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The Effect of Macro Environmental and Firm-Level Factors on Open Innovations in Product Development and Their Impact on Firms’ Performance

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Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 961))

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Abstract

Most research on open innovation and product development concentrates on developing effective collaborative models to develop competitive products. Little research considers macro environmental and firm-level factors while developing such models. These factors can possibly affect outsourcing innovations in product development and later overall firm performance. As such, this research investigates how macro environmental and firm-level factors link with open innovations in product development and their relationship with the firm’s overall performance. First, the conceptual framework of outsourcing innovations was synthesized from open innovation and business partnership related literature. A total of 60 intensive R&D-based firms were surveyed in 20 countries concerning the effects of macro environmental and firm-level factors on product development and its performance. Statistical techniques were used to analyse the data. The collected data helped to identify seven important macro environmental and firm-level factors. The results provided support for the conceptual framework and described the impact of all factors on developed product performance and the firm’s overall performance in the given market. An implication for managers is that the provider’s host country environment has no direct impact on a firm’s performance.

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Authors and Affiliations

  1. School of Technology and Innovations, University of Vaasa, Wolffintie 34, 65200, Vaasa, Finland

    Afnan Zafar & Jussi Kantola

Authors
  1. Afnan Zafar
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  2. Jussi Kantola
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Correspondence to Afnan Zafar .

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Editors and Affiliations

  1. Department of Production, University of Vaasa, Vaasa, Finland

    Jussi Ilari Kantola

  2. University of South-Eastern Norway, Borre, Norway

    Salman Nazir

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Zafar, A., Kantola, J. (2020). The Effect of Macro Environmental and Firm-Level Factors on Open Innovations in Product Development and Their Impact on Firms’ Performance. In: Kantola, J., Nazir, S. (eds) Advances in Human Factors, Business Management and Leadership. AHFE 2019. Advances in Intelligent Systems and Computing, vol 961. Springer, Cham. https://doi.org/10.1007/978-3-030-20154-8_6

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  • DOI: https://doi.org/10.1007/978-3-030-20154-8_6

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-20153-1

  • Online ISBN: 978-3-030-20154-8

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