Purpose – The purpose of this paper is to explore the influence that adopting open innovation (OI) has on the innovativeness and performance of specialized small and medium-sized enterprises (SMEs). This paper also examines the adoption of OI within a firm’s practices and models, and within the three dimensions of firm sustainability.
Design/methodology/approach – Survey data from 48 specialized SMEs manufacturing supercars were analyzed using partial least squares structural equation modeling (PLS-SEM). SmartPLS software was used to conduct a path analysis and test the proposed framework.
Findings – The findings suggest that high adoption of OI models (OIM) tends to increase firm innovativeness (INNO). Similarly, the adoption of OI practices (OIP) has a positive effect on INNO but to a lesser extent than OIM. The moderation results of INNO further show that OIM and OIP can benefit the firm performance (FP) of SMEs. Specifically, two dimensions of FP – environmental and social performance – were found to be greatly influenced by OI.
Research limitations/implications – Due to parsimony in the investigated model, this study only focuses on OI adoption as practices and models without considering its drivers or other contingency factors.
Practical implications – This paper could help practitioners in SMEs better understand the benefits of adopting OI to be more innovative but also more sustainable.
Originality/value – This study contributes to the literature on the role of OI practices and models regarding the dimensions of firm sustainability performance by being the first paper to investigate this relationship in the context of small and medium manufacturers of supercars.
Open Innovation, Practices, Models, Firm Performance, Small and Medium-sized Enterprises, Supercars, PLS-SEM.