OPEN INNOVATION: SYSTEMATISATION OF KNOWLEDGE EXPLORATION AND EXPLOITATION FOR COMMERCIALISATION

Abstract

This paper explores the intricacies of various determinants that can be used to systematise open innovation processes as the functional streaming of knowledge, both inbound and outbound, to expedite internal innovation and extricate the market for external use of innovation. Drawing on extant open innovation literature and data collected from organisations on the list of Thomas Reuters Derwent World Patents Index covering North America, Europe, Asia, Sub-Saharan Africa, the Middle East and North African for their open innovation practices, a model was developed that conceptualises the systematisation of open innovation processes toward commercial activities. The results show that the systematisation of open innovation requires a balancing act of knowledge exploration (KET) and exploitation (KEL) ambidexterity for commercialisation of the firm, and that a relationship exists between these variables. Using the contingency-based approach to organisational development, the paper adds to the understanding of the role of open innovation processes, systematisation, content and context as well as the research and development aspect of open innovation.