Abstract
Various recent studies have demonstrated that societies which have embraced open innovation methods are more proactive to improve their industrial and economic performance. Exploring several paradigms and theories, the present study was conceived with the goal of determining whether self-organization and organizational learning can indeed affect open innovation environments (OIEs). By collecting field data on the current status of self-organization and learning, this study investigates the impact of the two processes in OIEs on startups. The relationship between self-organization and learning is assessed using structural equation modeling (SEM). After validating the developed model, the cooperative games of the startups in the aforementioned OIE are examined. In the end, the economic value of each startup is obtained through game theory and the Shapley value. The studied startups were valued in both open and closed innovation environments to assess the economic implications of investment under the two paradigms. The results confirm that making investments is more justifiable when a startup is part of an OIE. Moreover, the value of each startup further increased in OIE due to the synergistic effect of collaborating with other startups in the innovation network.
Similar content being viewed by others
References
Adner, R. (2006). Match your innovation strategy to your innovation ecosystem. Harvard Business Review, 84(4), 98.
Allen, P., Maguire, S., & McKelvey, B. (2011). Complexity and Management. SAGE Publication Ltd.
Ayas, K. (1996). Professional project management: A shift towards learning and a knowledge creating structure. International Journal of Project Management, 14(3), 131–136.
Bašić, M. (2017). The influence of international knowledge and skills and firm internationalization on open innovation. In Open Innovation: Unveiling the Power of the Human Element (pp. 191–219).
Bašić, M. (2022). How does open business model transform elements of innovation culture into open innovation practices of high and low internationalisation firms? Journal of the Knowledge Economy, 1–27.
Bašić, M. (2021). Organisational learning antecedents and open innovation: Differences in internationalisation level. International Journal of Innovation Studies, 5(4), 161–174.
Blank, S. (2020). Four Steps to the Epiphany. Wiley.
Bouncken, R., & Fredrich, V. (n.d.). Business model innovation in alliances: Successful configurations. Journal of Business Research, 69(9), 3584–3590.
Brown, R., & Mason, C. (2017). Looking inside the spiky bits: A critical review and conceptualisation of entrepreneurial ecosystems. Small Business Economics, 49, 11–30.
Brunswicker, S., & Chesbrough, H. (2018). The adoption of open innovation in large firms. Research-Technology Management, 61(1), 35–45.
Carayannis, E. (1999). Knowledge transfer through technological hyperlearning in five industries. Technovation, 19(3), 141–161.
Carayannis, E., & Turner, E. (2006). Innovation diffusion and technology acceptance: The case of PKI technology. Technovation, 26(7), 847–855.
Chesbrough, H. (2006). Open innovation: a new paradigm for understanding industrial innovation. Open innovation: Researching a new paradigm, 400, 0–19.
Chesbrough, H. (2003). Open innovation: The new imperative for creating and profiting from technology. Harvard Business School Press.
Chesbrough, H., & Bogers, M. (2014). Explicating Open Innovation: Clarifying an Emerging Paradigm for Understanding Innovation (pp. 3–28). Oxford University Press.
Chesbrough, H., & Tucci, C. (2020). The interplay between open innovation and lean startup, or, why large companies are not large versions of startups. Strategic Management Review, 1(2), 277–303.
Choi, H., Kim, S.-H., & Lee, J. (2010). Role of network structure and network. Industrial Marketing Management, 39(1), 170–177.
Cole, D. A., & Maxwell, S. E. (2003). Testing mediational models with longitudinal data: Questions and tips in the use of structural equation modeling. Journal of Abnormal Psychology, 112(4), 558.
Corley, E., Boardman, P., & Bozeman, B. (2006). Design and the management of multi-institutional research collaborations: Theoretical implications from two case studies. Research Policy, 35(7), 975–993.
Damodaran, A. (2009). Dark Side Valuation: Valuing Young, Distressed, and Complex Businesses. FT Press.
De Marchi, V., Giuliani, E., & Rabellotti, R. (2018). Do Global Value Chains Offer Developing Countries Learning and Innovation Opportunities? The European Journal of Development Research, 30, 389–407.
Dean, T., Zhang, H., & Xiao, Y. (2020). Antecedents and consequence of organizational unlearning: Evidence from China. Technovation, 102160.
Devereux, L., Melewar, T., Dinnie, K., & Lange, T. (2020). Corporate identity orientation and disorientation: A complexity theory perspective. Journal of Business Research, 109, 413–424.
Easterby-Smith, M. (1997). Disciplines of Organizational learning: Contributions and critiques. Human Relations, 50(9), 1085–1113.
Felin, & Zenger. (2013). Closed or open innovation problem solving and the governance choice. Research Policy, 43(5), 914–925.
Fiol, C. M., & Lyles, M. A. (1985). Organizational learning. Academy of Management Review, 10(4), 803–813.
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research 18(3).
Frenken, K. (2000). A complexity approach to innovation networks. The case of the aircraft industry (1909–1997). Frenken, 29(2), 257–272.
Gefen, D., & Straub, D. (2005). A practical guide to factorial validity using PLS-graph: Tutorial and annotated example. Communications of the Association for Information Systems, 16(1), 91–109.
Gilbert, N., Ahrweiler, P., & Pyka, A. (2007). Learning in innovation networks: Some simulation experiments. Physica a: Statistical Mechanics and Its Applications, 378(1), 100–109.
Goldstein, J. (1999). Emergence as a construct: History and issues. Emergence, 1(1), 49–72.
Grechuk, B., & Zabarankin, M. (2017). Synergy effect of cooperative investment. Annals of Operations Research, 249(1–2), 409–431.
Harwood, R., & Simoes-Brown, D. (2012). Open innovation: from marginal to mainstream. In Handbook on the Knowledge Economy, Volume Two (pp. 143–157). Edward Elgar Publishing.
Hegeman, P. D., & Sørheim, R. (2021). Why do they do it? Corporate venture capital investments in cleantech startups. Journal of Cleaner Production, 294, 126315.
Henrik Sieg, J., Wallin, M., & Van Krogh, G. (2010). Managerial challenges in open innovation: A study of innovation intermediation in the chemical industry. R&D Management, 40(3), 281–291.
Jia, W., Liu, L.-R., & Xie, X.-M. (2010). Diffusion of technical innovation based on industry-university-institute cooperation in industrial clusters. The Journal of China Universities of Posts and Telecommunications, 17(2), 45–50.
Jiménez, L., & Pascual, L. (2008). Multicriteria cash-flow modeling and project value-multiples for two-stage project valuation. International Journal of Project Management, 26(2), 185–194.
Jiménez-Jiménez, D., & Sanz-Valle, R. (2011). Innovation, organizational learning, and performance. Journal of Business Research, 64(4), 408–417.
Jugend, D., Fiorini, P. D. C., Armellini, F., & Ferrari, A. G. (2020). Public support for innovation: A systematic review of the literature and implications for open innovation. Technological Forecasting and Social Change, 156, 119985.
Kash, D., & Rycroft, R. (2002). Emerging patterns of complex technological innovation. Technological Forecasting and Social Change, 69(6), 581–606.
Kim, J.-H., & Wagman, L. (2014). Portfolio size and information disclosure: An analysis of startup accelerators. Journal of Corporate Finance, 29, 520–534.
Law, K., & BiengChuah, K. (2019). Project Action Learning (PAL) Guidebook: Practical Learning in Organizations. Springer Nature Switzerland AG.
Levitt, B., & March, J. G. (1988). Organizational learning. Annual Review of Sociology, 14(1), 319–338.
Li, Y., & Zhang, S. (2020). Modeling and simulation of firm-leading self-organization evolution process in open source product design project. Journal of Industrial and Production Engineering, 37(2–3), 148–157.
Likoum, S. B., Shamout, M. D., Harazneh, I., & Abubakar, A. (2020). Market-sensing capability, innovativeness, brand management systems, market dynamism, competitive intensity, and performance: An integrative review. Journal of the Knowledge Economy, 11(2), 593–613.
Lipshitz, R., Friedman, V., & Propper, M. (2007). Demystifying Organizational Learning. SAGE Publications.
Malaeb, Z. A., Summers, J. K., & Pugesek, B. H. (2000). Using structural equation modeling to investigate relationships among ecological variables. Environmental and Ecological Statistics, 7(1), 93–111.
Martínez-Costa, M., Jiménez, D., & Dine Rabeh, H. (2019). The effect of organisational learning on interorganisational collaborations in innovation: An empirical study in SMEs. Knowledge Management Research & Practice, 17(2), 137–150.
Martovoy, A., Kutvonen, A., Mention, A. L., & Torkkeli, M. (2012). Open innovation in banking services: advantages and disadvantages. In ISPIM Conference Proceedings (p. 1). The International Society for Professional Innovation Management (ISPIM).
Mazzucato, M. (2018). Mission-oriented innovation policies: Challenges and opportunities. Industrial and Corporate Change, 27(5), 803–815.
Mazzucato, M., & Semieniuk, G. (2017). Public financing of innovation: New questions. Oxford Review of Economic Policy, 33(1), 24–48.
McKelvey, B., Tanriverdi, H., & Yoo, Y. (2016). Complexity and information systems research in the emerging digital world. MIS Quarterly.
Milici, A., Ferreira, F. A., Pereira, L. F., Carayannis, E. G., & Ferreira, J. J. (2021). Dynamics of open innovation in small-and medium-sized enterprises: A metacognitive approach. IEEE Transactions on Engineering Management.
Nasser, S. (2016). Retrieved from www.medium.com: https://medium.com/parisoma-blog/valuation-for-startups-9-methods-explained-53771c86590e#.b24cj6pma. Accessed 14 Jun 2016
Naufal Aslam, F., & Alamsyah, A. (2018). The Small World Phenomenon and Network Analysis of ICT Startup Investment in Indonesia and Singapore. The 7h Smart Collaboration for Business in Technology and Information Industry 2016. Bandung.
Nieto, M., & Santamaría, L. (2007). The importance of diverse collaborative networks for the novelty of product innovation. Technovation, 27(6–7), 367–377.
Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. Oxford University Press.
Pan, X., Song, M., Zhang, J., & Zhou, G. (2019). Innovation network, technological learning and innovation performance of high-tech cluster enterprises. Journal of Knowledge Management, 23(9), 1729–1746.
Pan, X., Song, M., Zhang, J., & Zhou, G. (2020). Innovation network, technological learning and innovation performance of high-tech cluster enterprises. Journal of Knowledge Management, 23(9), 1729–1746.
Prosperi, M., Lopolito, A., Andriano, A., Lombardi, M., Stasi, A., & Iannuzzi, E. (2020). Network impact of social innovation initiatives in marginalised rural communities. Social Networks, 63, 11–20.
Pustovrh, A., & Rangus, K. (2020). The role of open innovation in developing an entrepreneurial support ecosystem. Technological Forecasting and Social Change, 152, 119892.
Rampersad, G., Quester, P., & Troshani, I. (2010). Managing innovation networks: Exploratory evidence from ICT, biotechnology and nanotechnology networks. Industrial Marketing Management, 39(5), 793–805.
Reis, E. (2011). The Lean Startup. Crown Business.
Richey, R., Chen, H., Upreti, R., Fawcett, S., & Adams, F. (2009). The moderating role of barriers on the relationship between drivers to supply chain integration and firm performance. International Journal of Physical Distribution & Logistics Management, 39(10), 826–840.
Rycroft, R., & Kash, D. (2004). Self-organizing innovation networks: Implications for globalization. Technovation, 24(3), 187–197.
Rydberg, K., & Froidstedt, J. (2016). How can investors evaluate equity crowdfunding offers? Guthenburg: School of Business, Economics and Law.
Shayan, A., Elahi, S., Ghazinoory, S., & KhodadadHoseini, S. (2018). Designing a model for learning self-organized innovation network: Using embedded case studies. Computers & Industrial Engineering, 123, 314–324.
Shinzato, T. (2018). Maximizing and minimizing investment concentration with constraints of budget and investment risk. Physica a: Statistical Mechanics and Its Applications, 490, 986–993.
Srisathan, W., Ketkaew, C., Naruetharadhol, P., & Elshandidy, T. (2020). The intervention of organizational sustainability in the effect of organizational culture on open innovation performance: A case of thai and chinese SMEs. Cogent Business & Management, 7(1), 1717408.
Telyatnikova, V., Shokhnekh, A., Bespyatykh, V., Azarskaya, M., & Kolyshev, O. (2020). Approaches to Formation of an Innovative Platform of University Complexes in the Strategy of Human Resources Development as Small Business Entrepreneurs. Switzerland: Springer, Cham.
Templeton, G., Lewis, B., & Snyde, C. (2002). Development of a measure for the organizational learning construct. Journal of Management Information Systems, 19(2), 175–218.
Tomlinson, P. (2010). Co-operative ties and innovation: Some new evidence for UK manufacturing. Research Policy, 39(6), 762–775.
Tse, E. (2002). Grabber–holder dynamics and network effects in technology innovation. Journal of Economic Dynamics and Control, 26(9–10), 1721–1738.
Tushman, M. (2004). From engineering management/R&D management, to the management of innovation, to exploiting and exploring over value nets: 50 years of research initiated by the IEEE-TEM. IEEE Transactions on Engineering Management, 51(4), 409–411.
Uhl-Bien, M., Marion, R., & McKelvey, B. (2007). Complexity Leadership Theory: Shifting leadership from the industrial age to the knowledge era. The Leadership Quarterly, 18(4), 298–318.
Waldrop, M. (1993). Complexity: The Emerging Science at the Edge of Order and Chaos. Simon & Schuster.
Wijhoven, F. (1995). Organizational Learning and Information Systems, The Case of Monitoring Information and Control Systems in Machine Bureaucratic Organizations. University of Twente, Department of Information Management.
Winter, E. (2002). The shapley value. Handbook of Game Theory with Economic Applications, 3, 2025–2054.
Xue, X., Zhang, X., Wang, L., Skitmore, M., & Wang, Q. (2018). Analyzing collaborative relationships among industrialized construction technology innovation organizations: A combined SNA and SEM approach. Journal of Cleaner Production, 173, 265–277.
Yan, J., Liu, J., & Tseng, F.-M. (2020). An evaluation system based on the self-organizing system framework of smart cities: A case study of smart transportation systems in China. Technological Forecasting and Social Change, 153, 119371.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Supplementary Information
Below is the link to the electronic supplementary material.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Rahmani, S., Movahedi Sobhani, F., Kazemipoor, H. et al. Open Innovation Environments Considering Organizational Learning and Self-Organization in Startup Valuation Using Game Theory. J Knowl Econ (2023). https://doi.org/10.1007/s13132-023-01171-6
Received:
Accepted:
Published:
DOI: https://doi.org/10.1007/s13132-023-01171-6