Effects of Technology Endowment on Open Innovation Success in Medium-Sized Enterprises in Kenya

Abstract

Technology is an infrastructural enabler that ensures success of open innovation (OI) activities in modern enterprises. The Kenyan experience indicates that the OI success strategy for medium enterprises (MEs) hinges on endowment of technological capabilities in operation and management of MEs. Notwithstanding, the aggregate entrepreneurial orientation (EO) of firms seems to be a determining factor in connecting the technological investment and stakeholders’ collaboration to activate the innovation potential of MEs. This study sought to determine the moderating role of EO on the relationship between firms’ technological endowment and OI success of service and manufacturing MEs in Kenya. The data collected were analyzed using Statistical Package for Social Scientists (SPSS) Version 23 and Smart PLS3 application software. The formulated hypotheses were tested using structural equation modelling. The results showed that Technology positively influences OI success; however, they did not confirm that EO moderates the Technology and OI success relationship. While the study recommends a strategic investment in Technology to enhance OI success, it also advises further research into the dynamics of the triple relationship between Technology, EO and OI Success to optimize their combination for enhanced organizational innovation.