Extending open innovation throughout the value chain by small and medium-sized manufacturers

This study assesses the adoption of open innovation practices during different value chain activities and measures its effect on product and process innovation. Based on a quantitative survey of 293 US small and medium-sized manufacturing companies the empirical research results suggest a broad use of open innovation practices with customers and suppliers throughout the firm’s value chain. Strong interrelationships between open innovation practices along with the varied impact of open innovation practices on product and process innovation performance are presented and discussed. Overall, the study expands the understanding of open innovation beyond its traditional research and development focus, and highlights the importance of a stronger focus on selection of practices and partners for the effectiveness of open innovation.