Understanding the relationship between organizational culture and inbound open innovation

Abstract

Purpose – The relationship between corporate culture and inbound open innovation (OI) has been limited to two sub-constructs: a culture for openness and an innovation culture, but until now a richer conceptualization of corporate culture is missing. Design/methodology/approach – The authors apply Quinn and Rohrbaugh’s (1983) competing values framework and regress these together with company internal and external control variables on five measures of inbound OI, reflecting product innovation, process innovation and the sourcing of innovation activities. The authors use data from a survey of more than 250 Swiss companies, primarily SMEs. Findings – The importance of the firms’ market environments suggests that the results are affected by the specific situation in which the firms found themselves at the time of the survey: after a strong currency shock, inbound OI activities seem to be a reaction to external pressure that favored planning and rule-oriented (formal) cultures to implement cost-cutting process innovations. Practical implications – Companies should develop a vision and a strategy, ensure open and transparent communication, have suitable reward and support mechanisms in place, adjust structures and processes, and institutionalize and formalize any change whenever they are confronted with a situation that requires a quick reaction and an adjustment to their degree of openness. Originality/value – The paper clarifies the relationship between cultural traits and inbound OI, using a well-established understanding of corporate culture and differentiating between innovation types. It points to the importance of the external environment in order to understand the role of culture.