SUMMARY
In modern business reality, given a tendency towards digitalization of the economy, expanding network cooperation and the increasing role of knowledge and technology transfer, the principles of interaction between actors of innovation process are changing drastically. These factors determine a shift from the traditional “closed” innovation model towards open innovation practice. The advantages of open innovation activities are widely discussed, however, a large number of enterprises, involved in such projects face various challenges in managing open innovation. Thus, from a managerial perspective, it is essential for modern companies to find the right balance between benefits and potentially negative consequences of the open innovation model. Although it is an important issue for innovative enterprises to analyse possible risks and benefits of participation in open innovation projects, appropriate managerial instruments of exploring opportunities and threats of such collaboration are still not sufficiently researched. The purpose of the paper is to improve the typology of a company’s open innovation activities and to explore the opportunities and potential risks of open innovation in modern organizations. Methodology. To achieve the above-mentioned purpose of the research, the following scientific methods were used: structural-logical analysis, comparative analysis, systematization, formalization, graphical method. The results of the research show that companies need to develop specific innovation capabilities related to knowledge management in order to provide successful implementation of open innovation: knowledge absorptive capability, knowledge sharing capability and knowledge co-creation capability. A theoretical framework for understanding the linkages between a firm’s organizational capabilities related to knowledge management is offered as a result of the study. The improved typology of a company’s open innovation activities in accordance with the direction of knowledge flows (inbound or outbound) is presented. Based on research findings key potential risks of open innovation practice are systematized which include primarily loss of core knowledge and technologies, problems in protecting intellectual property and complexity in managing interactions with collaboration partners. Practical implications. From a managerial standpoint as a result of the conducted research, the main opportunities and risks of open innovation are defined, which should be taken into account in order to make the right decision on this type of collaboration. Appropriate managerial countermeasures are proposed in the paper to be practically applied to prevent risks of open innovation implementation. Value/originality. The improved typology of a company’s open innovation activities in accordance with the direction of knowledge flows (inbound or outbound) is presented, as well as main risks and managerial challenges of open innovation practice are systematized.