Open Innovation Practice of Startups in Vietnam

Abstract

Prior researches have cast light on the significance of open innovation (OI) to firms' performance. Authors have shown that large firms collaborate with each other to boost their power. Most literature focuses on large enterprises and open innovation in SMEs is still an under researched area. This master thesis is written in response to the inadequate literature focusing specifically on small firms and startups. This master thesis took place to explore how open innovation is practiced in startups of Vietnam. First, a general literature review of startups in Vietnam and their OI adoption is described. Next, five cases of different startups implementing OI are discussed and analyzed accordingly. Furthermore, the findings show that (1) startups from different sectors benefit from implementing OI; (2) insufficient financial resources and limited networks of partners are the most common challenges for startups; (3) startups collaborating with a corporation will have more competitive advantages; (4) the role of government was not recognized. Finally, an attempt is made to offer a guideline for managing OI successfully.