Open innovation in SMEs: A process view towards business model innovation

Abstract

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.

Open Innovation in Organization Through Stakeholder Capability During Pandemic (COVID-19): Indonesian SMEs Perspective

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Towards Systematic Sustainable Business Model Innovation: What Can We Learn from Business Model Innovation

“…Thus, literature started to explore BMI antecedents, tools, and processes, in the efforts towards proposing a business creation engine-a never-ending approach to uncover and create new business models [15]. Hence, many novel BMI studies target such an organizational phenomenon and offer approaches regarding experimentation [50], ambidexterity [51], open innovation [52,53], dynamic capabilities [15], and organizational design [54].…”

The Limits of Open Innovation: A Literature Review and Research Agenda

“…Defining clear goals and developing a clear plan for value creation are essential in the early stages of OI. OI often develops from a need to address R&D challenges, meet customer demands, or seize market opportunities [46]. Hence, the formation of an OI system within an organization or as a new organization is often organic and lacking in a clear vision [47].…”

“…Even if an organization eventually overcomes these limitations, OI may still fail in the absence of coherent policies and procedures (e.g., privacy compliance or fair and equitable enforcement of IP rights). [6], [27], [46], [47] Resource Constraints Limitations in securing, allocating, and sustaining resources needed for OI operation and maintenance.…”