Open Innovation of Small Business in The City of Medan: Alternative Processes Towards Business Model Innovation

Onan Marakali Siregar; Nicholas Marpaung

Authors

Onan Marakali Siregar Department of Business Administration, Faculty of Social and Political Sciences, Universitas Sumatera Utara, Medan, North Sumatra 20222, Indonesia
Nicholas Marpaung Department of Business Administration, Faculty of Social and Political Sciences, Universitas Sumatera Utara, Medan, North Sumatera 20222, Indonesia

Keywords:

SMEs, Business Model, Open Innovation, Innovation Climate, North Sumatera, Inbound, Outbound

Abstract

Open innovation has become a strategic key element to improve innovation outcomes and commercialization among large companies. However, the relevance and potential of this concept could still be adopted by small-scale companies in Indonesia, especially those facilitated by social media. Research on open innovation for SMEs is limited, but provides important insights. Most research prioritizes in-bound innovation activities and ignores small-scale companies that are often considered radical innovators. Bank Indonesia 2021 data shows 87% of MSMEs were affected by the pandemic, with the majority experiencing a serious drop in sales. Government initiatives to strengthen the resilience of MSMEs through digital transformation have been hampered by low digital literacy. The purpose of this research is to explore the open innovation model for SMEs post COVID-19, especially through digital platforms. The research will focus on SMEs and the empirical analysis is expected to answer research questions on the concept of open innovation, factors influencing adoption, and the readiness of firms' collaboration with external sources. The research method will use descriptive and inferential statistics. The discussion will be supported by relevant literature with theoretical and practical implications.

Downloads

Download data is not yet available.

References

Adam, N. A., & Alarifi, G. (2021). Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support. Journal of innovation and entrepreneurship, 10(1), 15.

Bianchi, M., Campodall'Orto, S., Frattini, F., & Vercesi, P. (2010). Enabling open innovation in small‐and medium‐sized enterprises: how to find alternative applications for your technologies. R&d Management, 40(4), 414-431.

Bigliardi, B., & Galati, F. (2018). An open innovation model for SMEs. In Researching open innovation in SMEs (71-113).

Bocconcelli, R., Cioppi, M., Fortezza, F., Francioni, B., Pagano, A., Savelli, E., & Splendiani, S. (2018). SMEs and marketing: a systematic literature review. International Journal of Management Reviews, 20(2), 227-254.

Chesbrough, H. (2012). Open innovation: Where we've been and where we're going. Research-Technology Management, 55(4), 20-27.

Chesbrough, H. (2017). The future of open innovation: The future of open innovation is more extensive, more collaborative, and more engaged with a wider variety of participants. Research-Technology Management, 60(1), 35-38.

Chesbrough, H., Vanhaverbeke, W., & West, J. (2014). New frontiers in open innovation. Oup Oxford.

Colombo, M. G., Laursen, K., Magnusson, M., & Rossi‐Lamastra, C. (2012). Introduction: Small business and networked innovation: Organizational and managerial challenges. Journal of Small Business Management, 50(2), 181-190.

Yaqub, M. Z., Srećković, M., Cliquet, G., Hendrikse, G., & Windsperger, J. (2020). Network innovation versus innovation through networks. Industrial Marketing Management, 90, 79-89.

Davis, P. E., & Bendickson, J. S. (2021). Strategic antecedents of innovation: Variance between small and large firms. Journal of Small Business Management, 59(1), 47-72.

Kahn, K. B., & Candi, M. (2021). Investigating the relationship between innovation strategy and performance. Journal of Business Research, 132, 56-66.

Corsi, C., Prencipe, A., & Capriotti, A. (2019). Linking organizational innovation, firm growth and firm size. Management Research: Journal of the Iberoamerican Academy of Management, 17(1), 24-49.

Ebersberger, B., Bloch, C., Herstad, S. J., & Van De Velde, E. L. S. (2012). Open innovation practices and their effect on innovation performance. International Journal of Innovation and Technology Management, 9(06), 1250040.

Ebersberger, B., Marsili, O., Reichstein, T., & Salter, A. (2010). Into thin air: using a quantile regression approach to explore the relationship between R&D and innovation. International Review of Applied Economics, 24(1), 95-102.

Golovko, E., & Valentini, G. (2011). Exploring the complementarity between innovation and export for SMEs’ growth. Journal of international business Studies, 42, 362-380.

Bodlaj, M., Kadic-Maglajlic, S., & Vida, I. (2020). Disentangling the impact of different innovation types, financial constraints and geographic diversification on SMEs' export growth. Journal of Business Research, 108, 466-475.

Hossain, M. (2015). A review of literature on open innovation in small and medium-sized enterprises. Journal of Global Entrepreneurship Research, 1(5), 1-12.

Odriozola-Fernández, I., Berbegal-Mirabent, J., & Merigó-Lindahl, J. M. (2019). Open innovation in small and medium enterprises: a bibliometric analysis. Journal of Organizational Change Management, 32(5), 533-557.

Hutter, K., Hautz, J., Repke, K., & Matzler, K. (2013). Section 2: Management in firms and organizations: Open innovation in small and micro enterprises. Problems and Perspectives in Management, 11(1), 12-22.

Keupp, M. M., & Gassmann, O. (2009). Determinants and archetype users of open innovation. R&d Management, 39(4), 331-341.

De Castro, M. G., Delgado-Verde, M., Navas-López, J. E., & Cruz-González, J. (2013). The moderating role of innovation culture in the relationship between knowledge assets and product innovation. Technological Forecasting and Social Change, 80(2), 351-363.

McKinsey, M. (2008). Building the web 2.0 enterprise: McKinsey Global Survey Results. In The McKinsey Quarterly.

Parida, V., Westerberg, M., & Frishammar, J. (2012). Inbound open innovation activities in high‐tech SMEs: the impact on innovation performance. Journal of small business management, 50(2), 283-309.

Popa, S., Soto-Acosta, P., & Martinez-Conesa, I. (2017). Antecedents, moderators, and outcomes of innovation climate and open innovation: An empirical study in SMEs. Technological Forecasting and Social Change, 118, 134-142.

Purchase, S., & Volery, T. (2020). Marketing innovation: a systematic review. Journal of Marketing Management, 36(9-10), 763-793.

Ramirez-Portilla, A., Cagno, E., & Brown, T. E. (2017). Open innovation in specialized SMEs: the case of supercars. Business Process Management Journal, 23(6), 1167-1195.

Su, C. Y., Lin, B. W., & Chen, C. J. (2015). Technological knowledge co-creation strategies in the world of open innovation. Innovation, 17(4), 485-507.

Tidd, J., & Bessant, J. R. (2020). Managing innovation: integrating technological, market and organizational change. John Wiley & Sons.