Exploring Factors Influencing Open Innovation Adoption in SMEs: The Evidence from Emerging Markets

Open Innovation (OI) is among the vital innovation paradigms for assisting small and medium enterprises (SMEs) to effectively implement initiatives. Drawing on concepts of organisational agility absorptive capacity with transaction cost theory, this study’s goal investigate factors affecting adoption an orientation in Thai SMEs. Using data from 214 SMEs Thailand, structural equation modelling validated model analysed proposed hypotheses. The results show that agility, economic financial readiness relate positively OI performance. Organisational (b = 0.553) had greatest influence adoption, then 0.405) 0.387) followed. mediation analysis also reveal partially mediates effects Our study provides a trailblazing empirical major influencing SMEs’ performance, extending knowledge by emerging economies. paper proposes holistic framework examining through integration transaction-cost concepts. Doi: 10.28991/esj-2021-01295 Full Text: PDF