An Open System Understanding of Product Innovation: Attention Allocation, External Information Sources, and Absorptive Capacity

Product innovation is a key achievement by which firm can not only build up its competitive advantages but also prolong survival in the open market environment. By understanding as social system pursuing both efficiency and effectiveness, this study examines three factors that independently enable product through theoretical lens of approach: strategic attention, external information sources, absorptive capacity. While we suggest focused set attentions functions an internal means to enhance likelihood innovation, propose diverse partners provide with relevant knowledge for innovation. In addition, argue capacity crucial factor has positive direct effect on mediates effects two variables based organizational learning theory. We empirically examined our hypotheses reliable data collected systematically “Korean Innovation Survey 2020: Manufacturing Industry” found support all hypotheses. Finally, discuss contributions practical implications.