Hanna Bahemia

A contingent perspective of open innovation in new product development projects

Studies of open innovation are predominantly concerned with firm-level strategy development. The result is that the literature has largely ignored the multiple contingencies that influence the implementation of an open strategy at the level of the NPD project. In this paper, we develop a conceptual framework of inbound open innovation at the NPD project level to assess factors that help determine the degree of openness along three dimensions. We argue that the margin of managerial action is not only constrained to the decision to open up the NPD project to a wide range of different types of external parties (breadth dimension), but that it is equally important to consider the depth of the relationships with different types of external parties (depth dimension) and the balance between the development of new and longstanding relationships (ambidexterity dimension). The calibration of these three dimensions represents the levers when managing an inbound open innovation strategy during an NPD project. Finally, we identify a range of contingencies, which potentially have a bearing on the appropriate calibration of the breadth, depth and ambidexterity dimensions of an open innovation strategy. We argue that appropriate calibration of the three dimensions of inbound open innovation is determined by the type of innovation (radical versus incremental), product complexity (discrete versus complex) and the appropriability regime (tight versus weak).

A multi-dimensional approach for managing open innovation in NPD

Purpose This paper explores openness within new product development (NPD) projects. The purpose of this paper is to examine the impact of breadth, depth and partner newness on product innovativeness and product competitive advantage. The authors also seek to examine the contingent effects of the appropriability regime. The authors make suggestions to academics and practitioners based on the findings. Design/methodology/approach The authors use a structured survey instrument producing an empirical analysis of 205 NPD projects in the manufacturing sector in the UK. The authors use an ordinary least squares regression model to test hypothesised relationships between openness (breadth, depth and partner newness), product innovativeness, product competitive advantage and the appropriability regime. Findings The authors find that each of the three dimensions of openness, depth, breadth and partner newness, have a significant but differing impact on product innovativeness. Specifically, the study indicates that breadth has a positive effect but only in the presence of a strong appropriability regime, partner newness has a direct positive effect, and depth a direct negative effect. The authors also find that product innovativeness has a positive impact on product competitive advantage. Research limitations/implications Further research should focus on replicating the findings in other countries, search for further moderating factors, such as the stage of the NPD process, and analyse the longitudinal impact of openness within NPD projects. Practical implications Organisations are encouraging managers to be more open in their approach to NPD. The authors’ findings suggest that managers need to think about the three dimensions of openness, breadth, depth and partner newness. Their engagement with each of these dimensions depends on the desired outcomes of the innovation project and the strength of patents. Originality/value The research extends the extant supplier involvement in new product development literature to examine the effect of up to 11 types of external actor in NPD projects. The authors test a new multi-dimensional measurement scale for the openness construct. The authors show that each dimension has a different relationship with product innovativeness.

Implementation of an open innovation strategy for a radical innovation project at Jaguar

This study contributes to the theoretical development of a contingency and relational perspective on open innovation strategy at the project level. An in-depth case study at Jaguar (UK) reveals that there are multiple and interdependent contingency forces at work which make it necessary under certain conditions to either close or open the innovation model during the course of a single radical innovation project. The case study indicates that the stages of the New Product Development (NPD) project, the strength of the appropriability regime and the use of informal appropriation instrument (i.e. secrecy) are key contingencies which influence the decision to either close or open the innovation model during the project. In addition, the risks of losing control and objectivity over the project, compounded with the risks of opportunism and loss of intellectual capital, are the underlying reasons which explain why Jaguar developed non-embedded and guarded relationships with the external partners during this part...

Open Innovation in New Product Development Projects: A Contingency Approach

While interest in the open innovation model is still growing, limitations in its scope and application are starting to become evident. Our study aims to make three contributions to that literature. First, we develop a multi-dimensional view of the open innovation construct that includes breadth, depth and exploration. Second, we study open innovation at the proejct level offering a more granular perspective than prior organisational level studies. Finally, we develop a contingency perspective of open innovation, analyzing the interaction effect of the type of innovation and the appropriability regime. A set of empirical results, based on a survey of 205 new product development (NPD) projects in the UK manufacturing sector, suggest that all three dimensions play a significant but varying role for incremental and radical innovations, and that patents play a significant role in influencing the level of openness.