Openness to Innovation as a Driver of Knowledge Integration in High-Tech SMEs: The Roles of Social Capital and Network Competence

Openness to Innovation as a Driver of Knowledge Integration in High-Tech SMEs: The Roles of Social Capital and Network Competence

Kashosi Gad David, Yang Wu, Chen Pei
Copyright: © 2022 |Pages: 21
DOI: 10.4018/IJKM.291102
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Abstract

This paper studies an original analytical framework to address the implementation dynamics of open innovation practices by discussing their impacts on SMEs' social capital and knowledge integration. A total of 358 High-Tech SMEs in the Democratic Republic of Congo participated in the survey. The collected data were statistically analyzed using structural equation modeling (SEM) in Smart PLS to verify the postulated hypothesis. The results reveal that open innovation practices promote knowledge integration, and social capital partially mediates open innovation and knowledge integration capability. The results further indicate that network competence moderates the practice of open innovation and social capital interactions with external knowledge sources. The theoretical implications of this study contribute to advance the discussion on the antecedent of social capital and knowledge integration in SMEs in developing countries and propose network competence as a moderator. The study also highlights the social capital nature of open innovation and reinforces the knowledge of scholars.
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1. Introduction

Today’s business environment is increasingly competitive, such that SMEs that often lack resources and technologies have difficulties coping in this system where the biggest challenge is to survive and grow (Centobelli and Esposito 2018). To face this environment, Congolese SMEs are exploiting and implementing various strategies to achieve market-leading business performance. Knowledge is becoming fundamental to any firm's success and competitive advantage (Shah and Cross 2018). SMEs in developing countries are struggling to maintain close contact with external knowledge sources (Salamzadeh and Radovic-Markovic, 2016). The diversity and competition of these external knowledge sources possessed by a firm are considered as indicators of innovation performance (Chiang and Hung 2010). In this perspective, as an intangible asset, knowledge is often seen as an essential source of innovation (Bhatt 2001). Bhandar (2007) demonstrated that knowledge is critical for High-Tech SMEs to establish a sustainable innovation advantage. Thus, Chesbrough (2003) argued that innovation is far from being a result of an isolated firm effort or an exclusive use of internal resources but a result of various collective resources.

Thus, Chesbrough (2003) introduced the concept of open innovation by describing the inflows and outflows of knowledge that ensure an acceleration of internal innovation developed, commercialized by a firm, and innovation developed, commercialized by other firms. In this context, other researchers analyzed the characteristics of these “new models” of innovation management by exploring the capabilities and practices deployed, not only in intensive-knowledge industries but also in more traditional industries. Theoretically, models resulting from these studies include the Open Innovation (OI) paradigm popularized by (Chesbrough and West 2006); the theory of user-driven innovation introduced by (von Hippel 1986); approaches to innovation as a community introduced by (Amin and Cohendet 2004); or the ecosystem approach and business models initiated by (Moore 2006). All of these approaches view innovation as the result of interactions and collaboration between diverse institutions. That involves finding, selecting, combining, and integrating various tangible and intangible resources in different organizational and technological contexts, distributed within and across firm boundaries. Accordingly, research has demonstrated the effectiveness of OI in stimulating innovation (Chen, and Vanhaverbeke 2011; Mazur 2016; Rangus et al. 2017). Hence, OI has become a critical approach to promote firm innovation (Cassiman and Valentini 2016). However, results are still mixed regarding how OI fosters knowledge integration (Sivam et al. 2019).

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