Presentation at AoM 2014
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Is ‘Open’ Always Better? An Exploration of Open Innovation Projects
Jungpil Hahn!!
w/ Tingru Cui, Yu Tong and Hock Hai Teo
open innovation
open innovation
credits: LucasArts
own!technology
collaborator technology+
=
innovative!product
collaborator technology
own!technology +
=innovative!product
collaborator working style
own!working style +
=complex!
collaboration
own!working style
collaborator working style+
=
complex!collaboration
with whom to collaborate?
is “open” always better?
is “open” always better?
search openness ⇒ open innovation project performance
how can firms successfully implement open innovation projects?
how can firms successfully implement open innovation projects?
role of IT ⇒ open innovation project performance
<theory>
is “open” always better?
search openness ⇒ open innovation project performance
product !effectiveness
process !efficiency
product !effectiveness
process !efficiency
inter-firm!distance
product !effectiveness
process !efficiency
inter-firm!distance
product !effectiveness
process !efficiency
inter-firm!distance
search!openness
product !effectiveness
process !efficiency
inter-firm!distance
search!openness
product !effectiveness
process !efficiency
inter-firm!distance
search!openness
product !effectiveness
process !efficiency
inter-firm!distance
search!openness
product !effectiveness
process !efficiency
inter-firm!distance
- technological distance!- social distance
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distanceH1a(+)
H1b(+)
H2(+)
H3a(+)
H3b(+)
H4b(-)
H4a(-)
how can firms successfully implement open innovation projects?
role of IT ⇒ open innovation project performance
IT tools
IT-enabled!absorptive capacity
IT-enabled!absorptive capacity
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
IT-enabled!absorptive capacity
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
CAD/CAM, visualization, !simulation, ...
online platforms, search !engines, BA, ...
email, messaging, !conferencing, ...
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
H5a(+)H5b(+)
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
H6a(+) H6b(+)
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
H7b(+) H7a(+)
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
H1a(+)
H1b(+)
H2(+)
H3a(+)
H3b(+)
H4b(-)
H4a(-)
H5a(+)H5b(+) H6a(+) H6b(+)
H7b(+) H7a(+)
</theory>
<data & methods>
multi-method approach
phase 1: !multiple case studies
phase 2: !survey
phase 3: !matching surveys
multi-method approach
phase 1: !multiple case studies
phase 2: survey
phase 3: !matching surveys
data
• sampling frame:!
• high-tech firm directory provided by China Science and Technology Commission !
• Chinese firms in four industries (chemical and pharmaceutical, electronic and other electrical equipment, industrial and commercial machinery equipment, fabricated metal and other material)!
• key informants: !
• managers of R&D department!
• identify a recent completed open innovation project
</data & methods>
<results>
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
H1a(+)
H1b(+)
H2(+)
H3a(+)
H3b(+)
H4b(-)
H4a(-)
H5a(+)H5b(+) H6a(+) H6b(+)
H7b(+) H7a(+)
unobserved heterogeneity?
A
B
C
A
B
C
0.1
0.1
0.7
0.7
A
B
C
A
B
C
A
B
C
0.1
0.1
0.7
0.7
0.4
0.4
A
B
C
A
B
C
A
B
C
0.1
0.1
0.7
0.7
0.4
0.4
A
B
C
A
B
C
A
B
C
0.1
0.1
0.7
0.7
0.4
0.4
2 segment mixture solution
• 19.7% of sample!
• predominantly!
• large (3.5x)!
• electronic and other electrical equipment
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
search!openness
product !effectiveness
process !efficiency
inter-firm!social distance
inter-firm!tech. distance
IT-enabled!exploitative learning
IT-enabled!explorative learning
IT-enabled!social integration
segment 1!(N=206, small/medium size firms)
segment 2!(N=52, large firms)
</results>
contributions
• theory!
• uncovering both positive and negative impacts of search openness!
• building an IT-enabled absorptive capacity theory in the open innovation context!
• practice!
• 2-sided effects of openness!
• effective control of inter-firm distance!
• deploying different types IT to reap benefits & alleviate challenges of open innovation
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