Enhancing radical innovation: the interplays of open innovation activities, firm capabilities, and environmental dynamism. Issue 3 (2nd September 2018)

• Record Type: Journal Article
• Authors: Cheng, Colin C.J.; Sheu, Chwen
• Is Part Of: Asian journal of technology innovation. Volume 26:Issue 3(2018)
• Page Start: 369
• Page End: 397
• Publication Date: 2018-09-02
• Subjects: Open innovation activities -- firm capabilities -- environmental dynamism; Technological innovations -- East Asia -- Periodicals; Technological innovations -- Southeast Asia -- Periodicals; Technological innovations -- Periodicals; Research, Industrial -- East Asia -- Periodicals; Research, Industrial -- Southeast Asia -- Periodicals; Research, Industrial -- Periodicals; 338.064095
• DOI: 10.1080/19761597.2018.1555001
• Languages: English
• ISSNs: 1976-1597

Abstract

ABSTRACT: This study investigates two types of firm capabilities (network and innovation) that could enhance the effects of open innovation activities (inbound and outbound) on radical innovation with the consideration of environmental dynamism. Based on a cross-industry survey of 201 Asian firms, we find that the effectiveness of firm capabilities and open innovation activities is contingent on the level of environmental dynamism. Specifically, when the level of environmental dynamism increases, inbound activities, network capabilities, and innovation capabilities are able to enhance radical innovation. In addition, the level of environmental dynamism moderates the effect of network capabilities on both inbound and outbound activities in creating radical innovation, but not so with the effect of innovation capabilities. Overall, this study contributes to the open innovation literature by shedding light on important complementarities between inbound/outbound activities and specific types of firm-enabled capabilities (network and innovation) under conditions of environmental dynamism.