Embracing Technology and Propelling SMEs through Open Innovation Transformation

Purpose: Open innovation exploration in Small Medium Enterprises (SMEs) lack comprehensive review. This study integrates empirical findings in analyzing open innovation adoption by integrating relevant theories to support the arguments.Design/Methodology/Approach: The research uses cross sectional data from the survey mode from SMEs industries. Simple random sampling technique was used and hierarchical multiple regression was employed to test the related hypothesis variables. The theories utilized in this research are drawn from multiple theoretical perspectives from Open Innovation concept, Social Exchange Theory and Actor Network theory. Cross-sectional data were collected using the survey method in obtaining data. Hierarchical multiple regression was employed to test the hypothesized relationships. This research utilizes quantitative techniques and the findings of this study will support SMEs in fostering new tools and technologies that are driven by open innovation concept.Findings: The results indicate that the relationships between organizational citizenship behaviour, organizational culture, managerial ties and transactional costs are significant and thus all the hypothesis are supported.Practical Implications: The study will benefit SMEs in adopting technologies that are driven by open innovation concept in achieving sustainable productivity and performances in the long run. From theoretical aspect, the dimensions of various behaviours provide guidelines to SMEs for tackling employees’ obstacles in adopting technology based productions.Originality/Value: To the best of the authors’ knowledge, lack of research is attempted to study the open innovation concept which is a an influential factors that affect SMEs as well as the behavioural and cost factors that determines the success of open innovation adoption