Open Innovation and Organizational Performance in Saudi Arabia: The Moderating Role of Government Support and Technological Readiness
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Abstract
Open innovation (OI) has been widely practiced in developed countries, while its application in state-driven economies is still limited. This study examines the effect of inbound open innovation and outbound open innovation on the organizational performance (OP) of companies in Saudi Arabia. The study also examines the moderating role of government support and technological readiness. The data was collected from 309 manufacturing and service companies. The findings of Smart PLS 4 showed that inbound OI and outbound OI affected positively the OP. The finding also showed that government support and technological readiness moderated the impact of inbound OI and outbound OI on OP. Resource-based view and institutional theory are capable of explaining these relationships in the context of emerging economies. More investment in technological infrastructure and systems can enhance the innovativeness of companies and improve the OP.
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