Leadership Dynamics in Open Innovation: A Dynamic Process Model

Abstract This study contributes to understanding the human side of open innovation (OI) by reconceptualizing leadership as an emergent and dynamic process. Drawing upon extensive research in leadership theory and insights from emerging studies on non‐traditional organizational structures such as online communities and technology collaborations, the study introduces a dynamic process model of leadership within OI environments. Central to this model are two pivotal dimensions: the foundation of leadership authority (formal vs. informal) and the leader's orientation to engaging followers (democratic/participative vs. autocratic/hierarchical). The model is empirically validated by means of a longitudinal case study of co‐creation initiatives – a type of OI – within the cultural heritage sector. Three theoretical implications are derived from the analysis. First, we observe a dynamic interplay among various informal sources of authority – technical expertise and interpersonal trust – across the duration of OI projects. Second, the leader's orientation to followers constitutes a skill and an adaptive capability rather than a fixed personal trait. Third, we underscore the significance of physical proximity as a crucial determinant of leadership effectiveness in OI settings, influencing a leader's comprehension and interpretation of the contextual landscape. In doing so the study advances and enriches the theoretical underpinnings of OI leadership, moving beyond conventional models rooted in closed‐innovation paradigms. Our research underscores the necessity of embracing the dynamic nature of leadership within OI projects, offering valuable insights for practitioners and scholars alike.