IMPACT OF OPEN INNOVATION ON BUSINESS MODEL INNOVATION: A STUDY OF SMES IN PUNJAB

SMEs have acted as backbone of rural India by providing ample employment opportunities and infrastructural developments. The number of SMEs in India is growing at a fast pace hence increasing the competition. Punjab is one such state having large number of SMEs in different segments. In order to diversify and excel, SMEs are undertaking innovative practices and trying to create a competitive advantage by incorporating innovation through different ways. This paper examines the relationship between Open Innovation and Business Model Innovation by interviewing 120 respondents and collecting responses with the help of a structured questionnaire. It is a descriptive study exploring relationship through linear modeling. The results of the study show significant and positive relationship among Open Innovation, Business Model Innovation.