What motivates ‘free’ revealing? Measuring outbound non-pecuniary openness, innovation types and expectations of future profit growth

Abstract

Open innovation (OI) refers to the inbound and outbound flows of knowledge beyond the boundary of the organization, which can be in the form of pecuniary or non-pecuniary exchanges. Investigation into pecuniary and inbound innovation types has advanced rapidly, but non-pecuniary outbound OI (free revealing) has received less attention. Presenting a scale developed through a systematic literature review, expert testing and exploratory factor analysis, we show that revealing is reflected by five motivational factors, namely seeking complementary capabilities, product diffusion, strategic spillovers, product enhancement, and co-creation with firms. Regression models show that these factors influence the variety of innovation types and shareholder expectations of value capture through future returns.