IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitmx/v21y2024i03ns0219877024500184.html
   My bibliography  Save this article

Improving Innovation Performance by Means of Open Innovation: The Role of Entrepreneurial Orientation and Information Technology Capability

Author

Listed:
  • Tobias D. Herbst

    (School of Business Administration and Economics, Osnabrück University, Osnabrück, Rolandstr. 8, 49078 Osnabrück, Germany)

  • J. Piet Hausberg

    (School of Business Administration and Economics, Osnabrück University, Osnabrück, Rolandstr. 8, 49078 Osnabrück, Germany)

Abstract

Prior studies indicate that firms yield varying results while adapting to open innovation (OI). They suggest an optimum OI level using the concepts of external search breadth and depth, whose antecedents’ relationships with innovation performance (IP) have been inadequately examined. This study explores how information technology capability (ITC) and entrepreneurial orientation (EO) influence a firm’s external search strategies and impact its IP. A survey of listed German firms (n=146) found no support for a curvilinear relationship between open external search strategies and IP. Moreover, the assumption that ITC positively affects the relationship between external search strategy openness and IP was unsupported, proposing a negative moderating impact of ITC. The study observes that EO has differential moderating and direct effects on external search strategy effectiveness and its collective impact on IP.

Suggested Citation

  • Tobias D. Herbst & J. Piet Hausberg, 2024. "Improving Innovation Performance by Means of Open Innovation: The Role of Entrepreneurial Orientation and Information Technology Capability," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-31, May.
  • Handle: RePEc:wsi:ijitmx:v:21:y:2024:i:03:n:s0219877024500184
    DOI: 10.1142/S0219877024500184
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219877024500184
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S0219877024500184?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Laforet, Sylvie, 2008. "Size, strategic, and market orientation affects on innovation," Journal of Business Research, Elsevier, vol. 61(7), pages 753-764, July.
    2. Arun Rai & Xinlin Tang, 2010. "Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios," Information Systems Research, INFORMS, vol. 21(3), pages 516-542, September.
    3. Christoph Grimpe & Ulrich Kaiser, 2010. "Balancing Internal and External Knowledge Acquisition: The Gains and Pains from R&D Outsourcing," Journal of Management Studies, Wiley Blackwell, vol. 47(8), pages 1483-1509, December.
    4. Jeffrey G. Covin & G.T. Lumpkin, 2011. "Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct," Entrepreneurship Theory and Practice, , vol. 35(5), pages 855-872, September.
    5. Johann Piet Hausberg & Peter S. H. Leeflang, 2019. "Absorbing Integration: Empirical Evidence On The Mediating Role Of Absorptive Capacity Between Functional-/Cross-Functional Integration And Innovation Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-37, August.
    6. Viswanath Venkatesh & Hillol Bala, 2012. "Adoption and Impacts of Interorganizational Business Process Standards: Role of Partnering Synergy," Information Systems Research, INFORMS, vol. 23(4), pages 1131-1157, December.
    7. Junghyun Yoon & Ki Keun Kim & Alisher Tohirovich Dedahanov, 2018. "The Role of International Entrepreneurial Orientation in Successful Internationalization from the Network Capability Perspective," Sustainability, MDPI, vol. 10(6), pages 1-14, May.
    8. Philippe Aghion & Stephen Bond & Alexander Klemm & Ioana Marinescu, 2004. "Technology and Financial Structure: Are Innovative Firms Different?," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 277-288, 04/05.
    9. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    10. Lejla Turulja & Nijaz Bajgoric, 2016. "Innovation and information technology capability as antecedents of firms' success," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 14(2), pages 148-156.
    11. Audretsch, David B. & Belitski, Maksim, 2020. "The role of R&D and knowledge spillovers in innovation and productivity," European Economic Review, Elsevier, vol. 123(C).
    12. Walter, Achim & Auer, Michael & Ritter, Thomas, 2006. "The impact of network capabilities and entrepreneurial orientation on university spin-off performance," Journal of Business Venturing, Elsevier, vol. 21(4), pages 541-567, July.
    13. Teece, David J., 2020. "Hand in Glove: Open Innovation and the Dynamic Capabilities Framework," Strategic Management Review, now publishers, vol. 1(2), pages 233-253, June.
    14. Ulrich Lichtenthaler & Eckhard Lichtenthaler, 2009. "A Capability‐Based Framework for Open Innovation: Complementing Absorptive Capacity," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1315-1338, December.
    15. Robert G. Fichman, 2004. "Real Options and IT Platform Adoption: Implications for Theory and Practice," Information Systems Research, INFORMS, vol. 15(2), pages 132-154, June.
    16. Eric Overby & Anandhi Bharadwaj & V Sambamurthy, 2006. "Enterprise agility and the enabling role of information technology," European Journal of Information Systems, Taylor & Francis Journals, vol. 15(2), pages 120-131, April.
    17. Talis Putnins & Arnis Sauka, 2020. "Why does entrepreneurial orientation affect company performance?," Published Paper Series 2020-6, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    18. Zhu, Xiaoxuan & Xiao, Zhenxin & Dong, Maggie Chuoyan & Gu, Jibao, 2019. "The fit between firms’ open innovation and business model for new product development speed: A contingent perspective," Technovation, Elsevier, vol. 86, pages 75-85.
    19. George, Gerard & Zahra, Shaker A. & Wood, D. Jr., 2002. "The effects of business-university alliances on innovative output and financial performance: a study of publicly traded biotechnology companies," Journal of Business Venturing, Elsevier, vol. 17(6), pages 577-609, October.
    20. Pérez-Luño, Ana & Wiklund, Johan & Cabrera, Ramón Valle, 2011. "The dual nature of innovative activity: How entrepreneurial orientation influences innovation generation and adoption," Journal of Business Venturing, Elsevier, vol. 26(5), pages 555-571, September.
    21. Constance E. Helfat & Margaret A. Peteraf, 2015. "Managerial cognitive capabilities and the microfoundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 831-850, June.
    22. Choonwoo Lee & Kyungmook Lee & Johannes M. Pennings, 2001. "Internal capabilities, external networks, and performance: a study on technology‐based ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 615-640, June.
    23. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    24. Chou, Yen-Chun & Hao-Chun Chuang, Howard & Shao, Benjamin B.M., 2014. "The impacts of information technology on total factor productivity: A look at externalities and innovations," International Journal of Production Economics, Elsevier, vol. 158(C), pages 290-299.
    25. Rouma Bucktowar & Akin Kocak & Kesseven Padachi, 2015. "Entrepreneurial Orientation, Market Orientation And Networking: Impact On Innovation And Firm Performance," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 20(04), pages 1-22, December.
    26. Seo, Ribin & Park, Ji-Hoon, 2022. "When is interorganizational learning beneficial for inbound open innovation of ventures? A contingent role of entrepreneurial orientation," Technovation, Elsevier, vol. 116(C).
    27. Nicolai J. Foss & Kenneth Husted & Snejina Michailova, 2010. "Governing Knowledge Sharing in Organizations: Levels of Analysis, Governance Mechanisms, and Research Directions," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 455-482, May.
    28. Susanne Durst & Malgorzata Zieba, 2019. "Mapping knowledge risks: towards a better understanding of knowledge management," Knowledge Management Research & Practice, Taylor & Francis Journals, vol. 17(1), pages 1-13, January.
    29. Martín-de Castro, Gregorio & Delgado-Verde, Miriam & Navas-López, José E. & Cruz-González, Jorge, 2013. "The moderating role of innovation culture in the relationship between knowledge assets and product innovation," Technological Forecasting and Social Change, Elsevier, vol. 80(2), pages 351-363.
    30. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    31. Martin, Silvia L. & Javalgi, Rajshekhar (Raj) G., 2019. "Explaining performance determinants: A knowledge based view of international new ventures," Journal of Business Research, Elsevier, vol. 101(C), pages 615-626.
    32. Johan Wiklund & DEAN Shepherd, 2003. "Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1307-1314, December.
    33. Bhuian, Shahid N. & Menguc, Bulent & Bell, Simon J., 2005. "Just entrepreneurial enough: the moderating effect of entrepreneurship on the relationship between market orientation and performance," Journal of Business Research, Elsevier, vol. 58(1), pages 9-17, January.
    34. repec:dau:papers:123456789/2723 is not listed on IDEAS
    35. Shuja Iqbal & José Moleiro Martins & Mário Nuno Mata & Shumaila Naz & Shamim Akhtar & António Abreu, 2021. "Linking Entrepreneurial Orientation with Innovation Performance in SMEs; the Role of Organizational Commitment and Transformational Leadership Using Smart PLS-SEM," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    36. repec:bla:jomstd:v:47:y:2010:i:s2:p:1483-1509 is not listed on IDEAS
    37. Sinan Aral & Peter Weill, 2007. "IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation," Organization Science, INFORMS, vol. 18(5), pages 763-780, October.
    38. Aija Leiponen & Constance E. Helfat, 2010. "Innovation objectives, knowledge sources, and the benefits of breadth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 224-236, February.
    39. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    40. Laursen, Keld & Salter, Ammon J., 2014. "The paradox of openness: Appropriability, external search and collaboration," Research Policy, Elsevier, vol. 43(5), pages 867-878.
    41. Shan, Peng & Song, Michael & Ju, Xiaofeng, 2016. "Entrepreneurial orientation and performance: Is innovation speed a missing link?," Journal of Business Research, Elsevier, vol. 69(2), pages 683-690.
    42. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    43. Catherine L. Wang, 2008. "Entrepreneurial Orientation, Learning Orientation, and Firm Performance," Entrepreneurship Theory and Practice, , vol. 32(4), pages 635-657, July.
    44. K. D. Joshi & Lei Chi & Avimanyu Datta & Shu Han, 2010. "Changing the Competitive Landscape: Continuous Innovation Through IT-Enabled Knowledge Capabilities," Information Systems Research, INFORMS, vol. 21(3), pages 472-495, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Katharina Fellnhofer, 2019. "The Complementary Effects Of Firms’ And Team Leaders’ Entrepreneurial Orientation On Innovation Success And Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-32, June.
    2. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    3. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    4. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    5. Bojan Morić Milovanović & Mirjana Grčić Fabić & Vjekoslav Bratić, 2023. "Strategic Approach to Configurational Analysis of Entrepreneurial Orientation, Strategic Networking, and SME Performance within Emerging Markets of Selected Southeast European Countries," Administrative Sciences, MDPI, vol. 13(2), pages 1-19, February.
    6. Shih-Kai Lin & Hung-Chang Chung, 2023. "The Relationship Between Entrepreneurial Orientation and Firm Performance From the perspective of MASEM: The Mediation Effect of Market Orientation and the Moderated Mediation Effect of Environmental ," SAGE Open, , vol. 13(4), pages 21582440231, December.
    7. Lavlu Mozumdar & Valentina C. Materia & Geoffrey Hagelaar & Mohammad Amirul Islam & Gerben van der Velde & S. W. F. (Onno) Omta, 2022. "Contextuality of Entrepreneurial Orientation and Business Performance: The Case of Women Entrepreneurs in Bangladesh," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 94-120, January.
    8. Patrick M. Kreiser, 2011. "Entrepreneurial Orientation and Organizational Learning: The Impact of Network Range and Network Closure," Entrepreneurship Theory and Practice, , vol. 35(5), pages 1025-1050, September.
    9. Hernández-Perlines, Felipe & Covin, Jeffrey G. & Ribeiro-Soriano, Domingo E., 2021. "Entrepreneurial orientation, concern for socioemotional wealth preservation, and family firm performance," Journal of Business Research, Elsevier, vol. 126(C), pages 197-208.
    10. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    11. Tomasz Ingram & Katarzyna Bratnicka-Myśliwiec & Teresa Kraśnicka & Izabella Steinerowska-Streb, 2022. "Entrepreneurial Orientation as a Determinant of Sustainable Performance in Polish Family and Non-Family Organizations," Sustainability, MDPI, vol. 14(24), pages 1-25, December.
    12. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    13. Agnes Asemokha & Jackson Musona & Lasse Torkkeli & Sami Saarenketo, 2019. "Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 425-453, September.
    14. Quang-Huy Ngo, 2023. "The Impact of Entrepreneurial Orientation on SMEs’ Performance in a Transitional Economy: The Mediating Role of Differentiation Advantages and Innovation Capability," SAGE Open, , vol. 13(4), pages 21582440231, October.
    15. Jintong Tang & Zhi Tang & Birton J. Cowden, 2017. "Exploring the Relationship between Entrepreneurial Orientation, CEO Dual Values, and SME Performance in State–Owned vs. Nonstate–Owned Enterprises in China," Entrepreneurship Theory and Practice, , vol. 41(6), pages 883-908, November.
    16. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    17. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.
    18. Theresia Gunawan & Jojo Jacob & Geert Duysters, 2016. "Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 575-599, June.
    19. Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Javier Martínez-Falcó, 2022. "Driving Innovation by Managing Entrepreneurial Orientation, Cooperation and Learning for the Sustainability of Companies in the Energy Sector," Sustainability, MDPI, vol. 14(24), pages 1-17, December.
    20. Kohtamäki, Marko & Heimonen, Jesse & Sjödin, David & Heikkilä, Vili, 2020. "Strategic agility in innovation: Unpacking the interaction between entrepreneurial orientation and absorptive capacity by using practice theory," Journal of Business Research, Elsevier, vol. 118(C), pages 12-25.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijitmx:v:21:y:2024:i:03:n:s0219877024500184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitm/ijitm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.