IDENTIFICATION OF THE INTERNAL FACTORS INFLUENCING AN ORGANIZATION’S ABILITY TO IMPLEMENT OPEN INNOVATION

Urgency of the research. In today’s dynamic economic environment organizations are not able to innovate efficiently alone and being forced to revise their innovation strategies. In this context, open innovation is considered as a more effective approach to managing innovation processes that can provide external competencies and competitive advantages for companies operating in a modern marketplace.Target setting. Empirical studies demonstrate a wide variety of firm-level factors influencing an organization’s ability to implement open innovation model, however the relationships among these factors as well as the impact they have on a company’s innovation performance are not fully explained.Actual scientific research and issues analysis. Following researchers have made an important contribution to the development of an open innovation concept: G. Chesbrough, A.K. Crowther, E. Enkel, O. Gassmann,K. Laursen, A. Solter and others.Uninvestigated parts of general matters defining. Although an exploring of organizational determinants that support implementation of the open innovation model is an area of growing interest among both academics and practitioners, the current understanding of these firm-level factors and their interrelationships is still fragmented.The research objective. The aim of the paper is to provide a view of the critical internal factors which influence an organization’s ability to implement open innovation. An analytical framework of the study strengthens a theoretical basis for a thorough analysis of the relationships among the main factors that have impact on a company’s open innovation practice.The statement of basic materials. Based on the literature review on open innovation management key internal factors have been identified that have impact on a firm’s ability to implement open innovation: an organizational mission and value system, a top management style and leadership, an organizational structure, a corporate culture, employees’ skills and competencies and an appropriate incentive system, as well as technological and knowledge management capabilities.Conclusions. As a result of the research a set of firm-level internal factors is defined that should be primarily taken into account in order to increase a company’s ability to implement efficiently open innovation.