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The Innovation Arena: A Method for Comparing Innovative Problem-Solving Across Groups

The Innovation Arena: A Method for Comparing Innovative Problem-Solving Across Groups

Published on: May 13, 2022

How does open innovation lead competitive advantage? A dynamic capability view perspective.

Kibaek Lee¹, Jaeheung Yoo²

¹Department of Research Planning, Korea Research Institute of Chemical Technology (KRICT), Daejeon, Republic of Korea.

|November 21, 2019

Summary

Open innovation drives competitive advantage through product innovation. Transforming, sensing, and seizing capabilities are crucial, with transforming capability acting as a vital prerequisite for success in open innovation strategies.

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Area of Science:

Business Management
Innovation Studies
Strategic Management

Background:

The link between open innovation and competitive advantage is not fully understood.
Organizational capabilities required for open innovation remain underexplored.

Purpose of the Study:

To determine if open innovation generates competitive advantage.
To identify necessary organizational capabilities for open innovation success.
To examine the relationship between these capabilities and competitive advantage.

Main Methods:

Theoretical extension of open innovation from a dynamic capability view.
Statistical analysis to confirm significance of innovation pathways.

Main Results:

Open innovation significantly impacts competitive advantage, mediated by product innovation.
Transforming capability is a prerequisite for sensing and seizing capabilities.
Capabilities sequentially influence product innovation performance and competitive advantage.

Conclusions:

Organizational capabilities are essential for effective open innovation.
The interplay between transforming, sensing, and seizing capabilities is critical for achieving competitive advantage.
Considering capability linkages is vital for organizations pursuing open innovation.