| Abstract |
Purpose: The present study is intended to figure out the factors for sustainable growth of SMEs. Design/methodology/approach: 27 SMEs in the area of IT in Korea were analysed through interviews method basically. According to the openness of knowledge strategy and business model altogether, the growth of SMEs will be different. Findings: Open innovation in knowledge strategy and business models is required for sustainable developing of SMES according to the result of this research. SMEs grow from closed innovation in knowledge strategy and business model altogether, through open innovation in both, and to open innovation one of them. Any SME which chooses closed innovation both knowledge strategy and business model, decreases the size of the firm and total sales, and could not survive continuously. Originality/value: First, in this research, for the first time it is found that sustainable development of SMEs requires two kinds of open innovation which are knowledge strategy and business model. According to developing process, SMEs change their open innovation strategy in knowledge strategy, and business model from closed, closed, through open, open, and to close, open, or open closed. Second, the highest growth limit of SMEs depends on open innovation in knowledge strategy and business model in sequence from closed innovation in both, through open innovation in both, and open innovation in knowledge strategy and closed innovation in business model, to, closed innovation in knowledge strategy and open innovation in business model. |