Limits of Open Innovation and Organizational Change: A Case Study

The purpose of this study is to explore the limits of open innovation (OI) during organizational change. It aims to offer approaches that can drive organizations to offset such limits and institutionalize the opportunities of OI. The empirical analysis is based on an in-depth single case study of an OI ecosystem initiative developed by a large multinational manufacturing company in Northern Europe. By analyzing the limits of OI across the different stages of the change process, we have found that clearly communicated top management’s vision and support trigger the company to unfreeze for a change towards OI. However, during the change process of developing collaborative and absorptive capabilities, and organizational readiness, several internal and external challenges limit the company’s ability to open up. These challenges refer to knowledge and resource utilization, structure and culture, training and development, collaboration, risks and threats, technological advancements and recently the COVID-19 pandemic. Our proposed analytical framework shows several concrete managerial implications by providing evidence and insights for companies to consider when developing and implementing an OI ecosystem.