Beyond absorptive capacity in open innovation process: the relationships between openness, capacities and firm performance

Joon Mo Ahn, Yonghan Ju, Tae Hee Moon, Tim Minshall, David Probert, So Young Sohn, Letizia Mortara

Research output: Contribution to journalArticle

36 Citations (Scopus)

Abstract

The literature has shown that open innovation (OI) can be a winning strategy in improving firm performance. However, in order to adopt and implement it, managers need to resolve practical problems, such as understanding the role played by OI capacities and openness on firm performance. In response to these needs, this study aims to investigate the hierarchical relationships between openness, OI capacities and performance using a structural equation model approach. This paper also attempts to compare the levels of openness between firms in different industries to discover similarities and differences in OI phenomena. The analysis of data obtained from a survey of Korean firms shows significant interrelations between openness, OI capacities and firm performance. Our results go further in developing understanding of the building blocks on which successful OI is built and particularly suggest that desorptive capacity which underpins the out-bound OI process, is in turn strongly supported by knowledge management capacity. It is hoped that the results of this study can enrich our understanding of the OI mechanism and provide managerial and policy implications.

Original languageEnglish
Pages (from-to)1009-1028
Number of pages20
JournalTechnology Analysis and Strategic Management
Volume28
Issue number9
DOIs
Publication statusPublished - 2016 Oct 20

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All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research

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