Open for Entrepreneurship: How Open Innovation Can Foster New Venture Creation

Abstract

This paper explores how an open approach to new venture creation — purposefully managing knowledge flows across the venture’s organizational boundary — can be beneficial for start-up entrepreneurs. Our inductive case study, of both failure and success, identifies the key attributes of this open approach and how they affect the start-ups’ short-term survival. We find that ecosystem collaboration, user involvement, and an open environment directly influence new venture survival, and that their effects were moderated by the entrepreneurs’ open mindset. These findings carry a number of implications for entrepreneurship and innovation research and practice, providing some attention points for researchers, entrepreneurs, investors, and policymakers interested in developing successful new ventures.