@article{f06c353a8a1c435681174670fba9a048,
title = "Do or do not. Cognitive configurations affecting open innovation adoption in SMEs",
abstract = "The adoption of Open Innovation (OI) in small and medium-sized enterprises (SMEs) often rests on its positive evaluation from top-management teams and/or entrepreneurs. Because of the mixed outcomes attainable through SMEs' openness, managers must weigh the beneficial aspects of boundary-spanning against the complexities coming from inter-organizational arrangements and knowledge transfer. Building upon the tenets of dual-process theory, this study highlights the cognitive configurations leading toward willingness or reluctance of OI adoption in SMEs. This is done by investigating perceptions of barriers, benefits, and organisational resistance to openness, such as the not-invented-here (NIH) and not-shared-here (NSH) syndromes in combination with decision-makers{\textquoteright} cognitive styles. To shed further light on observed heterogenous outcomes and the effects of managerial cognitive configurations, this study analyses the willingness and reluctance to adopt OI among 434 managers and entrepreneurs working in SMEs. The results of combined PLS-SEM and fsQCA analyses outline different decisional paths associated with willingness and reluctance to adopt OI. Thus, this research contributes to the {\textquoteleft}human side of OI{\textquoteright} paradigm by providing fruitful implications about cognitive configurations of decision-makers in SMEs concerning OI adoption.",
keywords = "Adoption, Cognition, Decision-making, Human side, Intuition, Open innovation, Rationality, SME",
author = "Giacomo Marzi and {Fakhar Manesh}, Mohammad and Andrea Caputo and Pellegrini, {Massimiliano Matteo} and Bo{\v z}idar Vla{\v c}i{\'c}",
note = "Funding Information: In the context of SMEs, where resource availability is often limited, embracing the somewhat perilous adoption of OI forces firms to commit and allocate resources in the present against benefits deferred to the long term (Bigliardi and Galati, 2016; van de Vrande et al., 2009). Consequently, decision-makers could negatively frame OI, considering it too risky a source of capital expenditure without a short-term benefit (Bigliardi and Galati, 2016; Lee et al., 2019). In fact, decision-makers may assess OI carefully and suspiciously, often leading to non-adoption decisions because of the perceived costs, lack of organisational structure, and lack of proper supporting network (Bogers et al., 2017; Greco et al., 2019). As OI adoption represents a continuum and not a binary state of open–closed (Barrett et al., 2021), the decision to pivot and embrace the OI route lies in the decisions of entrepreneurs, managers, and innovators at the strategic level (Flamini et al., 2021; Kor et al., 2007; Najar and Dhaouadi, 2020). This is particularly true for SMEs, where the decision-making power is often concentrated in one or a small group of individuals, creating a situation where cognitive perceptions and attitudes become central (Najar and Dhaouadi, 2020; Pappas et al., 2021).The research model was firstly assessed using the PLS-SEM method (Hair et al., 2014; Henseler et al., 2016) with SmartPLS software version 3.3.3. PLS-SEM is a composite-based method for structural equation modelling, which is useful for theory testing with a prediction perspective (Rasoolimanesh et al., 2021). PLS-SEM is an ideal procedure for estimating and assessing the hypothesised relationships in path models with latent variables (Hair et al., 2014), as it facilitates the examination of complex path models by supporting the unrestricted use of different variable types and nonlinear terms (Hair et al., 2012, 2014). This approach mainly encompasses two procedures: (1) measurement model assessment, and (2) evaluation of the structural model. Accordingly, PLS-SEM bases its results on a symmetric mean effect of variables, producing a result that explains the existing relations with average effects. However, in recent years, scholars have debated the use of a solely symmetrical approaches, arguing that average effects are not always capable of catching the various facets of a phenomenon (Rasoolimanesh et al., 2021). As a result, to complement the PLS-SEM analysis, an fsQCA approach was implemented (Rasoolimanesh et al., 2021; Yildirim et al., 2022).The quality of the structural model was firstly evaluated using the coefficient of determinations (R2). Moreover, the evaluation analysis revealed minimum collinearity in each set of predictors, as all the variance inflation factor (VIF) values were below the threshold of 5 with an average value (μ) of 1.880 (Hair et al., 2011). To test the model fit, the RMS theta was calculated, which is the root mean squared residual covariance matrix of the outer model residuals (Hair et al., 2011). This analysis computes the degree to which the outer model residuals correlate, and it is particularly useful for studies that assess reflective models. The acceptable cut-off for RMS theta for PLS path models is 0.12 (Henseler et al., 2016). The RMS theta computed here was 0.116, which supports the model fit criterion. In addition, a blindfolding analysis was executed for all endogenous constructs, for which the Q2 values were above zero (NIH = 0.053; NSH = −0.001; PBE = 0.029; PBA = 0.007; WA = 0.385), indicating that the structural model had a satisfactory predictive relevance for the dependent variable.The results presented in Table 4 show that intuitive cognition did not play any direct role in adopting the OI strategy among decision-makers. Further, the analysis revealed a lack of support for the influence of the NIH syndrome on willingness to adopt OI strategies. However, the remaining direct effects were validated, showing that the effect of the NSH syndrome and perception concerns (i.e. perceived benefit and perceived barriers) affected managerial willingness to adopt OI. Also, the results confirmed that rational cognition had a direct effect on the NIH syndrome among decision-makers, while the same was not true about the connection between rational cognition and the NSH syndrome. Regarding perception concerns (i.e. perceived benefits and perceived barriers), rational cognition was positively associated with them. Lastly, rational cognition was not positively associated with willingness to adopt OI, similar to what was predicted for intuitive cognition.Configuration R5 presented the profile of balanced decision-makers, apparently not interested in innovating through OI. The profile showed a decision-making process based on cognitive aspects, both rational and intuitive; thus, a balanced and all-rounded evaluation of OI was made (Adinolfi, 2021). The decision-makers depicted by Configuration R5 also negatively evaluated the benefits of OI (○PBE), and their perception of barriers was central. Thus, barriers and costs related to them offset the benefits of OI. Notably, in this configuration, the low willingness to adopt OI was not affected by preconceptions and biases, as the two syndromes were absent (Ahn et al., 2017; van de Vrande et al., 2009). Therefore, this configuration (R5) showed the profile of a decision-maker that, after careful assessment of OI's implications, came to the decision that OI was not convenient or appropriate for their businesses (Barrett et al., 2021; Bigliardi and Galati, 2016). Indeed, some situations may structurally limit the ability of an SME to reap the benefits of OI. For example, when the product's market size is expected to be large and capable of generating significant benefits for the company, managers tend to avoid the use of OI, as well as when significant R&D funding and grants are available for the company (Lee et al., 2019). The same applies when the cost of formal intellectual property rights mechanisms are too extensive, not allowing SMEs to fully protect their knowledge. In this case, SMEs adopt a defensive tactic, keeping their internally generated knowledge undisclosed (von Briel and Recker, 2017). Finally, maintaining the relation network with OI partners is far from inexpensive, and strained resources can limit the adoption of OI in SMEs due to its interactions and relational costs (von Briel and Recker, 2017).Therefore, our findings create some interesting perspectives for policymaking and education. Perceived barriers can be dismantled by appropriate policy intervention aiming to favour OI adoption and networking, such as clearer regulations and collaboration grants (Barrett et al., 2021; De Marco et al., 2020; Stoj{\v c}i{\'c}, 2021). This is true for emerging and transition economies, where innovation network of SMEs play a crucial role in the welfare of counties (Stoj{\v c}i{\'c}, 2021). Publisher Copyright: {\textcopyright} 2022 Elsevier Ltd",
year = "2023",
month = jan,
doi = "10.1016/j.technovation.2022.102585",
language = "English",
volume = "119",
journal = "Technovation",
issn = "0166-4972",
publisher = "Elsevier Ltd.",
}
