COUPLED OPEN INNOVATION AND PERFORMANCE IN SMES: THE ROLE OF KNOWLEDGE CAPABILITIES AND ENVIRONMENTAL DYNAMISM

Abstract

This research proposes to shed light on the antecedents and outcomes of coupled open innovation in the specific context of small and medium-sized enterprises (SMEs). Drawing on the open innovation paradigm, knowledge-based view (KBV), and contingency theory, the paper constructs and tests a research model that investigates the effect of coupled open innovation on firm performance; the impact of knowledge management capability, knowledge appropriation capability, and environmental dynamism on coupled open innovation; and also the mediating role of collaborative open innovation practices. Using a sample of 228 SMEs operating in the Tunisian manufacturing industry, our results based on structural equation modeling (SEM) demonstrate that coupled open innovation positively and significantly influences firm performance. Furthermore, our findings confirm the crucial impact of knowledge management capacity and knowledge appropriation capacity in the implementation of coupled open innovation approach. The role of environmental dynamism in the adoption of collaborative practices is also proven in the SME context. Moreover, the results of our study add to the existing literature by empirically demonstrating the potential mediating role of coupled open innovation in the relationships that link knowledge management capacity, knowledge appropriation capacity, and environmental dynamism with SME performance, respectively. In this sense, this paper goes even further in the research on open innovation, as one of the first to fill an interesting gap regarding the antecedents of coupled open innovation and its implication on performance in the specific context of SMEs. In doing so, our research, through its results, provides interesting suggestions for SME managers who implement or intend to implement coupled open innovation to improve the performance of their company.