IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i2p1234-d1029943.html
   My bibliography  Save this article

Research on Dynamic Capability and Enterprise Open Innovation

Author

Listed:
  • Hong-Jing Jia

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Zi-Yin Zhuang

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Yan-Xiang Xie

    (Business School, Nankai University, Tianjin 300071, China)

  • Yi-Xi Wang

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Shi-Ying Wu

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

Abstract

Chinese firms urgently need to use open innovation models to access external knowledge, resources, and skills to improve their internal innovation performance and achieve innovation catch-up. Using a dataset of joint patent applications of Chinese-listed manufacturing firms from 2006–2018, we construct a panel fixed-effects model to empirically test the effect of dynamic capabilities on firms’ open innovation. The results show that dynamic capabilities can effectively promote firms’ open innovation activities. In addition, the different dimensions of dynamic capabilities, namely sense capabilities, absorptive capabilities, complementary capabilities, and coordinative capabilities, also have significant incentive effects on firms’ open innovation. The results of the extended analysis show that dynamic capabilities have heterogeneous effects on the open innovation activities of different types of firms. Specifically, the impact of dynamic capabilities on open innovation is stronger for private firms, large and medium-sized firms, and multinational firms. The findings of this paper can provide important theoretical support and management insights for governments and enterprises to effectively manage the “paradox of openness” problem, thereby enhancing the firm’s innovation capability and achieving major bottleneck breakthroughs in key and core technologies.

Suggested Citation

  • Hong-Jing Jia & Zi-Yin Zhuang & Yan-Xiang Xie & Yi-Xi Wang & Shi-Ying Wu, 2023. "Research on Dynamic Capability and Enterprise Open Innovation," Sustainability, MDPI, vol. 15(2), pages 1-23, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1234-:d:1029943
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/2/1234/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/2/1234/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    2. Michael J. Leiblein & Jeffrey J. Reuer & Todd Zenger, 2018. "What Makes a Decision Strategic?," Strategy Science, INFORMS, vol. 3(4), pages 558-573, December.
    3. Eric (Er) Fang & Shaoming Zou, 2009. "Antecedents and consequences of marketing dynamic capabilities in international joint ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(5), pages 742-761, June.
    4. Grégoire Cauchie & Nicolas Gérard Vaillant, 2016. "New Firm Survival: Isolating the Role of Founders’ Human Capital in Accounting for Firm Longevity," Journal of Human Capital, University of Chicago Press, vol. 10(2), pages 186-211.
    5. Raphael Amit & Paul J. H. Schoemaker, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 33-46, January.
    6. Teece, David J., 2020. "Hand in Glove: Open Innovation and the Dynamic Capabilities Framework," Strategic Management Review, now publishers, vol. 1(2), pages 233-253, June.
    7. Kuo-Jui Wu & Ching-Jong Liao & Ming-Lang Tseng & Pei-Jay Chou, 2015. "Understanding Innovation for Sustainable Business Management Capabilities and Competencies under Uncertainty," Sustainability, MDPI, vol. 7(10), pages 1-35, October.
    8. Bedford, David & Bisbe, Josep & Sweeney, Breda, 2022. "Enhancing external knowledge search: The influence of performance measurement system design on the absorptive capacity of top management teams," Technovation, Elsevier, vol. 118(C).
    9. Tom Vanacker & Veroniek Collewaert & Shaker A. Zahra, 2017. "Slack resources, firm performance, and the institutional context: Evidence from privately held European firms," Strategic Management Journal, Wiley Blackwell, vol. 38(6), pages 1305-1326, June.
    10. Brockman, Paul & Khurana, Inder K. & Zhong, Rong (Irene), 2018. "Societal trust and open innovation," Research Policy, Elsevier, vol. 47(10), pages 2048-2065.
    11. Saebi, Tina & Foss, Nicolai J., 2015. "Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions," European Management Journal, Elsevier, vol. 33(3), pages 201-213.
    12. Dirk Clercq & Narongsak Thongpapanl & Maxim Voronov, 2018. "Sustainability in the Face of Institutional Adversity: Market Turbulence, Network Embeddedness, and Innovative Orientation," Journal of Business Ethics, Springer, vol. 148(2), pages 437-455, March.
    13. Teece, David J., 2016. "Dynamic capabilities and entrepreneurial management in large organizations: Toward a theory of the (entrepreneurial) firm," European Economic Review, Elsevier, vol. 86(C), pages 202-216.
    14. Helfat, Constance E. & Raubitschek, Ruth S., 2018. "Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems," Research Policy, Elsevier, vol. 47(8), pages 1391-1399.
    15. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    16. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    17. Apriliyanti, Indri Dwi & Alon, Ilan, 2017. "Bibliometric analysis of absorptive capacity," International Business Review, Elsevier, vol. 26(5), pages 896-907.
    18. Laursen, Keld & Salter, Ammon J., 2014. "The paradox of openness: Appropriability, external search and collaboration," Research Policy, Elsevier, vol. 43(5), pages 867-878.
    19. Felin, Teppo & Zenger, Todd R., 2020. "Open Innovation: A Theory-Based View," Strategic Management Review, now publishers, vol. 1(2), pages 223-232, June.
    20. Gjalt De Jong & Rosalinde Klein Woolthuis, 2008. "The Institutional Arrangements of Innovation: Antecedents and Performance Effects of Trust in High-Tech Alliances," Industry and Innovation, Taylor & Francis Journals, vol. 15(1), pages 45-67.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hongni Zhang & Xiangyi Xu, 2023. "Innovative Technology Method Based on Evolutionary Game Model of Enterprise Sustainable Development and CNN–GRU," Sustainability, MDPI, vol. 15(5), pages 1-17, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaker A. Zahra & Olga Petricevic & Yadong Luo, 2022. "Toward an action-based view of dynamic capabilities for international business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 583-600, June.
    2. Olga Petricevic & David J Teece, 2019. "The structural reshaping of globalization: Implications for strategic sectors, profiting from innovation, and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1487-1512, December.
    3. Barrett, Gillian & Tsekouras, George, 2022. "A tango with a gorilla: An exploration of the microfoundations of open innovation partnerships between young innovative companies and multi-national enterprises," Technovation, Elsevier, vol. 117(C).
    4. Constance E. Helfat & Aseem Kaul & David J. Ketchen & Jay B. Barney & Olivier Chatain & Harbir Singh, 2023. "Renewing the resource‐based view: New contexts, new concepts, and new methods," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1357-1390, June.
    5. Jonas Soluk & Ivan Miroshnychenko & Nadine Kammerlander & Alfredo De Massis, 2021. "Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities," Entrepreneurship Theory and Practice, , vol. 45(4), pages 867-905, July.
    6. Aliasghar, Omid & Haar, Jarrod, 2023. "Open innovation: Are absorptive and desorptive capabilities complementary?," International Business Review, Elsevier, vol. 32(2).
    7. Wittenstein, Daniel, 2020. "Champions of digital transformation? The dynamic capabilities of hidden champions," ZEW Discussion Papers 20-065, ZEW - Leibniz Centre for European Economic Research.
    8. Nieves, Julia & Haller, Sabine, 2014. "Building dynamic capabilities through knowledge resources," Tourism Management, Elsevier, vol. 40(C), pages 224-232.
    9. Tarifa Fernández, Jorge & de Burgos Jiménez, Jerónimo & Céspedes Lorente, José Joaquín, 2018. "Absorptive capacity as a confounder of the process of supply chain integration," MPRA Paper 120125, University Library of Munich, Germany, revised 2018.
    10. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    11. Sarianna M. Lundan & Jiatao Li, 2019. "Adjusting to and learning from institutional diversity: Toward a capability-building perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(1), pages 36-47, February.
    12. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    13. Miikka Blomster & Timo Koivumäki, 2022. "Exploring the resources, competencies, and capabilities needed for successful machine learning projects in digital marketing," Information Systems and e-Business Management, Springer, vol. 20(1), pages 123-169, March.
    14. Molden, Lars Hovdan & Clausen, Tommy Hoyvarde, 2021. "Playing 3D chess, or how firms can thrive under complexity: The mediating role of innovation capabilities in the use of innovation input," Journal of Business Research, Elsevier, vol. 125(C), pages 1-13.
    15. Mo Chen & Aseem Kaul & Brian Wu, 2019. "Adaptation across multiple landscapes: Relatedness, complexity, and the long run effects of coordination in diversified firms," Strategic Management Journal, Wiley Blackwell, vol. 40(11), pages 1791-1821, November.
    16. Wei Jiang & Felix Mavondo & Weihong Zhao, 2020. "The impact of business networks on dynamic capabilities and product innovation: The moderating role of strategic orientation," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1239-1266, December.
    17. Keonhyeong Lee & Liyuan Wang, 2023. "Chinese High-Tech Export Performance: Effects of Intellectual Capital Mediated by Dynamic and Risk Management Capabilities," SAGE Open, , vol. 13(1), pages 21582440231, February.
    18. Hirokazu Kano, 2021. "The dilemma and its solution of deep uncertainty in the dynamic capabilities framework: Insights from modern Austrian economics," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 605-611, April.
    19. Torres de Oliveira, Rui & Verreynne, Martie-Louise & Steen, John & Indulska, Marta, 2021. "Creating value by giving away: A typology of different innovation revealing strategies," Journal of Business Research, Elsevier, vol. 127(C), pages 137-150.
    20. Nicolaï Foss & Nils Stieglitz, 2012. "Modern Resource-based Theory(ies)," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 20, Edward Elgar Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1234-:d:1029943. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.