The Effects of Learning Orientation on Implementation of Inbound Open Innovation in Low & Medium-Low Technology Firms

Despite the increasing attention to the open innovation, the effect of strategic capabilities as antecedents to implementation of open innovation in ‘low and medium-low technology’ (LMT) firms in technologically less advanced countries is largely unexplored. This paper strives to fill this gap by investigating the effect of learning orientation on implementation of inbound open innovation. Particularly, effect of commitment to learn, shared vision and open mindedness are considered. Building on the resourced based view, the study theoretically speculates a positive causation from learning orientation to inbound open innovation. Also, the moderating effect of market potential as an external environment component is assessed. Findings from the cross-sectional survey from 272 LMT firms in Sri Lanka reveals that both commitment to learn and open mindedness has positive effect though shared vision has no effect on inbound open innovation. Also, the moderating effect of the market potential is dissimilar. This paper extends the present knowledge by insisting the importance of capabilities particularly, learning capability on implementing open innovation. Findings of this study provide a practical insight into how components of learning capability, and contextual factors influence on implementing inbound open innovation. Finally, this paper points the limitations and further research opportunities