Effects of Japanese Firms Conceptual Model on Open Innovation and Performance

Abstract

The objective of this paper is to develop a conceptual model for open innovation practice in Japanese firms, based on models and frameworks from the literature. The study intends to present a model on open innovation at firm level analysis in performance, in which interactive process considers differed in terms of (1) research and development (R&D) strategies or activities; (2) the degree of new product's newness to the firm. The model attempts to reveal research gaps on the relationship between open innovation and firm performance in Japan, and might be the basis for comparative research. Recently, there has been increased research activities on open innovation with specific emphasis on large firms, mainly from US, Europe and UK, while Japan is lagging behind. We found the main models on open innovation were analyzed in-depth with the extent of open innovation adoption and the effect of open innovation activities. And have mostly been limited to theoretical considerations and case studies. Yet, there is no comprehensive conceptual and detailed analyzes about how open innovation practice in Japanese firms.