The Effect of Open Innovation and Technical Turbulence on Innovation Performance in Order to Achieve Competitive Advantage in Knowledge Intensive Companies

Abstract

Researchers have identified open innovation as two dimensions, inbound open innovation and outbound open innovation. This study explores the direct effects of these two dimensions on firm innovation performance and further examines the moderation effect of technological turbulence on the relationship between both types of open innovation and firm innovation performance. Survey results of 60 Iranian knowledge intensive companies, located in Isfahan provincial science and technologypark, provide support for some hypotheses. The result shows that inbound open innovation positively affects firm performance, whereas inbound open innovation does not. This study also finds the positive effect of innovation performance on competitive advantages of companies. However, technological turbulence can't positively affects the relationship between two dimensions of open innovation and firm performance.

Keywords

• open innovation
• technical turbulence
• innovation performance
• competitive advantage
• knowledge intensive companies