Open Innovation and Stakeholder Engagement


  • Robert Wayne Gould University of Maryland University College, European Division



open innovation, paradox, stakeholder engagement, misappropriation, knowledge leakage, collaboration.


The paradox of open innovation lies in the conflict between the practical desire to reap the benefits of open innovation and concern over the risk that others will misappropriate those benefits. Stakeholder theory and recent developments in value creation through stakeholder engagement can assist with reconciliation of this inherent structural risk. The limitations of existing open innovation typologies are identified, and a process-based model of open innovation is proposed. The model is then expanded to include stakeholder engagement. When integrated with stakeholder engagement, open innovation processes can be understood to generate benefits beyond the acquisition of specific information sought from external experts. The addition of stakeholder engagement to the open innovation model allows for greater understanding and easier acceptance of the risks inherent in the open innovation process.


Download data is not yet available.

Author Biography

Robert Wayne Gould, University of Maryland University College, European Division

Adjunct Associate Professor, University of Maryland University College-Europe and Doctoral Candidate, University of Maryland University College-Adelphi


ANDRIOF, J.,Waddock, S. (2002). Unfolding stakeholder engagement. In: Andriof, J., Waddock, S., Husted, B., Sutherland, R.S. (Eds.), Unfolding Stakeholder Thinking: Theory, Responsibility and Engagement,Vol. 1. Greenleaf Publishing Limited, Sheffield, pp. 19-42.

ANTONACOPOULOU, E.P., Meric, J. (2005). From power to knowledge relationships: Stakeholder interactions as learning partnerships. In: Bonnafous-Boucher, M., Pesqueux Y. (Eds.), Stakeholder Theory: A European Perspective. Palgrave Macmillan, New York, pp. 125-147.

AYUSO, S., Rodríguez, M.A., García-Castro, R., Ariño, M.A. (2011). Does stakeholder engagement promote sustainable innovation orientation? Industrial Management and Data Systems, 111, 1399-1417.

AYUSO, S., Rodríguez, M.A., Ricart, J.E. (2006). Responsible competitiveness at the ‘‘micro’’ level of the firm: Using stakeholder dialogue as a source for new ideas: A dynamic capability underlying sustainable innovation. Corporate Governance, 6(4), 475-490.

BADEN, D. (2010). CSR: An opportunity for SMEs. In: Louche, C., Idowu, S. O., Filho, W. L. (Eds.), Innovative CSR: From risk management to value creation. Greenleaf Publishing Limited, Sheffield, pp. 84-101.

BELL, D. (1973). The Coming of Post-industrial Society: A Venture in Social Forecasting. Basic Books, New York.

BLAXILL, M., Eckardt, R. (2009). The Invisible Edge: Taking Your Strategy to the Next Level Using Intellectual Property. Penguin Group, New York.

BOGERS, M. (2011). The open innovation paradox: knowledge sharing and protection in R and D collaborations. European Journal of Innovation Management, 14(1), 93-117.

BOURNE, L., Walker, D.T. (2005). Visualising and mapping stakeholder influence. Management Decision, 43(5), 649-660.

CHESBROUGH, H.W. (2003a). Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business School Press, Boston.

CHESBROUGH, H.W. (2003b).The era of open innovation. MIT Sloan Management Review, 44(3), 35-41.

DAHLANDER, L., Gann, D. M. (2010). How open is innovation? Research Policy, 39(6), 699-709.

D’AVENI, R.A. (1994). Hypercompetition: Managing the Dynamics of Strategic Maneuvering.The Free Press, New York.

DE WIT, J., Dankbaar, B.,Vissers, G. (2007). Open innovation: The new way of knowledge transfer?. Journal of Business Chemistry, 4(1), 11-19.

DUARTE,V.V., Sarkar, S.S. (2011). Separating the wheat from the chaff: A taxonomy of open innovation. European Journal of Innovation Management, 14(4), 435-459.

FASSIN, Y. (2008). Imperfections and shortcomings of the stakeholder model’s graphical representation. Journal of Business Ethics, 80(4), 879-888.

FREEMAN, R.E. (1984). Strategic Management: A Stakeholder Approach. Pitman, Boston.

FREEMAN, R.E., Harrison, J.S., Wicks, A.C. (2007). Managing for Stakeholders: Survival, Reputation, and Success.Yale University Press, New Haven.

FREEMAN, R.E., Harrison, J.S., Wicks, A.C., Parmer, B. L., de Colle, S. (2010). Stakeholder Theory: The State of the Art. Cambridge University Press, Cambridge.

FROOMAN, J. (1999). Stakeholder influence strategies. Academy of Management Review, 24(2), 191-205.

GAO, S.S., Zhang, J.J. (2001). A comparative study of stake-holder engagement strategies in social auditing. In: Andriof, J., McIntosh, M. (Eds.), Perspectives on Corporate Citizenship. Greenleaf Publishing Limited, Sheffield, pp. 239-255.

GAO, S.S., Zhang, J.J. (2006). Stakeholder engagement, social auditing and corporate sustainability. Business Process Management Journal, 12(6), 722-740.

GIANNOPOULOU, E., Yström, A., Ollila, S., Fredberg, T., Elmquist, M. (2010). Implications of openness: A study into (all) the growing literature on open innovation. Journal of Technology Management & Innovation, 5(3), 162-180.

GREENWOOD, M. (2007). Stakeholder engagement: Beyond the myth of corporate responsibility. Journal of Business Ethics, 74(4), 315-327.

HUIZINGH, E.K.R.E. (2011). Open innovation: State of the art and future perspectives. Technovation, 31(1), 2-9.

JARVENPAA, S.L.,Wernick, A. (2011) Paradoxical tensions in open innovation networks. European Journal of Innovation Management, 14(4), 521-548.

KATSOULAKOS, T., Katsoulacos, Y. (2007). Integrating corporate responsibility principles and stakeholder approaches into mainstream strategy: A stakeholder-oriented and integrative strategic management framework. Corporate Governance, 7(4), 355-369.

KIM,W.C., Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business School Press, Boston.

KIM, W.C., Mauborgne, R. (2009). How strategy shapes structure. Harvard Business Review, 87(9), 72-80.

LAMBERG, J., Pajunen, K., Parvinen, P., Savage, G.T. (2008). Stakeholder management and path dependence in organizational transitions. Management Decision, 46(6), 846-863.

LAURSEN, K., Salter,A. (2006a). My Precious:The role of appropriability strategies in shaping innovative performance. DRUID Working Paper 05-02. [Accessed May 2, 2012]

LAURSEN, K., Salter, A. (2006b). Open for innovation: The role of openness in explaining innovation performance among UK manufacturing firms. Strategic Management Journal, 27(2), 131-150.

LEWIS, M. (2000). Exploring paradox: Toward a more comprehensive guide. Academy of Management Review, 25(4), 760 –776.

LEWRICK, M., Raeside, R., Peisl, T. (2007). The innovators’s social network. Journal of Technology Management & Innovation, 2(3), 38-48.

LICHTENTHALER, U. (2011). Open innovation: Past research, current debates, and future directions. Academy of Management Perspectives, 25(1), 75-93.

LICHTENTHALER, U., Frishammar, J. (2011). The impact of aligning product development and technology licensing: A contingency perspective. Journal of Product Innovation Management, 28(S1), 89-103.

LICHTENTHALER, U., Lichtenthaler, E. (2009). A capability-based framework for open innovation: Complementing absorptive capacity. Journal of Management Studies, 46(8), 1315-1338.

MAAK, T. (2007). Responsible leadership, stakeholder engagement, and the emergence of social capital. Journal of Business Ethics, 74(4), 329-343.

MAAS, K., Boons, F. (2010). CSR as a strategic activity: Value creation, redistribution and integration. In: Louche, C., Idowu, S. O., Filho, W. L. (Eds.), Innovative CSR: From risk management to value creation. Greenleaf Publishing Limited, Sheffield, pp. 154-172.

MAEHLER, A.E., Curado, C.M.M., Pedrozo, E.Á., Pires, J.P. (2011). Knowledge transfer and innovation in Brazilian multinational companies. Journal of Technology Management & Innovation, 6(4), 1-13.

MAHR, D., Rindfleisch, A., Slotegraaf, R.J. (2010). Innovation Beyond Firm Boundaries: The Routines and Resource Investment of Successful External Problem Solvers. Paper presented at American Marketing Association Winter Educators’ Conference, New Orleans, LA, February 19-22. [Accessed May 2, 2012]

MITCHELL, R.K.,Agle, B.R., Chrisman, J.J., Spence, L.J. (2011). Toward a theory of stakeholder salience in family firms. Business Ethics Quarterly, 21(2), 235-255.

MITCHELL, R.K., Agle, B.R., Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853-886.

MOHAMED, S., Mynors, D., Grantham, A., Chan, P., Coles, R., Walsh, K. (2007). Unearthing key drivers of knowledge leakage. International Journal of Knowledge Management Studies, 1(3/4), 456–470.

MYERS, M.B., Cheung, M.-S. (2008). Sharing global supply chain knowledge. MIT Sloan Management Review, 49(4), 66-73.

NELSON, J., Zadek, S. (2000). Partnership Alchemy: New Social Partnerships in Europe. The Copenhagen Centre, Co- penhagen.

NOLAND, J., Phillips, R. (2010). Stakeholder engagement, discourse ethics and strategic management. International Journal of Management Reviews, 12(1), 39-49.

NONAKA, I. (2007).The knowledge creating company. Harvard Business Review, 85(7/8), 162-171.

O’SULLIVAN, D., Dooley, L. (2009). Applying innovation. SAGE Publications, Inc,Thousand Oaks.

OZMAN, M. (2011). Modularity, industry life cycle and open innovation. Journal of Technology Management & Innovation, 6(1), 26-37.

PLAZA-ÚBEDA, J.A., Burgos-Jiménez, J.J.,Vazquez, D.A., Liston-Heyes, C.C. (2009). The ‘win–win’ paradigm and stake-holder integration. Business Strategy and the Environment, 18(8), 487-499.

PORTER, M.E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press, New York.

PORTER, M.E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press, New York.

PORTER, M.E., Kramer, M.R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62-77.

ROHRBECK, R. (2010). Harnessing a network of experts for competitive advantage: technology scouting in the ICT industry. R and D Management, 40(2), 169-180.

ROLOFF, J. (2008). Learning from multi-stakeholder networks: Issue-focused stakeholder management. Journal of Business Ethics, 82(1), 233-250.

ROWLEY,T.J. (1997). Moving beyond dyadic ties: A network theory of stakeholder influences. Academy of Management Review, 22(4), 887-910.

SAVINO, D.M. (2009). The role of technology as an enabler in job redesign. Journal of Technology Management & Innovation, 4(3), 14-23.

SAVITSKAYA, I., Salmi, P.,Torkkeli, M. (2010). Barriers to open innovation: Case China. Journal of Technology Management & Innovation, 5(4), 10-21.

SENGE, P.M. (2006). The Fifth Discipline: The Art and Practice of the Learning Organization. (Rev. ed.) Currency/Doubleday, New York.

SHARMA, S. (2005).Through the lens of managerial interpretations: Stakeholder engagement, organizational knowledge and innovation. In: Sharma, S., Aragón-Correa, J.A. (Eds.), Environmental Strategy and Competitive Advantage. Edward Elgar Academic Publishing, Northampton, pp 49-70.

SMITH, N.C., Ansett, S., Erez, L. (2011). How Gap Inc. engaged with its stakeholders. MIT Sloan Management Review, 52(4), 69-76.

SMITH, N.C., Drumwright, M.E., Gentile, M.C. (2010). The new marketing myopia. Journal of Public Policy and Market- ing, 29(1), 4-11.

SMITH, W.K., Lewis, M.W. (2011). Toward a theory of paradox:A dynamic equilibrium model of organizing.Academy of Management Review, 36(2), 381–403.

SVENDSEN, A. (1998). The Stakeholder Strategy: Profiting from Collaborative Business Relationships. Berrett-Koehler Publishers, Inc, San Francisco.

TEECE, D.J. (1986). Profiting from technological innovation: Implications for integration, collaboration, licensing, and public policy. Research Policy, 15(6), 285-305.

TROTT, P., Hartmann, D. (2009). Why ‘Open Innovation’ is old wine in new bottles. International Journal of Innovation Management, 13(4), 715-736.

VAN DE VRANDE, V., de Jong, J.P.J., Vanhaverbeke, W., de Rochemont, M. (2009). Open innovation in SME’s: Trends, motives and management challenges. Technovation, 29(6/7), 423-437.

VANHAVERBEKE, W. (2006). The interorganizational context of open innovation. In: Chesbrough, H, Vanhaverbeke, W., West, J. (Eds.), Open Innovation: Researching a New Paradigm. Oxford University Press, New York, pp. 205-219.

WADDOCK, S. (2001). Integrity and mindfulness: Foundations of corporate citizenship. In: Andriof, J., McIntosh, M. (Eds.), Perspectives on Corporate Citizenship. Greenleaf Publishing Limited, Sheffield, pp. 26-38.

WADHAW, A., Bodas-Fritas, I.M., Sarkar, M.B. (2011). The Paradox of Being Open: External Technology Sourcing and Knowledge Protection. Paper presented at the Dynamics of Institutions and Markets (DIME) Final Conference, Maas- tricht, Netherlands, April 6-8. [Accessed May 2, 2012]

WEST, J. (2006). Appropriability and open innovation. In: Chesbrough, H., Vanhaverbeke, W., West, J. (Eds.), Open Innovation: Researching a New Paradigm. Oxford University Press, New York, pp. 109-133.

WEST, J., O’Mahony, S. (2008). The role of participation architecture in growing sponsored open source communities. Industry and Innovation, 15(2), 145-168.

YSTRÖM,A., Ollila, S., Fredberg,T., Elmquist, M. (2010). Communities of practice for open innovation: Enabling organizational creativity? Proceedings of the 7th International Conference on Intellectual Capital, Knowledge Management and Organizational Learning, 524-530.

ZADEK, S. (2001). Partnership alchemy: Engagement, innovation and governance. In: Andriof, J., McIntosh, M. (Eds.), Perspectives on corporate citizenship. Greenleaf Publishing Limited, Sheffield, pp. 200-214.

ZIETSMA, C., Winn, M. (2008). Building chains and directing flows: Strategies and tactics of mutual influence in stakeholder conflicts. Business and Society, 47(1), 68-101.




How to Cite

Gould, R. W. (2012). Open Innovation and Stakeholder Engagement. Journal of Technology Management & Innovation, 7(3), 1–11.



Research Articles