Open innovation is more effective in emerging markets compared to developed markets. This is particularly true in firms and organizations that lack sufficient technical knowledge. However, employees in firms in emerging markets appear to search broadly but not deeply across external knowledge sources, which risks reducing their innovative output.
These are some of the highlights of a study by Dr. Yuosre F. Badir of AIT’s School of Management (SOM), which has just been published in the latest issue of the Journal of the Academy of Marketing Science, a top-ranked journal in the field, with an Impact Factor of 9.36.
The study titled “Employee-level open innovation in emerging markets: Linking internal, external, and managerial resources” also offers recommendations that managers instruct employees in engaging in deep rather than excessively broad external searches for information. The study also highlights the importance of merit-based hiring and promotion practices based on technical expertise in order to effectively bring external knowledge into the firm and leverage it into innovation outcomes.
Co-authored with Björn Frank, Faculty of Commerce, Waseda University, Japan and Marcel Bogers, University of Copenhagen and Garwood Center for Corporate Innovation, University of California, Berkeley, the study examines whether firms in an emergent market can strategically deploy the appropriate managerial resources to help their employees leverage both internal and external knowledge sources into innovative output.
“Our research has a number of theoretical implications that go beyond making a contribution to the literature on open innovation in emerging markets,” says Dr. Badir.“ We not only add new insights into the breadth, depth, and role of external searches for knowledge, but also open up a new emergent market perspective for developing theory on open innovation,” he adds.
The research was conducted among respondents from major telecommunication organizations in Viet Nam, but it has implications in all emerging markets, particularly in the high-tech industries that deal with fast-changing technology, intense competition, complexity, and uncertainty about markets, competition, and technological development.
The article can be accessed at this link: https://link.springer.com/article/10.1007/s11747-019-00674-6