Determinants of Sustainable Open Innovations—A Firm-Level Capacity Analysis

Abstract

Institutional constraints impede firms’ open innovation. They have been a challenge, obstructing growth and sustainable development. Research on open innovation has shown that the quality of institutions essentially affects innovation in firms. Hence, prior research has made efforts to incorporate the quality of institutions into open innovation analysis. We can use a series of analyses to examine the impact of corruption, the tax system, and other indicators on firm innovation performance. However, developing economies, such as countries in sub-Saharan Africa, represent a specific group of countries that have long been perceived as those mostly deficient in the rule of law, with poor regulatory quality and a great deal of corruption. In these countries, it is also possible to see a lower number of studies, as the inability to obtain quality data to perform empirical analyses can often limit researchers. Nevertheless, employing data from the World Bank’s 2019 Enterprise Survey, this research aimed at exploring the determinants of sustainable open innovation as well as the effect of institutional quality on firms’ capacity utilization and process innovation through a PLS structural equation model analysis. Our research showed interesting findings, such as the fact that the quality of institutions significantly affects firms’ use of OI instruments and capacity utilization. This research also provides for the novelty of the analysis of capacity utilization in an open innovation analysis. The results support the hypotheses that low institutional quality negatively affects firms’ implementation of inbound open innovation instruments, and that there is a strong and positive effect of low institutional quality on firms’ capacity utilization. In addition, we confirm the premise that firms’ implementation of inbound open innovation instruments has a positive and significant influence on firms’ process innovation.

RETRACTED: Is the interaction of commercial regulation with foreign direct investment a source of Heaven or EKC hypothesis? An empirical investigation of the BRICS region

“…Governance is regarded as the factor most susceptible to unpredictability in terms of FDI. Researchers' findings led them to conclude that international investors prefer to put their money into riskier markets with a low institutional quality (Ibrahim and Law, 2016), (Gyamfi and Sein, 2021). Several empirical studies have focused on the effect that the governance of the recipient country has on the total amount of FDI that flows into various geographic regions within developed and developing countries, as presented in, as well as within multiple groups of developing economies (Ross, 2019).…”

Open Innovation Readiness Assessment within Students in Poland: Investigating State-of-the-Art and Challenges

“…A similar investigation has not yet been published, according to the authors' best knowledge. Thus, the authors believe that this paper may represent a valuable basis for future research on open innovation not only in Poland but also in similar economies-Emerging Innovators in Europe or emerging economies worldwide-e.g., in North Africa [65] or South America [53].…”

Intellectual Capital Change Management in the Construction Industry—The Case of an Inter-Organisational Collaboration

“…In 2011, the dimension (SME) and scarce resources of company X were limiting the number of new business proposals. Consequently, it decided to start a franchising with companies M and Q. Gyamfi and Sein [47] considers that the acquisition of external resources such as trademarks are viable option for implementing inbound OI instruments. According to [45], from the franchisor point of view, in open innovation, franchising (as an intellectual property right) can be considered as a way to extract value.…”

“…This paper is focused on inbound open innovation processes. In fact, the implementation of inbound OI instruments may involve the acquisition of external resources such as knowledge, trademarks or licenses [47]. On the other hand, others such as [48] consider that IC can positively affect OI.…”