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How does open innovation lead competitive advantage? A dynamic capability view perspective

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  • Kibaek Lee
  • Jaeheung Yoo

Abstract

The relationship between open innovation and company’s competitive advantage, and organisational capabilities required remains to be explained. This study was conducted to answer the following questions. Does open innovation create organisation's competitive advantage? What types of capabilities are needed in the process of open innovation reaching competitive advantage, and what kind of relationship do they have? This study extends the scope of theoretical discussion about open innovation from the point of dynamic capability view. The results confirmed the statistical significance of the path linking open innovation to competitive advantage through product innovation. From the viewpoint of capabilities, transforming capability plays a role of significant prerequisite of sensing capability and seizing capability, having a direct or indirect significant effect on product innovation performance and competitive advantage sequentially. The results suggest that the linkages between the needed capabilities of organisation must be considered for performing open innovation to secure competitive advantage.

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  • Kibaek Lee & Jaeheung Yoo, 2019. "How does open innovation lead competitive advantage? A dynamic capability view perspective," PLOS ONE, Public Library of Science, vol. 14(11), pages 1-18, November.
    • Handle: RePEc:plo:pone00:0223405
    DOI: 10.1371/journal.pone.0223405
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    2. Rhaiem, Khalil & Doloreux, David, 2024. "Inbound open innovation in SMEs: A microfoundations perspective of dynamic capabilities," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    3. Pablo Martínez de Miguel & Carmen De-Pablos-Heredero & Jose Luis Montes & Antón García, 2022. "Impact of Dynamic Capabilities on Customer Satisfaction through Digital Transformation in the Automotive Sector," Sustainability, MDPI, vol. 14(8), pages 1-19, April.
    4. Mirela Kljajic-Dervic & Zeljko Mateljak & Ema Buric, 2022. "Perception Of Management Innovation As A Key Factor In Achieving Competitive Advantage In Companies In Bosnia And Herzegovina," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 20(2), pages 15-25, November.
    5. Robert Stanisławski, 2020. "Open Innovation as a Value Chain for Small and Medium-Sized Enterprises: Determinants of the Use of Open Innovation," Sustainability, MDPI, vol. 12(8), pages 1-24, April.
    6. Jie Yang & Mingxing Yu, 2022. "The Influence of Institutional Support on the Innovation Performance of New Ventures: The Mediating Mechanism of Entrepreneurial Orientation," Sustainability, MDPI, vol. 14(4), pages 1-15, February.
    7. Fatoki Olawale, 2021. "Innovative Behavior and Firm Competitive Advantage: The Moderating Effect of Environmental Dynamism," Foundations of Management, Sciendo, vol. 13(1), pages 159-170, January.

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