Resource complementarity, transformative capacity, and inbound open innovation

This study aims to examine the potential impact of external complementary resources on inbound open innovation and whether transformative capacity acts as a mediator in the process. If small and medium enterprises (SMEs) are to successfully implement inbound open innovation, they require injections of external complementary resources.

Structural equation modeling was used to conduct confirmatory factor analysis to evaluate measurement model, while ordinary least squares regression analysis was used to test the hypotheses; research data are collected using surveys of 200 Taiwanese-owned SMEs in mainland China.

Empirical results indicate that when SMEs seek to implement inbound open innovation, technological complementarity is the most important factor in resource complementarity. In addition, transformative capacity has a significant mediating role on the relationship between resource complementarity and inbound open innovation.

The contribution of this paper lies in explaining the role played by transformative capacity in the process of inbound open innovation for SMEs through empirical analysis.