Research on the Relationship of Innovation Capability and Operating Performance Based on Moderation of Openness

Abstract

In current research on open innovation, the impact of innovative openness on the effect of innovation capability on corporate operating performance has been ignored. This paper uses hierarchical linear regression model with financial data of 137 listed enterprises in Chinese Stock Exchanges to study the moderate effect of openness on relationship of innovation capability and operating performance. The result shows that the internal innovation capability and absorption capability can significantly affect the operating performance, but the effect of technology acquisition and diffusion capability is remarkable only under the moderation of openness. Meanwhile, innovative openness negatively impacts the effect of internal innovation capability on the operating performance, and positively impacts the effect of absorptive ability. Finally, this paper provides some suggestions for helping enterprise’s implementation of open innovation strategy based on their own capabilities.