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Recipes for innovation: A configurational analysis of openness, appropriability, and environmental uncertainty

Author

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  • Wu, Xueyang
  • Meng, Qingliang
  • Sun, Jiajun

Abstract

This study introduces the context of the openness paradox and innovation into the exploitation–exploration dilemma framework. Applying a fuzzy-set qualitative comparative analysis to 247 Chinese manufacturing companies, we examine the interaction effects between openness (innovation breadth and depth), appropriability (level of value capture), and environmental (market and technological) uncertainty dimensions. Findings identify one configuration for exploitative innovation (configurations I), three for exploratory innovation (configurations R1, R2, and R3), and one for innovation ambidexterity (configurations A), revealing that specific combinations of the factors support specific innovations. This study emphasizes the synergy between the openness paradox and innovation context in achieving specific innovations, demonstrates how environmental uncertainty support the effectiveness of various combinations of openness and appropriability, and integrates the openness paradox as a configurational challenge.

Suggested Citation

  • Wu, Xueyang & Meng, Qingliang & Sun, Jiajun, 2025. "Recipes for innovation: A configurational analysis of openness, appropriability, and environmental uncertainty," Finance Research Letters, Elsevier, vol. 86(PD).
  • Handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325017994
    DOI: 10.1016/j.frl.2025.108545
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