The Impact of Open Innovation Preparation on Organizational Performance: A Systematic Literature Review

Abstract

Open innovation involves external parties of the organization in innovation activities within the organization, resulting in the flow of knowledge and information internally and externally (inbound and outbound). Given the advantages of having external support in the internal innovation process, organizations are starting to adopt the open innovation model to help them achieve and sustain innovation. The parties involved in open innovation are suppliers, consumers, competitors, and society. Such involvement will increase the organization’s ability to achieve better performance. This study aims to provide a more updated, comprehensive, and clearer picture of the importance of organizational readiness to innovate, especially through open innovation. This study also seeks to present a more comprehensive identification of the impact of open innovation on company performance by using a systematic literature study. The systematic literature review conducted in this study can serve as a basis for future research that discusses policy strategies to improve organizational performance through the implementation of open innovation. Based on a systematic literature review, 33 main articles were obtained in accordance with the research objectives including different types of open innovation manifestations and specific open innovation practices implemented by organizations.

Keywords

• Open innovation
• organizational performance
• systematic literature review