Innovation Success in the Context of Inbound Open Innovation

Abstract

The concept or paradigm of open innovation has gained more and more attention over the last couple of years. Firms see open innovation nowadays as an important capability to build and maintain innovativeness, even in dynamic global markets. Nevertheless, there is still a lot of uncertainty regarding the question which factors determine successful innovation within the open innovation environment. In this regard, based on the dynamic capabilities view, we hypothesise that a firm’s openness, its absorptive capacity and its flexibility primarily determine innovation success in in-bound open innovation environments. To test these hypotheses, we analyse a large scale survey sample of 496 German manufacturing companies from different industries by applying structural equation modelling. As a main result, we find evidence for a positive association between the three mentioned constructs and innovation success.