**5. ACM open innovation model**

The ACM Open Innovation Strategies archetypal represents the various approaches that diverse ACMs are likely to apply to strengthen their organisation's performance by increasing innovation activities, including New Product Development NPD and economic performance. The strategies are responsible for the successful overwhelming core challenges component manufacturers face about their size, otherwise coined (size-related challenges). Referred to in this archetype as 'resource scarcity, inadequate dynamic capabilities, and extreme exposure to risk', This archetypal assumes that ACM's 'knowledge exploration', referred to as 'creation of value', and 'knowledge exploitation', referred to as 'value capture', help to select the appropriate strategic options to follow. It assumes that ACM's leverage changes over time and can hypothetically accept other alternatives in the future.

The open innovation strategies model (**Figure 1**) represents an assumption that ACMs must concentrate on essential elements in the management process, which encompass guidance, reinforcement of absorptive and adsorptive capacities, cultivation

**Figure 1.**

*ACM open innovation strategies. Source: [5].*

of risk-taking culture, employee motivation, exploiting functional business systems, effective decision-making and employee assurance and other numerous factors.

The proposed archetype highlights those facets since they are vital in determining which strategy an ACM should pursue. This model incorporates management considerations to focus on lower forms of innovation strategies that can be followed by ACMs who possess unique strengths in competition depending on whether they are "exploration and exploitation capabilities" [5].

With the automotive industry being the focal point, the study authors adopted this archetype to assess a variety of ACM approaches for contending with others in this environment, given ACM's relative innovation exploration and exploitation strengths. There are many combinations of strategies and sub-strategies. For example, inward open innovation is viewed in numerous ways, including procurement or hiring a patent, exchanging stock for a patent, acquiring mutually joint patents, acquisitions, or subcontracting R and D projects. Inward and outward innovation can coincide by combining other unique strategies such as cross-licencing. This model focuses on open innovation's three main groupings (inward, outward, and collaboration strategies). The model pairs them to the categories of ACMs that will use and benefit from them. Each strategy was assessed theoretically about:


The study intends to establish the link between open innovation strategies in reducing NPD challenges affecting these ACMs to the actual performance outcomes. The study also allows us to evaluate the impact of the strategies in executing NPD activities.

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

The model indicates that each quadrant is identified by a name that describes the archetypal strategic positioning in that quadrant. As an illustration, ACMs in the lower right quadrant focus on investing in the production of new knowledge, whereas ACMs in the upper left quadrant will focus on commercialisation initiatives. Each quadrant describes all ACMs, and the classification is designed to give an easy reference. All ACMs could follow the collaborative route, but the ACMs in the lower left quadrant could employ only collaborative strategies. This choice is a result of the lack of proficiency in the creation of value, hence classified as "inventive," and the capturing of value capabilities classified as "Commercialising" and combined capabilities classified as "versatile. ACMs in the other quadrants are classified as "collaborative." The collaborative approach is available as a strategic option in every quadrant.

## **6. Collaborative automotive component manufactures quadrant**

The lower left quadrant in the model represents ACMs that collaborate and lack innovative exploration and exploitation capabilities. Besides the lack of explorative or exploitative capabilities, they possess the option to implement various collaboration approaches that permit control of the exploration and exploitation strengths over other organisations. Besides, there are three core classifications of collaborations with employees termed "closed innovation approach." These collaborations are [6]. While collaboration is the primary open innovation strategy available, it is not exceptional for collaborative organisations only since ACMs in supplementary quadrants could, by choice, implement collaboration-interrelated strategies. These subsequent suggestions are about ACMs universally, notwithstanding the quadrant they occupy.

## **7. Inventive automotive component manufacturers quadrant**

The inventive quadrant is at the lower right side of the model. Since the ACMs in this quadrant have strong knowledge creation (exploration) abilities, referred to as "inventive," they are likely to depend on their unique resources and capabilities. Many ACMs belong to this group because they experience challenges with value capture. Additionally, [7] noted that ACMs who possess fewer capabilities to commercialise resort to the option of licencing out their innovations to willing partners.
