International Journal of Academic Research in Education and Review
 

International Journal of Academic Research in Education and Review

Vol. 6(1), pp. 1-15. April, 2018.

ISSN: 2360-7866

DOI: 10.14662/IJARER2017.025

Full Length Research

Determinants and Acceptance of Open Innovation in Malaysian SMEs

¹Sanmugam Annamalah, ²Murali Raman, ³Govindan Marthandan and ⁴Aravindan Kalisri Logeswaran

¹Faculty of Business, SEGi University College, Kuala Lumpur, Malaysia. E-mail: sanmugam_1@yahoo.com,  or sanmugam@segi.edu.my

²Faculty of Management, Multimedia University, Cyberjaya, Malaysia. E-mail: murali.raman@mmu.edu.my

³Faculty of Management, Multimedia University, Cyberjaya, Malaysia. E-mail: marthandan@mmu.edu.my

⁴Faculty of Management, Multimedia University, Cyberjaya, Malaysia. E-mail: aravindan@mmu.edu.my

Accepted 25 January 2018

The paper analysed determinants of open innovation (OI) responses in Small Medium Enterprises (SMEs) and validated the relationship factors that influence open innovation (OI) adoption. Organisation’s goal is to meet the needs and requirements of its customers to ensure the survival of the organisation and it is important that OI is adopted for organisational performance. This study looks into the aspect of behavioural and cost factors to determine the adoption level which includes organizational citizenship behaviour, managerial ties, organizational culture, transactional costs and appropriability regime to determine the open innovation adoption among SMEs particularly in manufacturing sector. Actor Network Theory and Social Exchange Theory utilised in this study. Quantitative analysis used to explore the relationships. Validity, reliability and subsequently the data normality were examined by analysing data with the aid of SPSS software. The study reveals that all the factors are positively correlated and there is a strong relationship between factors of the study with the adoption of OI. Developing new tools and technologies that motivate open innovation adoption brings more beneficial to SMEs. From theoretical aspect, this study contributes the dimensions of behaviours and costs in proposing the guidelines for SMEs to adopt OI.

Keyword: Open Innovation, SMEs, manufacturing, behaviour, costs, knowledge and technology

Cite This Article As: Annamalah S, Raman M, Marthandan G, Logeswaran AK (2018). Determinants and Acceptance of Open Innovation in Malaysian SMEs. Inter. J. Acad. Res. Educ. Rev. 6(1): 1-15
 

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