A study on the modes of open innovation matched with firms´ internal capabilities

The open innovation paradigm coined by Henry Chesbrough offers a new way of thinking and managing about innovation. But it´s still unknown that how to manage open innovation efficiently. This paper analyzes key innovation resources owned by outside organizations. Based on the essential characteristics of open innovation, this paper establishes the modes of open innovation matched with firms´ internal capabilities. The research manifests that openness do improve performance of innovation, and furthermore there are interactions between internal capabilities and modes of openness. This leads to the suggestion that firms should select suitable modes matched with their internal capabilities. Specifically, it is suggested that different types firms should adopt different matching strategies. For instance, for firms with intensive internal R&D activities and strong internal R&D capabilities, collaboration with science-based partners is preferable. But, for firms with good R&D capabilities and medium manufacturing capabilities, collaboration with horizontal connections will be an optimal option. Meanwhile, for firms with medium R&D capabilities, collaboration with technology related organizations and value chain partners will achieve better innovation performance. In sum, this paper states that it is important for firms to decide whether they can access to complementary resources which is beneficial for innovation from the openness.