Open innovation’s Strategic Business Value (SBV) context: ARM model conceptualisation

The Open Innovation (OI) Paradigm is relatively new in the Industry. Yet, its positive effects can be felt even stronger in terms of promoting the conceptualization of strategic business value (SBV) as a goal and as an enabling context for innovation. The paper contrasts core elements in the closed and open innovation paradigms. The discussion about OI highlights absorptive (A), relational (R) and multiplicative (M) capabilities that companies must coordinate with innovation practices within SBV contexts. The discussion provides a definition of SBV context and con ceptualisation of an Open Innovation ARM Model. The ARM capabilities are central to a network view of SBV and function as conduits and as a collective platform for innovation deploy ments to support inter-organisational activities. Future research possibilities are suggested.