This study examines the effect of open innovation on product innovation among Korean service firms, focusing on service startups, and investigates the moderating role of entrepreneurial orientation. Using data from the 2021 Korean Innovation Survey of...
This study examines the effect of open innovation on product innovation among Korean service firms, focusing on service startups, and investigates the moderating role of entrepreneurial orientation. Using data from the 2021 Korean Innovation Survey of service firms, results show that open innovation positively influences product innovation, with stronger effects observed in startups.
Entrepreneurial orientation overall shows a negative association with product innovation, but its sub-dimensions differ. Innovativeness and risk-taking enhance product innovation, while proactiveness, autonomy, and competitive aggressiveness hinder it. Moreover, in firms with high entrepreneurial orientation, open innovation more effectively leads to product innovation, especially in proactive firms whereas this effect weakens when risk-taking is high. These results suggest that the impact of open innovation varies according to firms’ internal orientations.
This study contributes to the literature by empirically demonstrating the moderating effect of entrepreneurial orientation on the relationship between open innovation and innovation performance. By distinguishing the heterogeneous effects of its sub-dimensions, the study reveals that open innovation outcomes depend on firms’ internal characteristics and strategic attitudes. Our findings extend the discussion of open innovation across industries and firm life cycles, providing practical insights for innovation policies and management strategies in service firms and startups.