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The ups and downs of open innovation efficiency: the case of Procter & Gamble

Han, C., Thomas, S., Yang, M., Cui, Y. (2019) The ups and downs of open innovation efficiency: the case of Procter & Gamble. European Journal of Innovation Management, 22 (5). pp. 747-764. ISSN 1460-1060. (doi:10.1108/EJIM-04-2019-0108) (KAR id:89573)

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https://Dx.doi.org/10.1108/EJIM-04-2019-0108

Abstract

Purpose: Open innovation (OI) has become increasingly popular as an enterprise strategy in both industry and academia, and has been adopted, at least in part, by many companies. Despite this popularity, there is a dearth of evaluation of OI efficiency and a lack of suitable quantitative indices. The paper aims to discuss these issues. Design/methodology/approach: In this study, the authors used both data envelopment analysis (DEA) and Malmquist techniques to compare the pre- and post-transition levels of performance achievement of Procter & Gamble (P&G), a widely recognised and public early adopter of OI, with a group of its main competitors. Findings: Most detailed analysis of the time-course revealed that the innovation efficiency of P&G improved rapidly and substantially after its embracing of OI, an effect we term the “open rise”. However, there is also a transient decline in R&D efficiency at the beginning of OI adoption (“open dip”) and an unexpected and marked decline (“open drop”) after the peak positive effect. Originality/value: The quantitative methods appear to meet the needs identified in the preceding literature for more quantitative approaches to the measurement of OI. © 2019, Emerald Publishing Limited.

Item Type: Article
DOI/Identification number: 10.1108/EJIM-04-2019-0108
Uncontrolled keywords: Open Innovation; Performance Evaluation; Data envelopment analysis; Proctor & Gamble
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business
Depositing User: Mu Yang
Date Deposited: 03 Aug 2021 09:28 UTC
Last Modified: 04 Aug 2021 09:24 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/89573 (The current URI for this page, for reference purposes)
Yang, M.: https://orcid.org/0000-0001-9442-9243
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