Determinants of Open Innovation and their Interrelations

Abstract

Based on an extensive literature review, this paper identifies nine erosion factors that lead to the birth of open innovation and discovers their interrelations by using Interpretive Structural Modeling (ISM). As a result, digital technologies and globalization emerged as major drivers. More interestingly, erosion factors proposed by leading open innovation scholars emerged as weak drivers, meaning that open innovation is driven by other factors. We argue that a better understanding of these factors and their interrelations provide valuable insights for managers and policy makers in emerging markets on facilitating the adoption of open innovation and promoting a more open business environment.