Do digitalization and intellectual capital drive sustainable open innovation of natural resources sector? Evidence from China

Abstract

In the pursuit of environmentally responsible practices, the concept of sustainable Open Innovation (SOI) emerges as a crucial facilitator in mitigating the carbon emissions and ecological impact associated with natural resources extraction. SOI plays a pivotal role in reshaping the perception of natural resources, steering them from being perceived as a curse to becoming a source of prosperity. Nonetheless, the mechanisms by which enterprises within the natural resource sector can enhance sustainable open innovation for maximum advantage remain inadequately elucidated. This study addresses this gap by delving into the intricate landscape of augmenting sustainable open innovation within firms operating in the natural resource sector. Specifically, the investigation revolves around the triad of a firm's human, relational, and structural capital, collectively termed as intellectual capital (IC), and its contribution to the attainment of sustainable OI. Furthermore, the study sheds light on the interplay of digitalization in mediating the influence of intellectual capital on sustainable open innovation. The empirical exploration harnesses data from a sample of 296 firms engaged in natural resource exploitation across China's steel, iron-ore, oil, and gas domains. Employing a robust analytical approach that combines Python programming and partial least squares (PLS) analysis, the collected data undergoes rigorous processing. Our findings underscore the transformative potential of digitalization and intellectual capital as synergistic drivers capable of alchemizing the prevailing natural resource challenges into opportunities for growth. This transformation is reflected in their substantial impact on a firm's performance in sustainable open innovation. Consequently, not only does this paradigm shift enhance a firm's sustainable open innovation endeavors, but it also fortifies the overall sustainability performance of the organization. Ina nutshell, the research underscores the instrumental role of sustainable open innovation in reshaping the ecological trajectory of natural resource exploitation. By comprehending and harnessing the potency of intellectual capital alongside the catalytic role of digitalization, firms stand poised to transcend the constraints posed by the traditional notion of the “resource curse”, ultimately ushering in an era where these resources are harnessed as blessings for both the enterprise and the environment.