the phenomenon leaves a wide range of areas open for further research, with the current literature primarily focused on uncovering the antecedents of funding success and failure, something that is also apparent in this SI. To help the field move forward, we identify five areas as the most relevant for future research.

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Abstract

Big Data has recently emerged as a new digital paradigm, one that companies adopt in order to both transform existing business models and nurture their innovation activities. The peculiarities of Big Data applications span different fields such as customer need identification, risk management and decision-making, data-driven knowledge, product and service design, quality management, and opportunity recognition and creation. However, while these have resulted in the emergence of a rich research domain focusing on the managerial and practical implications typically addressed from the user perspective, there is still a lack of complete understanding of how companies that provide Big Data solutions can create and capture value from them. This paper explores the question of how provider companies create and capture value from Big Data, drawing on a multiple-case study analysis of provider companies that offer solutions and services based on Big Data. The results illustrate a theoretical framework on value creation and capture by relying on Big Data and identify two main innovation service strategies based on Big Data used by provider companies. In addition, this paper provides valuable insights as to how the network of involved stakeholders influences the design and implementation of the innovation service strategy by the provider companies.

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