Business Model and Open Innovation Conditions for the Sustainable Growth
9.4 Conclusion
From this chapter, we find several implications for studies of management and SMEs, as follows. First, SMEs cannot survive if they do not accept open innovation in their knowledge strategies and business models. SMEs that show absolute limita- tions in resources and manpower should absolutely implement open innovation strategies to secure more diverse resources from markets and external knowledge bases rather than preparing all resources and capabilities by themselves (Van de Vrande et al. 2009; Yun and Mohan 2012a, b).
Second, SMEs should bear in mind the two different levels of open innovation, like knowledge strategies and business models (Chesbrough 2007; Chesbrough and Appleyard 2007). In particular, surrounding the acquisition of diverse business models, SMEs’ open innovation strategies appear in more diverse forms (Yun and Mohan 2012a, b). It can be seen that during the process of development, open inno- vation in business models develops into forms quite different from that of knowl- edge strategies. Therefore, securing the networks that would enable SMEs to
Knowledge Strategy
Closed Innovation Open Innovation
Business ModelOpen Innovation Closed Innovation
C-O Type
O-C Type C-C Type
O-O Type
3
3 1 2
2
Fig. 9.2 Changing steps of open innovation type in SMEs (Source: Yun et al. (2015))
144
implement different characteristics of an open innovation business model simulta- neously by participating in diverse forms of networks in their cluster outweighs anything else (Cooke 2005; Yun et al. 2010).
Third, SMEs should not confuse temporally sustainable development and infinite sustainable development. Firms that use closed innovation strategies in both their knowledge strategies and business models can also grow for some time. However, due to the deepening of the knowledge-based economy, not only is the amount of knowledge existing in the world and the speed of the distribution of knowledge increasing but the demands and expectations of customers also exist in the market immediately through SNS (social networking sites) and similar channels (Yun and Ryu 2012). As a result, cutting-edge products fall into commodity traps more quickly and technology life cycles are shortened (Aveni 2010; Chesbrough 2011).
In addition, as more effective technological catch-up strategies have appeared, late movers have been able to chase forerunners in a short time (Kumar and Russell 2002; Lee and Lim 2001). SMEs should take appropriate open innovation portfolio strategies for their knowledge strategies and business models in accordance with their situations.
Fourth, SMEs should choose strategies of open innovation in their knowledge strategies and business models together. According to the choice between open innovation in a knowledge strategy and in a business model, firms have different growth limits and sizes.
It is true that a case study is a method that provides an excellent qualitative analy- sis in studies of firms (Yin 2008).
C-C Type
O-O Type
C-O Type O-C Type
Firm Size (Total Sales)
Time (Firm Year)
Fig. 9.3 Relationship between the open innovation type and the life cycles and sizes of firms (Source: Yun et al. (2015))
9 Business Model and Open Innovation Conditions for the Sustainable Growth…
Research Question
1. What is the difference of open innovation in knowledge strategy and business model?
2. Find out the examples of open innovation in knowledge strategy and business model in newspaper?
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