Open data business models and financial stability in open innovation environments

Abstract

Businesses increasingly rely on data to enhance operations, drive innovation, and create new products and services. Data has become a critical organizational asset, and the Open Innovation (OI) paradigm highlights its potential to be shared or freely released to stimulate innovation. The Open Data (OD) movement builds on this idea, promoting transparency, social development, and innovation through the “opening” of data. This study investigates the intersection of OD and OI by examining how organizations engaged in OD initiatives structure their business models and the impact of these models on financial performance. Open Data Business Models (ODBM) are essential for companies to leverage freely accessible, non-proprietary data effectively, enabling them to create value through innovative services, enhanced customer engagement, or improved decision-making processes. Using a sample of 406 UK companies, the study employs a qualitative approach to identify ODBM archetypes. A quantitative analysis investigates the relationship between industry sector, ODBM adoption, and financial performance. Findings reveal key ODBM characteristics, their prevalence, and potential links to financial performance, offering insights into the long-term viability of ODBMs. Summed up, the study provides a foundational resource for researchers, policymakers, and practitioners to maximize OD benefits while ensuring economic resilience and sustainability.

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Identifiers

ORCID for Tahir M. Nisar: orcid.org/0000-0003-2240-5327

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