Open Innovation: A New Classification and Its Impact on Firm Performance in Innovative SMEs

Journal of Innovation Management; 2015; 3(2) p33-54

22 Pages Posted: 1 May 2014 Last revised: 15 Jul 2015

See all articles by Joon Mo Ahn

Joon Mo Ahn

Graduate School of Management of Technology, Sogang University; University of Cambridge - Institute for Manufacturing

Tim Minshall

University of Cambridge - Institute for Manufacturing

Letizia Mortara

University of Cambridge - Institute for Manufacturing

Date Written: July 11, 2015

Abstract

This paper attempts to deepen understanding of the relationship between open innovation (OI) and firm performance in small and medium-sized enterprises (SMEs). Based on survey data from 306 Korean innovative SMEs, the results of this study show that: (1) broad and intensive engagement in OI and cooperation with external partners are positively associated with firm performance; (2) technology and market-oriented OI modes (Joint R&D, user involvement and open sourcing), involving relatively low level of changes, can positively contribute to performance enhancement; and (3) innovative SMEs benefit from working with non-competing partners, such as customers, consultancy/intermediaries and public research institutes. This work has broadened the evidence available on SMEs’ OI adoption and has proposed a new way to study OI adoption and implementation.

Keywords: R&D, open innovation, industry-research relations, cooperation, Korea

JEL Classification: O32, O33, O53

Suggested Citation

Ahn, Joon Mo and Minshall, Tim and Mortara, Letizia, Open Innovation: A New Classification and Its Impact on Firm Performance in Innovative SMEs (July 11, 2015). Journal of Innovation Management; 2015; 3(2) p33-54. Available at SSRN: https://ssrn.com/abstract=2431205 or http://dx.doi.org/10.2139/ssrn.2431205

Joon Mo Ahn (Contact Author)

Graduate School of Management of Technology, Sogang University ( email )

Seoul 121-742
Korea, Republic of (South Korea)

University of Cambridge - Institute for Manufacturing ( email )

17 Charles Babbage Road
Cambridge, CB3 0FS
United Kingdom

Tim Minshall

University of Cambridge - Institute for Manufacturing ( email )

17 Charles Babbage Road
Cambridge, CB3 0FS
United Kingdom

Letizia Mortara

University of Cambridge - Institute for Manufacturing ( email )

17 Charles Babbage Road
Cambridge, CB3 0FS
United Kingdom

HOME PAGE: http://www.ifm.eng.cam.ac.uk/people/lm367/

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