Abstract
Purpose – This paper aimsto develop a systematic model of open innovation from a systematic view based on the case study of the YuchaiGroup’s practices so as to illustrate the knowledge input and output in the open-innovation model. Design/methodology/approach –The systematic model of open innovation was constructed on the basis of the Yuchai Group’s practices in the People’s Republic of China from a grounded theory approach. Findings –The results show that, from the systematic view,the dynamic processes of open innovation could be divided into four interconnected parts: elements, integration, evaluation of performance and adjustmentto the environment. For the Yuchai Group, the element acquisitionare much more vital than the developmentof ideas. Moreover, the structuralintegration consists of theinternal integration and external integration according to the internal and external relationships of knowledge under the value chain. Additionally, the evaluation of performance focuses on knowledge production, not only about pecuniaryresults related to patent production, but also the change of modules as theknowledge base. The adjustment of open innovationto changes in both the market and the political environment is a long but gradual process. Therefore, it is appropriate for organizations to adopt the systematic model for the management of open innovation. Originality/value–The authors have builta systematic model (ESFE) of open innovation and elucidated some effective practices of open-innovation management based onthe case study of a Chinese firm.

Keywords
Systematic Model, Open Innovation, Organizational Change

Cite this paper
Lin Zhang, Xiaojuan Yang, Dawei Zhang, The systematicmodel for implementation of open innovation in Yuchai Group in the People’s Republic of China , SCIREA Journal of Sociology. Volume 3, Issue 2, April 2019 | PP. 30-59.

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