The role of corporate risk management in the relationship between open innovation and organizational strategy

Abstract

Objective of the study: This study aims to analyze the relationship between open innovation and organizational strategy. Additionally, the mediating effect of corporate risk management on it was assessed.Methodology/approach: A quantitative study was conducted in Portugal based on a survey with 251 executive directors of SME hotels. Structural equations modeling was used in this study.Originality/relevance: While other studies have analyzed the relationship between open innovation and organizational strategy, this study deepens the knowledge of the mediating effect of corporate risk management on it.Main results: The results show that (1) open innovation improves corporate risk management and organizational strategy, (2) corporate risk influences organizational strategy, and (3) corporate risk management has a mediating effect on the relationship between open innovation and organizational strategy.Theoretical/methodological contributions: This study provides a theoretical framework for understanding the relationships between three constructs (open innovation, corporate risk management and organizational strategy) in SMEs in the hospitality sector, not yet explored by academics.Social/management contributions: This study will guide managers of SMEs in the hospitality sector in defining strategies to develop the relevant resources and contribute to the definition of effective government policies, programs and incentives to support the adherence or expansion of the open innovation model for companies in this sector.

Impact of Digital Transformation on Business Model Innovation in Manufacturing Companies in Ghana: Mediating Role of Risk Management

“…Risk management involves coordinated actions aimed at guiding and controlling an organization's exposure to risks across various levels, sectors, roles, projects, and activities (Fernandes & Brandão, 2016). Its primary objective is to anticipate and assess potential aspects and events that could pose threats to an organization's performance and ensure effective decision-making and operations (Musiello-Neto et al, 2022). The process encompasses identifying, analyzing, and prioritizing risks while striving to optimize projected returns relative to risk tolerance (Wirahadi & Pasaribu, 2021).…”

“…In the context of digital transformation and business model innovation, risk management plays a critical role in navigating the changing landscape (Andreini et al, 2021). Digital transformation, characterized by the adoption of digital technologies and strategies, has brought about new opportunities and challenges (Musiello-Neto et al, 2022). Organizations need to manage risks associated with technological disruptions, cybersecurity threats, and shifts in customer behavior (Songling et al, 2018).…”

“…Scholars on digital transformation and business model innovation generally agree that agile organizational structures enable businesses to remove traditional hierarchical barriers and create connected harmony to create value, operate in lean, improve customer interaction, and accelerate technology adoption, all of which define the success of any business's digital transformational applications (Jayawardena et al, 2020;Sun et al, 2020;Fernandes & Brandão, 2016;Musiello-Neto et al, 2022;Garcia-Perez et al, 2022;Kersten et al, 2017;Gunasekara et al, 2020;Kibisu & Awino, 2017;Al-Nimer et al, 2021;Wirahadi & Pasaribu, 2021). Al-Nimer et al ( 2021) investigated the impact of Enterprise Risk Management (ERM) on business performance, with Business Model Innovation acting as a moderator (BMI).…”