Understanding a firm's choice for openness: strategy as determinant

In the corporate landscape, some firms benefit from open innovation whereas others gain more advantage from a closed innovation model. Why do some firms benefit more than others from openness? A firm's strategy, which includes market and innovation orientation as well as internal structures and processes, is likely to be indicative of an adequate degree of firm openness and a well-considered selection of open innovation approaches. By analysing 25 firms according to three proactive strategy archetypes of innovation management, we identified distinctive behaviours regarding open and closed innovation activities. The three archetypes present an adequate degree of openness, adjusted to each archetype's strategic characteristics. Innovation managers can learn from this study how to skilfully link innovation models with each other as well as which degree of firm openness may be beneficial in order to reach a desired level of innovation performance. Furthermore, they can understand which open innovation activities are characteristic of a specific proactive strategy archetype of innovation management.