The moderating role of knowledge structure in the open innovation effect

Purpose: The purpose of this paper is to examine the relationship between open innovation (OI) and innovative performance, and to explore the moderating effect of knowledge structure, including component knowledge and architectural knowledge, on this particular relationship. Design/methodology/approach: The proposed model was tested with regression analysis of data collected through a questionnaire survey of 231 employees of Chinese manufacturing firms. Findings: The findings indicate that inbound OI is positively related to innovative performance and that outbound OI has an inverted U-shaped effect on innovative performance. By presenting empirical evidence of the moderating effects of component and architectural knowledge, our analysis of results demonstrates that the strong alignment between knowledge structure and OI results in superior innovative performance. Originality/value: This study addresses the controversial issues brought up by previous studies with findings of an inverted U-shaped effect of outbound OI on innovative performance. By exploring the moderating effect of knowledge structure, the authors provide insights into how internal contextual factors in relation to organizational knowledge can affect the efficacy of the inbound and outbound OI on innovative performance.