The Effect of Open Innovation on Firm Performance: Research Gaps

Open innovation can be considered as the critical branch of innovation management. It is an emerging field of research that is important for achieving sustainable competitive advantages through enhancing firm performance. This study aims to identify the research gaps in the effect of open innovation and firm performance based on the systematic literature review process. Depending on the systematic approach current study expects to find out research gaps and it targets to develop a conceptual framework to minimize the identified research gaps in the effect of open innovation and firm performance for future empirical investigations. An extensive literature review was implemented to achieve the research objectives through the adaptation of the desk research strategy. The systematic literature review process explored the effect of open innovation and firm performance was not entirely positive. Further, it discovered the three research gaps between open innovation and firm performance mainly. A conceptual framework was developed to minimize the identified research gaps by identifying a new variable to the established relationship. The literature survey and logical arguments provide a solid foundation to build up the conceptual framework. It was proposed to be tested empirically in the research context of listed companies in Sri Lanka by future researchers.