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Dismantling of the Inverted U-Curve of Open Innovation

Author

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  • JinHyo Joseph Yun

    (Daegu Gyeongbuk Institute of Science and Technology (DGIST), 333, Techno Jungang Daero, Hyeonpung-Myeon, Dalseong-Gun, Daegu 42988, Korea)

  • DongKyu Won

    (Korea Institute of Science and Technology Information (KISTI), 66, Hoegi-ro, Dongdaemun-gu, Seoul 02456, Korea)

  • EuiSeob Jeong

    (Korea Institute of Science and Technology Information (KISTI), 66, Hoegi-ro, Dongdaemun-gu, Seoul 02456, Korea)

  • KyungBae Park

    (Department of Business Administration, Sangji University, 83 Sangjidae-gil, Wonju, Gangwon 26339, Korea)

  • DooSeok Lee

    (Daegu Gyeongbuk Institute of Science and Technology (DGIST), 333, Techno Jungang Daero, Hyeonpung-Myeon, Dalseong-Gun, Daegu 42988, Korea)

  • Tan Yigitcanlar

    (School of Civil Engineering and Built Environment, Queensland University of Technology (QUT), 2 George Street, Brisbane, QLD 4001, Australia)

Abstract

The purpose of this study is to address the following research question: What is the relationship between open innovation and firm performance? The study built up a research framework with three factors—i.e., open innovation strategy, time scope, and industry condition—to find out the concrete open innovation effects on firm performance. This study adopted four different research methods. Firstly, we applied the aforementioned factors to a game of life simulation in order to identify the concrete differences of open innovation effects on firm performance. Secondly, the study examined the real dynamics of open innovation effects on firm performance in the aircraft industry—one of the oldest modern industries—through a quantitative patent analysis. It then looked into the effects of major factors that impact open innovation effects. Thirdly, this study developed a mathematical model and tried to open the black box of open innovation effects on firm performance. Lastly, the study logically compiled research on open innovation effects on firm performance through the presentation of a causal loop model and derived the possible implications.

Suggested Citation

  • JinHyo Joseph Yun & DongKyu Won & EuiSeob Jeong & KyungBae Park & DooSeok Lee & Tan Yigitcanlar, 2017. "Dismantling of the Inverted U-Curve of Open Innovation," Sustainability, MDPI, vol. 9(8), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:8:p:1423-:d:107892
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    References listed on IDEAS

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    1. Lee, Sungjoo & Park, Gwangman & Yoon, Byungun & Park, Jinwoo, 2010. "Open innovation in SMEs--An intermediated network model," Research Policy, Elsevier, vol. 39(2), pages 290-300, March.
    2. Yun, JinHyo Joseph & Won, DongKyu & Jeong, EuiSeob & Park, KyungBae & Yang, JeongHo & Park, JiYoung, 2016. "The relationship between technology, business model, and market in autonomous car and intelligent robot industries," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 142-155.
    3. Deeds, David L. & Hill, Charles W. L., 1996. "Strategic alliances and the rate of new product development: An empirical study of entrepreneurial biotechnology firms," Journal of Business Venturing, Elsevier, vol. 11(1), pages 41-55, January.
    4. JinHyo Joseph Yun & DongKyu Won & ByungYong Hwang & JinWon Kang & DongHwan Kim, 2015. "Analysing and simulating the effects of open innovation policies: Application of the results to Cambodia," Science and Public Policy, Oxford University Press, vol. 42(6), pages 743-760.
    5. Palmer, J. & Sorda, G. & Madlener, R., 2015. "Modeling the diffusion of residential photovoltaic systems in Italy: An agent-based simulation," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 106-131.
    6. JinHyo Joseph Yun & Tan Yigitcanlar, 2017. "Open Innovation in Value Chain for Sustainability of Firms," Sustainability, MDPI, vol. 9(5), pages 1-8, May.
    7. JinHyo Joseph Yun & EuiSeob Jeong & JinSeu Park, 2016. "Network Analysis of Open Innovation," Sustainability, MDPI, vol. 8(8), pages 1-21, July.
    8. Andres Barge-Gil, 2010. "Open, Semi-Open and Closed Innovators: Towards an Explanation of Degree of Openness," Industry and Innovation, Taylor & Francis Journals, vol. 17(6), pages 577-607.
    9. Rixen, Martin & Weigand, Jürgen, 2014. "Agent-based simulation of policy induced diffusion of smart meters," Technological Forecasting and Social Change, Elsevier, vol. 85(C), pages 153-167.
    10. JinHyo Joseph Yun & Dooseok Lee & Heungju Ahn & Kyungbae Park & Tan Yigitcanlar, 2016. "Not Deep Learning but Autonomous Learning of Open Innovation for Sustainable Artificial Intelligence," Sustainability, MDPI, vol. 8(8), pages 1-20, August.
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    Cited by:

    1. Yu-Chun Chen & Min-Nan Chen, 2020. "Social Trust and Open Innovation in an Informal Economy: The Emergence of Shenzhen Mobile Phone Industry," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    2. Pancholi, Surabhi & Yigitcanlar, Tan & Guaralda, Mirko, 2019. "Place making for innovation and knowledge-intensive activities: The Australian experience," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 616-625.
    3. Caizhi Sun & Ling Liu & Yanting Tang, 2018. "Measuring the Inclusive Growth of China’s Coastal Regions," Sustainability, MDPI, vol. 10(8), pages 1-15, August.
    4. Calin S. Vac & Avram Fitiu, 2017. "Building Sustainable Development through Technology Transfer in a Romanian University," Sustainability, MDPI, vol. 9(11), pages 1-22, November.
    5. Xin-Jie Zhang & Yong Tang & Jason Xiong & Wei-Jia Wang & Yi-Cheng Zhang, 2018. "Dynamics of Cooperation in Minority Games in Alliance Networks," Sustainability, MDPI, vol. 10(12), pages 1-17, December.
    6. JinHyo Joseph Yun & Kwangho Jung & Tan Yigitcanlar, 2018. "Open Innovation of James Watt and Steve Jobs: Insights for Sustainability of Economic Growth," Sustainability, MDPI, vol. 10(5), pages 1-16, May.

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