Open Innovation in the Public Sector: A Dynamic Capabilities Perspective and the Role of Information Technology

Abstract

Public sector organizations (PSOs) are facing important structural, financial, environmental, and technological pressures. To adapt and respond to this complex and changing environment, PSOs need to deploy new innovative and collaborative approaches to capture and capitalize on specialized knowledge coming from a wider number of contributors. Open innovation (OI) is one such promising approach. Drawing on a dynamic capabilities perspective and based on an analysis of 100 case study reports of OI initiatives, we identified 16 key organizational actions deployed by PSOs to implement OI initiatives. Data analysis showed that PSOs’ dynamic capabilities of sensing, seizing and transforming are enacted and collectively used to engage in OI initiatives through these 16 organizational actions. In virtually all of these organizational actions, information technology (IT) plays a key role either as a central support tool or as an outcome.