THE EFFECTS OF OPEN INNOVATION ON STRATEGIC PRODUCT DEVELOPMENT IN CORPORATE SECTOR OF PAKISTAN

Abstract

In the modern business environment, open innovation has been reviewed as one of the major strategies that an organization uses to be competitive and achieve growth. The present paper studies how open innovation has transformed the strategic product development in the corporate sector of Pakistan. The study reveals how the external knowledge integration, collaboration, and networks of partnerships contribute to the effectiveness of the process of product development through the incorporation of new ideas, cut in time-to-market and responsiveness to the consumer demands. The paper examines inbound and outbound aspect of open innovation, which entails how companies utilize external sources of knowledge to include customers, suppliers, universities and research institutes and at the same time sharing internal sources. The work has added knowledge to the discussion of the role of open innovation in changing the way strategic product development is performed and can provide practical information to the top management of firms and policy makers on the benefits of the encouragement of the collaborative networks. Finally, through open innovation, the corporate community in Pakistan can be enhanced because development of sustainable competitiveness, advancement in technology and resilient economy will be facilitated.