Innovation performance: The effects of closed and open innovations and information technology capacity

This study analyses the effects of closed and open innovations on the relationship between information technology capacity and innovation performance. The research model was built based upon previous studies in which the relationships among these concepts were proposed theoretically. The mediation model was empirically examined by using structural equation modelling with the consistent method of partial-least-squares on a data drawn from 233 responses collected from a multinational firm operating in several technology-follower countries. The results show that only closed innovation and the acquisition capability of open innovation play mediating roles within the relationship between information technology capacity and innovation performance. This study generates a need for rethinking about the role of open innovation because it values the benefit of the capture of non-technological information on local markets, in contrast to previous studies that only highlight the acquisition of technology.