Appropriability Mechanisms and the Performance of digital startups: The Moderating Role of Technology Innovativeness

Abstract

It has become an important issue for digital startups to figure out how to realize value creation and value capture in open innovation. Using data from the CPSED II database, we examined the impact of digital startups' appropriability mechanisms on firm performance, as well as the moderating role of technology innovativeness. According to empirical results, both intellectual property rights and downstream capabilities of digital startups have a positive impact on firm performance, but technology innovativeness reduces the positive impact of downstream capabilities on firm performance. The study's findings are useful for advising digital startups on how to gain a competitive advantage through open innovation.