The Impact of External Contextual Factors on Open Innovation Adoption with an Emphasis on Sectorial Characteristics: Evidences from Iran's Advanced Materials Firms

Document Type : Original Article

Authors

1 Allameh Tabatabaei University

2 Allameh Tabataba'i University

3 Iran University of Science and Technology

Abstract

Over the past decade, open innovation has been of interest to several researchers as one of the innovation management theories. These researchers believe that the adoption and efficacy of this approach are influenced by different internal and external contingencies to firms. Sector or industry contextual properties and institutional environment conditions are among those external contingencies affecting open innovation in firms. Advanced materials sector, as a pillar of knowledge-based economy, has been less studied by innovation management scholars. In addition, a review of the literature indicates a lack of in-depth research on the adoption and efficacy of open innovation in the context of developing countries, especially in Iran. Having identified these research gaps, this study uses qualitative approach based on multiple case studies to examine open innovation among advanced materials firms in Iran. The results of this study confirms the prevalence of open innovation among the firms in this sector, reflecting the dominance of inbound open innovation strategy using financial and non-financial methods. The studied firms use open innovation strategies to overcome both technical and market challenges. Although they face several challenges in their open innovation practices, the expansion of higher education and research, and the spread of the internet are among the factors facilitating the adoption of open innovation among Iranian firms.

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