LINKING STRATEGY WITH OPEN INNOVATION AND PERFORMANCE IN SMEs

Purpose - The purpose of this paper is to analyze the linkages between company’s strategy, open innovation and innovation performance, focusing on SMEs. In more details, the aim is to investigate the influence of firm strategy on the level of openness adopted and then the impact of open innovation on firm performance. Finally, the influence of context-specific variables (such as firm size, technology intensity, geographical area, experience of the company and technology turbulence) on the relations mentioned above will be verified. Design/methodology/approach - A survey has been conducted in the Italian manufacturing context and a database of 107 responses was obtained. The constructs of the research framework were created and validated using factor analysis; further structural equation modeling was performed in order to verify the hypothesis about the studied relations. Findings - The obtained model confirmed most of the relations hypothesized, giving useful indications on how to define competitive strategy and coherent level of open innovation in order to pursue improved firm performance. Results highlight that firms, which pursue an innovative strategy, are those who invest more on technical skills and core competencies. Companies who choose a strategy of diversification are likely to use, exclusively, managerial practices of open innovation, while firms focused on a strategy of efficiency are inclined towards open innovation practices and to a lesser extent to the development of core competencies.