Can open innovation improve technological outcomes for digital transformation?: Structural approach to strategic decisions of Korean ICT SMEs

Abstract

In digital transformation, the importance of information and communications technology small‐ and medium‐sized enterprises (ICT SMEs) is growing, but their potential and strategic behaviors responding to digital transformation were not fully understood. We empirically analyzed Korean ICT SMEs' strategic decisions for developing and commercializing digital transformation technologies through a structural model of competencies, R&D strategies, and technological commercialization. We found that open innovation and internal R&D are significant mediators between their competencies and technological commercialization. Sectoral discrepancy is also identified: R&D employment and open innovation positively influence on technological commercialization in ICT service, while patenting and internal R&D are significant for ICT manufacturing.

The impact of the interaction of independent and cooperative innovation on firm digitization: the moderating role of managerial discretion

“…First, our study enhances the explanatory power of resource constraint theory on firm behavior by examining the interaction effect of independent and cooperative innovation to better account for the impact of innovation on digitization. Prior studies examined how open and exploratory innovations affect digitization (Chung and Kim, 2023; Huang et al ., 2023; Luan et al ., 2024), while ignoring the contribution of the interaction of internal (independent) and external (cooperative) innovation to digitization. However, in practice, firms face situations where internal and external innovations coexist (Lee et al ., 2024), and firms need to accurately determine whether the relationship between internal and external innovations is complementary or mutually exclusive (Cassiman and Veugelers, 2006; Schmiedeberg, 2008; Hess and Rothaermel, 2011; Hagedoorn and Wang, 2012; Díaz-Díaz and de Saá Pérez, 2014; Delgado-Verde et al ., 2021).…”

“…To further capture the dynamic process of digitization, studies should specifically portray enterprise digitization in terms of the degree, speed, and rhythm of transformation. Fifth, although this study examine the moderating role of managerial discretion, the impact of the interaction of independent and cooperative innovation on digitization is also influenced by other dimensions (Chung and Kim, 2023). Future research should further probe into the boundary effects of other dimensions based on the AMC framework.…”

“…Previous research has explored the antecedents of enterprise digitization both internally and externally (Chen and Tian, 2022; Luo and Yu, 2022; Huang et al ., 2023). Regarding internal factors, such as the chief executive officer (CEO) background, directors and officers liability insurance, internationalization of the top management team (TMT), leadership, information technology investments, open innovation, exploratory innovation, and dynamic capabilities, they play an important role in company digital development (Kane et al ., 2015; Porfírio et al ., 2021; Gómez-Cruz et al ., 2022; Luo and Yu, 2022; Zhu et al ., 2022; Chen et al ., 2023; Chung and Kim, 2023; Zhang et al ., 2023a, b; Luan et al ., 2024). Regarding external factors, such as market competition, digital technology, intellectual property protection, government policies, and tax incentives, they are also related to digital development (Chen and Tian, 2022; Luo and Yu, 2022; Zhu et al ., 2022).…”

“…Although research on the antecedents of enterprise digitization is extensive, some important factors remain neglected, such as less research on the impact of the interaction of internal and external factors on enterprise digitization (Zhang et al ., 2023a, b), especially the interaction between internal innovation (independent innovation) and external innovation (cooperative innovation) (Xu and Zhang, 2008; Hagedoorn and Wang, 2012; Zhang et al ., 2019; Delgado-Verde et al ., 2021; Huang et al ., 2023; Luan et al ., 2024; Lee et al ., 2024). Although existing studies have explored the impact of innovation on firm digitization (Gómez-Cruz et al ., 2022; Chen et al ., 2023; Chung and Kim, 2023; Huang et al ., 2023; Luan et al ., 2024), only the impact of open innovation and exploratory innovation on digitization has been explored (Huang et al ., 2023; Luan et al ., 2024). Considering that in the context of open innovation, numerous firms have been building their innovation capabilities by simultaneously pursuing both internal and external innovations (Hagedoorn and Wang, 2012; Howard et al ., 2016; Del Vecchio et al ., 2020; Xie et al ., 2023), this omission appears crucial.…”

Co-Creating Value With Artificial Intelligence: A Bibliometric Approach to the Use of AI in Open Innovation Ecosystems

“…Consequently, there is a growing amount of business initiatives and projects related with data and AI, frequently spurred by public administrations [11], and OI ecosystems are pushing the digital transformation of organizations [52], [53], favoring the use of externally generated technologies in organizations [54], [55].…”