**12. The theory underpinning the study**

Based on the literature review, the study identifies four ACMs' open innovation strategies: commercialisation, collaboration, invention, and versatility. In support of [5], they illustrate the relationship between these four main categories of open innovation

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

strategies and the theoretical underpinnings to evaluate how they impact competitiveness. This study focuses on how these strategies impact NPD. The resource-related challenges (inputs) are expressed in terms of the resource-based view theory. The firm capability-related challenges (transforming these inputs into outputs) are conceptualised by examining the dynamic capabilities theory. The risk-related challenges (related to the uncertainty of innovation project outcomes) are more effectively comprehended by assessing the portfolio theory. Regardless of the nature of the performance benchmark (financial and philanthropic), these three types of challenges faced by ACMs directly impact competitiveness, which the study proposes to be achieved through new product development.
