Insights into the relationship between open innovation and external knowledge acquisition in technology-based South Korean SMEs

Authors

DOI:

https://doi.org/10.5585/2023.25375

Keywords:

Open innovation, acquisition of external knowledge, SMEs, technology-based companies, South Korea

Abstract

Objective: To analyze evidence of the logic of open innovation in South Korean SMEs operating in the information technology segment, considering as a reference the main elements used by them in the processes of acquiring external knowledge (CE).

Methodology: The method used is qualitative, exploratory and interpretative, employing a systematic literature review to develop the research instruments. The fieldwork was supported by 9 semi-structured interviews with managers/professionals from the 7 SMEs investigated, and was carried out in the Seoul region, South Korea. Content analysis and the Atlas TI program were used to analyze the data. To discuss the results, the Snowball search method was used, supported by Google Scholar and Chatgpt 4.0 to organize the relationship between the results.

Results: The analysis of CE acquisition processes used in South Korean SMEs required the construction of analytical references based on the theories used. The analysis revealed evidence of the logic of open innovation in the EC acquisition processes of SMEs. Relevant aspects were also identified regarding the management and processes of EC acquisition among SMEs, which can be recovered as contributions to the academic debate and management practices .

Originality/value: Studies dealing with the relationship between open innovation and absorptive capacity, especially in a technologically advanced environment such as the ICT segment in South Korea, are not very common. In addition to these particular empirical conditions, the theoretical field provided relevant connections between open innovation and ACAP, which constitute opportunities for future studies.

Downloads

Download data is not yet available.

Author Biographies

Park Suhyeon , Hankuk University of Foreign Studies - South Korea

Doctoral Student

Roberto Lima Ruas, Nove de Julho University - Uninove / Sao Paulo (SP)

Ph Doctor

Leticia Oliveira Ouros, Technology College - FATEC - Sao Caetano (SP)

Master Degree. Technology College - FATEC - São Caetano (SP)

References

Algarni, M.A, Ali, M., Leal-Rodríguez, A. & Albort-Morant, G. (2023). The differential effects of potential and realized absorptive capacity on imitation and innovation strategies, and its impact on sustained competitive advantage. Journal of Business Research, 158: 113674. https://doi.org/10.1016/j.jbusres.2023.113674.

Ali, I., Musawir, A. U. & Ali, M. (2018). Impact of knowledge sharing and absorptive capacity on project performance: the moderating role of social processes. Journal of Knowledge Management, 22: 453–477.https://doi.org/10.1108/JKM-10-2016-0449.

Apriliyanti, I. D. & Alon, I. (2017). Bibliometric analysis of absorptive capacity. International Business Review, 26: 896–907. https://doi.org/10.1016/j.ibusrev.2017.02 .007.

Bardin, L. (2011). Análise de conteúdo (70th ed.). São Paulo, SP: Almeida Brasil.

Bocquet, R., Brion, S. & Mothe, C. (2016). The Role of Cluster Intermediaries for KIBS’ Resources and Innovation. Journal of Small Business Management, 54: 256–277. https://doi.org/10.1111/jsbm.12298.

Bogers, M.; Chesbrough, H. & Moedas, C. (2018). Open Innovation: Research, Practices, and Policies. California Management Review, 60: 5-16 https://doi.org/10.1177/00081 25617745086.

Broman, S.S.; Ruas, R.L. & Rocha-Pinto, S. (2019). The construction of collective competencies in the dynamics of budgetary routines. Cad. EBAPE.BR., 17: 871-885. https://dx.doi.org/10. 1590/1679-395174729x.

Camisón, C. & Forés, B. (2010). Knowledge absorptive capacity: New insights for its conceptualization and measurement. Journal of Business Research, 63:707–715. https://doi.org/10.1016/j.jbusres.2009.04.022.

Chen, M ; Chen, Y; Liu, H & Xu; H. (2021). Influence of information technology capability on service innovation in manufacturing firms. Industrial Management & Data Systems, 121: 173-191. https://doi.org/10.1108/IMDS-04-2020-0218.

Chen, Y., Lin, M.J. & Chang, C. (2009) . The positive effects of relationship learning and absorptive capacity on innovation performance and competitive advantage in industrial markets. Industrial Marketing Management, 38:152–158. https://doi.org/10.1016/j.ind marman.2008.12.003.

Chesbrough, H. W. (2003). Open innovation: The new imperative for creating and profiting from technology. Boston, Massachusetts: Harvard Business School Press.

Chesbrough, H. W. (2010) - How Smaller Companies Can Benefit from Open Innovation

Japan Spotlight: Japan Economic Foundation, January / February:13-15. https://www. j ef.or.jp/journal/pdf/169th_cover03.pdf

Choi, W. (2023, February 7). 2022 Small and Medium Business Export Trends. Ministry of SMEs and Startups. Retrieved from - https://www.korea.kr/briefing/policyBriefingView. do?newsId=156551180

Chung, D. S. (2011). A Study on Taxonomy of Exploration and Exploitation Inno-Biz Small- Medium Corporation. Korean Journal of Business Administration, 24:3723 – 3741.3723–3741. AC15040(2016-027,+강문상)중소기업+연구개발+투자효과에.

Cohen, W. M. & Levinthal, D. A. (1990). Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35: 128-152. https://doi.org/10.2307/2393553.

Creswell, J. W. (2010). Projeto de pesquisa métodos qualitativo, quantitativo e misto. In Projeto de pesquisa métodos qualitativo, quantitativo e misto (3rd ed.; Artmed, ed.). Porto Alegre, RS: Sage publications.

Cunha Filho, M.L, Pedron, C.D. & Ruas, R.L. (2021). What’s going on in absorptive capacity studies? Research fronts on organizational knowledge absorption. International Journal of Innovation Management, 25: 2150056. https://doi.org/10.1142/S1363919 621500560

Deitos, M. L. M. . (2003). Conhecer as especificidades das pequenas e médias empresas: uma necessidade que se impõe ao contador. In Revista do Conselho Regional do Paraná (Vol. 27).

Dong,H, Guo, J., Chen, T. & Murong, R. (2023). Configuration research on innovation performance of digital enterprises: Based on an open innovation and knowledge perspective. Front. Environ. Sci, 10: 953902. https://doi.org/10.3389/fenvs.2022.9 53902.

Dubouloz, S., Bocquet, R., Balzli, C. E., Gardet, E.& Gandia, R. (2023). SMEs’ Open Innovation: Applying a Barrier Approach. California Management Review, 64: 113- 137. https://doi.org/ 10.1177/00081256211052679ff. ffhal-0394493.

Eerme, T. & Nummela, N. (2019). Capitalising on knowledge from big-science centers for internationalisation. International Marketing Review, 36:108–130. https://doi.org/10. 1108/IMR-03-2017-0059.

Egbu, C. O., Hari, S. & Renukappa, S. H. (2005). Knowledge management for sustainable competitiveness in small and medium surveying practices. Structural Survey, 23: 7– 21. https://doi.org/10.1108/02630800510586871.

Eisenhardt, K. M. & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21: 1105–1121. https://doi.org/10.1002/10970266(200010/ 11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E.

Escribano, A., Fosfuri, A. & Tribó, J. A. (2009). Managing external knowledge flows: The moderating role of absorptive capacity. Research Policy, 38: 96–105. https://doi.org/ 10.1016/j.respol.2008.10.022.

Gazquez, A. H., Machado, H. P. V. & Urpia, A. G. B. da C. (2020). Experiências de Internacionalização de Pequenas Empresas de Software e Conhecimentos Obtidos. Internext, 15(2), 18. https://doi.org/10.18568/internext.v15i2.573

Gebauer, H., Worch, H. & Truffer, B. (2012). Absorptive capacity, learning processes and combinative capabilities as determinants of strategic innovation. European Management Journal, 30 : 57–73. https://doi.org/10.1016/j.emj.2011.10.004.

Hasan, S., Klaiber, H. A. & Sheldon, I. (2018). The impact of science parks on small- and medium-sized enterprises’ productivity distributions: the case of Taiwan and South Korea. Small Business Economics, 54: 135–153. https://doi.org/10.1007/ s11187-018- 0 083-8.

Hye, R,; Jeon, S. & Degravel, D. (2019). Open Innovation, a Tool for Globalization: The Case of South Korean SMEs. Journal of Management Policy and Practice, 20: 51-73. http s://doi.org/10.33423/jmpp.v20i2.2094.

Hutter, K., Hautz, J., Repke, K., & Matzler, K.. (2013). Open innovation in small and micro enterprises. Problems and Perspectives in Management, 11: 12–22. https://www.businessperspectives.org/index.php/journals/problems-and-perspectives-in-management/issue-38/open-innovation-in-small-and-micro-enterprises.

IDC. (2023, April 26). Korea IDC predicts that the domestic artificial intelligence market will grow at an average annual growth rate of 14.9% and reach KRW 4.4636 trillion by 2027. International Data Corporation Korea. Retrieved from https://www.idc.com/getdoc.jsp?containerId=prAP50604723

Jang, H., Lee, K. & Yoon, B. (2017). Development of an open innovation model for R&D collaboration between large firms and small-medium enterprises (SMES) in manufacturing industries. International Journal of Innovation Management, 21:1750002. https://doi.org/10.1142/S13 63919617500025.

Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W. (2005). Managing potential and realized absorptive capacity: how do organizational antecedents’ matter? Academy of Management Journal, 48: 999–1015. https://doi.org/10.5465/amj.20 05.19573106.

Kim, C., & Yoo, J. (2018). Organizational Ambidexterity based on Firms’ External Search Behaviors. Korean Academic Association of Business Administration, 31: 1–26. https://openlink.mproxy.inje.ac.kr/link.n2s?url=https://www.dbpia.co.kr/journal/articleDetail?nodeId=NODE07302982

Kim, N. & Shim, C. (2018). Social capital, knowledge sharing and innovation of small- and medium-sized enterprises in a tourism cluster. International Journal of Contemporary Hospitality Management, 30: 2417–2437. https://doi.org/10.1108/ IJCHM-07-2016-0 392.

Kim, S. J. & Kim, K. S. (2014). Effects of social capital and absorptive capacity of domestic small medium-sized enterprises on functions of competitive intelligence activities. Korean Journal of Business Administration, 27: 505–524. UCI:G704-000789.2014 . 27.4.007

Kosme. (2022). KOSME Annual Report 2022. Retrieved from: https://www.krones.com/en/c o mpany/investor-relations/krones-group-annual-report- 2022.php.

Kumar, N., Rose, R. C. & Muien, N. F. A. (2009). The influences of absorptive capacity and social capital on knowledge transfer. Journal of Applied Business Research, 25: 99– 108. https://doi.org/10.19030/jabr.v25i4.1020.

Lane, P. J., Koka, B. R. & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of Management Review, 31: 833– 863. https://doi.org/10.5465/AMR.2006.22527456.

Laursen, K. & Salter, A. (2006). Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal, 27: 131–150. https://doi.org/10.1002/smj.507.

Lazzarotti, V., Manzini, R. & Pellegrini, L. (2015). Is your open innovation successful? The mediating role of a firm's organizational and social context. The International Journal of Human Resource Management, 26: 2453–2485. https://doi.org/10.1080/09585192.2014.1003080

Lee, S.; Park, G; Yoon, B & Park, J. (2009). Open innovation in SMEs—An intermediated network model - Research Policy, 39: 290–300. https://doi.org/10.1016/j .respol.200 9.12.009.

Lewin, A.Y.; Massini, S. & Peeters, C. (2011). Microfoundations of Internal and External Absorptive Capacity Routines. Organization Science, 22:81–98. https://doi.org/10. 1287/orsc.1100.0525.

Lichtenthaler,U. (2009). Absorptive capacity, environmental turbulence, and the complementarity of organizational learning processes. Academy of Management Journal, 52: 822–846. https://doi.org/10.5465/amj.2009.43670902.

Lim, J. & Kim, B.-K. (2018). The Effects of Entrepreneurship Orientation and Absorptive Capacity on Corporate Performance : Focusing on Mediating Effects of Product Innovation Performance. Journal of Korea Technology Innovation Society, 21: 1536– 1576. http://koreascience.kr/article/JAKO201819867049482.pdf

Limaj, E. & Bernroider, E. W. N. (2019). The roles of absorptive capacity and cultural balance for exploratory and exploitative innovation in SMEs. Journal of Business Research, 94: 137–153. https://doi.org/10.1016/j.jbusres.2017.10.052.

Mishra, N. (2019). Knowledge management practice for effective operations in SMEs. Production Planning and Control, 30: 795-798. https://doi.org/10.1080/09537287.20 19.1582108.

Müller, M.; Buliga, O. & Voigt, K. (2021). The role of absorptive capacity and innovation strategy in the design of industry 4.0 business Models - A comparison between SMEs and large enterprises. European Management Journal, 31: 333-343. https://doi.org/1 0.1016/j.emj.2020.01.002.

Park, B. (2023). As of 21, 7.71 million small and medium-sized enterprises and small business owners, 99.9% of all companies. Policy Analysis and Evaluation Department, Ministry of SMEs and Startups. Retrieved from: https://mss.go.kr/site/smba/ex/bbs/View.d o?cbIdx=86&bcIdx=1043937.

Patterson, W. & Ambrosini, V. (2015). Configuring absorptive capacity as a key process for research intensive firms. Technovation, 36:77–89. https://doi.org/10.1016/ j.technovatio n.2014.10.003.

Pereira, V., & Bamel, U. (2021). Extending the resource and knowledge based view: A critical analysis into its theoretical evolution and future research directions. Journal of Business Research, 132:557-570. https://doi.org/10.1016/j.jbusres.2021.04.021.

Romildo, J. (2019, September 3). Coreia do Sul é fonte de inspiração para o Brasil, diz chanceler. Agência Brasil. Retrieved from https://agenciabrasil.ebc.com.br/internaci onal/noticia/2019-09/coreia-e-fonte-de-inspiracao-prmanente-para-o-brasil-diz-c h a nceler.

Seo, Y. (2022). A Comparative Analysis of R&D trends in the ICT industry. Sustainability, 14: 10433. https://doi.org/10.3390/su141610433.

Spithoven, A., Clarysse, B. & Knockaert, M. (2011). Building absorptive capacity to organize inbound open innovation in traditional industries. Technovation, 31:10–21. https://doi.org/10.1016/j.technovation.2010.10.003.

Sabando-Vera, D.; Yonfa-Medranda, M.; Montalván-Burbano, N. ; Albors-Garrigos, J. & Parrales-Guerrero, K. (2022). Worldwide Research on Open Innovation in SMEs. Journal of Open Innovation: Technology, Market, and Complexity, 8:12-22. https:// doi.org/10.3390/joitmc8010020.

Teece, D. J. & Al-Aali, A. (2011). Knowledge assets, capabilities, and the theory of the firm. In Handbook of organizational learning and knowledge management (2nd ed., pp. 505– 534). West Sussex, United Kingdom: Wiley.

Todorova, G. & Durisin, B. (2007). Absorptive capacity: Valuing a reconceptualization. Academy of Management Review, 32: 774–786. https://doi.org/ 10.5465/amr.2007.252

Tranfield, D., Denyer, D. & Smart, P. (2003). Towards a methodology for developing evidence-Informed management knowledge by means of systematic review. British Journal of Management, 14: 207–222. https://doi.org/ 10.1111/1467- 8551.00375.

Tripoli, M. (2023, May, 23). Desvendando os pilares do crescimento econômico sul-coreano. Retrieved from: https://exame.com/marketing/desvendando-os-pilares-do-crescimen to-economico-sul-coreano/.

Vargas, S. M. L., Gonçalo, C. R., Dos Santos, A. M., & De Souza, Y. S. (2020). The moderator effect of inter-firm knowledge sharing on absorption capacity and innovative capabilities in small and medium enterprises. Revista Alcance, 27: 183–197. https://doi.org/10.14210/alcance.v27n2(Mai/Ago).

Volberda, H. W., Foss, N. J. & Lyles, M. A. (2010). Absorbing the concept of absorptive capacity: How to realize its potential in the organization field. Organization Science, 21: 931–951. https://doi.org/10.1287/orsc.1090.0503.

Vrande, V., Jong, J. P. J., Vanhaverbeke, W. & Rochemontd, M. (2009). Open innovation in SMEs: Trends, motives and management challenges. Technovation, 29: 423–437. https://doi.org/10.1016/j.technovation.2008.10.001

Winter, R. & Chaves, M. S. (2017). Innovation in the management of lessons learned in an IT project with the adoption of social media. International Journal of Innovation, 5(2), 156–170. https://doi.org/10.5585/iji.v5i2.155

Zaefarian, G., Forkmann, S., Mitręga, M. & Henneberg, S. C. (2017). A Capability Perspective on Relationship Ending and Its Impact on Product Innovation Success and Firm Performance. Long Range Planning, 50: 184–199. https://doi.org/10.1 016/j.lrp.2015.12.023.

Zahra, S. A. & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of Management Review, 27: 185–203. https://doi.org/10.2307/41 3435.

Zynga, A., Diener, K., Ihl, C., Lüttgens, D., Piller, F., & Scherb, B. (2018). Making Open Innovation Stick: A Study of Open Innovation Implementation in 756 Global Organizations: A large study of international companies shows that distinct routines and organizational structures differentiate organizations that succeed with open innovation. Research-Technology Management, 61: 16-25. https://doi.org/10.1080/089 56308.2018.1471273.

Published

20.12.2023

How to Cite

Suhyeon , P., Ruas, R. L., & Oliveira Ouros, L. (2023). Insights into the relationship between open innovation and external knowledge acquisition in technology-based South Korean SMEs. International Journal of Innovation, 11(2), e25375. https://doi.org/10.5585/2023.25375

Issue

Section

Articles