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Purpose Open innovation and information systems have been key topics in the theoretical domain, but little empirical research thoroughly examines how information technology (IT) capability affects open innovation performance. Thus, the purpose of this paper is to explore the relationship between IT capability and open innovation performance and to expose the inner mechanism at the firm level. Design/methodology/approach This paper collected firm-level data in China; 232 usable questionnaires from different firms were collected. Then, the study used a structural equation model by AMOS for hypothesis testing. Findings The results indicate that both internal IT capability and external IT capability have positive impacts on open innovation performance; potential absorptive capacity and realized absorptive capacity mediate the relationship between external IT capability and open innovation performance. Additionally, realized absorptive capacity plays a mediating role in the relationship between internal IT capability and open innovation performance. Practical implications These findings indicate that practitioners should pay attention to the important relationship between absorptive capacity and IT capability and open innovation performance in Chinese businesses. Originality/value Existing research has emphasized the influence of IT on open innovation, but empirical studies have not thoroughly focused on the inner mechanisms of the effect of IT capability on open innovation performance. Drawing on firm capability theory, this paper classifies IT capability as internal and external IT capability and absorptive capacity as potential and realized absorptive capacity. Then, this paper confirms the mediating role of absorptive capacity between IT capability and open innovation performance.

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Purpose-After identifying two kinds of internal knowledge transfer strategies, the purpose of this paper is to examine their effectiveness and whether they induce knowledge spillovers among firms. Design/methodology/approach-This study collected data in China and 219 questionnaires were achieved. Then, structure equation model by LISREL was used for hypotheses testing. Findings-The empirical results suggest that both codification and rich-media strategies have positive effects on internal knowledge transfer. Moreover, codification strategy has a negative effect on knowledge spillovers while rich-media strategy does not influence knowledge spillovers significantly. Thus, codification and rich-media strategies are not double-edged swords. Practical implications-This study provides firms with two strategies, codification and rich-media, to promote internal knowledge transfer. Moreover, these strategies do not accelerate knowledge spillovers, and codification strategy even reduces knowledge spillovers. Firms can use these strategies to construct and sustain competitive advantages. Originality/value-While many knowledge creation, storage and protection strategies are studied, little is known about internal knowledge transfer strategies. This study suggests two internal knowledge transfer strategies and confirms their effectiveness. Moreover, because the relationship between internal knowledge transfer strategies and knowledge spillovers has been puzzling for a long time, this study clarifies the relationship and finds that these strategies do not accelerate knowledge spillovers and some even restrain knowledge spillovers.