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

Alberto Ferraris; Marcel Bogers; Stefano Bresciani

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

Alberto Ferraris, Marcel Bogers, Stefano Bresciani

Section for Production, Markets and Policy

Abstract

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.

Original language	English
Publication date	2016
Number of pages	14
Publication status	Published - 2016
Event	Annual World Open Innovation Conference : Open Innovation in the Digital Age - Barcelona, Spain Duration: 15 Dec 2016 → 16 Dec 2016 Conference number: 3

Conference

Conference	Annual World Open Innovation Conference
Number	3
Country/Territory	Spain
City	Barcelona
Period	15/12/2016 → 16/12/2016

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Ferraris Bogers Bresciani - ³INTERNAL² OPEN INNOVATION_The Role of Openness and Internal Embeddedness in Subsidiaries¹ Innovation and Financial PerformanceAccepted author manuscript, 810 KB

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title = "“Internal” open innovation: the role of openness and internal embeddedness in subsidiaries{\textquoteright} innovation and financial performance",

abstract = "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.",

author = "Alberto Ferraris and Marcel Bogers and Stefano Bresciani",

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language = "English",

note = "Annual World Open Innovation Conference : Open Innovation in the Digital Age, WOIC ; Conference date: 15-12-2016 Through 16-12-2016",

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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 -

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

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