How Does Open Business Model Transform Elements of Innovation Culture into Open Innovation Practices of High and Low Internationalisation Firms?

This paper fills in the gap in innovation-internationalisation research based on differences between low and high internationalised firms. It examines how open innovation model serves as a mediator, transforming innovation culture into inbound, coupled and outbound open innovation. A cross-sectional research was used, and data were collected in 2014 on a sample of 82 telecommunication sector, obtaining a response rate of 26% of total telecommunication firms in the Republic of Croatia. The study differentiates between four elements of innovation culture: preparatory teamwork, knowledge sharing, intellectual property rights and established teamwork through formal communication processes. Results confirmed significance of (1) all innovation culture elements on open innovation model, especially in low internationalised firms, and (2) open innovation on inbound and coupled open innovation. Furthermore, open innovation model mediates the relationship between (a) preparatory teamwork and IPR on one side and inbound open innovation on the other side and (b) both preparatory and established teamwork on one side and coupled open innovation on the other side. In terms of different internationalisation levels, the study confirms the importance of (3) intellectual property rights for all open innovation types of highly internationalised firms and only for coupled open innovation of low internationalised firms and (4) established teamwork of both coupled innovation of low and high internationalised firms.