Empirical Evidence of Inbound Open Innovation Practice by Ghanaian SMEs

Abstract

Inbound open innovation (IOI) is credited with high productivity in businesses. However, this is marred by resource and structural constraints in Ghanaian SMEs. Therefore, this study explores the odds of Ghanaian SMEs engaging in inbound open innovation given SMEs characteristics and IOI collaboration modes. Further, we examine the mediating effect of SMEs’ CEO characteristics in increasing or decreasing these odds. Using a sample of 657 registered SMEs’ of the Association of Ghanaian Industries, the survey data is estimated with a stepwise logistic regression model to show the multiplicative effects of the variables. The results show that the odds of engaging in inbound open innovation is higher for; SMEs located in urban areas, SMEs with partnership or company ownership structure, SMEs with research and development departments, SMEs not collaborating with universities, manufacturing SMEs, and SMEs that are relatively bigger in size. Further, these odds increase when the characteristics of CEOs of the sampled SMEs are accounted for in the model. Thus, the characteristics and traits of CEOs are only useful given the right resources and environment. Relying on the major (main) outcomes of the study further feasible suggestions are recommended.