Research On The Relationship Between Open Innovation Strategy And Corporate Performance

Open innovation is a widely used concept in current academic,business,and government policy formulation.In general,the existing research still relies heavily on case studies and conceptual frameworks,although some scholars have built some open innovation classification methods and measurement indicators,and achieved considerable results through empirical research.There is still controversy in the academic circles about the impact of open innovation on firm performance.There are also certain limitations in the measurement methods,making it difficult to get the pending conflicts resolved.This article redefines the connotation of open innovation through a resource-based view and a dynamic capability theory.It holds that open innovation must emphasize the balance between resources and capabilities,and its impact on corporate performance will have more complex dynamic relationships,which will vary with openness and time.Therefore,there are two key points for resolving disagreement.Firstly,it is necessary to develop open innovation's second-hand data measurement indicators that is suitable for China's situation,and secondly,to dynamically analyze the multiple effects of different strategies of open innovation on business performance based on historical data.In order to achieve these goals,this article measured the degree of open innovation through 516 annual reports of 172 pharmaceutical listed companies from 2013 to 2015,and empirically explored the impact of different strategies of open innovation on corporate performance.The results show that different open innovation strategies have different impacts at different time periods:(1)Inbound open innovation has a negative impact on the short-term(1?2 years)firm performance,after a long time(about 3 years)there will be inverted "U" curve relationship;(2)Outbound open innovation has a negative impact on the short-term firm performance,but a positive effect after a long time.Therefore,enterprises should maintain a moderately inbound open innovation level,and improve the degree of outbound open innovation to improve enterprises'long-term performance.This article confirms that openness and time do play an important and complex relationship in the process of open innovation's impact on performance.This dynamic and balanced perspective enriches the existing literature.The predecessors' different conclusions are largely due to differences in perspective selection and static research."Hysteresis" and "non-linearity" provide us with a valuable idea for understanding these disagreements.In addition,the conclusion of this paper helps to deepen business managers' understanding of open innovation practice.A measurement indicator that can monitor the open innovation status of an enterprise at any time is of great value to companies that implement or plan to implement open innovation.