The human side of open innovation (OI) has not been extensively studied; however, when companies develop new products or services, it is essential to foster corporate innovativeness, and managing personnel is a key to this. Human resource (HR) practices are an essential means by which companies can influence and shape the skillset, attitudes, and behaviour of individuals to do their work and can systematise the work of the whole organisation. In this paper, we aim to contribute to understanding the role of HR in open innovation, by analysing the HR practices in companies operating under an open innovation approach. We test our model with the PLS-SEM method, using Smart PLS software. Our findings suggest that personnel education is essential in supporting corporate open innovation strategies. Internal motivation systems prove to be valuable assets to support internal and external openness in OI implementation. High appreciation of personnel and its value to company are important for increasing external and internal openness.

To be competitive, small and medium-sized enterprises (SMEs) need to transform their business models. To overcome the liability of smallness, SMEs often need to collaborate with external partnersimplement open innovation. The complex processes behind business model transformation and open innovation combined remain unexplored. Linking the literature on business model innovation, open innovation, and SMEs, we examine how open business models can be a solution for SMEs. In particular, taking a process perspective, we study business model transformations in several European SMEs using a two-dimensional typology of SME business model innovation, considering the radicalness of the transformation and SME openness towards external partnerships. We identify the triggers for SMEs' business model innovation: market turbulence, market immaturity, competition, prior failure in open innovation, and scaling the production. We also signify how SMEs address the challenges related to the open business model transformation.

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Purpose From the organisational perspective, the authors know that management, including innovation management, becomes less “organised” by bureaucracy and administrative tools, and much more impacted by organisational capabilities, competences and hidden, “soft” routines, bringing innovation and creativity to the core of organisation. The purpose of this paper is to focus on competency sets for open innovation (OI) and is to provide recommendations for OI competency development in companies, linked to the core OI processes. Design/methodology/approach The research is exploratory and aims at theory-based practical indication combining deductive identification of competency clusters and inductive model development. Thus, the authors apply quantitative methods to data collection and analysis. The authors conducted an extensive literature review on competence challenges with regard to execution of OI, and empirical data analysis based on a large-scale structured industrial survey in Europe (N=264), leading to the development of competency sets for companies. SPSS tools are applied for empirical tests. Findings The authors develop a generic OI competency model applicable across industries, combined with organisational implications for sustaining OI management capabilities. The research clusters competencies based on the empirical analysis, which addresses the various challenges of OI, leading to recommendations for competency management in an OI context. Research limitations/implications The data were collected from one key informant per company. Although the authors made efforts to ensure that this was a senior manager responsible for innovation, the authors cannot exclude some bias in the way that OI activities and related competencies are perceived. Exploratory nature of the research, which calls for a more systematic investigation of the OI activity modes and the OI competencies resulting competency model. In particular, the competencies could be tested on an inter-professional sample of employees with involvement in and/or responsibility for innovation, development, and HR management, as well as on leaders of innovating companies. Third, although significant in size for the analyses undertaken, the sample is not large enough to enable a more fine-tuned analysis of regional differences across Europe in the way that OI is managed through the development and implementation of competencies. Practical implications The research contributes to the OI management field with an outlined OI competency profile that can be implemented flexibly and tailored to individual firm’s needs. It brings indications for both further theory building and practice of innovation organisation, especially with regard to human resource development and organisational capability building for OI. Social implications The social implications of the paper result from the contribution to innovation management competency development in OI regimes, which is an important tool for designing contemporary educational programmes, contributes to OI management sophistication in business which is especially important during the economy slowdown and search for new sources of growth and productivity, and supports firms productive engagement in OI ecosystems and collective technology upgrading towards higher societal benefits and stakeholder involvement. Originality/value An empirically grounded OI competency model is proposed with an implication to support human resource development for OI. To the best of the authors’ knowledge, there has been no prior attempt to build such a model. The distinguished feature of the research is its extensive European coverage of 35 countries and multinational scope. The empirical validation strategy makes the research extremely relevant for management decisions related to human factors related OI capability development in organisations.

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