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Open innovation pathway to firm performance: the role of dynamic marketing capability in Malaysian entrepreneurial firms

Md Imtiaz Mostafiz (Sheffield Business School, Sheffield Hallam University, Sheffield, UK)
Farhad Uddin Ahmed (Brunel University London, London, UK)
Paul Hughes (Department of Management and Entrepreneurship, University of Leicester, Leicester, UK)

International Journal of Entrepreneurial Behavior & Research

ISSN: 1355-2554

Article publication date: 18 October 2022

154

Abstract

Purpose

This study investigates how firms build strong dynamic marketing capability (DMC) from open innovation (OI) to enhance the performance of entrepreneurial firms. Moreover, this study unfolds DMC's mediating and moderating mechanisms underlying inbound and outbound OI and performance relationships, respectively.

Design/methodology/approach

To test the research model and hypotheses, this study drew a sample of 251 firms operating in Malaysia using the time-lagged survey method. Structural equation modelling was used in this study to investigate the model relationships.

Findings

The findings of this study reveal the positive interplay between inbound OI (knowledge acquisition) and DMC. The outbound OI (knowledge exploitation) in this study is found to mediate the relationship between inbound OI and firm performance. In addition, while the DMC has a mediating effect in the relationship between inbound OI and firm performance, such a capability reinforces the positive relationship between outbound OI and performance.

Originality/value

This study provides a noble insight into the complex interplay between OI and entrepreneurial firms' performance by developing and testing an integrated framework underpinned by a knowledge-based view and dynamic capability theory. The findings highlight the significance of taking an interdisciplinary and integrated approach to better understand the determinants of entrepreneurial firms' performance in an emerging country context.

Keywords

Acknowledgements

For the purpose of open access, the author has applied a Creative Commons Attribution (CC BY) licence to any Author Accepted Manuscript version arising from this submission.

Citation

Mostafiz, M.I., Ahmed, F.U. and Hughes, P. (2022), "Open innovation pathway to firm performance: the role of dynamic marketing capability in Malaysian entrepreneurial firms", International Journal of Entrepreneurial Behavior & Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJEBR-02-2022-0206

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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