The Role of External Technology Scouting in Inbound Open Innovation Generation: Evidence From High-Technology Industries

Abstract

An external technology scouting is a commonly used open search method used by the firms to facilitate innovation. Drawing on a knowledge-based perspective and evolutionary theory on open innovation, this article proposes that the firms generate more innovations and capture better external technology if they possess well-developed absorptive capacity, that provides access to the innovative developments in an uncertain technological environment. We introduce our <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">external technology scouting model</i> of innovation outputs to explain how technology scouting and absorptive capacity predict firms’ inbound open innovation generation in a turbulent environment. Using a sample of 236 high-technology firms, we examine main, two-way, and three-way interaction effects for measures of inbound open innovation generation. The results indicate both main and moderating effects for both measures of performance, which are critical for innovation generations. A significant three-way interaction shows the joint effect of the technology turbulence, absorptive capacity, and external technology scouting on inbound open innovation generation. Our findings have notable managerial and research implications.