The Influence of Open Innovation Practices on Competitive Advantage in Emerging Markets: An Empirical Study Based on the Chinese Market

Abstract

This research examines the influence of open innovation (OI) methods on competitive advantage in emerging markets, particularly concerning Chinese enterprises. An analysis of the contributions of inbound, outward, and linked innovation processes to market performance, profitability, and innovation capacities offers a thorough knowledge of the function of open innovation in resource-constrained situations. The study utilises a quantitative survey methodology, collecting data from several businesses to evaluate the correlation between open innovation policies and competitive results. The study also investigates the moderating effects of contextual factors, including business size, industrial sector, and collaboration intensity, elucidating their impact on the efficacy of open innovation techniques. The results indicate that OI markedly improves competitive advantage, especially when companies combine collaborative methods with strategic internal initiatives. The study identifies significant deficiencies in existing literature by investigating the insufficiently analysed dynamics of Open Innovation in non-Western settings, particularly China, and offers pragmatic suggestions for managers and policymakers in emerging markets. The conclusion offers recommendations for future study aimed at applying these findings to various locations and industries, highlighting the necessity for comparative and longitudinal studies to enhance the comprehension of OI across different economic contexts.