Open innovation and sustainable competitive advantage: The role of organizational learning

Abstract

With intensifying competition and increasing dependence on external partners, open innovation has been becoming an inevitable and prevalent strategy to achieve long-term competitive advantage. Considerable research has investigated the benefit of open innovation, the mechanism through which open innovation translates into sustainable competitive advantage have yet been well examined. Drawing on the strategy-competence-competitive advantage framework and the knowledge-based view, this study examines the role of ambidextrous organizational learning in mediating the relationship between open innovation and sustainable competitive advantage as well as the moderating role of knowledge management capability. Based on data collected from 269 Chinese high-tech enterprises in 2021, we found that open innovation contributes to sustainable competitive advantage through enhancing organizational learning including both exploratory and exploitative learning as well as their balance. Moreover, knowledge management capability positively moderates the relationships of open innovation to exploration and exploitation as well as their combination. Research and practical implications are discussed.