2017•Academy of Management ProceedingsRequires access

Closed for Business: The value of open innovation in developing countries

Annelies van Uden, Joris Knoben, Patrick A.M. Vermeulen

Abstract

Existing research describes an inverted U-shaped relationship between openness and innovation. Most of this work has been conducted in developed countries and takes the context as a given. However, when using an open innovation strategy the context in which a firm operates matters. We suggest that the regional knowledge available moderates the relationship between openness and innovation. We investigate the effects of regional knowledge availability on the relationship between openness and innovation in a sample of 683 firms located in five developing countries. The results indicate that if regional knowledge availability is lower, it could be better to be closed for innovation instead of open.

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Key concepts: Openness to experience, Open innovation, Context (archaeology), Business, Developing country, Sample (material), Value (mathematics), Work (physics)