Abstract:
Open innovation involves a business model that incorporates internal and external expertise, emphasising external collaboration employing inflows and outflows of knowledge. The focus of the study was open inbound innovation, which talked about the inflow of information that a company obtains from the external environment to capture knowledge and technologies from sources such as customers, suppliers, competitors, universities, and research organisations. The study explored how organisations implement open innovation and address the internal practices necessary to seize external innovations to achieve success.
The purpose of the research was to understand how companies implement open innovation to adapt to the environment. The dynamic capability theory was used as a framework for the study. The research followed an interpretive qualitative research design by implementing interviews to gain insight into open innovation used by senior managers to adapt to the environment.
The findings revealed that inbound innovation enables companies to acquire skills and knowledge that may not exist internally. Engaging in internal and external collaboration for Research and Development was viewed as beneficial for gaining external knowledge for innovation, reducing cost and time, and enhancing product quality and competitiveness. The study highlighted the absorptive abilities, such as technology, communication and culture, as action strategies necessary to absorb external knowledge. This research contributes to the theory of open innovation, using the practice to leverage and enhance internal capabilities, and not just view it as taking internal tasks to external suppliers to solve problems. The study targeted Senior Managers from private companies who had experience in open innovation.
