Open Innovation: A New Mechanism For Adoption Of Organizational Innovation Empirical Evidence From Algerian Companies

Abstract

The aim of this paper is to analyze the relationship between the openness degree of companies and organizational innovation. The openness degree is defined as the use of purposive inflows and outflows of knowledge to accelerate internal Innovation, and to expend markets for external use of innovation (Chesbrough, 2006). The research utilizes causality models and suggests a conceptual schema subsequent to a comprehensive analysis of the literature linked to open innovation field. A sample of 120 managers and employees of Algerian pharmaceutical company is used. The SEM is used to analyze and approve the proposal of the conceptual schema. Results of the empirical research show that open innovation is positively and significantly related to organizational innovation, on the other hand, these results indicate that there is a positive and significant impact of organizational innovation on organizational performance.