The role of open innovation in fostering SMEs' business model innovation during the COVID-19 pandemic

Abstract

Purpose The economic crisis triggered by the COVID-19 pandemic has had significant consequences on the activities of companies worldwide. This study aims to unveil how open innovation fostered business model innovation in small and medium enterprises (SMEs) during the pandemic. Design/methodology/approach The research adopts a qualitative approach, involving a multiple case study methodology, and focusses on six SMEs operating in various traditional sectors. Findings The findings highlight the impact of the external stimulus, COVID-19, on business model innovation and the key role of open innovation management in pursuing the business model innovation, which may also involve a digital transformation. Originality/value While some studies have examined how the pandemic has fostered business model transformation, to the best of the authors' knowledge, this is the first study analysing the pivotal role of open innovation in driving business model innovation during challenging times, such as the COVID-19 pandemic.