The Tension Between Open Innovation and Appropriability in Marine Renewable Energy SMEs: Examining the Role of the Chief Executive Officer

Marine renewable energy small and medium-sized enterprises (SMEs) are vital in addressing climate change through radical innovation in a complex, high cost, and high-risk sector. Open innovation (OI) is a strategic approach for SMEs to acquire external knowledge, important for creating their radical devices. However, OI strategies may result in R&D leakage, requiring SMEs to consider the balance between appropriation and OI. Founders/CEOs play a critical role in managing this tension, yet little is known about how they manage the OI–appropriation nexus. This study examines whether appropriability enables or hinders OI and how the founder/CEO's background influences the relationship. Using an explanatory, sequential mixed-methods design, a positive relationship between appropriation and OI is identified. The founders/CEOs' education, passion, and practical experience have a strong influence on OI adoption. This study advances the OI–appropriation literature, shining a light on the neglected but important human-side context of SME innovation management.