Towards a Building-block approach for Managing Open Innovation in SMEs

Objectives The aim of this paper is to give a new perspective of analysis on the recent increasing interest in open innovation in small- and medium-sized enterprises (SMEs). More specifically, the goal of this article is firstly to investigate the fundamental classes of elements which can be considered in managing open innovation. Secondly, it is proposed an approach more tailored to the intrinsic characteristics of SMEs on how to deal with the ―era of open innovation‖ (Chesbrough, 2003). Prior Work Due to the scarcity of resources and therefore the need to extend technological competences through alliances or networks, the open innovation approach has always existed in SMEs. However, as many authors have pointed out, much of the literature has regarded open innovation practices in large, high-tech multinational enterprises (Chesbrough, 2003; Kirschbaum, 2005). Only recently the focus has moved toward open innovation in SMEs (Lee et al., 2010; van de Vrande et al., 2009). Even though there is no single best way for doing open innovation (Nambisan & Sawhney, 2007), in the context of SMEs it is preferred an incremental approach, through a step-by-step experiencing (van de Vrande et al., 2009). Approach A building-block model is derived by integrating several strands of analysis and taking into account complex adaptive system (CAS), concepts of emergence, adaptability, fit and evolution. Due to the ―social‖ aspects of open innovation (collaborations, alliances, network, etc.) the activity system firstly illustrated by Engeström (1987) is chosen as framework to depict the fundamental classes of elements in the open innovation context. Results As confirmed by the literature review, the open innovation process in the context of SMEs must be slow, gradual and in a try & learn logic. In this perspective, the building block model fits in representing the open innovation process in SMEs. Implications The building block model identifies the key elements to manage open innovation in SMEs. The parallelism with the activity system contributes to import aspects of the theory of social systems into the open innovation paradigm. From a managerial perspective, a tool is proposed to represent and plan the management of open innovation. Value The framework of analysis takes into account the social aspects of open innovation, in a flexible, organized and structured manner. By means of it, the company is supported to build its own open innovation building block model, which is unique and dynamic in time.