Organizational Practices’ Role in Managing Open Innovation and Business Performance

Nada Rabie (), Ayman Moustafa and Fatima Al Ghaithi
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Nada Rabie: Entrepreneurship and Business Growth Department, Envision Saint John, Saint John, NB E2L 2G9, Canada
Ayman Moustafa: Career Services Department, Khalifa University Main Campus, Abu Dhabi P.O. Box 127788, United Arab Emirates
Fatima Al Ghaithi: Department of Business Administration, British University in Dubai, Dubai P.O. Box 345015, United Arab Emirates

Administrative Sciences, 2024, vol. 14, issue 5, 1-34

Abstract: Given the ever-changing world of technological advances, and due to the fact that business entities strive for efficiency and cost reduction, open innovation (OI) has become the focus of academic and scholarly discussions. Furthermore, to increase their competitiveness, small and medium enterprises (SMEs) have started implementing OI practices. This study aims to investigate the impact of SMEs’ internal organizational practices on OI and the impact of the latter on SMEs’ business performance. This quantitative study, which was based on gathering insights from SMEs, sought to answer two research questions related to the effects of organizational practices on the adoption and management of OI processes in SMEs and the role of OI in accelerating the business performance of SMEs. The findings revealed that not all SMEs’ internal organizational practices have a positive impact on both OI and SMEs’ business performance. This study is among the earliest studies in the UAE and GCC region to explore the impact of specific internal organizational practices on SME OI adoption and its business performance. The present study contributes theoretically and practically to OI literature and assists SME managers in evaluating their internal organizational practices’ suitability for OI adoption.

Keywords: open innovation; SMEs; organizational practices; business performance; dynamic capabilities; absorptive capacity; RBV (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2024
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