“Open Innovation Strategy in Palestinian SMEs: An Assessment of Antecedents, Risks, and Corporate Governance Solutions” رسالة دكتوراة

Abstract

Introduction: This study investigates the adoption of open innovation strategies among Palestinian Small and Medium Enterprises (SMEs), which play a vital role in national economic development. Despite their significance, these enterprises face considerable challenges in embracing innovation due to limited resources, political instability, and market restrictions. The research aims to identify the key antecedents, risk factors, and corporate governance mechanisms that influence the successful implementation of open innovation strategies in the unique context of West Bank - Palestine. Methodology: A quantitative research design was employed using a structured questionnaire distributed to SME owners, managers and employees in the West Bank. Data was analyzed using Structural Equation Modeling (SEM) to validate the conceptual framework and test the proposed hypotheses about the relationships among innovation strategy, risks, and governance solutions. Result: The analysis revealed that commitment-based human resource practices, inter departmental connectedness, and decentralized decision-making positively impact open innovation adoption. Key risk factors, such as limited internal innovation capacity, weak external networks, and technological barriers were found to hinder innovation efforts. However, the study confirmed that effective corporate governance solutions, particularly those promoting knowledge sharing, ethical values, and structured decision-making, significantly mitigate these risks. Furthermore, corporate governance mechanisms were shown to moderate the relationship between antecedents and innovation success, reinforcing their importance in fragile economic settings. Practical Implications: This research offers strategic guidance for SME leaders and policymakers. It emphasizes the need for investment in internal capabilities and collaborative networks, supported by formal and informal governance systems. The V findings underscore that robust governance frameworks can protect SMEs from the inherent risks of open innovation and improve their ability to compete and grow within a challenging environment like Palestine