Professor Strategic Management and Innovation, IMC University of Applied Sciences Krems
Engaging Stakeholders in the Open Innovation Process of Financial Products and Services
The benefits for financial service firms interacting extensively with their environment in the innovation process are manifold, including significant amount of external knowledge exploration and exploitation, cost reduction, leveraging complementarities by accessing unique resources, shorter time-to-market as well as gaining stronger credibility and access to partners’ network. Tremendous value in an open innovation process can be created by engaging not only customers, but a wide variety of stakeholders, such as universities, NGOs, local community partner, representatives of the local government, suppliers and professional associations, in different phases of the innovation process. Research emphasises the role of the stakeholder as an opportunity for facilitating innovation. Indeed, scholars argue that open innovation and stakeholder engagement describe similar organisational processes, as in both cases, the focal organisation reaches outside its boundaries making an explicit effort to access essential information.