Open Innovation and the Challenges of Human Resource Management

Abstract

This paper considers challenges of human resource management (HRM) in open innovation (OI) processes. It examines which strategies managers use to overcome these problems. By conducting an inductive case study of the Brazilian oil and gas company Petrobras based on grounded theory, we developed a framework explaining these challenges and strategies. The paper argues that the most important HR challenges are (a) interpersonal relationships, (b) power shifting inside the organization, and (c) creating a sense of value among workers, and explains how managers tackled all these challenges to build a better working environment. The deep analysis of HRM challenges in OI contributes to a better understanding of management problems these processes can cause and how these could be overcome.

Open innovation in specialized SMEs: the case of supercars

“…Nevertheless, the results add further evidence to other studies by finding a positive relationship between adopting OI and increasing some environmental indicators in manufacturing SMEs (Cagno et al , 2015; Ramirez-Portilla, Cagno and Trianni, 2014). Likewise, it is one of the first studies to show the link between adopting OI and some indicators of social performance in SMEs such as adopting an approach to social responsibility or the appropriate management of human resources (Lenz et al , 2016; Podmetina et al , 2013). Thus, even though this study could not confirm a strong effect on economic indicators, the findings suggest that by implementing OI, SMEs could obtain knowledge, resources, and capabilities to achieve sustainability in their innovation and performance (Ketata et al , 2014).…”

“…A good example of these challenges is that OI practices do not happen alone but there should be a person or group of persons conducting them. In fact, recent studies are stressing the managerial roles that appear to be crucial for organizing OI (Ollila and Yström, 2016), and in general challenges of human resource management when adopting OI need to be further studied (Lenz et al , 2016; Podmetina et al , 2013). Thus, we believe promising to investigate the dynamics and implications for managerial choice and agency when implementing OI since lacking them could hinder OI collaborations (Tushman et al , 2012).…”

Setting the conditions for open innovation in the food industry: unravelling the human dimension of open innovation

“…This is realised through inflows and outflows of knowledge across the boundaries of different organisations (Casprini et al , 2017), which boost the firm's capability to renew extant sources of competitive advantage (Petroni et al , 2012; Scuotto et al , 2020). Such considerations stress the relevance of the human dimension of open innovation and, consequently, of HRMPs related to it (Lenz et al , 2016). This also applies to the food sector, where organisations struggle to arrange open innovation strategies due to institutional barriers and management constraints (Bigliardi and Galati, 2016).…”

The Human Dimension of Open Innovation: Structured Literature Review

“…(Lenz et al 2016 [18]) were interested in HRM challenges caused by interpersonal relationships created during open innovation process as well as in possible strategies to address these challenges. Research results reiterate the importance of trust in interpersonal relationships, while the central finding of the study is that among all types of OI challenges, the HR challenges are the most important.…”