TY - JOUR AB - Purpose This study aims at developing a better understanding of the relationship between network embeddedness and incremental innovation capability and further examines the moderating effect of open innovation.Design/methodology/approach This paper adopts hierarchical regressions to validate the theoretical model and collect the patent data of the top 54 firm patentees in the smartphone industry as empirical sample. Using patent citation network data, this paper estimates the relationship between open innovation, network embeddedness and incremental innovation capability.Findings This paper empirically shows that structural embeddedness exerts a negative effect on incremental innovation capability, while relational embeddedness is positively related to incremental innovation capability. And open innovation strengthens the relationship between network embeddedness and incremental innovation capability.Originality/value This paper shifts the focus of the determinants of incremental innovation capability from internal factors to the external network features by exploring the linkage between network embeddedness and incremental innovation capability. A counterintuitive conclusion is that structural embeddedness shows a negative effect on firm's incremental innovation capability. Furthermore, in contrast to most previous studies, which only focus on the direct effect of open innovation on the firm's incremental innovation capability, our study examines the moderating effect of open innovation on the relationships between network embeddedness and incremental innovation capability. At last, the results provide practical guidance for firms to occupy the beneficial network positions and adopt appropriate open innovation strategies to improve their incremental innovation capability. VL - 58 IS - 12 SN - 0025-1747 DO - 10.1108/MD-08-2019-1038 UR - https://doi.org/10.1108/MD-08-2019-1038 AU - Han Shaojie AU - Lyu Yibo AU - Ji Ruonan AU - Zhu Yuqing AU - Su Jingqin AU - Bao Lining PY - 2020 Y1 - 2020/01/01 TI - Open innovation, network embeddedness and incremental innovation capability T2 - Management Decision PB - Emerald Publishing Limited SP - 2655 EP - 2680 Y2 - 2024/04/20 ER -