The Impact of Open Innovation on new Product Development Performance with Emphasis on Knowledge Acquisition Capacity

Document Type : Research Paper

Authors

1 Associate Professor in Business Management-Marketing Management, University of Mohagheh Ardabili, Ardabil, Iran

2 Assistant Professor of MBA, Economy and Management faculty, University of Semnan, Semnan, Iran

3 Ms.C in Business Management, Kharazmi university

4 Ph.D. student in Business management-Marketing Management, University of Mohagheh Ardabili, Ardabil, Iran.

5 Associate professor in Economic, Kharazmi University, Iran

Abstract

Abstract
The main purpose of this study was to investigate the impact of open innovation on new product development performance with emphasis on the moderating role of knowledge acquisition capacity in knowledge-based companies in Tehran province. After reviewing the literature on open innovation and new product development performance, the conceptual modeling capacity and research hypotheses were formulated. The present study is of applied purpose and descriptive-correlational in terms of data collection. A questionnaire was designed and distributed to measure the dimensions of open innovation and the success of new product development and knowledge acquisition capacity. The community comprised 121 members of the science and technology parks of Tehran University of Science and Technology, who were represented in the sample by 92 individuals. Confirmatory factor analysis and structural model were used for data analysis. Data were analyzed using SPSS and Smart PLS software. The results of the data analysis show that open innovation has a significant impact on new product development performance and moderates the capacity for knowledge acquisition, the relationship between open innovation and new product development performance
Introduction
In recent years, the innovation space has evolved, and the process of innovation collaboration has intensified beyond the organizational boundaries. Companies have no choice but to pursue a more open approach to innovation and blend in with open and transparent business models to increase their chances of success in the innovation campaign (Bagheri & Shavardi, 2011). In open innovation, organizations explore the environment for technology and knowledge and are not solely dependent on their own internal research and development (Hashemi, 2014). Open innovation confirms that organizations need to expand their partnerships with external partners in order to ensure their success in new product development, in addition to internal research and development. In fact, collaboration, coordination, and deep relationships between organizations and their partner partners have a positive impact on performance outcomes (Schreiner et al, 2009). Companies with the open innovation process have the opportunity to access specialized knowledge they did not previously possess. Provide newer, higher quality products and services and reduce costs and risks associated with product development by acquiring complementary technology and skills (Kostopoulos et al, 2011).
Methodology
This research is applied in terms of purpose and descriptive-correlational in terms of data collection. Questionnaires were used to collect the required information and to evaluate the research variables, research hypotheses and research questions. The statistical population of this study was managers of knowledge companies in the Science and Technology Park of Tehran University with 121 participants. The sample size was 92 people who were selected through Morgan table and were selected by simple random sampling. Data were collected by a questionnaire. Questionnaire questions were designed based on a five-point Likert scale ranging from strongly disagree (1) to strongly agree (5). A 21-item questionnaire was used to measure open innovation.
Research findings
The results of using Structural Equation Modeling technique showed that in the first hypothesis, the path coefficient between open innovation and new product development performance and the second hypothesis were moderated and confirmed by the capacity moderator role.
Discussion and conclusion
The results of the analysis show that open innovation has a significant impact on new product development performance and it can be confirmed that knowledge acquisition capacity moderates the relationship between open innovation and new product development performance. The results of this study are consistent with those of Mazzola et al (2012) study, which confirmed the relationship between open innovation functions (including intra-border, cross-border and hybrid functions) and new product development performance.

Keywords

References

1-Abulrub, A. H. G. & Lee, J. (2012). Open innovation management: challenges and prospects. Procedia-Social and Behavioral Sciences, 41, 130-138.
2-Bagozzi, R. P. & Fornell, C. (1982). Theoretical concepts, measurements, and meaning. A second generation of multivariate analysis, 2(2), 5-23.
3-Bahemia, H. & Squire, B. (2010). A contingent perspective of open innovation in new product development projects. International Journal of Innovation Management, 14(04), 603-627.
4-Brant, J. & Lohse, S. (2014). The open innovation model. ICC (International Chamber of Commerce) Innovation and Intellectual Property Research Paper, (2).
5-Chesbrough, H. (2011). Open innovation: the new imperative for creating and profiting from technology, Translated by Seyyed Kamran Bagheri and Marzieh Shavardi, Tehran: Rasa publication. (in persian).
6-Chesbrough, H. W. (2006). Open innovation: The new imperative for creating and profiting from technology. Harvard Business Press.
7-Cohen, W. M. & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative science quarterly, 35(1), 128-152.
8-Dehghani, H. and Akhavan, P. and Hosseini, S.M. (2013). Increasing the success of new product development based on open innovation approach, Journal of Management Innovation, vol. 2, No. 2, PP: 45-68.
9-Dyer, B. Gupta, A. K. & Wilemon, D. (1999). What first-to-market companies do differently. Research-Technology Management, 42(2), 15-21.
10-Gassmann, O. (2006). Opening up the innovation process: towards an agenda. R&d Management, 36(3), 223-228.
11-Hair, J.F. Hult, G.T.M. Ringle, C.M. Sarstedt, M. (2014). Primer on partial least squares structural equation modeling. Thousand Oaks, Sage.
12-Hashemi, Z. (2014). Open innovation and the need to implement it in organizations, Journal of Industry and University, vol. 7, No. 25 and 26. (In Persian).
13-Henseler, J. Ringle, C. M. & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In New challenges to international marketing (pp. 277-319). Emerald Group Publishing Limited.
14-Hultink, E. J. & Robben, H. S. (1995). Measuring new product success: The difference that time perspective makes. Journal of Product Innovation Management: AN INTERNATIONAL PUBLICATION OF THE PRODUCT DEVELOPMENT & MANAGEMENT ASSOCIATION, 12(5), 392-405.
15-Inauen, M. & Schenker-Wicki, A. (2011). The impact of outside-in open innovation on innovation performance. European Journal of Innovation Management, 14(4), 496-520.
16-Javid, G. and Bagherinezhad, J. (2012). Relationship between open innovation process and the ability to attract firms, Journal of Parks and Growth Centers, vol. 8, No. 31, pp. 53-61. (in persian).
17-Kim, H. & Park, Y. (2010). The effects of open innovation activity on performance of SMEs: The case of Korea. International Journal of Technology Management, 52(3/4), 236-256.
18-Kostopoulos, K. Papalexandris, A. Papachroni, M. & Ioannou, G. (2011). Absorptive capacity, innovation, and financial performance. Journal of Business Research, 64(12), 1335-1343.
19-Lee, K. B. & Wong, V. (2011). Identifying the moderating influences of external environments on new product development process. Technovation, 31(10-11), 598-612.
20-Lichtenthaler, U. (2009). Outbound open innovation and its effect on firm performance: examining environmental influences. R&d Management, 39(4), 317-330.
21-Lichtenthaler, U. (2012). Retracted: Technological Turbulence and the Impact of Exploration and Exploitation Within and Across Organizations on Product Development Performance. Entrepreneurship Theory and Practice.
22-Lu, P. Yuan, S. & Wu, J. (2017). The interaction effect between intra-organizational and inter-organizational control on the project performance of new product development in open innovation. International Journal of Project Management, 35(8), 1627-1638.
23-Marion, T. J. Eddleston, K. A. Friar, J. H. & Deeds, D. (2015). The evolution of interorganizational relationships in emerging ventures: An ethnographic study within the new product development process. Journal of Business Venturing, 30(1), 167-184.
24-Mazzola, E. Bruccoleri, M. & Perrone, G. (2012). The effect of inbound, outbound and coupled innovation on performance. International Journal of Innovation Management, 16(06), 1240008.
25-Minbaeva, D. Pedersen, T. Björkman, I. Fey, C. F. & Park, H. J. (2003). MNC knowledge transfer, subsidiary absorptive capacity, and HRM. Journal of international business studies, 34(6), 586-599.
26-Nikabadi, M. S., Dehghan, M., & Arani, M. F. (2015). The effect of knowledge management strategies on performance of new product development in knowledge-based companies. Indian Journal of Science and Technology, 8(S7), 263-277.
27-Porter, A. L. (2007). Tech mining to drive open innovation. In Proceedings of the First International Conference on Technology Innovation, Risk Management and Supply Chain Management (TIRMSCM 2007, Beijing), Universe Academic Press, Toronto, page1-13.
28-Rauter, R. Globocnik, D. Perl-Vorbach, E. & Baumgartner, R. J. (2018). Open innovation and its effects on economic and sustainability innovation performance. Journal of Innovation & Knowledge.
29-Schreiner, M. Kale, P. & Corsten, D. (2009). What really is alliance management capability and how does it impact alliance outcomes and success? Strategic Management Journal, 30(13), 1395-1419.
30-Sisodiya, S. R. Johnson, J. L. & Grégoire, Y. (2013). Inbound open innovation for enhanced performance: Enablers and opportunities. Industrial Marketing Management, 42(5), 836-849.
31-Spithoven, A. Clarysse, B. & Knockaert, M. (2010). Building absorptive capacity to organise inbound open innovation in traditional industries. Technovation, 30(2), 130-141.
32-Story, V. M. Boso, N. & Cadogan, J. W. (2015). The form of relationship between firm‐level product innovativeness and new product performance in developed and emerging markets. Journal of Product Innovation Management, 32(1), 45-64.
33-Van de Vrande, V. De Jong, J. P. Vanhaverbeke, W. & De Rochemont, M. (2009). Open innovation in SMEs: Trends, motives and management challenges. Technovation, 29(6-7), 423-437.
34-Wang, J. & Lin, Y. I. (2009). An overlapping process model to assess schedule risk for new product development. Computers & Industrial Engineering, 57(2), 460-474.
35-Wang, W. P. (2009). Evaluating new product development performance by fuzzy linguistic computing. Expert Systems with Applications, 36(6), 9759-9766.

Files

Share

How to cite

Statistics