Literature Review
The concept of open innovation represents a special mindset created during the new information age. It is focused on a less secretive approach to information in research and development departments of various organizations. Its goal is to use external cooperation to achieve better results in the internal development. Until recently, such development was almost completely internal for the majority of firms, but the extreme costs of research in the modern age and the low price of instant group communication through the internet or more traditional means created a climate in which open innovation may be highly beneficial for all involved parties. This approach has a number of disadvantages in cases when it is not utilized properly. In most cases, it concerns the reveal of information that was not intended to be shared. However, such issue is not guaranteed if the open innovation proves carefully planned.
In the seven examined papers on various aspects of open innovation, it can be seen that the results on open innovation used by small and large firms are generally positive. For example, a survey of 223 Asian service firms revealed significant positive effects on the company performance in the development and implementation of new information (Cheng & Huizingh 2014; West & Bogers 2014). A similar trend was seen in the review of how both small and large firms use this type of research to their advantage. Large firms were found to have a greater interest in this practice while small and medium-sized companies are more reluctant to implement such strategy due to concerns over their competitive edge. Nevertheless effect on small and medium-sized firms was found to be positive (Brunswicker & Vanhaverbeke 2015; Chesbrough & Brunswicker 2014).
The effect that open innovation has on the organization is often positive, but its level of potency varies between firms. To ensure successful use of open innovation, firms require a change in their business models. Open innovation has to be linked to the core ideas of the company. Its structure, transaction policy, and the content the firm produces have to be supportive of its focus on open innovation and take full advantage of it (Lichtenthaler 2015; Saebi & Foss 2015). In the coming decade, the use of open innovation may be very important for the UAE firms. Research on the past improvements caused by the introduction of open innovation determined that in the coming years the data on this topic would be more accurately measured, the role of appropriability would be better understood, and the management aspect would be linked to the economic concept of this method. This indicates that implementation of open innovation in near future would be an easier process (West et al. 2014). While the current UAE innovation policies have already brought a number of benefits to its institutions, a more cooperative approach could lead to a bright future for the country.
Focus Group Discussions
The rationale behind the use of qualitative research study and not quantitative is relatively simple. Focus groups involve inherently qualitative elements such as interviews with participants and data on people’s opinions on products, marketing or any other discussed subject. This type of study would allow the company to receive an approximately accurate reaction to its use of open innovation in various UAE institutions.
Focus group discussions are based on a small but diverse group of people evaluating ad discussing a given project, product, or any other type of concept. By addressing the use of open innovation by UAE institutions in a demographically diverse group of people, the researcher should be able to gain data and results that are almost impossible to obtain in quantitative research performed from a distant perspective. An idea presented by each of the participants can be added to the ideas of others in a group creating a chain of responses and potentially leading to more detailed answers. Focus groups discussions also ensure that every person participating in it getting a chance to contribute to the discussion without fear of criticism, which allows for more honest and accurate answers. For example, people involved in the aviation industry can be presented with a new business model that is more focused on the use of open innovation rather than the closed type of innovation. They would share and discuss their opinions about potential issues that open innovation can have for the industry, which can later be used to adjust this model.
The role of moderators is in the conduction of the interview with the participants in an informal fashion. A moderator needs to be qualified in information analysis and have an ability to ask quality follow-up questions to the participants. A special guide is prepared in advance to ensure that all aspects of the topic are discussed during the session.
The size of focus groups may vary from four members to larger groups of twelve. The choice of their size is based on the need to have a range of diverse opinions. For a discussion of open innovation, it would be beneficial to select people representative of different divisions of the industry such as accountants, engineers, researchers, managers, and other types of workers. The selected participants would need to be motivated by explaining the potential benefits of this approach to innovation and establishing that their response could be essential to its successful implementation. While a physical focus group discussion would be the preferred option due to the more natural environment and human interaction that could improve the chain of responses, an online discussion may be required for the participation of people whose schedule does not allow for physical presence at such an event. The discussion should take approximately an hour and a half, which will be recorded on video, with notes being taken by the moderator.
The discussion guide created for the moderation of the group should include three key items. The first item concerns potential benefits that the participants see in the concept of open innovation. The second key item is the discussion of disadvantages that the focus group sees in the presented plan. Finally, their overall opinion should be recorded.
The use of focus group discussions has a number of disadvantages that need to be considered. The main issue that concerns the majority of focus groups is the dependency of results on the observer. Qualitative information gained during such discussions can be interpreted in a number of ways, which may lead to invalid results. The accuracy of the information obtained through focus group discussion is also dependent on the setting in which they take place. Participants need to be relaxed and feel comfortable in presenting truthful answers.
Data analysis should be performed with the consideration of the strength of the participant’s opinion. While speaking, people may express contradictory views, but the strength with which they are presented should suggest which is closer to their beliefs. It should be noted that elements that did not receive a response from all participants have to be closely examined during analysis.
Sampling
Sampling is a standard process of research that may be used to test a specific hypothesis. It may be approached in a variety of ways, but in the majority of cases, simple random sampling is sufficient to gain relatively reliable results. On the topic of open innovation, the following hypothesis may be tested. The hypothesis presumes that the introduction of the open innovation concept into public sector institutions would lead to an increase in efficiency and productivity of these institutions.
The sampling plan used to collect this data would be based on the probability principle and utilize a simple random sampling approach. This type of approach allows the researcher to gain an idea of the accuracy of the hypothesis by avoiding bias and selecting a variety of different participants. Also, the use of the probability principle is required for random sampling. The sample size of the study is one of the elements that define the strength of evidence produced by the research study. For this specific study, two groups of random participants would be required. The first would include companies that utilize open innovation techniques and models of business, and the second would consist of companies that use traditional secretive methods of research and development.
Both groups would need to have to contain a significant number of randomly selected participants. Previously examined research focused on 100 to 200 companies being selected overall. For this study, 120 public institutions should be chosen, with 60 belonging to each group. This number is not the largest out of the available research but the number of public institutions in the UAE and surrounding regions is limited, and it would be important to focus on this region specifically. These groups would be then compared based on their innovation results over the last 5 years and find which were more successful in their efforts. The data is then analyzed, and recommendations are given on the topic of future research and how the available information may be utilized in the implementation of open innovation. Hopefully, these results may be beneficial to Maysoon.
Reference List
Brunswicker, S & Vanhaverbeke, W 2015, ‘Open innovation in small and medium-sized enterprises (SMEs): external knowledge sourcing strategies and internal organizational facilitators’. Journal of Small Business Management, vol. 53, no. 4, pp. 1241-1263.
Cheng, CCJ & Huizingh, EKRE 2014, ‘When is open innovation beneficial? The role of strategic orientation’, Journal of Product Innovation Management, vol. 31, no. 6, pp. 1235-1253.
Chesbrough, H & Brunswicker, S 2014, ‘A fad or a phenomenon?: the adoption of open innovation practices in large firms’, Research-Technology Management, vol. 57, no. 2, pp. 16-25.
Lichtenthaler, U 2015, ‘A note on outbound open innovation and firm performance: outbound open innovation’, R&D Management, vol. 45, no. 5, pp. 606-608.
Saebi, T & Foss, NJ 2015, ‘Business models for open innovation: matching heterogeneous open innovation strategies with business model dimensions’, European Management Journal, vol. 33, no. 3, pp. 201-213.
West, J & Bogers, M 2014, ‘Leveraging external sources of innovation: a review of research on open innovation’, Journal of Product Innovation Management, vol. 31, no. 4, pp. 814-831.
West, J, Salter, A, Vanhaverbeke, W, & Chesbrough, H 2014, ‘Open innovation: the next decade’, Research Policy, Open Innovation: New Insights and Evidence, vol. 43, no. 5, pp. 805-811.