Effects of open innovation and knowledge-based dynamic capabilities on radical innovation: An empirical study

Building on knowledge-based dynamic capabilities, this paper examines how knowledge capabilities influence the effectiveness of open innovation inbound and outbound activities on radical innovation performance. Based on a survey of 213 firms, the statistical results indicate that the effectiveness of open innovation inbound and outbound activities is contingent on the presence of knowledge acquisition capabilities and knowledge sharing capabilities. Specifically, a firm practicing inbound activities to strengthen radical innovation is more likely to benefit from knowledge sharing capabilities than from knowledge acquisition capabilities. In contrast, a firm practicing outbound activities is more likely to enhance radical innovation performance through knowledge acquisition capabilities than through knowledge sharing capabilities. Managerial implications and research contributions are provided, followed by a discussion of future research directions.