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Positive Organizational Outcomes Associated with a Penchant for Openness

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Abstract

The tension between scientific openness versus secrecy has existed for centuries (Hull 1985). However, both academics and practitioners have recently argued that openness by private firms has many positive attributes. The purpose of this research effort is to review the extant literature on openness and to develop hypotheses regarding its impact on organizational outcomes. We then use a unique database to test the idea with 87 companies. Our findings are that openness is beneficial to the firm from a science, technological, and financial perspective and, perhaps, to the employees from an ethical viewpoint. The managerial and societal implications are also discussed.

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Notes

  1. Consistent with the “knowledge production function” empirical methodology (Griliches 1995; Jaffe 1986; Fabrizio 2009) and because a non-linear relationship is expected (i.e., percentage change matters more than a unit change), all variables except R&D intensity and SIC code are included as natural logs.

  2. Previous research has determined that there are sometimes decreasing returns to scale in research and development activities (Graves and Langowitz 1993).

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Authors and Affiliations

  1. Penn State Abington, 1600 Woodland Road, Abington, PA, 19001, USA

    G. Steven McMillan

  2. Cabrini College, 610 King of Prussia Road, Radnor, PA, 19087, USA

    Debra L. Casey

Authors
  1. G. Steven McMillan
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  2. Debra L. Casey
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Correspondence to G. Steven McMillan.

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McMillan, G.S., Casey, D.L. Positive Organizational Outcomes Associated with a Penchant for Openness. Sci Eng Ethics 19, 799–812 (2013). https://doi.org/10.1007/s11948-012-9404-5

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  • DOI: https://doi.org/10.1007/s11948-012-9404-5

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