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.

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Based on the suggested five-pillar institutional framework, the study empirically investigates the impact of the institutional environment on internationalization aspirations of small and medium enterprises (SMEs) in emerging economies and maps their strategic responses against imposed institutional pressures. The data collected across five forest cluster SMEs in Saint Petersburg andMoscow are analyzed. Political instability, corruption, bounded cognition, over-patriotism, and high power distance act as the main constraints, while demands for new knowledge and funding are identified as the main drivers for internationalization. The classified institutional challenges are mapped against the possible strategic responses of the SMEs, such as acquiescence, compromise, avoidance, defiance, and manipulation.

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