What-How Control Mechanism to Increase Innovation by using Alliance Strategies: An Open Innovation Paradigm in Creative Industry
DOI:
https://doi.org/10.1229/tecempresarialjournal.v18i2.270Keywords:
Open Innovation; Alliance Strategy; Control Mechanism; InnovationAbstract
There is a growing recognition that collaboration is a key source of new knowledge and innovation in small and medium-sized enterprises (SMEs). Bridging the gap in the open innovation in SMEs literature on returns to open innovation our study demonstrates that control mechanism need to increase creation in innovation in SMEs. Controlling for selection bias and endogeneity and using the SMART PLS on 259 SMEs in the Indonesia, we found that collaboration with startups facilitate innovation in SMEs. This research has shown that alliance exploration supports radical innovation through output and behavior control. The results offer implications for policymakers, scholars, entrepreneurs and SME owner. This research has shown that alliance exploration supports radical innovation through output and behavior control.
References
Agostino, D., & Arnaboldi, M. (2012). Design issues in Balanced Scorecards: The “what” and “how” of control. European Management Journal, 30(4), 327–339. https://doi.org/10.1016/j.emj.2012.02.001
Anderson, S. W., Christ, M. H., Dekker, H. C., & Sedatole, K. L. (2014). The use of management controls to mitigate risk in strategic alliances: Field and survey evidence. Journal of Management Accounting Research, 26(1), 1–32. https://doi.org/10.2308/jmar-50621
Anderson, S. W., Christ, M. H., Dekker, H. C., & Sedatole, K. L. (2015). Do extant management control frameworks fit the alliance setting? A descriptive analysis. Industrial Marketing Management, 46, 36–53. https://doi.org/10.1016/j.indmarman.2015.01.004
Benner, M. J., & Tushman, M. L. (2003). Exploitation, exploration, and process management: The productivity dilemma revisited. Academy of Management Review, 28(2), 238–256. https://doi.org/10.5465/AMR.2003.9416096
Chesbrough, H. (2003). Open innovation: The new imperative for creating and profiting from technology.
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.
Dekker, H. C. (2004). Control of inter-organizational relationships: Evidence on appropriation concerns and coordination requirements. Accounting, Organizations and Society, 29(1), 27–49. https://doi.org/10.1016/S0361-3682(02)00056-9
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation. Technovation, 92–93(February 2017), 102061. https://doi.org/10.1016/j.technovation.2018.11.004
Gulati, R., & Singh, H. (1998). The architecture of cooperation: Managing coordination costs and appropriation concerns in strategic alliances. Administrative Science Quarterly, 43(4), 781–814. https://doi.org/10.2307/2393616
Hossain, M., & Kauranen, I. (2016). Open innovation in SMEs: a systematic literature review. Journal of Strategy and Management, 9(1), 58–73. https://doi.org/10.1108/JSMA-08-2014-0072
Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W. (2006). Exploratory innovation, exploitative innovation, and performance: Effects of organizational antecedents and environmental moderators. Management Science, 52(11), 1661–1674. https://doi.org/10.1287/mnsc.1060.0576
Jensen, M. C., & Heckling, W. H. (1995). SPECIFIC AND GENERAL KNOWLEDGE, AND ORGANIZATIONAL STRUCTURE. Journal of Applied Corporate Finance, 8(2), 4–18. https://doi.org/https://doi.org/10.1111/j.1745-6622.1995.tb00283.x
Jung, M.-K. (2015). Intellectual Capital and Innovative Capabilities of Manufacturing Enterprises in Korea. Information and Knowledge Management, 5(3), 142–167.
Kachouie, R., Mavondo, F., & Sands, S. (2018). Dynamic marketing capabilities view on creating market change. European Journal of Marketing, 52(5/6), 1007–1036. https://doi.org/10.1108/EJM-10-2016-0588
Lavie, D., & Rosenkopf, L. (2006). Balancing exploration and exploitation in alliance formation. Academy of Management Journal, 49(4), 797–818. https://doi.org/10.5465/AMJ.2006.22083085
Lawson, B., & Samson, D. (2001). Developing innovation capability in organisations: A dynamic capabilities approach. International Journal of Innovation Management, 5(3), 377–400.
Matt, S. (2012). Ambidexterity: the skill every conqueror needs to master.
Merchant, K. A., & Stede, W. A. Van Der. (2017). Management Control Systems Performance Measurement, Evaluation, and Incentives Fourth Edition.
Molina-Castillo, F.-J., Jimenez-Jimenez, D., & Munuera-Aleman, J.-L. (2011). Product competence exploitation and exploration strategies: The impact on new product performance through quality and innovativeness. Industrial Marketing Management, 40(7), 1172–1182. https://doi.org/10.1016/j.indmarman.2010.12.017
Montaguti, E., Kuester, S., & Robertson, T. S. (2002). Entry strategy for radical product innovations: A conceptual model and propositional inventory. International Journal of Research in Marketing, 19(1), 21–42. https://doi.org/10.1016/S0167-8116(02)00046-0
Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research vs. technology and meaning change. Design Issues, 30(1), 78–96. https://doi.org/10.1162/DESI_a_00250
Ogink, R. H. A. J., Goossen, M. C., Romme, A. G. L., & Akkermans, H. (2023). Mechanisms in open innovation: A review and synthesis of the literature. Technovation, 119, 102621. https://doi.org/https://doi.org/10.1016/j.technovation.2022.102621
Pooe, D., & Munyanyi, W. (2019). The influence of collaboration-oriented organisational capabilities on supply chain competence among small and medium enterprises. Acta Commercii, 19(2), 1–9.
Rajapathirana, R. P. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation and Knowledge, 3(1), 44–55. https://doi.org/10.1016/j.jik.2017.06.002
Robson, M. J., Katsikeas, C. S., Schlegelmilch, B. B., & Pramböck, B. (2019). Alliance capabilities, interpartner attributes, and performance outcomes in international strategic alliances. Journal of World Business, 54(2), 137–153. https://doi.org/10.1016/j.jwb.2018.12.004
Sawatani, Y. (2022). Knowledge Resources and Design Activities’ Impact on Innovation Types. Journal of Innovation Management, 10, 47–73. https://doi.org/10.24840/2183-0606_010.002_0003
Schilke, O. (2014). On the contingent value of dynamic capabilities for competitive advantage: The nonlinear moderating effect of environmental dynamism. Strategic Management Journal, 35(2), 179–203. https://doi.org/10.1002/smj.2099
Sheng, M. L., & Chien, I. (2016). Rethinking organizational learning orientation on radical and incremental innovation in high-tech firms. Journal of Business Research, 69(6), 2302–2308. https://doi.org/10.1016/j.jbusres.2015.12.046
Simons, R. (1995). Levers of Control : How Managers Use Innovative Control Systems to Drive Strategic Renewal. In Harvard Business School Press. Harvard Business School Press.
Subramaniam, M., & Youndt, M. A. (2005). The influence of intellectual capital on the types of innovative capabilities. Academy of Management Journal, 48(3), 450–463. https://doi.org/10.5465/AMJ.2005.17407911
Yun, J. J., & Liu, Z. (2019). Micro- and Macro-Dynamics of Open Innovation with a Quadruple-Helix Model. In Sustainability (Vol. 11, Issue 12). https://doi.org/10.3390/su11123301
Zhang, J., & Wu, W. ping. (2017). Leveraging internal resources and external business networks for new product successA dynamic capabilities perspective. Industrial Marketing Management, 61, 170–181. https://doi.org/10.1016/j.indmarman.2016.06.001
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Tec Empresarial

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.






