**21. Qualification**

**Table 4** below shows that out of 33 respondents, the majority constituting 30.3% had a master's degree, 27.3% with a Diploma, 8% with first degrees, 12.1% with other qualifications such as relevant Certificates and 6.1% had PhDs. A Master's degree


**Table 4.** *Respondents qualifications.*



*Open Innovation Strategies on New Product and Process Development Prospects: A Case… DOI: http://dx.doi.org/10.5772/intechopen.105035*

> **Table 5.** *Impact of open innovation on new product development.*

is an international standard managerial qualification. Managers that possess such a high level of qualifications are highly competent in their managerial duties. 81.8% of the respondents fell in suitably and relevantly qualified respondents. As a result, the researcher had no reason to doubt the managerial capabilities of the respondents and their competence to handle the questionnaire.

**Table 5** below shows the inferential correlation statistics measuring the impact of open innovation strategies on new product development prospects.

The results in **Table 5** above show that idea generation was found to have a strong positive impact on seeking new outside applications for internally developed innovations, knowledge, tools and ideas, r (0.539\*\*) = 0.539, p = 0.001. From idea generation was also found to be having a strong positive impact on process of new product/ processes development, r (0.556\*\*) = 0.556, p = 0.001, strong positive impact on introduction of new products /processes development r (0.497\*\*) = 0.497, p = 0.003. "Seeking new outside applications for internally developed innovations, knowledge, tools, and ideas" were found to have a strong positive impact on the new product/ processes development process, r (0.518\*\*) = 0.518, p = 0.002.

The results also show that synergy created from combining knowledge among participating firms is having a strong positive impact on the opening of new markets, r (0.631\*\*) = 0.631, p = 0.000. Process of new product/ processes development was found to be having a strong positive impact on introduction of new products/processes development, r (0.697\*\*) = 0.697, p = 0.000 and a strong positive impact on introduction of new processes/ services, r (0.455\*\*) = 0.455, p = 0.008. On the other hand, the introduction of new products/processes development had a strong positive impact on the introduction of new processes/services, r (0.455\*\*) = 0.455, p = 0.008, while the introduction of new processes/services has a strong positive impact on the opening of new markets, r (0.459\*\*) = 0.459, p = 0.008.

## **22. Discussion of results**

This study indicates that idea generation positively influences the open innovation activity of seeking new outside applications for internally developed innovations, knowledge, tools, and ideas for new product development. Idea generation also positively impacts new process development and the introduction of new product development. The results also indicate that the synergies created from combining knowledge among participating firms have a positive, substantial impact on opening new markets for new products. The introduction of new processes or services has a strong positive impact on opening new markets for new products. New processes and services such as distribution channels and value chains are essential and critical for new product development.

Literature suggests that several attempts have proffered open innovation strategies at the centre of openness and its ability to stimulate innovation within firms. This stimulation is achieved by combining large and different pools of external sources resulting in increased diversified products and better processes of matching products to consumer preferences [45–47]. Open innovation management creates and brings monetary values to innovative technological knowledge and individual creativity. Literature has, in recent years, popularised this model of bringing monetary value to innovation as open innovation [3]. However, open innovation is not a one-dimensional concept; it culminates in many tastes and forms, and although it adds to the richness of the open innovation concept, it hinders theory development [45]. Above

*Open Innovation Strategies on New Product and Process Development Prospects: A Case… DOI: http://dx.doi.org/10.5772/intechopen.105035*

all, open innovation enables the identification of new product development performances, even in situations where internal R and D activities provide new product development needs solely and goes beyond by engaging external sources such as the knowledge of individuals as well as ideas from customers and technology [46, 48].

The automotive components manufacturers need innovators who create products, develop discovery skills, and believe that they can change the world [49] as they lead these innovative organisations. Organisational leadership and management play an essential role in staffing all organisational departments with innovative individuals [49] and encouraging employee creativity as the basis for innovation [50].

In summary, new product development encompasses physical product development, processes development and services development, of which innovation plays a vital role in their achievement. New product development requires innovative employees, leaders and creative managers who believe in themselves and are driven by the quest for knowledge acquisition.

## **23. Recommendations**

The nature of the automotive components manufacturers demands that their performance be measured in terms of product development productivity. The demand for components parts is exceptionally high and ever-increasing in the automotive industry. Quality determines the life span of the component products; as a result, the need for continuous innovation in new product development overwhelms the automotive components manufacturers. Dynamic capabilities lie at the centre of achieving all these. Therefore, the chapter recommends that the automotive components manufacturers invest in improving their dynamic capabilities to turn ideas generated into new innovative products to remain competitive in the country's automotive industry and globally competitive.

## **24. Limitations**

A study of a strategic nature such as this would naturally face limitations in terms of the target population of corporate executives that might not be willing to divulge information. Predominantly the local or domestic automotive component manufacturers are more reluctant to share information as they perceive threats to their production capabilities and processes, especially regarding the use of external knowledge and contents of materials and local suppliers in fear of the likelihood of being sidelined by the multinational corporations who are dominating the market share of the South African automotive industry.

The study was quantitative, and bulk data were collected using a structured questionnaire. A structured questionnaire limited the respondents. They could not express their personal views and opinions beyond the structured constructs in the questionnaire, unlike the interview protocol would allow.

The study was limited to a small sample drawn from KwaZulu-Natal, Gauteng and the Eastern Cape with the diversity of the automotive component manufacturers compared to the limited number of companies covered externally in this research; this limitation is essential for future research. Not all subsectors of the automotive industry have been covered in the research due to the technical nature of the study, where research and development are not prerequisites among small and micro firms. A more

comprehensive sample would have enhanced the potential for the generalisability of the results.
