A Framework of Interfirm Open Innovation: Relationship and Knowledge Based Perspectives

Purpose This manuscript aims to integrate the relationship and knowledge-based theoretical perspectives of open innovation to provide a framework that identifies and classifies eight critical dimensions that influence the effectiveness of interfirm open innovation. Design/methodology/approach The literature on interfirm open innovation is reviewed. Internal firm factors and external interfirm factors of open innovation are explored. Findings The manuscript identifies four internal firm factors of absorptive capacity, control of knowledge input, relational capability and coordination capability. Further, the synthesis identifies four external firm factors of distribution of knowledge input, appropriation of knowledge output, network position and network diversity. Practical implications The organizing framework facilitates the development of eight research propositions to guide future empirical investigation. Moreover, the findings aid managers in understanding what dimensions they should consider to improve the effectiveness of their interfirm open innovation activities. Originality/value By considering both the relationship and knowledge-based perspectives, the manuscript integrates various perspectives of open innovation to provide direction for practicing managers and for future research on interfirm open innovation.