MNGT3008: Open Innovation and Growth in Singapore's Service Sector

This report analyzes the role of open innovation in boosting the innovative capacity of Singapore's service sector, particularly in light of the nation's slip in the Global Innovation Index. It examines how open innovation practices can enhance R&D operations, facilitate technology insourcing, and promote collaborative networking. The report discusses the importance of collaborative networking for R&D, highlighting how open innovation enables technology insourcing through market research and strategic alliances. Real-world examples, such as Samsung's collaboration with startups and Quirky's crowdsourcing model, illustrate the practical application of open innovation. The report concludes that open innovation is critical for Singapore's service sector to maintain a competitive edge and drive economic growth, especially in areas like finance, IT, and environmental sustainability. Desklib offers similar resources for students seeking academic support.

Running head: STRATEGIC MARKETING MANAGEMENT
INNOVATION AND CREATIVITY
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Introduction
The different changes that are commenced by the organizations develop he same in
continuing with the improvements of the operations in alignment with the needs of the venture.
In this relation, most of the organizations develop open innovation with the objective of
maximizing the performance in alignment with the needs of the customers (Bogers et al., 2017).
The open innovation related practices of the organizations enabled organizations in influencing a
total change in the organizational models based on the best practices that are initiated in the
industry. The service sector organizations in Singapore has taken steps to develop a wider range
of operations through empowered R&D operations with the constant develop of open innovation
in practice (Randhawa, Wilden & Hohberger, 2016). The open innovation model enables the
organizations, in a particular industry, to undertake efficient innovative practices while operating
in the diverse economies. The financial and technological changes in the organizational
operations are empowered through the open innovation related considerations of the
organizations. The research will aim at identifying the different aspects of open innovation and
the manner in which it developed in the growth of the service sector in Singapore.
Service sector organizations in Singapore
The diverse range of transformation in the different operations have developed in the
growth of the service sector organizations in Singapore. It has been noted that the small scale
and family owned services that are being provided by most of the Singaporean businesses
engaged the skilled and higher value-added activities. On the other hand, the innovations that are
initiated by the entrepreneurs developed the organization in continuing with the improvements of
the operation in alignment with the needs of the venture. Yun, Won and Park (2016) opined that
the different activities that are initiated by the organizations are depends on the basic ideas or

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concepts related to innovations. In this relation, the utilization of open innovation would develop
the organizations in improving the rate of operation of the same while operating in the diverse
economies. However, it has been noted that the Singaporean service sectors have developed a
wider range of operations through application of different innovative concepts (West & Bogers,
2017). However, as per the Global Innovation Index 2017 the nation lost from the sixth position
of innovative and creative markets with the objective of continuing with the improvements of the
operations in alignment with the needs of the venture (Cassiman & Valentini, 2016). The slowed
innovativeness of Singapore affected the capacity of the entrepreneurs and the firm owners in
continuing with the improvements of the operations in alignment with the needs of the venture.
On the other hand, it is also noted that the revenue growth from the year 208-2019 in the service
sector organizations of Singapore is the result to the improved rate of innovations that are made
by the ventures (Popa, Soto-Acosta & Martinez-Conesa, 2017). The improved decision making
and innovative capabilities of the organizations are reflected through the increase in the gross
revenue of the same.
The service sector organizations are chiefly based on assisting the other businesses
through enhancement in the communicational and consultation based operations for improving
the growth. It has been noticed that the IT sectors have experienced a revenue growth of 7.2%
along with 6.9% growth in the financial and insurance sector (Chesbrough, 2017). However, it
has also being noted that the rate of revenue in educational, entertainment and personal service
providing organizations have minimized, which has affected the GDP of the nation. The
development of the different services in the industry is depends on the innovative procedures that
are commenced by the same. The utilization of open innovation model by the service sector
businesses have assisted in the development of revenue streams for the service sector

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organizations in Singapore even with a slowed economy (Bogers, Chesbrough & Moedas,
2018).
Open innovation
Open innovation is considered to be one of the most important phenomenon that guides
the creative R&D operations of businesses through the utilization of information from different
credible sources within the industry. The development of the processes and the conceptions in
an organization through detailed analysis of the feasibility is depends on the success of the
research projects initiated by the other companies in the industry. Leydesdorff and Ivanova
(2016) opined that the open innovation develops an organization to enhance the scope of
collaboration with other players in the same sector or industry with the objective of mutual
growth and development. The implementation of the open innovation model in the
organizational operations develops organizations in improving the performance.
Figure: Open Innovation model
(Source: Spender et al., 2017)

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The term open innovation is specifically based on the concept that firms must take steps
to empower the internal R&D operations along with developing knowledge on the external
capabilities of the organizations. Therefore, the different changes that are initiated by the
organizations are depends on the research on the different innovations that are utilized by the
organizations belonging to the same industry. Greco, Grimaldi and Cricelli (2016) opined that
the open innovation is a paradigm that focuses on identifying the collaborative and combined
growth of the organizations while operating in a definite industry background. Therefore, the
key modifications in the organizational operations are depends on the effective functioning of the
systems in alignment with the needs of the venture.
Literature review
Collaborative Networking for R&D
Open innovation plays a major role in improving the rate of collaborative functioning of
the internal and external R&D operations of an organization. In this relation, the knowledge of
the innovative strategies that are employed by the other organizations in the sector develop a
particular venture in emphasizing on the growth of the R&D operations. Cohen, Almirall and
Chesbrough (2016) stated that the major considerations that are commenced by the
organizations are depends on the induction of improvements in the current R&D operations. In
this relation, the open innovation model develops an organization in developing the R&D
capability of the same while competing with the existing players in the market. On the other
hand, Munir, Wnuk and Runeson (2016) opined that the collaborative operations of the R&D
departments of the different organizations develops in the mutual growth and expansion in the
industry. Therefore, open innovations that are commenced by the organizations, thereby

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developed the same, in improving the processes while drawing the attention of the target
customers (Van Lancker, Wauters & Van Huylenbroeck, 2016).
The diverse range of changes in the organizational operations are depends on the
innovations that are initiated by the same. The innovativeness of the organizations are depends
on the effective functioning of the systems in alignment with the needs of the venture. Martinez-
Conesa, Soto-Acosta and Carayannis (2017) opined that the traditional R&D operations that ate
commenced by the organizations are depends on the silo mentality of adding innovations to gain
a competitive advantage. However, the new innovations that are initiated by the organizations
are depends on the open collaboration with the other ventures with the objective of improving
the performance. The coordination of the internal and the external R&D operations in an
organization is depends on the effective performance of the systems in alignment with the needs
of the venture (Zobel, 2017). The collaborative functioning of the different systems would
develop he organization in improving the performance while operating in the diverse economies.
The improved rate of collaboration among the organizations develops a venture in
improving the performance while improving the performance in the diverse economies. It has
been noted that Quirky, a crowdsourcing organization, aimed at developing a range of innovative
products while empowering the members in the community to facilitate suitable innovations
(Quirky.com., 2019). In this relation, the different developments that are made by the
organization aimed at improving the collaboration among the members in the community. The
products that are developed through the enhanced rate of collaboration among the community
stakeholders are made available in different Quirky stores. The different innovative measures
and development of new and improved innovative products in the organization is thereby
facilitated through the enhanced collaboration among the internal and the external community or

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R&D. Scuotto et al., (2017) opined that the effective links of communication has developed the
organization in improving the performance while improving the rate of competitive edge.
Therefore, open innovation in an organization develops in improving the rate of collaboration
between the internal and the external R&D departments of with the objective of improving the
innovativeness.
Open innovation enables Technology insourcing
Tucci et al., (2016) opined that open innovation enables an organization in improving
the processes through technological infusions. In this relation, the open innovation serves as a
platform for the organizations while continuing with the improvements of the operation in
alignment with the needs of the venture to sustain in the competitive markets through innovation.
Ferraris, Santoro and Bresciani (2017) stated that the different technological innovations that are
initiated by the organizations needs a market research to identify the nature of the technology
and the effects of the technology on the firm performance. According to Hossain et al., (2016),
The open innovation develops an organization in identifying the design and the prototype of the
technology while implementing the same in the processes. Therefore, the application of open
innovation model in the organizational operation enables an organization in improving the rate of
operating while adhering to the modifications in the industry.
Zobel (2017) stated that the application of open innovation model develops an
organization in gathering information on the credibility of a technology and the manner in which
it would deliver a sustainable edge to the business. The technological infusions and insourcing
is specifically based on market research and development of an idea or prototyping the design of
the innovation. Schumpeter's Theory of Innovation outlined the business change as a
phenomenon that solely depends on the investments that are made by the organization for

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gaining a competitive edge (Munir, Wnuk & Runeson, 2016). In this relation, the organizations
undertake investments on a technology after analyzing the market projections and the success
that is gained by the other organizations in the industry through the change. Spender et al.,
(2017) stated that the technological changes are complex by nature and thereby the organizations
develop a suitable market research for successful implementation of the technology. On the other
hand, the market research, through open innovation, also enables an organization in delineating
the prospects of growth through the induction of the technology in the organizational model.
The technological innovations that are commenced by the organizations are depends on
effective market research on the different outcomes that are encountered by the organizations
while implementing the same in the business models. In this relation, Samsung held
collaboration with different startup businesses with the objective of improving the
innovativeness of the R&D department of the venture (Cassiman & Valentini, 2016). The
different acquisitions and mergers commenced by the organization along with partnerships have
enabled the same in improving the rate of innovative practices in the business. The innovative
practices that are initiated by Samsung are enabled through the application of collaborative
operations with the different startup business enterprises (Chesbrough, 2017). Therefore, the
technological changes that are administered by the organization are depends on the effective
collaborations with the different startup enterprises. Open innovation practices developed the
organization in improving the rate of innovations while gaining a competitive edge in the
industry.
Likewise the service sectors in different parts of the world has commenced collaboration
with the different other developive enterprises and startups with the objective of improving the
service design influenced by innovative practices. Randhawa, Wilden and Hohberger (2016)

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opined that market research on the organizational operations would develop the venture in
improving the rate of innovative practices while influencing the sustainable edge in the sectors.
Therefore, the collaborations with the different other organizations and startups backed by the
influence of open innovation, develops in improving the rate of innovativeness. The insourcing
of ideas and patented technologies through collaborations and partnerships has developed the
organizations in upgrading the regular operations that are considered by the venture. However, it
has been noted that most of the service sector companies like Amazon and Netflix have adapted
the ‘outside in’ approach with the objective of continuing with the improvements of the
operations on alignment with the changing needs of the customers (West & Bogers, 2017). In
this relation, the customers’ feedbacks are assessed by the organizations with the objective of
implementing relevant and new innovations.
The assessment of the needs of the customers and the development of the innovation
processes is again a part of open innovation that is being considered by the organizations.
Cassiman and Valentini (2016) stated that the assessment of the needs of the customers and the
information gathered from the on-site feedbacks provided by the same develops an organization
in implementing innovative technologies in the organizational models. The internal R&D
operations of the organizations are based on the collaborations that are initiated by the ventures
with other organizations in the industry. Therefore, the technological infusions that are initiated
by the organizations are depends on the effective functioning of the systems in alignment with
the needs of the organizations.
Joint venture and strategic alliance in open innovation
Leydesdorff and Ivanova (2016) stated that strategic alliance with the different
organizations while in-sourcing the technologies develops a venture in ensuring the

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uninterrupted functioning of the systems. The different changes that are commenced by the
organization are depends on the efficient functioning of the systems in alignment with the needs
of the venture. According to Greco, Grimaldi and Cricelli (2016), in a pivotal study, the
different strategic alliances that are initiated by the organizations have enabled the same in
improving the rate of co-development of products technologies or services. The collaborative
functioning of the internal R&D with the external innovations that are commenced by the
organizations developed the growth of the organizations in continuing with the improvements of
the operations in alignment with the needs of the customers. The market research and
collaborations through joint ventures and strategic alliances enables an organization in
influencing the innovativeness of the operations.
Cohen, Almirall and Chesbrough (2016) opined that the strategic alliances while
insourcing technologies enables organizations to create win-win situations and empowers the
mutual growth. Strategic partnerships and interactions with different other organizations
develops an organization in improving the performance while operating in the diverse
economies. Van Lancker, Wauters and Van Huylenbroeck (2016) stated that the shift from the
traditional innovation concepts that are followed by the organizations to a more collaborative
approach enabled the organizations to develop quality based innovative practices. The different
modifications in the organizational operations are empowered through the enhanced means of
collaboration among the businesses. In this relation, Mozilla has taken steps to develop a new
range of operations while developing the browser with the objective of adhering to the
community based needs (Zobel, 2017). The crowdsourcing activity and collaboration with
different skilled engineers from the outside of the organization enabled the innovativeness
approach while operating in alignment with the needs of the customers. On the other hand, the

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organization provides a learning platform for the communities which again developed the
venture in drawing the attention of the community stakeholders towards the propositions that are
made by the same. Scuotto et al. (2017) opined that the different modifications that are initiated
by the organizations are depends on the in-flow of information on the different relevant
technologies and implementation process followed by organizations with the objective of
improving the competitive edge. In this relation, the service sector organizations developed
strategic alliances with different other organizations in the sector with the motif of improving the
rate of innovativeness to ascertain their sustainable edge in the markets (Ferraris, Santoro &
Bresciani, 2017). Therefore, the strategic alliances like joint venture or partnerships with the
different organizations develops the innovativeness through the application of open innovation
model.
Conclusion
Therefore, from the analysis it might be stated that open innovation in the service sector
of Singapore would develop the organizations in developing the innovativeness through
distribution of knowledge on technologies. The enhanced rate of communication between the
internal and external R&D departments of the organizations would develop the same in
improving the rate of innovativeness while adhering to the changing needs of the customers. The
research enumerated the open innovation model with reference to the application of the same in
the service sectors. The enhanced innovativeness of the organizational operations would be
enabled through different strategic alliances.

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References
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