A risk mitigation model in SME’s open innovation projects

SMEs are slightly overlookedin the open innovation literature, whichprovides a scarcity of studies on therisks residing in open innovationprojects involving SMEs and even fewerattempts to assess the mitigationpotential of these dangers. The limitedliterature written on SMEs and openinnovation highlights the motives, thebenefits and the barriers these enginesof economy confront when embarking inopen innovation projects. However, noparticular attempt to further theresearch into managing and mitigatingthe effective risks triggered by openinnovation in SMEs was found. Basedon a survey conducted on 211 RomanianSMEs in the Romanian financialservices and consultancy sector, thispaper both explores the risks affectingthe innovation performance of SMEs incollaborative relationships, and seeks toprovide a conceptual model forovercoming these threats. Within thesurvey, our work highlights that openinnovation in Romanian SMEs is impededby risks related to insufficient financialresources, inexperienced, unmotivatedand unwilling to cooperate people,poor adaptation to technological advancesin the industry, knowledge sharingrisks, weak social capital and noteworthyregulation risks. The researchresults indicate six factors as main riskmitigators: transparent communicationamong innovators, trust building, peopleempowerment, organizational learningand investment in knowledge,leadership, vision and convictions,proactiveness towards unethicalbehaviour. By undertaking this study weaim to contribute to the scarce literatureon open innovation practices inRomanian SMEs and to shed light on thefactors that a firm needs to approach inorder to foster a culture for innovationand, in the same time, reduce the openinnovation risks.