IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v120y2017icp223-231.html

Information technology and external search in the open innovation age: New findings from Germany

Author

Listed:
  • Dong, John Qi
  • Netten, Jork

Abstract

In light of the fact that firms increasingly use information technology (IT) for open innovation initiatives, this paper explores how IT investment influences their external search from multiple perspectives: breadth, and depth along vertical, horizontal and societal dimensions. The basic premise is that IT investment has inverted U-shaped relationships with external search breadth and depth. On the one hand, IT investment enhances firms' ability to acquire more information from external knowledge sources. On the other hand, however, IT investment can bring abundant information from external knowledge sources to firms, making it increasingly difficult to widely and deeply use the information from available sources. Beyond a certain threshold, excessive IT investment is likely to cause information overload, forcing firms with limited attention to narrow down and go less deeply into their external knowledge sources. By using a large-scale panel data set from German firms, we find empirical evidence corroborating our theory.

Suggested Citation

  • Dong, John Qi & Netten, Jork, 2017. "Information technology and external search in the open innovation age: New findings from Germany," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 223-231.
    • Handle: RePEc:eee:tefoso:v:120:y:2017:i:c:p:223-231
    DOI: 10.1016/j.techfore.2016.12.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162517300100
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2016.12.021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Arun Rai & Xinlin Tang, 2010. "Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios," Information Systems Research, INFORMS, vol. 21(3), pages 516-542, September.
    2. Tom Poot & Dries Faems & Wim Vanhaverbeke, 2013. "Toward a Dynamic Perspective on Open Innovation: A Longitudinal Assessment of the Adoption of Internal and External Innovation Strategies in the Netherlands," World Scientific Book Chapters, in: Joe Tidd (ed.), Open Innovation Research, Management and Practice, chapter 12, pages 297-322, World Scientific Publishing Co. Pte. Ltd..
    3. Aija Leiponen & Constance E. Helfat, 2011. "Location, Decentralization, and Knowledge Sources for Innovation," Organization Science, INFORMS, vol. 22(3), pages 641-658, June.
    4. Ziegler, Andreas & Seijas Nogareda, Jazmin, 2009. "Environmental management systems and technological environmental innovations: Exploring the causal relationship," Research Policy, Elsevier, vol. 38(5), pages 885-893, June.
    5. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    6. Kaiser, Ulrich, 2002. "Measuring knowledge spillovers in manufacturing and services: an empirical assessment of alternative approaches," Research Policy, Elsevier, vol. 31(1), pages 125-144, January.
    7. Jushan Bai & Serena Ng, 2005. "Tests for Skewness, Kurtosis, and Normality for Time Series Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 49-60, January.
    8. William Ocasio, 2011. "Attention to Attention," Organization Science, INFORMS, vol. 22(5), pages 1286-1296, October.
    9. Jo Thori Lind & Halvor Mehlum, 2010. "With or Without U? The Appropriate Test for a U‐Shaped Relationship," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 109-118, February.
    10. Landon Kleis & Paul Chwelos & Ronald V. Ramirez & Iain Cockburn, 2012. "Information Technology and Intangible Output: The Impact of IT Investment on Innovation Productivity," Information Systems Research, INFORMS, vol. 23(1), pages 42-59, March.
    11. Böhringer, Christoph & Moslener, Ulf & Oberndorfer, Ulrich & Ziegler, Andreas, 2012. "Clean and productive? Empirical evidence from the German manufacturing industry," Research Policy, Elsevier, vol. 41(2), pages 442-451.
    12. Hagedoorn, John, 2002. "Inter-firm R&D partnerships: an overview of major trends and patterns since 1960," Research Policy, Elsevier, vol. 31(4), pages 477-492, May.
    13. Indranil Bardhan & Viswanathan Krishnan & Shu Lin, 2013. "Research Note ---Business Value of Information Technology: Testing the Interaction Effect of IT and R&D on Tobin's Q," Information Systems Research, INFORMS, vol. 24(4), pages 1147-1161, December.
    14. Richard F. J. Haans & Constant Pieters & Zi-Lin He, 2016. "Thinking about U: Theorizing and testing U- and inverted U-shaped relationships in strategy research," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1177-1195, July.
    15. Lori Rosenkopf & Paul Almeida, 2003. "Overcoming Local Search Through Alliances and Mobility," Management Science, INFORMS, vol. 49(6), pages 751-766, June.
    16. Prasanna Tambe & Lorin M. Hitt & Erik Brynjolfsson, 2012. "The Extroverted Firm: How External Information Practices Affect Innovation and Productivity," Management Science, INFORMS, vol. 58(5), pages 843-859, May.
    17. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    18. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
    19. Adrián Kovács & Bart Looy & Bruno Cassiman, 2015. "Exploring the scope of open innovation: a bibliometric review of a decade of research," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 951-983, September.
    20. Sinan Aral & Peter Weill, 2007. "IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation," Organization Science, INFORMS, vol. 18(5), pages 763-780, October.
    21. Shimizutani, Satoshi & Todo, Yasuyuki, 2008. "What determines overseas R&D activities? The case of Japanese multinational firms," Research Policy, Elsevier, vol. 37(3), pages 530-544, April.
    22. Aija Leiponen & Constance E. Helfat, 2010. "Innovation objectives, knowledge sources, and the benefits of breadth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 224-236, February.
    23. Erik Brynjolfsson & Thomas W. Malone & Vijay Gurbaxani & Ajit Kambil, 1994. "Does Information Technology Lead to Smaller Firms?," Management Science, INFORMS, vol. 40(12), pages 1628-1644, December.
    24. Dong, John Qi & Yang, Chia-Han, 2016. "Being central is a double-edged sword: Knowledge network centrality and new product development in U.S. pharmaceutical industry," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 379-385.
    25. Laursen, Keld & Salter, Ammon J., 2014. "The paradox of openness: Appropriability, external search and collaboration," Research Policy, Elsevier, vol. 43(5), pages 867-878.
    26. Nilesh Saraf & Christoph Schlueter Langdon & Sanjay Gosain, 2007. "IS Application Capabilities and Relational Value in Interfirm Partnerships," Information Systems Research, INFORMS, vol. 18(3), pages 320-339, September.
    27. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    28. K. D. Joshi & Lei Chi & Avimanyu Datta & Shu Han, 2010. "Changing the Competitive Landscape: Continuous Innovation Through IT-Enabled Knowledge Capabilities," Information Systems Research, INFORMS, vol. 21(3), pages 472-495, September.
    Full references (including those not matched with items on IDEAS)

    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. Haji Ali Beigi, Maryam, 2021. "Is more diverse always the better? External knowledge source clusters and innovation performance in Germany," Ilmenau Economics Discussion Papers 156, Ilmenau University of Technology, Institute of Economics.
    2. T. Ravichandran & Shu Han & Sunil Mithas, 2017. "Mitigating Diminishing Returns to R&D: The Role of Information Technology in Innovation," Information Systems Research, INFORMS, vol. 28(4), pages 812-827, December.
    3. Anu Wadhwa & Isabel Maria Bodas Freitas & M. B. Sarkar, 2017. "The Paradox of Openness and Value Protection Strategies: Effect of Extramural R&D on Innovative Performance," Organization Science, INFORMS, vol. 28(5), pages 873-896, October.
    4. Ardito, Lorenzo & Messeni Petruzzelli, Antonio, 2017. "Breadth of external knowledge sourcing and product innovation: The moderating role of strategic human resource practices," European Management Journal, Elsevier, vol. 35(2), pages 261-272.
    5. Leone, Maria Isabella & Messeni Petruzzelli, Antonio & Natalicchio, Angelo, 2022. "Boundary spanning through external technology acquisition: The moderating role of star scientists and upstream alliances," Technovation, Elsevier, vol. 116(C).
    6. Tobias D. Herbst & J. Piet Hausberg, 2024. "Improving Innovation Performance by Means of Open Innovation: The Role of Entrepreneurial Orientation and Information Technology Capability," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-31, May.
    7. Kobarg, Sebastian & Stumpf-Wollersheim, Jutta & Welpe, Isabell M., 2019. "More is not always better: Effects of collaboration breadth and depth on radical and incremental innovation performance at the project level," Research Policy, Elsevier, vol. 48(1), pages 1-10.
    8. Shafique, Muhammad & Hagedoorn, John, 2022. "Look at U: Technological scope of the acquirer, technological complementarity with the target, and post-acquisition R&D output," Technovation, Elsevier, vol. 115(C).
    9. Wu, Songyang & Ning, Lutao & Mu, Shijun, 2025. "Exploring the nexus between technological collaboration and green innovation: the role of corporate R&D structure and managerial orientation," Journal of Business Research, Elsevier, vol. 199(C).
    10. Haji Ali Beigi, Maryam, 2021. "Organizational innovation: Interactive role of external knowledge strategies and market dynamisms," Ilmenau Economics Discussion Papers 159, Ilmenau University of Technology, Institute of Economics.
    11. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    12. Steffen Runge & Christian Schwens & Matthias Schulz, 2022. "The invention performance implications of coopetition: How technological, geographical, and product market overlaps shape learning and competitive tension in R&D alliances," Strategic Management Journal, Wiley Blackwell, vol. 43(2), pages 266-294, February.
    13. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.
    14. Caloghirou, Yannis & Giotopoulos, Ioannis & Kontolaimou, Alexandra & Korra, Efthymia & Tsakanikas, Aggelos, 2021. "Industry-university knowledge flows and product innovation: How do knowledge stocks and crisis matter?," Research Policy, Elsevier, vol. 50(3).
    15. Zakaryan, Arusyak, 2023. "Organizational knowledge networks, search and exploratory invention," Technovation, Elsevier, vol. 122(C).
    16. Jiao, Hao & Wang, Tang & Yang, Jifeng, 2022. "Team structure and invention impact under high knowledge diversity: An empirical examination of computer workstation industry," Technovation, Elsevier, vol. 114(C).
    17. Behrens, Vanessa & Berger, Marius & Hud, Martin & Hünermund, Paul & Iferd, Younes & Peters, Bettina & Rammer, Christian & Schubert, Torben, 2017. "Innovation activities of firms in Germany - Results of the German CIS 2012 and 2014: Background report on the surveys of the Mannheim Innovation Panel Conducted in the Years 2013 to 2016," ZEW Dokumentationen 17-04, ZEW - Leibniz Centre for European Economic Research.
    18. Lokshin, Boris & Hagedoorn, John & Letterie, Wilko, 2011. "The bumpy road of technology partnerships: Understanding causes and consequences of partnership mal-functioning," Research Policy, Elsevier, vol. 40(2), pages 297-308, March.
    19. Schmidt, Tobias & Sofka, Wolfgang, 2009. "Liability of foreignness as a barrier to knowledge spillovers: Lost in translation?," Journal of International Management, Elsevier, vol. 15(4), pages 460-474, December.
    20. Luca Berchicci & Nilanjana Dutt & Will Mitchell, 2019. "Knowledge Sources and Operational Problems: Less Now, More Later," Organization Science, INFORMS, vol. 30(5), pages 1030-1053, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:eee:tefoso:v:120:y:2017:i:c:p:223-231. 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: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    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.