VOIS - Area 1 - Module 4

  1. MODULE TITLE

Module 4: How to build mindset toward open innovation in your SME.

  1. AUTHORS

Prof. Marina Dabić, Tena Obradović Posinković

  1. SHORT DESCRIPTION

Open innovation mindset. Building an open innovation mindset can help SMEs in bioeconomy and agro-food industry to successfully implement open innovation activities, to ensure effective collaboration with external partners and to boost innovations. Consequently, an open approach to innovation could help SMEs in bioeconomy and agro-food industry to reduce product development costs, share risks with their partners, make products more customer-oriented and shorten time to market. With new advanced technologies in an already globalized world, SMEs in bioeconomy and agro-food industry face changes due to supply chains, and realize that their success also depends on external resources. At the same time, SMEs are more flexible and agile than large companies, thus can make decisions faster and adapt their business models. The implementation of open innovation encourages SMEs to expand their R&D processes, but without proper management of knowledge and trust, the innovation can remain unused.

  1. LEARNING OBJECTIVES

    Upon completing this module, you should be able to:

  • A) understand and implement open innovation strategy into SME’s business process
  • B) understand the benefits and obstacles of open innovation, and create open innovation mindset in their SME
  • C) encourage their employees to seek knowledge outside the company and to share their knowledge inside and outside the company
  1. Training Content
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3.Open innovation mindset

In order to prevent Not-Invented-Here syndrom, SMEs should direct their energy toward creating healthy organizational climate. Since SMEs do not possess all the necessary resources, it is crucial for their success to adjust their existing strategy and focus on acquiring and transforming knowledge from outside their companies[25]. In order for SMEs to be able to search for and apply external knowledge, it should develop dynamic capabilities. Dynamic capabilities are defined as: “the firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments”[26]. Dynamic capabilities can help SMEs in unstable environment to quickly adopt but also to gain competitive advantage.

Podcast on: Open innovation and Dynamic capabilities Supporting small and medium sized enterprises to better prepare navigate and recover from economic crises

https://anchor.fm/suren-ladd/episodes/Open-innovation-and-Dynamic-capabilities-Supporting-small-and-medium-sized-enterprises-to-better-prepare--navigate-and-recover-from-economic-crises-e1hsj9k/a-a7rfrq0

Human resource management (HRM) have the important role in encouraging employees to implement open innovation activities and to encourage further development of their capabilities. HRM should help employees develop healthy relationships with partners outside the company in order to achieve companies success. Open innovation mindset is defined as: “New concept that is critical for organisations engaging in OI and conceptualize it as consisting of values, attitudes, and beliefs that capture an individual’s openness towards knowledge sourcing and sharing inside and outside organisational boundaries”[27]. Moreover, authors highlighted trust as important part of knowledge sharing and knowledge sourcing[28],[29]. Trust is especially important in high-tech companies where partners are sharing their technological knowledge.

In addition, with the new technology and fast market changes, agri-food SMEs should be able to recognize new information coming from outside the company and combine newly acquired knowledge with knowledge already existing inside their organization. This ability is known as absorptive capacity and is defined as: “Firm’s ability to identify, assimilate, and exploit knowledge from the environment”[30]. Furhtermore, it was highlighted that for companies that implemented open innovation activities, it is crucial to nurture open culture in order to embrace knowledge and technology acquired from outside the organization[31]. Moreover, management support will enable successful adoption of open innovation activities[32].

Figure 3: Open innovation mindset

Take a 3-5 minutes and think:

5. What are dynamic capabilities and what are SME's competences ?

6. What can our SME do to encourage employees to share knowledge with partners from outside our own organization?

Write down your answers.

Interaction between University-Industry-Government-Society

The collaboration between University-Industry-Government is know as triple helix model of innovation[33]. The importance of collaboration between academia and industry has been recognized in literature[34],[35]. The role of University is to bring specific knowledge and help with research, while Industry should develop products based on the results of a research. For example, collaboration between university and industry can result in research partnership, commercialization of intellectual property, scientific publications or transfer of employees[36]. On the other hand, government can also be seen as valuable source of knowledge. It can encourage further strategic alliances, organize crowdsourcing campaigns or some social events and thus create open culture and boost innovations. Moreover, universities and industry partners can collaborate on the project that are financed by the government.

Furthermore, the collaboration between University-Industry-Government-Society is known as quadruple helix model[37]. Users and customers are no longer seen as passive buyers, but are involved in new product development process very often. Society can also participate in crouwcorucing campaings or similar activities organized by the government. In the last section, a local example of  implementation of quadruple helix model in agri-food category is developed.

Take a 3-5 minutes and think:

7. Is there a possibility for your SME to collaborate with University? How can students contribute to your SME?

8. How can Government help your SME?

Write down your answers.