Limits of open innovation during the organizational change: a case study of a Partner Campus

Abstract

The literature on open innovation (OI) has mainly been focused on the ‘bright side’ of OI, thus neglecting the limits of OI implementation influencing innovation processes during organizational change. It requires to develop a better understanding about the limits of OI. Therefore, this study explores the limits of OI during organizational change and provides approaches that drive firms to offset these limits. The empirical analysis is based on an in‐depth single case study and data was collected through semi‐structured interviews with the representatives engaged with Partner Campus – an OI initiative developed by a multinational manufacturing company. We have found that during the change process of adapting collaborative and absorptive capabilities, and developing organizational readiness, several internal and external challenges limit the company's drive to open up. Internal challenges arise when organizations start the change process in unfreezing stage. The traditional organizational culture and structure challenge incumbent firms to break the existing silos and utilize knowledge and resources effectively for OI implementation, hindering intra‐organizational collaboration. While external challenges arise when organizations transform their endeavors across organizational boundaries and collaborate with external stakeholders. When firms lack knowledge integration and technological capabilities, OI creates collaborative complexity given the magnitude of involved diverse actors and activities at different levels, which challenges the organizations to maintain the longevity of OI practices, resulting in several risks that limit firms to open up. However, we have identified the capabilities and actions that firms can take to strengthen a collaborative environment by counterbalancing these challenges. We contribute to the literature on OI by identifying and assessing the limits of OI, embedded in the organizational change process, that hinder organizational drive for OI. We also contribute to organizational change literature by identifying specific changes related to organizational processes, structure, and culture, and outlining approaches that can support a smooth transition.