A Strategic Open Innovation Model: Productivity Inprovement in Small Medium Industries/SMIs

Abstract

SMIs business especially in entering global/international market poses significant challenges because they still a low competitiveness due to some problems such as reluctant to innovate the product design and less proactive to seek market opportunity. Therefore, open innovation strategy to utilize network resources with optimum facilities from primary stakeholder becomes an important agenda to build competitive advantage. Open source of primary stakeholder (partner in network) can be utilized by SMIs to innovate that emphasized to “put the partners at the center of innovation”. Innovation made by SMIs will become open innovation which if developed optimally, it will encourage the emergence innovation capability that affect to SMIs productivity and performance. This study present conceptual modeling to clarify more deeply in how connection formed by building relationship with primary stakeholder can support open innovation through co-innovating and co-creating value. The concept of modeling proposed can be a basis in developing empirical study, so that it can be utilized by business actors especially in the small medium sector to be more involve in global/international business