Are We Happy Together? A Meta-Analytic Review of the Impact of Open Innovation on Firm Performance

Abstract

The study draws on dynamic capabilities theory and evidence-based research to provide the first meta-analysis on the open innovation (OI)–firm performance relationship from 2003 to 2020. Both subgroup and meta-analytic regression analyses were employed to analyse 106 independent peer-reviewed articles, encompassing 557,642 firms and 138 effects. Results showed a positive, significant relationship between OI and overall firm performance ([Formula: see text]= 0.20) while revealing numerous contingencies. Particularly, we found that the effect of OI on non-financial performance ([Formula: see text]= 0.20) is larger than that on financial performance ([Formula: see text]= 0.19), while the disaggregate results revealed that inbound OI has the strongest effect on firm performance ([Formula: see text]= 0.23), followed by outbound OI ([Formula: see text]= 0.19) and coupled OI ([Formula: see text]= 0.14). Furthermore, it was found that the mixed results are driven by both contextual factors (i.e., firm size, culture, study region, sector, and industry intensity) and measurement moderators (i.e., study measure and data type). Both the theoretical and managerial implications of these findings are elucidatedly discussed.

Open innovation in SMEs: a dynamic capabilities perspective

“…We also found that IP practices predict market effectiveness and profitability of the SMEs while OP predicts profitability than market effectiveness of the SMEs. To some extent, the finding of this study is consistent with the findings of Hung & Chou's (2013) and Oduro's et al (2021). For example, Hung & Chou's (2013) revealed that external technology acquisition relating to IP practice positively affects FP, which was consistent with the finding as to the IP practice -FP relationship.…”

“…The novelty of the present research, thus, is based on the idea of having a more objective representation of how organizational learning capabilities practices affect organizations’ OI capacity and FP. Even though the concept of OI has been extensively explored in research, it is essential to provide stronger arguments based on quantitative analysis (Gressgard, et al , 2014; Oduro et al , 2021), which is espoused by the present study.…”

“…Fourth, despite the substantial investigation of these practices in both larger firms or SMEs in developed countries, there are gaps related to the validity and reliability of the research findings (Freeburg, 2018). This is because most studies examining the relationships between organizational learning capabilities, OI and FP are qualitative by nature (Oduro et al , 2021; Vincent-Hoper & Stein, 2019). This denotes that a greater emphasis has been placed upon the subjective experiences of participants concerning the effective organizational learning capabilities and OI practices, and performance measures (Do & Mai, 2022).…”

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“…Much research demonstrates that OI benefits OP indicators (Popa, Soto & Martinez, 2017;Carayannis & Grigoroudis, 2014;Chiang & Hung, 2010). For example, Oduro et al (2021) found a positive, significant connection between OI and the company's overall performance. In this telling, OI can secure the accomplishment and continuous replication of high levels of innovation and, hence, the long-term and stable development of firms that respond to environmental concerns feasibly and flexibly (Ober, 2022).…”

Assessing the Determinants of Firm Performance Among Manufacturing Companies: A Qualitative Analysis

“…In comparison to large organizations, the time between forecasts and results is shorter for small firms. Using the same eight indicators, Oduro et al (2021) found that there are more parallels than differences between industrial product enterprises and consumer product firms. H4: Performance of organizations and Forecasting are positively correlated.…”