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Openness In Product And Process Innovation

Author

Listed:
  • FANG HUANG

    (Murdoch University, Australia)

  • JOHN RICE

    (Griffith University, Australia)

Abstract

Open innovation has generally been explored in terms of improved innovation performance vis-à-vis product/service innovation performance. However, process innovation is often ignored in the open innovation literature. In this study, we assess the impact of openness on innovation in products/services, and also on process innovation, drawing on a large-scale sample of Australian firms. In essence, we find that open innovation models are useful for firms seeking to innovate in processes as well as products and services. However, we find that openness to external information sources may, after a time, lead to decreasing marginal returns as measured by innovation performance. We also observe that, within our sample, the proposed complementarities between internal and external knowledge are generally only evident as precursors to the introduction of new products and services, and may not be as beneficial in stimulating process innovations. It is also shown by our study that investment in absorptive capacity has a declining marginal effect on the innovation performance of new processes, but not on the introduction of new products and services.

Suggested Citation

  • Fang Huang & John Rice, 2012. "Openness In Product And Process Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 1-24.
    • Handle: RePEc:wsi:ijimxx:v:16:y:2012:i:04:n:s1363919612003812
    DOI: 10.1142/S1363919612003812
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    References listed on IDEAS

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    Cited by:

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    2. Stéphane Lhuillery & Marion Tellechea & Stéphanie Thiery, 2021. "Open innovation in managerial innovation: the case of internal audit," Working Papers of BETA 2021-19, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Charlie Karlsson & Sam Tavassoli, 2016. "Innovation strategies of firms: What strategies and why?," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1483-1506, December.
    4. Alexandra Braga & Carla Susana Marques & Zélia Serrasqueiro, 2018. "Internationalisation Strategy of Knowledge-Intensive Business Services," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(2), pages 359-377, June.
    5. Norhuda Salim & Mohd Nizam Ab Rahman & Dzuraidah Abd Wahab & Ariff Azly Muhamed, 2020. "Influence of Social Media Usage on the Green Product Innovation of Manufacturing Firms through Environmental Collaboration," Sustainability, MDPI, vol. 12(20), pages 1-17, October.
    6. Juan Carlos Mandujano Contreras & Cecilia Garcia Munoz Aparicio & Concepcion Reyes De La Cruz & Leticia Rodriguez Ocana, 2018. "The Innovation Process From Classroom To Market El Proceso De Innovacion: Del Aula Al Mercado," Revista Global de Negocios, The Institute for Business and Finance Research, vol. 6(6), pages 73-86.
    7. Nicola Bellantuono & Pierpaolo Pontrandolfo & Barbara Scozzi, 2021. "Measuring the Openness of Innovation," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    8. Jhon Wilder Sánchez-Obando & Luis Fernando Castillo-Ossa & Néstor Darío Duque-Méndez & Eduardo Carrillo Zambrano, 2024. "Design of a conceptual model of open innovation for the decentralization of the science, technology, and innovation system in Colombia from an organizational ecology perspective," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-28, December.
    9. Gaygysyz Ashyrov & Helery Tasane, 2024. "The roles of foreign and domestic ownership in the corruption–firm innovation nexus," Bulletin of Economic Research, Wiley Blackwell, vol. 76(1), pages 167-202, January.
    10. Christoph Hinteregger & Susanne Durst & Serdal Temel & Rustem Baris Yesilay, 2019. "THE IMPACT OF OPENNESS ON INNOVATION IN SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-30, January.
    11. Fernandes, Kiran Jude & Milewski, Simon & Chaudhuri, Atanu & Xiong, Yu, 2022. "Contextualising the role of external partnerships to innovate the core and enabling processes of an organisation: A resource and knowledge-based view," Journal of Business Research, Elsevier, vol. 144(C), pages 146-162.
    12. Denicolai, Stefano & Ramirez, Matias & Tidd, Joe, 2016. "Overcoming the false dichotomy between internal R&D and external knowledge acquisition: Absorptive capacity dynamics over time," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 57-65.
    13. Lyu, Yibo & Zhu, Yuqing & Han, Shaojie & He, Binyuan & Bao, Lining, 2020. "Open innovation and innovation "Radicalness"—the moderating effect of network embeddedness," Technology in Society, Elsevier, vol. 62(C).
    14. Mona Ashok & Rajneesh Narula & Andrea Martinez-Noya, 2014. "End-User Collaboration for Process Innovation in Services: The Role of Internal Resources," John H Dunning Centre for International Business Discussion Papers jhd-dp2014-03, Henley Business School, University of Reading.
    15. Hullova, Dusana & Trott, Paul & Simms, Christopher Don, 2016. "Uncovering the reciprocal complementarity between product and process innovation," Research Policy, Elsevier, vol. 45(5), pages 929-940.
    16. Flor, M. Luisa & Cooper, Sarah Y. & Oltra, María J., 2018. "External knowledge search, absorptive capacity and radical innovation in high-technology firms," European Management Journal, Elsevier, vol. 36(2), pages 183-194.
    17. Greco, Marco & Grimaldi, Michele & Locatelli, Giorgio & Serafini, Mattia, 2021. "How does open innovation enhance productivity? An exploration in the construction ecosystem," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    18. Schäper, Thomas & Jung, Christopher & Foege, Johann Nils & Bogers, Marcel L.A.M. & Fainshmidt, Stav & Nüesch, Stephan, 2023. "The S-shaped relationship between open innovation and financial performance: A longitudinal perspective using a novel text-based measure," Research Policy, Elsevier, vol. 52(6).

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