Outsourcing as Open Innovation: Exploring Preconditions for the Open Innovation Model inthe Process Industry

The open innovation model embraces the purposive flow of internal and external ideas as a ground for innovation and network formation. While the open innovation paradigm has been successfully applied in high-tech settings, there is a gap in the research on adopters of open innovation in other settings. This research was conducted in a process industry setting, performed as a case study at Alpha Corp., a large minerals group, and Remote Diagnostics Centre, its service provider, where ICT is being increasingly used to monitor the process line, resulting in the creation of new value networks. The underlying question is: Why and how do open innovation projects develop over time? Our findings show that adoption of the open innovation model is grounded in developing organizational environments that are conducive to innovation, including expertise in creating a culture for knowledge sharing, building a trustful environment, and a resourceful use of interaction technologies.