DESIGNING A FRAMEWORK OF INFLUENCING VARIABLES ON OPEN INNOVATION IN STARTUP COMPANIES

Abstract

Purpose — The goal of this research is to create a model of influencing factors of open innovation (OI) in startups. This research has also looked into how OI affects gaining a competitive advantage by taking into account the moderator role of environment dynamics. Design/methodology/approach — Possible factors influencing OI in startups, determined through research background studies and interviews with experts in the startup fields, then along with the factors of competitive advantage and environmental dynamics, were evaluated in a sample of 120 managers of Iranian start-up companies. Using structural equation modelling, we analysed data collected from startup managers pertaining to variables of OI, competitive advantage, and environmental dynamics. Structural equation modelling is a multivariate analysis method that enables the examination of relationships among multiple variables within a model. A two-stage partial least squares structural equation modelling method was employed in this study. In the first stage, the construct validity and reliability of the measurement models were evaluated, and in the second stage, the conceptual model and research hypotheses were put to the test. Findings — Results showed that organisational entrepreneurship, open business model, knowledge management capabilities, absorption capacity, organisational readiness, and participatory capability are important influences on OI in startups. Furthermore, the study found that applying OI techniques can help startups succeed more often in gaining a competitive edge. Additionally, the study found that environmental dynamics have a positive moderating effect on this relationship. Practical implications — Considering the vital role of startups in economic development programs, the results of this research can lead the managers of start-up companies and growth centers to use the OI approach to overcome the limitations of being new and small. Also to survive startups and increase productivity and competitive advantage, startup managers by focusing on these factors can take steps to create the necessary internal foundations in the organisation and negotiate with large companies in line with better policies. Originality/value — The study’s significant contribution is believed to be the development of a model that identifies the factors that influence OI in startups. Moreover, the study verified the influence of OI on achieving competitive advantage, as per the established model, while also considering the moderating effect of environmental dynamics on this association.