Born Open Firms – A Proposition Of A New Concept

Using a revelatory case study, I propose a new concept – the Born Open (BO). I use the case to reflect open innovation (OI) practices in a hi-tech start-up. My observations differentiate from current studies of OI in SMEs because I consider a) the point in the lifecycle of the firm in which OI and open business models are seriously contemplated and b) the role of entrepreneurial cognition and intent towards open innovation from the founding of the firm. I draw upon academic literatures in open innovation, open business models, international entrepreneurship, managerial cognition, and effectuation and causation theories to provide theoretical foundations to my empirical observations. I put forward a series of propositions regarding the characteristics of a BO firm and a working definition as a foundation for future research. I suggest that in the current fast paced environment, entrepreneurial founders may need to view an open business model as a necessity at the ideation stage of an innovative new product, but that finding partners who comprehend the enhanced value such a business model brings to itself as well as the value network overall, may be difficult and require persistence.