Open Innovation Strategies on New Product and Process Development Prospects: A Case of the Automotive Component Manufacturers in South Africa

Abstract

Competition between South African Automotive Component Manufacturers ACMs has focused on activities associated with supply chain management such as transporting raw materials and finished products. However, these activities are non-value, adding, so they are an area of relative opportunities for cost reduction; hence new product development presents a significant boost to competitiveness. This chapter\'s primary goal is to determine which open innovation practices can benefit ACMs in developing new products and processes by using a sample survey of 10 ACMs in the automotive manufacturing industry in South Africa. The study adopted a quantitative methodology approach using a 5 Likert structured questionnaire. Data were collected from 33 respondents, including owners, senior and junior managers of ACMs. The results identified that idea generation positively influences the Open Innovation activity of seeking new outside applications for internally developed innovations, knowledge, tools and ideas on new product development. The significant implications are that ACMs should improve their dynamic capabilities to turn ideas generated into new innovative products to remain competitive. This chapter contributes to the existing knowledge by suggesting a contextualised impact of open innovation strategy on sustainable new product development of ACMs in South Africa.