Open innovation: A new classification and its impact on firm performance in innovative SMEs

This paper attempts to deepen understanding of the relationship between open innovation (OI) and firm performance in small and medium-sized enterprises (SMEs). Based on survey data from 306 Korean innovative SMEs, the results of this study show that: (1) broad and intensive engagement in OI and cooperation with external partners are positively associated with firm performance; (2) technology and market-oriented OI modes (Joint R&D, user involvement and open sourcing), involving relatively low level of changes, can positively contribute to performance enhancement; and (3) innovative SMEs benefit from working with non-competing partners, such as customers, consultancy/intermediaries and public research institutes. This work has broadened the evidence available on SMEs’ OI adoption and has proposed a new way to study OI adoption and implementation.This is the final version of the article. It first appeared from FEUP Edições via http://feupedicoes.fe.up.pt/journals/index.php/IJMAI/article/view/55/8

Customer entrepreneurship on digital platforms: Challenges and solutions for platform business models

Drawing on the mixed methods of qualitative research and agent-based simulation, this study examines (a) how end-users use digital platforms to become customer–entrepreneurs undertaking commercial activities on platforms, and (b) how platform providers can convert this customer entrepreneurship into a revenue stream. Considering that end-users have traditionally been defined as passive and uncharged actors in platform business models, an in-depth understanding of their commercial activities and the viable revenue model to monetize this emerging customer practice is warranted. Our qualitative study reveals that customer–entrepreneurs make substantial use of platform offerings to advertise their products; communicate with end-consumers; and accept payments. These commercial activities are largely exercised for free on platforms, even though they could otherwise serve as a source of revenue. On this point, our simulation results identify two pricing models achieving the generation of nearly identical revenues over time. First, platform providers may charge both advertising and transaction fees, which maximize the survival of professional customer–entrepreneurs. Second, platform businesses may levy advertising fees only, which maximizes the survival of informal customer–entrepreneurs operating on a micro-scale and part-time basis. This study offers theoretical, methodological and managerial implications for platform studies

Sustainable Value Roadmapping Framework for Additive Manufacturing

This is the final version of the article. Available from Elsevier via the DOI in this record.24th CIRP Conference on Life Cycle Engineering, 8-10 May 2017, Kamakura, JapanRecent developments around the use of additive manufacturing (AM) for making components and end-products is radically changing the way manufacturing activities are organized. Many researchers are now turning their attention to AM technology and its potential benefits for boosting economic, social, and environmental sustainability. However, there is still much uncertainty on the full impact from a life cycle perspective. Previous work has reviewed the implications of AM from a sustainability and life cycle point of view, but it is unclear whether the technology can fully realize the potential benefits identified, and whether it will lead to unintended consequences such as increased material consumption, thereby further straining the planet's carrying capacity and pushing society towards unsustainable, more materialistic values. This research builds on previous work to customize a tool, the Sustainable Value Roadmapping Tool (SVRT), which combines the strategic roadmapping technique with the sustainable value analysis tool. Roadmapping is a well-established approach for businesses to strategically plan activities for the short-, medium- and long-term; combined with the value analysis tools, it can identify opportunities for sustainable value creation for all stakeholders, including society and the planet. While SVRT has been developed and tested in a more generic context (i.e. not technology-specific), it also has good promises to help companies to explore the potential benefits and challenges of AM adoption across products’ life cycle and the associated business model implications. This paper will present the prototype version of SVRT for AM. The findings consolidate and expand the opportunities and challenges already identified in the literature. Further work will conduct case studies to use the SVRT with companies adopting AM technology and better understand the sustainability impacts from a business perspective.This work was supported by the Engineering and Physical Sciences Research Council [grant number EP/K039598/1] and the STIM consortium

Implementation of rapid manufacturing for mass customisation

PurposeThe purpose of this paper is to increase the understanding of how companies can implement rapid manufacturing (RM) (i.e. the use of additive manufacturing (AM) technologies for final part production) for mass customisation (MC), drawing upon the experiences of firms in the dental sector (one of the major users of AM technologies).Design/methodology/approachA framework for implementation of RM for MC was developed from the literature to guide the data gathering. Data from six case companies in the dental sector implementing RM for MC, supplemented with insights from their respective AM machine providers and software companies, were used to analyse how companies implement RM for MC and what considerations and challenges they face in the process.FindingsThe study shows how implementation of RM for MC entails different considerations depending on the stage of implementation and maturity of involved technologies. In total, 26 challenges have been identified that seem to play a crucial role in implementation. The paper suggests that RM can enable MC in manufacturing by achieving both a high number of units produced and as well as a high level of customisation of each product.Originality/valueBased on the review of the literature, no case studies exist that investigate companies implementing RM for MC despite literature having suggested RM as an enabler for MC in manufacturing for many years.</jats:sec

Finance, Innovation and Emerging Industries – a Review

This paper provides a review entrepreneurial finance in emerging industries. First we examined literature to create a view of industrial emergence with reference to systems thinking. We then explored the role of entrepreneurial finance in emerging industries, and whether it can theoretically slow or accelerate industrial emergence through reference to the literature. We find the link between entrepreneurial finance and industrial emergence is not a simple relationship of more finance generates more innovation and industrial emergence

Dynamic capabilities and economic crises: Has openness enhanced a firm's performance in an economic downturn?

Many studies have attempted to investigate the potential benefits of open innovation. However, the long-term effects of openness have yet to be demonstrated, even if few researchers hypothesized that high openness could increase firms’ dynamic capabilities and hence their resilience in the face of adversities, such economic downturns. Hence, this article attempts to investigate this dynamic relationship between openness and firm performance with particular considerations addressing the recent financial crisis in 2008. Based upon the UK Community Innovation Survey (CIS) panel data collected between 2006 and 2012, this study finds evidence that supports the positive influence of openness on long-term firm performance. The results show that (i) increasing a firm's openness is an effective way of enhancing its dynamic capability and hence its resilience, and (ii) of all the various configurations of openness, the collaboration with partners outside the firm's value chain and international partners has the highest impact on turnover recovery, as they will increase the chances of acquiring newer knowledge, which in turn will help firms to identify new opportunities to achieve sustainable growth. The findings of this article have some practical implications for managers and policymakers

The Emergence of Additive Manufacturing: Introduction to the Special Issue

This work was supported by the Engineering and Physical Sciences Research Council [grant number EP/K039598/1].This is the author accepted manuscript. The final version is available from Elsevier via http://dx.doi.org/10.1016/j.techfore.2015.09.02

Beyond absorptive capacity in open innovation process: the relationships between openness, capacities and firm performance

The literature has shown that open innovation (OI) can be a winning strategy in improving firm performance. However, in order to adopt and implement it, managers need to resolve practical problems, such as understanding the role played by OI capacities and openness on firm performance. In response to these needs, this study aims to investigate the hierarchical relationships between openness, OI capacities and performance using a structural equation model approach. This paper also attempts to compare the levels of openness between firms in different industries to discover similarities and differences in OI phenomena. The analysis of data obtained from a survey of Korean firms shows significant interrelations between openness, OI capacities and firm performance. Our results go further in developing understanding of the building blocks on which successful OI is built and particularly suggest that desorptive capacity which underpins the out-bound OI process, is in turn strongly supported by knowledge management capacity. It is hoped that the results of this study can enrich our understanding of the OI mechanism *and provide managerial and policy implications.This is the author accepted manuscript. The final version is available from Taylor & Francis via http://dx.doi.org/10.1080/09537325.2016.118173

Understanding the human side of openness: The fit between open innovation modes and CEO characteristics

In small- and medium-sized enterprises (SMEs), where typically the decision-making process is highly centralised, important decisions, such as open innovation (OI) adoption, will be strongly influenced by the characteristics of their Chief Executive Officers (CEOs). Pointing the attention to the strategic leadership and human elements, this paper sheds light on the micro-foundation of OI by emphasising the role that the personal traits of key individuals in innovation. OI adoption could result in the enactment of several OI modes - each representing an opportunity of potential change (of market, of technology or/and of the organisation) - and this paper attempts to examine the relationships between the CEO characteristics and each of the OI modes. Our analysis, using Korean SME data, shows that CEOs' positive attitude, entrepreneurial orientation (EO), patience and education can play important roles in facilitating OI in SMEs. However, this paper also observed that the effects of CEO characteristics on OI adoption were differently configured according to the nature of each OI mode, for example, CEOs' patience and EO had different impacts depending on the degree of uncertainty in the OI mode. This suggest that OI must be understood as a wide innovation spectrum, and, to increase opportunities for successful OI adoption, CEOs have to attempt to compensate for characteristics they may lack by recruiting appropriate complementary top managements. The research has practical implications for CEOs and policy makers who are interested in enhancing competitiveness of SMEs