Value creation, innovation practice, and competitive advantage

Enrico Battisti (Department of Management, Università degli Studi di Torino, Turin, Italy)
Nicola Miglietta (Department of Management, Università degli Studi di Torino, Turin, Italy)
Niccolò Nirino (Department of Management, Università degli Studi di Torino, Turin, Italy)
Manuel Villasalero Diaz (Universidad de Castilla-La Mancha, Ciudad Real, Spain)

European Journal of Innovation Management

ISSN: 1460-1060

Publication date: 8 May 2019

Abstract

Purpose

The purpose of this paper is to analyse companies listed on the FTSE MIB, in order to investigate the introduction of different types of open innovation practice as a key factor to develop a competitive advantage to pursue value creation.

Design/methodology/approach

This research uses a mixed-methods sequential explanatory design. A quantitative study was conducted to determine the firms listed on the FTSE MIB that for more than 10 years have paid dividends and beat the yield of the market. The qualitative analysis was designed to provide insights into the adoption of at least one open innovation practice by the listed companies selected in the quantitative phase.

Findings

This work is based on an empirical analysis undertaken with 40 Italian companies listed on the FTSE MIB. In particular, the authors highlight 16 companies that for more than a decade have regularly paid dividends and, at the same time, have beat the FTSE MIB Index. All of these companies implemented at least one open innovation practice during the period investigated.

Originality/value

This is among the first pioneer research works based on the potential relationship among value creation, innovation practice and competitive advantage in the Italian market. This study highlights the fact that 16 out of 40 companies listed on the FTSE MIB create more value for shareholders over a long period, and all of these firms adopt different open innovation practices (e.g. partnership and collaboration with external entities; mergers and acquisitions and alliances; investment in start-ups; hackathons and call for ideas; outsourcing R&D) as a key factor to develop a sustainable competitive advantage.

Keywords

Citation

Battisti, E., Miglietta, N., Nirino, N. and Villasalero Diaz, M. (2019), "Value creation, innovation practice, and competitive advantage", European Journal of Innovation Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/EJIM-09-2018-0211

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Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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