Enhancing innovation performance of SMEs through open innovation and absorptive capacity: the moderating effect of business model

Chang, Long-Wen; Qi, Yong; Hao, Shibo

doi:10.1080/09537325.2023.2177827

Cited by 10 publications

(9 citation statements)

References 36 publications

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“…Inbound OI refers to integrating ideas, knowledge, and technology acquired from outside into the organization and using them for R & D. Its resource flow is an outward-to-inward process [4]. Firms can significantly improve performance through moderate inbound OI [15,16]. Inbound OI makes it possible for firms to access rich external resources.…”

Section: Open Innovation and Firm Performancementioning

confidence: 99%

“…On the other hand, combining valuable external resources with the firm's existing intellectual property and products will further energize its existing resources and enhance its innovativeness, thus reducing the need to develop new products [39]. Effectively utilizing the firm's underutilized resources and reducing R & D activities improves the firm's financial performance [16,22]. However, over-reliance on external resources may lead to diminishing marginal utility [40]; as the level of innovation increases and the availability of more accessible information decreases, companies need to spend more on searching for valuable external information, strengthening communication with partners, and establishing close ties to obtain core resources to maintain the expansion of innovation in existing products [41].…”

Section: Open Innovation and Firm Performancementioning

confidence: 99%

“…Because of the risk of leaking core technology and enhancing the competitiveness of other firms by transferring technology externally [44], many firms stay away from it. Still, it has been proven that moderate external OI can significantly increase firm performance [15,16,45]. By transferring technology through selling, licensing, outsourcing, or sharing, enterprises can, on the one hand, test the value and prospect of the technology through the market in the short term and have some insight into the future R & D direction of enterprises and commercializing the idle technology can also reduce sunk costs and boost economic growth (e.g., based on a survey of IBM manufacturers, Chesbrough found that in 2000, IBM obtained through technology licensing a lucrative economic income, accounting for about 20% of the net enterprise sales [46,47]).…”

Section: Hypothesis 1 (H 1 )mentioning

confidence: 99%

“…In terms of OI classification, three significant schools of thought have been formed based on different perspectives: process [5,6], strategy [7], and characteristics [8]. Related studies mainly focus on closed innovation [9,10], dual innovation [11,12], human resources [13,14], and firm performance [15,16], and use empirical analysis [12], case studies [11], and simulations [10] to analyze the interplay between different factors. In terms of research objects, there are three primary levels: first, the macro level in the region, such as countries [17] and industries [18]; second, the specific middle level, such as enterprises [11,19] and universities [12,20]; and third, the micro level, such as projects [21].…”

Section: Introductionmentioning

confidence: 99%

“…Meanwhile, the findings on how OI affects firm performance are still divergent. Some scholars argue that searching for and utilizing valuable external resources can shorten the development cycle, thus reducing firms' economic costs [16,22]. Others argue that while using valuable external resources can save economic costs, it increases the burden of management costs and reduces the ability to integrate resources.…”

Section: Introductionmentioning

confidence: 99%

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The Effect of Open Innovation on Manufacturing Firms’ Performance in China: The Moderating Role of Social Capital

et al. 2023

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Open innovation (OI) has great significance in innovation management. OI builds a bridge between firms and other organizations, which can help firms to quickly integrate into value chain innovation and discover the value stored in external resources, and thus can improve the performance of firms. The Chinese economy is accelerating its high-quality development. In this process, the importance of social capital is emphasized. However, less evidence is provided to discuss whether and how social capital from the resource perspective affects OI and firm performance. Therefore, we constructed a moderating model to deeply examine the mechanisms of the two models of the effects of inbound OI and outbound OI on firm performance and the impact of multidimensional social capital within it from the resource perspective. Our sample comprises 6899 observations of 1850 A-share listed manufacturing firms in China from 2016 to 2020. Considering the lag of resources into firm profitability, we decided to lag the firm performance by one year behind other indicators, so the sample data cover the period of 2016–2021. Then, we used Excel 2019 to complete the calculations of indicators and used multiple regression analysis of STATA17 to test the hypotheses. It is found that inbound and outbound OI have an inverted U-shaped relationship with firm performance. Institutional and technological social capital positively moderates the relationship between inbound and outbound OI and firm performance. Compared with the other two types of social capital, market social capital is the most widely owned among the sample firms, but its moderating effect is insignificant. The findings enrich and expand theoretical research on OI and firm performance and guide firms to implement OI, promoting their sustainable development.

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Section: Open Innovation and Firm Performancementioning

confidence: 99%

Section: Open Innovation and Firm Performancementioning

confidence: 99%

Section: Hypothesis 1 (H 1 )mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The Effect of Open Innovation on Manufacturing Firms’ Performance in China: The Moderating Role of Social Capital

et al. 2023

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Innovativeness in energy companies in developing economies: Determinants, evaluation and comparative analysis using the example of Poland

Nawrocki

Jonek-Kowalska

2023

Journal of Open Innovation: Technology, Market, and Complexity

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Impact of strategic alliance on the innovation of women-owned enterprises in Nigeria

Anyanwu,

Oloto,

Nwokocha

2023

Humanit Soc Sci Commun

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Women-owned enterprises are rapidly expanding across Africa and have significantly contributed to job growth and wealth development. These enterprises, however, find it challenging to pursue innovation, because of their size and their financial base. Women-owned enterprises, however, can access various resources, talents, and techniques through effective strategic alliances. Being in alliance with other market participants allows these enterprises to overcome the hurdles limiting their performance and innovativeness. This research analyses the impact of strategic alliances on the innovation of women-owned enterprises in Nigeria. The study adopts a quantitative survey approach. It selected 109 women-owned enterprises from five manufacturing subsectors in the study area, using a purposive random sample technique. Regression analysis is used to analyze the data, while tables are utilized to show results. The results reveal that different strategic alliance characteristics had different effects on the innovation of women-owned enterprises. The finding in process innovation showed that increased new opportunities and cost reduction led to 0.76 and 0.62 increases in process innovation, respectively. In comparison, an increase in cost reduction led to a 0.63 increase in product innovation in the enterprises. These results signified that strategic alliances enabled women-owned enterprises to achieve product and process innovation. This study recommends that policymakers should encourage the use of strategic alliances by women-owned enterprises. This will allow them to innovate by introducing new products and processes in their enterprises.

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Enhancing innovation performance of SMEs through open innovation and absorptive capacity: the moderating effect of business model

Cited by 10 publications

References 36 publications

The Effect of Open Innovation on Manufacturing Firms’ Performance in China: The Moderating Role of Social Capital

The Effect of Open Innovation on Manufacturing Firms’ Performance in China: The Moderating Role of Social Capital

Innovativeness in energy companies in developing economies: Determinants, evaluation and comparative analysis using the example of Poland

Impact of strategic alliance on the innovation of women-owned enterprises in Nigeria

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