Reverse open innovation: Open innovation as a relevant factor for reverse innovation

Abstract

Copyright © 2019 Inderscience Enterprises Ltd.We investigated the role of open innovation in the reverse innovation process. Reverse innovation is an innovation initially launched in a developing country and later introduced to an advanced country. Von Zedtwitz et al. (2015) developed a typology of global innovation with sixteen innovation flows between advanced and emerging countries, ten of which are reverse innovation flows. We argue that their typology can be expanded. By adopting an inductive case study, we provided a nuanced analysis of open innovation as a trigger for reverse innovation based on an in-depth case analysis of a foreign subsidiary and its network of local partners in an emerging market. Our research extended the typology of Von Zedtwitz et al. (2015) by identifying open innovation occurring in emerging markets and influencing the process of reverse innovation in multinational companies. By adding analyses of open innovation, we theorised that new reverse innovation configurations emerge. The managerial contributions are related to how multinational companies can benefit from open innovation and leverage the potential of reverse innovation to increase innovation performance and competiveness in the global setting.