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Sustainability Condition of Open Innovation: Dynamic Growth of Alibaba from SME to Large Enterprise

Author

Listed:
  • Jinhyo Joseph Yun

    (Department of Open Innovation and Business Model, Open Innovation Academy of SOI, and DGIST, Daegu 42988, Korea)

  • Xiaofei Zhao

    (Department of Open Innovation and Business Model, Open Innovation Academy of SOI, and DGIST, Daegu 42988, Korea)

  • KyungBae Park

    (Department of Business Administration, Sangji University, Wonju 26339, Korea)

  • Lei Shi

    (Department of Environmental Planning and Management, Tsinghua University, Bejing 100084, China)

Abstract

Research Question: Open innovation and the open business model exaggerate complexity (a transaction cost) in addition to the realization of emergence and its lock-in. Within a short period, Alibaba has become one of the global top e-commerce companies with several open innovation business models. Our research question was: “How could Alibaba become a global top e-commerce company in China in such a short time?” Research Method: We chose a deep interview method, participatory observation, and meta-analysis to answer this research question. Research Result: Alibaba has applied global, creative e-commerce business models through open innovation in a short time. In addition, it has overcome complexity—i.e., the cost of open innovation and the force that breaks down a company—through an open innovation-friendly culture. This is a “Jack-Ma style consumer confidence and new Guanxi culture”, a new and strong Chinese corporate culture. Alibaba has also undergone the expansion of its open business model feedback loop platform. This study investigated the expanded open business model feedback loop platform, the continuously strengthened open-innovation-friendly culture, and complexity, with the latter being the cost of open innovation, which was controlled by an open-innovation-friendly culture and open business model feedback loop.

Suggested Citation

  • Jinhyo Joseph Yun & Xiaofei Zhao & KyungBae Park & Lei Shi, 2020. "Sustainability Condition of Open Innovation: Dynamic Growth of Alibaba from SME to Large Enterprise," Sustainability, MDPI, vol. 12(11), pages 1-24, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:11:p:4379-:d:363427
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    References listed on IDEAS

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    Cited by:

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    2. JinHyo Joseph Yun & Xiaofei Zhao & KwangHo Jung & Tan Yigitcanlar, 2020. "The Culture for Open Innovation Dynamics," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    3. Mingwei Sun & Katarzyna Grondys & Nazim Hajiyev & Pavel Zhukov, 2021. "Improving the E-Commerce Business Model in a Sustainable Environment," Sustainability, MDPI, vol. 13(22), pages 1-22, November.
    4. I Nyoman Normal & Made Setini, 2022. "Absorption Capacity and Development of Photocatalyst Green Ceramic Products with Moderation of Green Environment for Sustainability Performance of Developing Industries," Sustainability, MDPI, vol. 14(17), pages 1-18, August.
    5. Leogrande, Angelo, 2024. "Companies with at least 10 Employees Selling Online across the Italian Regions," SocArXiv y3t4j, Center for Open Science.
    6. Bingqin Dai & Wenquan Liang, 2022. "The Impact of Big Data Technical Skills on Novel Business Model Innovation Based on the Role of Resource Integration and Environmental Uncertainty," Sustainability, MDPI, vol. 14(5), pages 1-16, February.
    7. Eleni N. Arvaniti & Agapi Dima & Chrysostomos D. Stylios & Vagelis G. Papadakis, 2022. "A New Step-by-Step Model for Implementing Open Innovation," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    8. Jose Alejandro Cano & Abraham Londoño-Pineda & Maria Fanny Castro & Hugo Bécquer Paz & Carolina Rodas & Tatiana Arias, 2022. "A Bibliometric Analysis and Systematic Review on E-Marketplaces, Open Innovation, and Sustainability," Sustainability, MDPI, vol. 14(9), pages 1-42, May.
    9. Angelo Leogrande & Carlo Drago & Massimo Arnone, 2024. "Analyzing Regional Disparities in E-Commerce Adoption Among Italian SMEs: Integrating Machine Learning Clustering and Predictive Models with Econometric Analysis," Working Papers hal-04700413, HAL.
    10. Tzu-Fei Hsiung & Yueh-Hsiu Cheng & Zi-Xun Han, 2021. "Sustainable Partnership: Operational Condition Analysis for Brand Value Co-Creation," Sustainability, MDPI, vol. 13(12), pages 1-23, June.
    11. Joana Costa & João C.O. Matias, 2020. "Open Innovation 4.0 as an Enhancer of Sustainable Innovation Ecosystems," Sustainability, MDPI, vol. 12(19), pages 1-19, October.
    12. Belén Payán-Sánchez & Luis Jesús Belmonte-Ureña & José Antonio Plaza-Úbeda & Diego Vazquez-Brust & Natalia Yakovleva & Miguel Pérez-Valls, 2021. "Open Innovation for Sustainability or Not: Literature Reviews of Global Research Trends," Sustainability, MDPI, vol. 13(3), pages 1-29, January.
    13. Zhang, Jingjing & Groen, Aard, 2021. "Informal and formal open activities: Innovation protection methods as antecedents and innovation outputs as consequences," Technological Forecasting and Social Change, Elsevier, vol. 167(C).

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