Purpose This paper examines what an open innovation (OI) perspective contributes to operations and supply chain management when a technology transition reshapes an industry. Earlier operations management research implicitly defined OI as a small set of isolated practices. This paper recovers its fuller depth as bidirectional knowledge flows and a mindset anchored in the business model. Design/methodology/approach The study traces innovation in the global automotive industry across three phases, then develops illustrative case studies of four Chinese electric vehicle (EV) entrants, Kandi, BYD, Xiaomi and Chery, analyzed through outside-in flows, inside-out flows and business model innovation. The cases build on a structured review of Chinese-language academic and industry literature, corroborated against company reports, trade press and industry data. Findings Chinese EVs have attained industry leadership, yet no dominant EV innovation strategy has emerged. All four firms drew heavily, but differently, on external knowledge, much of it from consumer electronics and smartphones, outside the automotive supply chain and each treated the vehicle as a platform. BYD and Chery also pursued inside-out flows, BYD through divisionalization and an open vehicle architecture, Chery through technology exports and internal suppliers. The contribution runs both ways: OI extends operations management research from project-and dyad-level openness to firm-level strategy, while operations management research helps explain organizational configuration and governance in innovation. Research limitations/implications The findings rest on a single industry. Future work should test them in other transforming sectors: pharmaceuticals, financial services and defense. Originality/value The paper reframes OI for operations management scholarship and uses the Chinese EV phenomenon to show how it complements operations management when industry architectures are disrupted.
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Chesbrough et al. (2026) studied this question.
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