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How French Wine Producers Use Open Innovation to Gain and Manage Their Legitimacy

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  • Sylvaine Castellano

    (59 Rue Nationale)

  • Insaf Khelladi

    (13 Rue Michel Ney)

Abstract

While open innovation and legitimacy are two processes that redefine the boundaries between the firm and its surrounding environment, no study has so far bridged the gap between these two concepts. Herein, we analyze how innovation strategies on the continuum between closed and open innovations confer different types of legitimacy. Our empirical setting focuses on traditional industries characterized with long and established know-how transferred from generation to generation. The wine industry is pertinent as it went through major changes over the past 30 years and since innovation plays a major role. Over time, our results show that in the wine sector, closed innovation was used not only to gain legitimacy but also to protect the acquired legitimacy. Then, open innovation brought normative and cognitive legitimacy to maintain and protect legitimacy. The findings contribute to the neo-institutional approach of legitimacy. We also contribute on a better understanding regarding the balance between closed and open innovations.

Suggested Citation

  • Sylvaine Castellano & Insaf Khelladi, 2016. "How French Wine Producers Use Open Innovation to Gain and Manage Their Legitimacy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(1), pages 155-171, March.
    • Handle: RePEc:spr:jknowl:v:7:y:2016:i:1:d:10.1007_s13132-015-0332-x
    DOI: 10.1007/s13132-015-0332-x
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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. Manlio Giudice & Maria Della Peruta & Vincenzo Maggioni, 2013. "Collective Knowledge and Organizational Routines within Academic Communities of Practice: an Empirical Research on Science–Entrepreneurs," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 4(3), pages 260-278, September.
    3. Paul Trott & Dap Hartmann, 2009. "Why 'Open Innovation' Is Old Wine In New Bottles," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 715-736.
    4. Delmar, Frederic & Shane, Scott, 2004. "Legitimating first: organizing activities and the survival of new ventures," Journal of Business Venturing, Elsevier, vol. 19(3), pages 385-410, May.
    5. David L. Deephouse & Suzanne M. Carter, 2005. "An Examination of Differences Between Organizational Legitimacy and Organizational Reputation," Journal of Management Studies, Wiley Blackwell, vol. 42(2), pages 329-360, March.
    6. A. Spithoven & B. Clarysse & M. Knockaert, 2009. "Building Absorptive Capacity to Organise Inbound Open Innovation in Low Tech Industries," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/606, Ghent University, Faculty of Economics and Business Administration.
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    Cited by:

    1. Castellano, Sylvaine & Khelladi, Insaf & Sorio, Rossella & Orhan, Mehmet & Kalisz, David, 2021. "Exploring the microfoundations of nomadic dynamic capabilities: The example of flying winemakers," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    2. Ferraris, Alberto & Degbey, William Y. & Singh, Sanjay Kumar & Bresciani, Stefano & Castellano, Sylvaine & Fiano, Fabio & Couturier, Jerome, 2022. "Microfoundations of Strategic Agility in Emerging Markets: Empirical Evidence of Italian MNEs in India," Journal of World Business, Elsevier, vol. 57(2).

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