Acknowledging that valuable ideas can come both from inside and outside the organization, firms have turned to more open models of innovation. However, it remains difficult to measure firms’ open innovation activities, particularly in a quantitative, longitudinal setting. This impedes an adequate assessment of open innovations’ long-term implications for firms’ financial performance. While researchers have devoted a considerable effort to examining the link between open innovation and innovative performance, the link to financial performance is unclear. In this study, we develop and validate a text-based measure for firms’ open innovation activities, and probe related performance implications in a longitudinal, cross-industry setting. Combining machine-learning content analysis to create an open innovation dictionary, we analyze the 10-K annual reports of 9,100 publicly listed firms in the U.S. between 1994 and 2017. Our results support our theorizing that a nonlinear relationship takes an S-shape between open innovation and financial performance.
This guest talk is presented by the Chair of Sustainable Business / Prof. Dr. Edinger-Schons.
All areas of the CDSB run prominent external seminar series. These series are an integral part of the PhD Program. Internationally renowned researchers from all over the world present and discuss their latest research topics. This is a great opportunity for students to gain new insights into various disciplines and receive impulses for their own research activities.