Open Innovation, Trust, Supply chains

This research aims to provide guidance for the management of supply chains to improve the likelihood and extent of open innovation, and the management of trust with regard to coupling the potential role of the customer, competitors and suppliers to increase supply chain performance. It is the purpose of this study to introduce a model for applying open innovation privileged in supply chains. Through the understanding of the level of open innovation inside the Egyptian organizations – namely the automobile industry – it will investigate if there is a difference in the level of trust held between different trust types. A survey using an extant study is undertaken at multinational automobile assembly lines in Egypt. It involved one type of questionnaire completed by the middle managerial level. The presented model identifies a relationship between trust and open innovation in supply chains. Consequently, it could lead to the enhancement of customer satisfaction, an increase in internal customer performance and the development of innovative products. This explorative study also indicates that multinational automobile assembly lines working in Egypt are willing to apply the right amount of open innovation. The study is based on a relatively small sample of limited geographic scope (one country: Egypt), and of a short duration (one-year coverage). Future research should expand the geographic coverage to other parts of the world and prolong the duration. Internal r

1. Anderson, E. & Weitz, B. (1992) The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research, 29 (1), 18–34.
2. Anderson, J. C. & Narus, J. A. (1990) A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54 (1), 42–58.
3. Antikainen M., Mäkipää, M. & Ahonen, M. (2010) Motivating and supporting collaboration in open innovation. European Journal of Innovation Management, 13 (1), 100–119.
4. Arbuckle, J. L. (2009) Amos User's Guide. Chicago, IL, SPSS.
5. ––––– (2012) AMOS 21.0 User's Guide.Chicago, IL, SPSS.
6. Azeredo, G. (2009) Knowledge Sharing within Open Innovation Networks: An analysis of the High Tech Campus Eindhoven Ecosystem. [Master’s thesis] Technische Universiteit, Eindhoven.
7. Bagozzi, R. (1974) What is a marketing relationships? Der Market,51, 64–69.
8. Barber, B. (1983) The Logic and Limits of Trust. New Brunswick, NJ, Rutgers University Press.
9. Bigliardi B., Dormio, A. & Galati, F. (2012) The adoption of open innovation within telecommunication industry. European Journal of Innovation Management, 15 (1), 27–54.
10. Bitner M., Ostrom, A. L. & Morgan, F. L. (2008) Service blueprinting: A practical technique for service innovation. California Management Review, 50 (3), 66–94.
11. Bonner, J. M. & Walker, O. C. (2004) Selecting influential business-to-business customers in new product development: relational embeddedness and knowledge heterogeneity considerations. Journal of Product Innovation Management, 21 (3), 155–169.
12. Buganza, T. & Verganti, R. (2009) Open innovation process to inbound knowledge: Collaboration with universities in four leading firms. European Journal of Innovation Management, 12 (3), 306–325.
13. Byrne, B. M. (2001) Structural Equation Modeling with AMOS: Basic concepts, applications and programming. Mahwah, NJ, Erlbaum.
14. Calantone, R. J., Tamer Cavusgil, S. & Zhao, Y. (2002) Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, 31 (6), 515–524. 
15. Carlile, P. R. (2004) Transferring, translating, and transforming: an integrative framework for managing knowledge across boundaries. Organization Science, 15 (5), 555–568.
16. Cheng, J., Yeh, C. &Tu, C. (2008) Trust and knowledge sharing in green supply chains. Supply Chain Management: An International Journal, 13 (4), 283–295.
17. Chesbrough, H. (2003) Open Innovation: The New Imperative for Creating and Profit in from Technology. Boston, MA, Harvard Business School Press.
18. ––––– (2004), Managing open innovation. Research Technology Management, 47 (1), 23–26.
19. ––––– (2006) Open Business Models: How to Thrive in the New Innovation Landscape. Cambridge, MA, Harvard Business School Press.
20. Chesbrough, H., Vanhaverbeke, W. & West, J. (eds.) (2006) Open Innovation: Researching a new paradigm. Oxford, Oxford University Press.
21. Christensen, C. M. (1997) The Innovators Dilemma: When new technologies cause great firms to fail. Boston, MA, Harvard Business School Press.
22. Coleman, J. S. (1990) Foundations of Social Theory. Cambridge & Boston, MA, TheBelknap Press of Harvard University Press.
23. Corazzini, J. G. (1977) Trust as a complex multi-dimensional construct. Psychological Reports, 40, 75–80.
24. De FreitasDewes, M., Gonçalez, O. L., Pássaro, A. &Padula, A. D. (2010) Open innovation as an alternative for strategic development in the aerospace industry in Brazil. Journal of Aerospace Technology Management, 2 (3), 349–360.
25. De Jong, J. P. J., Vanhaverbeke, W., Kalvet, T. & Chesbrough, H. (2008) Policies for Open Innovation: Theory, Framework and Cases. [Research project] Helsinki, Finland,VISION Era-Net.
26. Dell’Era, C. (2010) Collaborative strategies in design-intensive industries: knowledge diversity and innovation. Long Range Planning, 43 (1), 123–141.
27. Deutsch, M. (1960) The effect of motivational orientation upon trust and suspicion. Human Relations,13 (2), 123–140.
28. Doney, P. M. & Cannon, J. P. (1997) An examination of the nature of trust in buyer-seller relationships. Journal of Marketing, 61 (2), 35–51.
29. Drucker, P. F. (1988) The coming of the new organization. Harvard Business Review, 66 (1), 45–53.
30. Ebersberger B., Bloch, C., Herstad, S. J. & Van De Veld, E. (2010) Open innovation practices and their effect on innovation performance. International Journal of Innovation and Technology Management, 9 (6), 1–22.
31. Elmquist M., Fredberg, T. &Ollila, S. (2009) Exploring the field of open innovation. European Journal of Innovation Management, 12 (3), 326–345.
32. Fairholm, G. (1994) Leadership and the Culture of Trust, Westport, CT, Praeger.
33. Farrior, O. F. (2005) An assessment of trust among levels and networks of employees of the Alabama cooperative extension system. [Thesis] Montgomery, AL, Doctor of Education Leadership, Policy and Law.
34. Franke, N. & Piller, F. (2003) Key research issues in user interaction with configuration toolkits in a mass customization system. International Journal of Technology Management, 26 (5), 578–599.
35. Fukuyama, F. (1995) Trust: The Social Virtues and the Creation of Prosperity. New York, The Free Press.
36. Gambetta, D. G. (1988) Can we trust trust? In: Gambetta, D. G. (ed.) Trust. New York, Basil Blackwell, pp. 213–237.
37. Ganesan, S. (1994) Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, 58 (2), 1–19.
38. Gassmann, O. &Enkel, E. (2004) Towards a Theory of Open Innovation: Three Core Process Archetypes. [Mimeo] University of St. Gallen, Switzerland, Institute of Technology Management.
39. Gassmann O., Enkel, E. & Chesbrough, H. (2010) The future of open innovation. R&D Management,40 (3), 213–221.
40. Geyskens, I. & Steenkamp, J. B. (1995) An investigation into the joint effects of trust and interdependence on relationship commitment. In: Bergadaà, M. (ed.), Proceedings of the 24th Annual Conference of the European Marketing Academy, pp. 351–371.
41. Gibson, I. W. (2001) At the intersection of technology and pedagogy: Considering styles of learning and teaching. Journal of Information Technology for Teacher Education, 10 (1), 37–61.
42. Gillespie N. & Mann, L. (2004) Transformational leadership and shared values: The building blocks of trust. Journal of Managerial Psychology, 19 (6), 588–607.
43. Gounaris, S. P. (2005) Trust and commitment influences on customer retention: Insights from business-to-business services. Journal of Business Research, 58, 126–140.
44. Grönroos, C. (2007) Service Management and Marketing.3rd ed. Chichester, John Wiley & Sons.
45. Grönroos, C. &Helle, P. (2010) Adopting a service logic in manufacturing: Conceptual foundation and metrics for mutual value creation. Journal of Service Management, 21 (5), 564–590.
46. Grøtnes E. (2009) Standardization as open innovation: Two cases from the mobile industry. Information Technology & People, 22 (4), 367–381.
47. Gulati, R. (1995) Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38 (1), 85–112.
48. Ha, B., Park, Y. & Cho, S. (2011) Suppliers' affective trust and trust in competency in buyers: Its effect on collaboration and logistics efficiency. International Journal of Operations & Production Management, 31 (1), 56–77.
49. Hagedoorn, J. (1993) Understanding the rationale of strategic technology partnering: Inter-organizational modes of cooperation and sectoral differences.Strategic Management Journal, 14 (5), 371–385.
50. ––––– (2002) Inter-firm R&D partnerships: An overview of major trends and patterns since 1960.Research Policy, 31 (4), 477–492.
51. Hair, J. F., Black, W. C., Babin, B. J. & Anderson, R. E. (2010) Multivariate Data Analysis.7th ed. Upper Saddle River, NJ, Prentice Hall.
52. Hällbrant, M. & Ingvarsson, J. (2012) Creating Open Innovation Arenas: Towards a Framework for the Hot Pots of Open Innovation. [Master of Science Thesis in the Master Degree Programme], Chalmers University of Technology, Gothenburg.
53. Hamel, G. (1991) Competition for competence and inter-partner learning within international strategic alliances. Strategic Management Journal, 12 (1), 83–103.
54. Hamel, G., Doz, Y. &Prahalad, C.K. (1989)Collaborate with your competitors – and win. Harvard Business Review, 67 (1), 133–139.
55. Hart, K. M., Capps, H. R., Cangemi, J. P. & Caillouet, L. M. (1986) Exploring organizational trust and its multiple dimensions: A case study of General Motors. Organizational Development Journal, 4 (2), 31–39.
56. Hart, S. (1996) New Product Development. London, Dryden Press.
57. Hellström, T. & Malmquist, U. (2000) Networked innovation: Developing the AXE110 ‘mini-exchange’ at Ericsson. European Journal of Innovation Management, 3 (4), 181–189.
58. Hippel, E. (1986) Lead Users: A Source of Novel Product Concepts. Management Science, 32 (7), 791–805.
59. ––––– (2005) Democratizing Innovation. Cambridge, MA & London, MIT Press.
60. Hippel, E. & Katz, R. (2002) Shifting innovation to users via toolkits. Management Science, 48 (7), 821–833.
61. Hippel, E. & Urban, G. I. (1988) Lead user analyses for the development of new industrial products. Management Science, 34 (5), 569–582.
62. Hutchins, E. (1991) Social organization of distributed cognition. In: Resnick, L., Levine, J. &Treasley, S. (eds.) Perspectives on Socially Shared Cognition, Washington DC, APA Press. 
63. IBM SPSS (2012) SPSS BASE 21.0 User's Guide. Chicago, IL, SPSS.
64. Inauen, M. &Wicki, A. (2011) The impact of outside-in open innovation on innovation performance. European Journal of Innovation Management, 14 (4), 496–520.
65. Jackson, B. B. (1985a) Build customer relationships that last. Harvard Business Review, 63 (6), 120–128.
66. Jackson, B. B. (1985b) Winning and Keeping Industrial Customers. Lexington, MA, Lexington Books.
67. Johnson, D. & Grayson, K. (1999) Sources and dimensions of trust in service relationships. In: Swartz, T. A. & Iaccobucci, D. (eds.) Services Marketing and Management, Thousand Oaks, CA, Sage Publications.
68. Jung, D. I. & Avolio, B. J. (2000) Opening the black box: An experimental investigation of the mediating effects of trust and value congruence on transformational and transactional leadership. Journal of Organizational Behavior, 21 (8), 949–964.
69. Laeequddin, M. & Sardana, G. D. (2010) What breaks trust in customer supplier relationship? Management Decision, 48 (3), 353–365.
70. Laursen, K. & Salter, A. (2006) Open for innovation: The role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal, 27 (2), 131–150.
71. Lee, S., Park, G., Yoon, B. & Park, J. (2009) Open innovation in SMEs – An intermediated network model. Research Policy, 39 (2), 290–300.
72. Lee, S. Y. (2007) Structural Equation Modeling: A Bayesian approach. Chichester, John Wiley & Sons.
73. Leonard-Barton, D. (1995) Wellsprings of Knowledge: Building and Sustaining the Sources of Innovation. Boston, MA, Harvard Business School Press.
74. Li, T. & Calantone, R. J. (1998) The impact of market knowledge competence on new product advantage: Conceptualization and empirical evidence. Journal of Marketing, 62 (4), 13−29.
75. Lindgreen, A. (2003) Trust as a valuable strategic variable in the food industry: Different types of trust and their implementation. British Food Journal, 105 (6), 310–327.
76. Luhmann, N. (1979) Trust and Power. Chichester, John Wiley & Sons.
77. Maklan, S., Knox, S. & Ryals, L. (2008) New trends in innovation and customer relationship management: A challenge for market researchers. International Journal of Market Research, 50 (2), 221–240.
78. Mayer, R. C., Davis, J. H. & Schoorman, F. D. (1995) An integrative model of organizational trust. Academy of Management Review, 20 (3), 709–734.
79. Mollering, G. (2004) Understanding organizational trust – foundations, constellations, and issues of operationalization. Journal of Managerial Psychology, 19 (6), 556–570.
80. Moorman, C., Zaltman, G. & Deshpande, R. (1992) Relationships between providers and users of marketing research: The dynamics of trust within and between organizations. Journal of Marketing Research, 58 (3), 20–38.
81. Morgan, R. M. & Hunt, S. D. (1994) The commitment trust theory of relationship marketing. Journal of Marketing, 58 (3), 20–38.
82. Muller, A., Hutchins, N. & Cardoso Pinto, M. (2012) Applying open innovation where your company needs it most. Strategy & Leadership, 40 (2), 35–42.
83. Niu, K. (2010) Organizational trust and knowledge obtaining in industrial clusters. Knowledge Management, 14 (1), 141–155.
84. Nyhan, R. C. (2000) Changing the paradigm: Trust and its role in public sector organizations. American Review of Public Administration, 30 (1), 87–109.
85. Olson, E. L. & Bakke, G. (2001) Implementing the lead user method in a high technology firm: A longitudinal study of intentions versus actions.Journal of Product Innovation Management, 18(6),388–395.
86. O’Malley, L. (1998) Can loyalty schemes really build loyalty? Marketing Intelligence and Planning, 16, 47–56.
87. Perkmann, M. & Walsh, K. (2007) University-industry relationships and open innovation: Towards a research agenda. International Journal of Management Reviews, 9 (4), 259–280.
88. Pimentel Claro, D., De Oliveira Claro, P. B. & Hagelaar, G. (2006)Coordinating collaborative joint efforts with suppliers: The effects of trust, transaction specific investments and information network in the Dutch flower industry. Supply Chain Management, 11 (3), 216–224.
89. Pooltan, J. & Barclay, I. (1998) New product development from past research to future applications. Industrial Marketing Management, 27, 197–212.
90. Raykov, T. & Marcoulides, G. A. (2006) A First Course in Structural Equation Modeling. 2nded. New York, Routledge.
91. Reinartz, W., Krafft, M. & Hoyer, W. D. (2004) The customer relationship management process: Its measurement and impact on performance. Journal of Marketing Research, 41 (3), 293–305.
92. Rigby, D. &Zook, C. (2002) Open market innovation. Harvard Business Review, 26 (3), 3–17.
93. Ring, P. S. & Van de Ven, A. H. (1994) Developmental processes of cooperative interorganizational relationships. Academy of Management Review, 19 (1), 90–118. 
94. Rogers E. M., Singhal, A. & Dearing, J. W. (eds.)(2005) Communication of Innovations: A Journey with Ev Rogers. New Delhi, Sage.
95. Rosenberg, N. (1994) Exploring the Black Box: Technology, Economics & History. Cambridge, Cambridge University Press.
96. Rowley, J. (2011) Innovation for Survival: From Cooperation to Collaboration. Advances in Librarianship, 34 (‘Librarianship in Times of Crisis’), 207–224.
97. Sahay, B. S. (2003) Understanding trust in supply chain relationship. Industrial Management & Data Systems, 103 (8), 553–563.
98. Schreiber, J. B. (2008) Core reporting practices in structural equation modeling. Research in Social & Administrative Pharmacy, 4 (2), 83–97. 
99. Shamah, R. A. M. (2012) Innovation within green service supply chains for a value creation. Journal of Modelling in Management, 7 (3), 357–374.
100. Shamah, R. A. M. & Elsawaby, S. (2015) Facing the Open Innovation Gap: Measuring and Building Open Innovation in Supply Chains; Journal of Modelling in Management, 11 (2)
101. Shapiro, S. P. (1987) The social control of impersonal trust. American Journal of Sociology, 93 (3), 623–658.
102. Shockley-Zalabak, P., Ellis, K. & Winograd, G. (2000) Organizational trust: What it means, why it matters. Organization Development Journal, 18 (4), 35–48.
103. Simcoe, T. S. (2006) Open standards and intellectual property rights. In: Chesbrough, H. W., Vanhaverbeke, W. & West, J. (eds.) Open Innovation: Researching a New Paradigm. Oxford, Oxford University Press.
104. Sloane, P. (2011) The brave new world of open innovation. Strategic Direction, 27 (5), 3–4.
105. Song, M., Di Benedetto, C. A. & Zhao, Y. L. (1999) Pioneering advantages in manufacturing and service industries: Empirical evidence from nine countries. Strategic Management Journal, 20 (9), 811–836.
106. Spekman, R. E. & Davis, E. W. (2004) Risky business: Expanding the discussions on risk and the extended enterprise. International Journal of Physical Distribution & Logistics Management, 34 (5), 414–433.
107. Strickland, L. H. (1958) Surveillance and trust.Journal of Personality, 26 (2), 200–215.
108. Sumarna, E. (2010) Beginning of the small progress. In: Myelin, R. K.(ed.) Seputar Indonesia Daily, 25 April, p. 2.
109. Svensson, G. (2001) Perceived trust towards suppliers and customers in supply chains of the Swedish automotive industry. International Journal of Physical Distribution & Logistics Management, 31 (9), 647–662.
110. ––––– (2004) Vulnerability in business relationships: The gap between dependence and trust.Journal of Business & Industrial Marketing, 19 (7), 469–483.
111. Swan, J. E. & Trawick, I. F. (1987) Building customer trust in the industrial salesperson: Process and outcomes. Advances in Business Marketing, 2, 81–113.
112. Thompson, G., Frances, J., Levačič, R. & Mitchell, J. (eds.) (1994) Markets, Hierarchies & Networks: The Coordination of Social Life. Thousand Oaks, CA, Sage Publications.
113. Tornatsky, L. G. & Klein, K. J. (1982) Innovation characteristics and innovation adoption implementation.IEEE Transactions on Engineering Management, 29 (1), 28–45.
114. Tsai, W. &Ghoshal, S. (1998) Social capital and value creation: The role of intrafirm networks. Academy of Management Journal, 41 (4), 464–476.
115. Varma, S., Wadhwa, S. & Deshmukh, S. G. (2006) Implementing supply chain management in a firm: Issues and remedies. Asia Pacific Journal of Marketing and Logistics, 18 (3), 223–243.
116. Voss, C. &Zomerdijk, L. (2007) Innovation in experiential services – An empirical view. In: DTI (ed.) Innovation in Services. London, DTI, pp. 97–134.
117. Vyakarnam, S., Jacobs, R.C. & Handelberg, J. (1997) Formation and development of entrepreneurial teams in rapid growth business. In: Reynolds, P., Bygrave, W., Davidsson, P., Gartner, W. & Carter, N. (eds.) Frontiers of Entrepreneurship Research, Wellesley, MA, Babson College Press.
118. Weick, K. E. & Roberts, K. H. (1993) Collective mind in organizations: Heedful interrelating on
119. West, J., Vanhaverbeke, W. & Chesbrough, H. (2006) Open innovation: A research agenda. In: Chesbrough, H. W., Vanhaverbeke, W. & West, J. (eds.) Open Innovation, Researching a New Paradigm. Oxford, Oxford University Press, pp. 285–307.
120. Zaltman, G. & Moorman, C. (1988) The importance of personal trust in the use of research. Journal of Advertising Research, October/November, 16–24.
121. Zand, D. E. (1972) Trust and managerial problem solving. Administrative Science Quarterly, 17 (2), 229–239.
122. ––––– (1978) Trust and managerial problem solving. In: Leland, P. B. (ed.) Group Development. 2nd ed. La Jolla, CA, University Associates, pp. 182–197.