Exploring the relationship between open innovation and organisational ambidexterity: the moderating effect of entrepreneurial orientation

Abstract

This study aims to examine the relationship between open innovation (OI), organisational ambidexterity (OA), and entrepreneurial orientation (EO). Since OA is central to the short and long-term survival of the firm, there is an enormous interest in investigating organisational mechanisms for achieving higher levels of OA. Prior studies have mostly concentrated on ‘internal’ mechanisms, and less attention has been given to how open innovation practices can promote OA. Our observation of 214 Iran knowledge-intensive firms indicates that OI, entailing inbound and outbound open innovation activities, significantly enhances OA. Yet, contrary to our expectation, EO negatively moderates the relationship between OI and OA in the developing context of Iran. This provides compelling insights into how an open innovation approach can compensate the necessity of risky and proactive entrepreneurial activities in the less developed institutional contexts where institutional voids enhance the costs and risks of entrepreneurial initiatives. The discussion finally suggests the theoretical and managerial implications of the study and future directions.