The effect of open innovation mindset on absorptive capacity: the mediation role of entrepreneurial alertness

Abstract

Purpose- Applying new information across corporate borders is a strategy for innovation that uses absorptive capacity. In organizational research, the term open mindset is used to define a firm's ability to understand and accept new concepts or to critically evaluate its experience with new knowledge. The shift inflow or outflow initiative and notion advocated for this tactic. Applying opportunities for creation through innovation is the action of the entrepreneurial attentiveness. An evaluation of a firm's intelligence results from assessing the open mindset of individuals who perceive, evaluate, and seize new chances in contact with the environment. The purpose of this research is to investigate the impact of an open innovation mindset on the absorption capacity in small and medium-sized enterprises with the mediating role of entrepreneurial alertness. Methodology- The statistical population includes 430 managers of small and medium-sized businesses producing industrial, utility, and construction pumps. The sample size is 131 firm managers. In this research, the data collection tool is a questionnaire that has been distributed and collected using a non-probability sampling method. The validity and reliability of the questionnaire were evaluated during the pre-test. Smart PLS and SPSS software were also used to analyze the research data. Findings- Descriptive and inferential analysis have both been used in this study. The result of data analysis shows that open innovation has a significant effect on entrepreneurial alertness. It can also be mentioned that the impact of the open innovation mindset on absorptive capacity. Conclusion- The findings show that the open innovation mindset at the individual level increases the firm's absorptive capacity. Also, entrepreneurial alertness plays a mediating role between the impact of an open innovation mindset and absorptive capacity. The findings thus demonstrate that those who pay attention and have an open and interactive mindset while receiving opportunities and suggestions are more likely to succeed.