“Internal” open innovation: the role of openness and internal embeddedness in subsidiaries’ innovation and financial performance

TY - CONF

T1 - “Internal” open innovation

T2 - Annual World Open Innovation Conference

AU - Ferraris, Alberto

AU - Bogers, Marcel

AU - Bresciani, Stefano

N1 - Conference code: 3

PY - 2016

Y1 - 2016

N2 - The Open Innovation (OI) literature has focused primarily on OI strategies and external sourcing of knowledge at the organizational level, largely ignoring the role of subsidiaries in the innovation activities of Multinational corporations (MNCs). In this paper, we analyze OI at the subsidiary level proposing a new term, "internal openness", that refers to the fact the subsidiaries are in the unique position to tap in new knowledge from the internal networks that is across organizational boundaries if we think to the subsidiary as an organization. Through an OLS analysis on data coming from 91 MNC subsidiaries, we argue and find empirical evidence that internal embeddedness, i.e. the development of knowledge-intensive linkages between the subsidiary and internal counterparts, positively moderate two established relationships: the one between inbound OI activities and innovative performance, and the one between innovative performance and financial performance.

AB - The Open Innovation (OI) literature has focused primarily on OI strategies and external sourcing of knowledge at the organizational level, largely ignoring the role of subsidiaries in the innovation activities of Multinational corporations (MNCs). In this paper, we analyze OI at the subsidiary level proposing a new term, "internal openness", that refers to the fact the subsidiaries are in the unique position to tap in new knowledge from the internal networks that is across organizational boundaries if we think to the subsidiary as an organization. Through an OLS analysis on data coming from 91 MNC subsidiaries, we argue and find empirical evidence that internal embeddedness, i.e. the development of knowledge-intensive linkages between the subsidiary and internal counterparts, positively moderate two established relationships: the one between inbound OI activities and innovative performance, and the one between innovative performance and financial performance.

M3 - Paper

Y2 - 15 December 2016 through 16 December 2016

ER -