External Technology Acquisition and External Technology Exploitation: The Difference of Open Innovation Effects

• Main Authors: Tajudeen, Farzana Parveen, Jaafar, Noor Ismawati, Sulaiman, Ainin
• Format: Article
• Published: MDPI 2019
• Subjects: HF Commerce; T Technology (General)
• Online Access: http://eprints.um.edu.my/23337/; https://doi.org/10.3390/joitmc5040097

To sustain in today's ever-changing and competitive landscape, firms must work within and outside of their organizations' boundaries. Open innovation (OI) strategies such as external technology acquisition (ETA), and external technology exploitation (ETE), can effectively improve the innovation performance of the organizations. Technologies like social media can help organizations to scout for appropriate technology, and source for ideas and knowledge from external sources to support their innovations. Moreover, digitalization can hasten business operations and enhance the innovation process of the firm. Focusing on open innovation (OI), this study takes an integrated approach towards investigating the impact of OI strategies, technology scouting through social media, and digitalization vision on innovation and firm performance. Data were drawn from 153 organizations in Malaysia, and the partial least squares (PLS) method was used to analyze data. The findings revealed that ETE, technology scouting through social media, and digitalization vision have a significant relationship with innovation performance. This, in turn, shows a positive relationship with firm performance. However, ETA does not have a significant relationship with innovation performance in the Malaysia context. This study extends the current literature on OI through the use of specific technology variables, such as technology scouting through social media and digitalization vision to support organizations' innovation. © 2019 by the authors.