Adoption of open innovation and entrepreneurial orientation practices in Malaysian furniture industry

Objective: The main objective of this research is to integrate the resource-based view (RBV) to analyse how the relationship between firm performance and entrepreneurial orientation is mediated by outbound innovation among furniture firms in Malaysia. Research Design & Methods: In this research, data has been poised via questionnaire from the furniture firms in Johor state, Malaysia. In this study, 391 responses were considered and analysed. The partial least squares (PLS) model was employed to test the hypothetical relationships among entrepreneurial orientation, firm performance and outbound innovation intention to adopt open innovation practices. Findings: Research findings show that innovativeness, competitive aggressiveness, risk-taking, outbound innovation are statistically significant factors influencing entrepreneurial orientation and open innovation adoption among furniture companies in Malaysia. However, autonomy and proactiveness do not have significant effects on entrepreneurial orientation and open innovation adoption intention. Implications & Recommendations: Few implications that are significant for academics and practitioners are also debated according to research findings. This research can serve as a guideline for successfully implementing entrepreneurial orientation and open innovation among furniture firms in an emerging economy. Thus, offering an external knowledge search-collaboration mechanisms-superior performance framework. Through using this open approach, companies will seek to find opportunities for creativity that go beyond their current capabilities to dramatically boost success. Contribution & Value Added: This research, expanding the open innovation (OI) paradigm, explicates and measures the impact of OI’s direct and mediating inputs on entrepreneurial orientation (EO) and firm performance. The results are consistent with the current OI literature demonstrating the complex connection among together outbound innovation and EO dimensions and firm performance by investigating Malaysian furniture manufacturers by building scales and evaluating their validity by developing outbound innovation. The initial findings are direct ties between entrepreneurial orientation dimensions with business performance and outbound open innovation. All the indirect (mediation) relations among the study variables were the second part of the results.