Knowledge search and open innovation performance in an emerging market: Moderating effects of government-enterprise relationship and market focus

The purpose of this paper is to examine how knowledge search (KS) affects open innovation performance (OIP) in consideration of appropriability hazard in an emerging market context.

The authors identify two types of appropriability hazard related to KS activities in the improvement of OIP: partner-related and market-related hazards, and construct a model of KS to the OIP with the government-enterprise relationship and market focus (MF) as moderating factors of the analysis framework, using the hierarchical regression analysis based on a survey sample of 258 Chinese companies.

The authors find that KS has a stronger positive relationship with OIP in international market-focused enterprises compared with domestic market-focused enterprises. In addition, using a configuration approach, the authors find that KS is more positively related to OIP when enterprises have an international MF and a good relationship with the government, but less in other MF government and enterprises relationship configurations.

This paper contributes to previous research work by identifying two types of appropriability hazard related to KS activities in emerging market countries: partner-related and market-related hazards. The authors argue that a positive relationship between KS and OIP is more likely to occur if these appropriability hazards can be mitigated by export MF and a good relationship with the government which has not been demonstrated in previous research.