Resource complementarity, transformative capacity, and inbound open innovation

Abstract

Purpose – This study aims to examine the potential impact of external complementary resources on inbound open innovation and whether transformative capacity acts as a mediator in the process. If small and medium enterprises (SMEs) are to successfully implement inbound open innovation, they require injections of external complementary resources. Design/methodology/approach – Structural equation modeling was used to conduct confirmatory factor analysis to evaluate measurement model, while ordinary least squares regression analysis was used to test the hypotheses; research data are collected using surveys of 200 Taiwanese-owned SMEs in mainland China. Findings – Empirical results indicate that when SMEs seek to implement inbound open innovation, technological complementarity is the most important factor in resource complementarity. In addition, transformative capacity has a significant mediating role on the relationship between resource complementarity and inbound open innovation. Originality/value – The contribution of this paper lies in explaining the role played by transformative capacity in the process of inbound open innovation for SMEs through empirical analysis.

Structural Relationship and Influence between Open Innovation Capacities and Performances

“…They suggested that Chinese firms should develop their technological transformative capacity, as well as their absorptive capacity, in order to foster technology transfer and communications among trading partners. Huang, Lai and Huang [28] explained the role played by transformative capacity in the process of inbound open innovation for SMEs through empirical analysis. They found that transformative capacity has a significant mediating role in the relationship between resource complementarity and inbound open innovation.…”

Examining Knowledge Sharing, Organizational Memory and Resource Complementarity in the Service Sector

“…Resources are tangible and intangible assets that an enterprise uses to develop and implement strategies. Resources are also valuable to the extent they create value (Huang et al, 2015). In other words, resources are valuable to the extent that they reduce costs or differentiate the product.…”

The Impact of Open Development Initiatives in Lower‐ and Middle Income Countries: A Review of the Literature

“…Adoption factors of open innovation had to do with organizational characteristics like transformative capacity, organizational culture and managerial ties (Huang et al, 2015;Naqshbandi et al, 2015). Chesborough's (2006) definition of open innovation was widely cited and as such, these articles typically examined open innovation as the extent to which organizations made use of external ideas (inbound innovation) and shared their intellectual property with external actors (outbound innovation).…”

“…Within this framing, interaction and managerial ties with universities and government were more supportive than ties with other companies (Naqshbandi et al, 2015). Integrative organizational cultures had a positive effect on inbound innovation but not outbound; whereas hierarchical organizations negatively influenced inbound and outbound innovation (Huang et al, 2015). Celadon (2014) showed that firm size in the Brazilian cosmetics industry predicted the capacity of organizations to take up open innovation, essentially because they could afford more resources to dedicate to it.…”