Unpacking the relationship between external IT capability and open innovation performance: evidence from China

Abstract

PurposeInformation technology plays a critical role in the open innovation process. The purpose of this study is to explore the inner mechanism of external information technology (IT) capability that affects open innovation performance.Design/methodology/approachIn this paper, responses to 232 questionnaires from different firms were collected in China. Then, the proposed hypotheses were tested using regression analysis by statistical product and service solutions (SPSS).FindingsThe results indicate that external knowledge integration plays a mediating role in the relationship between external IT capability and open innovation performance, openness breadth positively moderates the influence of external IT capability on external knowledge integration and openness depth negatively moderates the relationship between external IT capability and external knowledge integration.Practical implicationsThe results, which are based on Chinese responses, provide useful suggestions for firms in China. To use external IT capability to improve open innovation performance, firms should not only stress the role of external knowledge integration but also consider their search strategy.Originality/valueBoth researchers and practitioners are interested in the relationship between information technology and open innovation. However, the way in which the inner mechanism of external IT capability affects open innovation performance has not been thoroughly researched. Based on knowledge integration theory, the authors construct a model that includes external IT capability, external knowledge integration, search strategy and open innovation performance. The results of this paper confirm the mediating and moderating roles of external knowledge integration and search strategy, respectively.