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Publication date: 4 August 2023

Peng Xu, Mingfeng Tang, Jin Chen and Alexander Brem

China has climbed from 22nd in the Global Innovation Index Rankings in 2017 to 11th in the 2022 due to the transition of its manufacturing firms from assemblers to system…

Abstract

Purpose

China has climbed from 22nd in the Global Innovation Index Rankings in 2017 to 11th in the 2022 due to the transition of its manufacturing firms from assemblers to system integrators. This paper examines how firms can enhance their innovation capability through inbound and outbound open innovation.

Design/methodology/approach

This paper applies both open innovation and a knowledge-based view and proposes a conceptual framework that encompasses innovation capability and the significance of tacit knowledge acquisition. A questionnaire was designed to collect relevant data from 139 Chinese manufacturing firms in six regions to test this framework.

Findings

The authors found that inbound open innovation has a stronger impact than outbound open innovation on synergistic innovation capability. The acquisition of skill-based tacit knowledge has a slightly stronger intermediary role between open innovation (no matter inbound or outbound) and synergistic innovation capability than cognitive tacit knowledge does.

Practical implications

Firms should improve external tacit knowledge acquisition efforts to generate new knowledge, inspire the innovation passion of employees and implement ambidextrous open innovation.

Originality/value

This paper makes a good first step to analyze the effect of ambidextrous open innovation on the synergistic innovation capability of Chinese manufacturing firms. It verifies the role of skill-based and cognitive tacit knowledge acquisition and provides new reflections on open innovation strategy in emerging economies, thus enriching open innovation and knowledge-based theories.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

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