1. The relationship between non-pecuniary outbound openness and profit in large firms.
- Author
-
Wang, Beifen and Li, Zhibao
- Subjects
- *
OVERHEAD costs , *VALUE capture , *OPEN innovation , *BUSINESS enterprises , *INFORMATION sharing - Abstract
Investigations into pecuniary and inbound innovation types has advanced rapidly. The relationships between these types of OI and innovation performance are now well understood. Non-pecuniary outbound OI has received less attention, perhaps because it is contrary to the expectation of capturing rents from innovation. Yet, there are many well-known large companies embracing non-pecuniary outbound open innovation in practice because non-pecuniary outbound OI involving knowledge sharing is critical to innovation and future value capture. In this article, we address this gap by establishing a mathematical model to investigate the relationship between non-pecuniary outbound OI and profit in large firms. Our findings indicate that when the fixed cost of resources is low, the degree of openness is negatively related to profit. When the fixed cost of resources is high, the relationship between the degree of openness and profit is inverted U-shaped. Our work thus suggests boundary conditions to the non-pecuniary outbound OI in large firms. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF