ENABLING OPEN INNOVATION IN SMEs: A DYNAMIC CAPABILITIES APPROACH

This paper aims at exploring the critical dynamic capabilities of SMEs in the innovation process and at identifying the dynamic capabilities which enable the implementation of open innovation practices. Building on qualitative data from the manufacturing industry deriving from an in-depth investigation of the capabilities of four innovative case firms, the patterns between the firm’s portfolio of dynamic capabilities and the different types of open innovation processes is mapped. This study makes three primary contributions to the body of knowledge. This is the first attempt to link dynamic capabilities to open innovation approach held by Small and Medium Enterprises (SMEs). Second, the study extends existing wok on innovation in SMEs by identifying key dynamic capabilities in that context. Finally, the case based research provides empirical evidence of dynamic capabilities in practices, where analysis reveals that companies with strong sensing, seizing reconfiguring capabilities are more inclined to develop open innovation approaches.