OPEN INNOVATION AS A BUILDING BLOCK FOR SMALL MEDIUM ENTERPRISE HIGH-TECH IN «INTERNET OF THINGS» ERA: CASE OF THE INDONESIA

Abstract

Startup technopreneuship is a form of Small Medium Enterprise (SME) in Indonesia that has been able to implement an open innovation. This study aims to evaluate the application of open innovation in the SME based startup technopreneur. Futhermore, this research also analyzing the antecedent variables that drive open innovation such as the entrepreneurial orientation, organizational characteristics and environmental characteristics, then the implications on improvement SME performance innovation. This study used mixed method, with 37 startup technopreneur companies in Malang City, East Java Province, Indonesia as a respondent. Results of the study found that high tech SMEs, especially the startup technopreneur, are more prospective in applying open innovation compared to other types of SMEs in developing countries. In addition, this study shows that the entrepreneurial orientation, organizational characteristics and environmental characteristics has an important role to drive open innovation which will further improve the improvement SME performance innovation.

Keywords

• Internet of things
• open innovation
• SMEs high-tech
• Indonesia