Technological strategy, open innovation and innovation performance: evidences on the basis of a structural-equation-model approach

Abstract

Purpose – The purpose of this study is to shed further light on determinants of the openness degree to give a more conclusive evidence to the research in the field. In particular, the influence exerted by the technological strategy is still debated, in that evidence on the relationship between the technological strategy and openness is conflicting. Design/methodology/approach – The authors put forward a structural equation model which enriches the state-of-the-art literature by explicitly testing the interplay among technological strategy, openness (innovatively measured in terms of partner intensity, phase intensity and variety in terms of partners, phases and contents) and innovation performance. Our study relies on data from 415 firms based on a research survey developed in Finland, Italy and Sweden. Findings – Findings show that openness, if measured in terms of partner intensity and phase intensity, fully mediates the relationship between technological strategy and innovation performance, by suggesting that the effectiveness of a firm’s technologically aggressive behavior is strongly related to the intensification of collaboration with the partners along the innovation funnel. Conversely, openness variety seems to play an opposite role and is influenced differently by partner and phase intensity. This result likely emphasizes how the cost-side of open behavior becomes harder to manage, and thus costly, when it involves too many different types of partners, phases and contents. Practical implications – Firms that adopt a technologically aggressive strategy are recommended to deeply open their innovation process to foster innovation performance. However, because of the fact that a high level of openness variety could generate some drawbacks, managers should be very careful in the management of different phases, sources and content. Therefore, what clearly emerges is a call to find adequate strategies for effectively managing the collaboration process to avoid the waste of resources and initiatives. Originality/value – Originality and the value of the paper reside in a more fine-grained definition of the openness concept, which takes into consideration other facets of openness compared to those usually analyzed in the literature, and a powerful statistical model, such as structural equation modeling, offering great advantages and flexibility in matching the theoretical model with the data.