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Open innovation in nascent ventures: Does openness influence the speed of reaching critical milestones?

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  • Toroslu, Adrian
  • Herrmann, Andrea M.
  • Chappin, Maryse M.H.
  • Schemmann, Brita
  • Castaldi, Carolina

Abstract

Research on open innovation (OI) has demonstrated the benefits of openness for firm innovation processes, but studies have mostly offered cross-sectional insights on incumbent firms. This study offers a more dynamic perspective on the relevance of OI for nascent ventures. Combining entrepreneurship and OI theories, we argue that it is key for resource-scarce nascent ventures to achieve critical venture-creation milestones. While OI can help these ventures to leverage salient external partnerships, we argue that it affects their speed of reaching these milestones. We test our hypotheses on a longitudinal sample focusing on external collaboration practices of nascent ventures in the renewable energy or information and communications technology industries. Our results show that, while engaging in R&D collaborations slows down nascent ventures’ product development and sustainable profit generation activities, joining industry associations does not have a slow-down effect. Our results complement the OI literature by warning about the downsides of openness for nascent ventures, particularly during the venture creation phase, where speed is a high priority.

Suggested Citation

  • Toroslu, Adrian & Herrmann, Andrea M. & Chappin, Maryse M.H. & Schemmann, Brita & Castaldi, Carolina, 2023. "Open innovation in nascent ventures: Does openness influence the speed of reaching critical milestones?," Technovation, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:techno:v:124:y:2023:i:c:s0166497223000433
    DOI: 10.1016/j.technovation.2023.102732
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