Abstract:
Open innovation leads firms to use external knowledge in the firm innovation process. In
this dynamic environment, use of external knowledge to accelerate innovation practices is
vital for organizations. Small and medium firms are facing challenges in adopting
innovation practices due to the size and have limited resources for introducing the
innovation effectively in the market. Even with those challenges, firms are engaging with
open innovation in developing the firm innovation process. The main objective of this
study was to assess the degree of applying open innovation practices within small and
medium apparel firms and the sub-objective was to identify the challenges of open
innovation within the small and medium apparel sectors. This research study
accomplished those objectives by gathering primary data through an in-depth interview
from 12 small and medium apparel firms in the Western province in Sri Lanka by using a
convenience sampling method. An equal number of respondents from each district were
selected and interview guidelines were used to ensure the interviews were heading in the
right direction. Further, data analysis was done using the thematic data analysis method.
The study found that small and medium enterprises are applying open innovation
practices through customers’ involvement, suppliers’ involvement, competitors’
involvement, and strategic alliance. Additionally, this research found the internal and
external challenges of open innovation. The research fundings support creating a platform
which connects with external parties and provides awareness of the open innovation
practices. Further their research may identify the management involvement of practicing
open innovation to develop firm innovation practices.
Keywords: Open innovation, Small and medium firm, Apparel sector, External ideas
