Factors Affecting Open Innovation: Evidence from Malaysia

Abstract: This paper uses Partial Least Square (PLS) as an analysis tool to test the hypothesized relationships of Managerial Ties and Organizational Citizenship Behaviours (OCBs) with Open Innovation and tests the moderating effect of appropriability regimes on these relations. 60 managers from 60 firms Malaysian firms participated in this study. The results reveal that managerial ties relate to open innovation, while non-significant findings are found with the other two hypotheses. Social Exchange and Actor-Network theories are used to explain the framework of this study. Limitations, practical and academic implications are discussed

The linkage between open innovation, absorptive capacity and managerial ties: A cross-country perspective

The paper addresses the concepts of inbound open innovation and outbound open innovation as the key elements of the open innovation by incorporating managerial ties and absorptive capacity from a cross-country perspective. This study draws on a cross-sectional sample of 530 companies based in France, Malaysia and the UAE collecting data collect from middle and top managers working in different industries. The results show the mediating effect of perceived absorptive capacity in the relationship of external managerial ties and open innovation (inbound and outbound). Most specifically, managerial ties affect inbound open innovation in all the three surveyed countries while managerial ties relate positively to outbound open innovation in France and the UAE. The mediating role of absorptive capacity is evident in the cases of France and the UAE. Finally, the paper concludes, highlighting the implications of the study findings and its limitations. The paper will help to understand the connection between managerial ties and absorptive capacity that may lead to the successful operations of open innovation

Factors Affecting Success and Survival of Small and Medium Enterprises in the Middle East

SMEs are one of the leading solutions for reducing unemployment and poverty and boosting economic growth. Due to this, the determinants of the survival and success of SMEs have received increasing scrutiny in recent years. Empirical evidence has been uncovered in different countries. Enriching this growing body of evidence, this paper explores the internal and external factors that affect the survival and success of SMEs in the middle eastern country of Oman. We used a quantitative approach to collect the data by distributing a survey questionnaire among SME owners and prospective entrepreneurs. The survey was distributed in different industries throughout Oman. The findings, based on 344 responses, show that for SME survival and success, the education system needs intervention. Other areas of intervention include transforming Omani business culture, focusing on managerial skills, and improving the procedures required for establishing a business. These findings offer vital implications for Oman’s economy and for SME owners. The findings of this study can help policymakers make the appropriate interventions at various levels to enhance SME survival and success in Oman. The study also provides insights for existing and prospective entrepreneurs to bridge the skillset gaps to keep pace with ever-changing market demands

How managerial ties and appropriability regimes affect open innovation

Given the rapid technological advances and implications of globalization, the need to create not only innovations but faster innovation has become a part of sustaining or gaining competitive advantage. Due to this, firms are increasingly seen shifting from the traditional innovation model which relied on a firm's internal R&amp;D to the more porous open innovation paradigm which utilizes resources both internal and external to a firm to come up with innovations. However success in the open innovation paradigm is contingent upon some internal and external factors of a firm. This conceptual paper first discusses how one such internal factor-managerial ties-impacts the success of open innovation. Second, this paper looks at the moderating role of an external factor-appropriability regimes-on the relationship between managerial ties and success of open innovation. We propose that building managerial ties is important for the creation of open innovation since open innovation requires exploration and exploitation of external resources. We further posit that presence of strong appropriability regimes is crucial to reap the benefits of managerial ties in the open innovation model and that in presence of weak appropriability regimes, managerial ties may not produce results as valuable. Propositions are developed, managerial implications underscored and future research directions highlighted.</p

How managerial ties and appropriability regimes affect open innovation

Given the rapid technological advances and implications of globalization, the need to create not only innovations but faster innovation has become a part of sustaining or gaining competitive advantage. Due to this, firms are increasingly seen shifting from the traditional innovation model which relied on a firm's internal R&amp;D to the more porous open innovation paradigm which utilizes resources both internal and external to a firm to come up with innovations. However success in the open innovation paradigm is contingent upon some internal and external factors of a firm. This conceptual paper first discusses how one such internal factor-managerial ties-impacts the success of open innovation. Second, this paper looks at the moderating role of an external factor-appropriability regimes-on the relationship between managerial ties and success of open innovation. We propose that building managerial ties is important for the creation of open innovation since open innovation requires exploration and exploitation of external resources. We further posit that presence of strong appropriability regimes is crucial to reap the benefits of managerial ties in the open innovation model and that in presence of weak appropriability regimes, managerial ties may not produce results as valuable. Propositions are developed, managerial implications underscored and future research directions highlighted.</p

The link between organisational citizenship behaviours and open innovation: A case of Malaysian high-tech sector

We examine the role of organisational citizenship behaviours (OCBs) in two types of open innovation—inbound and outbound. Data were collected using the questionnaire survey technique from middle and top managers working in high-tech industries in Malaysia. Results show that OCBs positively predict both inbound and outbound open innovation. A closer look reveals that OCBs relate positively to out-bound open innovation in aggregate and in isolation. However, OCBs relate to in-bound open innovation in aggregate only. The implications of these results are discussed and limitations of the study are highlighted