The linkage between open innovation, absorptive capacity and managerial ties: A cross-country perspective

The paper addresses the concepts of inbound open innovation and outbound open innovation as the key elements of the open innovation by incorporating managerial ties and absorptive capacity from a cross-country perspective. This study draws on a cross-sectional sample of 530 companies based in France, Malaysia and the UAE collecting data collect from middle and top managers working in different industries. The results show the mediating effect of perceived absorptive capacity in the relationship of external managerial ties and open innovation (inbound and outbound). Most specifically, managerial ties affect inbound open innovation in all the three surveyed countries while managerial ties relate positively to outbound open innovation in France and the UAE. The mediating role of absorptive capacity is evident in the cases of France and the UAE. Finally, the paper concludes, highlighting the implications of the study findings and its limitations. The paper will help to understand the connection between managerial ties and absorptive capacity that may lead to the successful operations of open innovation.