Sequential Coherence: A Novel Determinant of Open Innovation

American Journal of Industrial and Business Management, 2019, 9, 1781-1799

19 Pages Posted: 17 Sep 2019

See all articles by Dr. Shanta Rajapaksha Yapa

Dr. Shanta Rajapaksha Yapa

University of Colombo - Faculty of Management and Finance

R. Senathiraja

University of Colombo - Faculty of Management and Finance

Jurgen Poesche

Aalto University - Industrial Engineering and Management

Ilkka Kauranen

Aalto University

Date Written: September 5, 2019

Abstract

Despite its popularity as a strategy to accelerate innovations there is evidence that open innovation does not always increase innovation performance. Extant literature provides inconsistent and inconclusive arguments in respect of the relationship between open innovation practices and innovation performance. Existing theories mostly have an internal focus and fall short of explaining why some firms succeed in open innovation initiatives and why others fail. Open innovation is about knowledge flows. We argue that boundary conditions matter in innovation performance and sequential coherence can explain why some succeed while others fail in open innovation. A qualitative inquiry we made reveals that sequential coherence that facilitates the knowledge transfer at boundary level influence innovation performance in open innovation initiatives. Sequential coherence is measured through the push and the pull effects by willingness and ability of the participants of teacher firm and the preparedness and ability of the participants from the student firm respectively. We trust that our findings bridge a gap in open innovation literature. These initial findings could be generalized through a quantitative study with larger samples. Managerial implications of the finding is that ability to scan the entire chain of knowledge flow across boundaries and taking corrective measures for any bottlenecks or hindrances observed can bring better results from open innovation initiatives. Further, sequential coherence leads to multiple research opportunities in furthering our knowledge in open innovation.

Keywords: sequential coherence, open innovation, innovation performance, determinants

Suggested Citation

Yapa, Shanta and Senathiraja, R. and Poesche, Jurgen and Kauranen, Ilkka, Sequential Coherence: A Novel Determinant of Open Innovation (September 5, 2019). American Journal of Industrial and Business Management, 2019, 9, 1781-1799, Available at SSRN: https://ssrn.com/abstract=3450006 or http://dx.doi.org/10.2139/ssrn.3450006

Shanta Yapa (Contact Author)

University of Colombo - Faculty of Management and Finance ( email )

Colombo 03
Sri Lanka

R. Senathiraja

University of Colombo - Faculty of Management and Finance

Colombo 03
Sri Lanka

Jurgen Poesche

Aalto University - Industrial Engineering and Management

POB 9500
02015, Aalto 00076
Finland

Ilkka Kauranen

Aalto University ( email )

P.O. Box 21210
Helsinki, 00101
Finland

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