Open Innovation and Competitive Advantage in Manufacturing Firms in Bekasi, Indonesia
Abstract
Open innovation refers to a strategic approach where organizations actively collaborate with external partners such as suppliers, customers, universities, and startups to co-create and integrate new ideas, technologies and solutions. This model allows firms to accelerate their innovation processes, reduce research and development costs, and tap into diverse knowledge sources that extend beyond their internal capabilities. Competitive advantage arises when companies leverage these collaborations to introduce unique products, improve operational efficiency and respond faster to market changes than their rivals. Through embracing open innovation, firms can enhance adaptability, drive continuous improvement, and maintain relevance in highly dynamic and competitive industries. Research on manufacturing firms in Bekasi showed that companies increasingly collaborated with universities, research centers and supply chain partners to source ideas and technologies, making innovation districts like Jababeka and MM2100 key hubs. These collaborations have been found to speed up product development and enables firms to respond more quickly to shifting market demands. The study concluded that open innovation enabled manufacturing firms in Bekasi to access diverse external knowledge, enhancing their capacity to create innovative products and processes. Through collaboration with universities, technology partners, and supply chain networks, these firms reduce development costs and improve speed to market while maintaining adaptability in competitive industries. As a result, companies that adopt open innovation strategies strengthen their long-term competitive advantage and position themselves for sustained growth in Indonesia’s manufacturing sector. Manufacturing firms in Bekasi should actively invest in structured open innovation programs by building long-term partnerships with universities, technology providers and supply chain actors to accelerate product development, reduce costs and strengthen their competitive position in both local and global markets.
Keywords: Open Innovation, Competitive Advantage, Firms, Indonesia
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