How do institutional innovation systems affect open innovation?

Abstract

It is well known that innovation benefits firms and that openness may enhance these benefits. Yet few studies consider how a firm’s institutional context and different economic systems moderate openness and innovation outcomes in new ventures, which arguably are most exposed to institutional constraints. Comparing data from a liberal (Australia) and central market economy (China), and using search breadth as a measure of openness, we empirically tested the influence of external firm pressures on the relationship between openness and innovation outcomes in new ventures. Our results show that the well-established positive relationship between openness and innovation is market dependent and that, in emerging economies, it can be negative. Our findings demonstrate the importance of institutions and national economic systems in explaining open innovation in different contexts–a point not yet addressed in the open innovation literature. © 2020 The Author(s). Published with license by Taylor & Francis Group, LLC.

Keywords

Author Keywords

institutions business system diversity of economic systems new ventures Open innovation

Index Keywords

Author Affiliations

Business School and Australia Center for Entrepreneurship Research, Queensland University of Technology, Brisbane, QLD, Australia

RMIT University, Melbourne, VIC, Australia

The University of Queensland Business School, Brisbane, QLD, Australia

Institute of Mining Engineering, The University of British Columbia, Vancouver, BC, Canada

Funding & Acknowledgements

Australian Research Council, ARC

Grant: DP160100602

This work was supported by the Australian Research Council, Discovery [Project No. DP160100602]. The authors acknowledge Dr. Tam Nguyen, who carefully helped with part of the statistical analysis. We are grateful for the guidance and support of the Associate Editor Dr. Masatoshi Kato and the anonymous reviewers.

Australian Research Council, ARC

This work was supported by the Australian Research Council, Discovery [Project No. DP160100602]. The authors acknowledge Dr. Tam Nguyen, who carefully helped with part of the statistical analysis. We are grateful for the guidance and support of the Associate Editor Dr. Masatoshi Kato and the anonymous reviewers.

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How do institutional innovation systems affect open innovation?

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