Science, Innovation, Technology and Entrepreneurship series
Edited by Dimitris G. Assimakopoulos, Ilan Oshri and Krsto Pandza
Chapter 14: Open innovation in family firms: a matter of socio-emotional wealth
Competitive capabilities and resources shape the firm’s market position and competitiveness (Barney, 1991; Teece et al., 1997; Krajewski et al., 2010). Practitioners and academics have recognized cost, quality, speed and flexibility as key elements for success in dynamic market situations (Petersen et al., 2003; Aberdeen Group, 2004). Still, because of specialization and constrained resource endowments, for developing and delivering a new successful product or service offer, firms cannot work by themselves and need to rely on business partners (Benton and Maloni, 2005; Koufteros et al., 2007; Mitra and Singal, 2008). The literature has stated that working within an open innovation framework with suppliers and customers has a positive effect on the company’s performance (Chesbrough, 2003, 2006a; Enkel et al., 2009). High levels of openness and the corresponding integration with business partners are usually related to greater responsiveness and resilience due to the increase of information visibility and of operational knowledge, and lower costs of doing business because of the stronger links that allow firms to target their customer requirements effectively, while leveraging their resources for reducing the count of non-conformities and their magnitude (Dyer, 1996; Grant, 1996; Kim, 2009).
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