The impact of digitization capabilities on open innovation in small manufacturing businesses

Document Type : definition

Authors

1 MSc Business Administration, Rahbord Shomal Guilan, Iran

2 MSc Business Administration. Azad university, Gilan, Iran

3 phd student at allame tabatabaei university

10.22034/bs.2023.2000164.2775

Abstract

Small manufacturing companies, as the main body of the national and industrial innovation system, need to realize open innovation through digitization capabilities to gain competitive advantage in the digital economy. However, existing researches are based on review studies and retrospective data, which has led to insufficient understanding of the issue. In this regard, the current research aims to investigate the impact of digitalization capabilities on open innovation among small manufacturing businesses. Also, the moderating role of environmental dynamics and managers' digital awareness was also investigated in the model. This research is applied in term of goal, and a descriptive-survey research in terms of data collection method. The statistical population of the research includes the senior managers of small manufacturing companies in Tehran, the sample size was determined by Kline (2005) sample size guidelines for structural equation models, 200 samples, were selected by simple random method. Research data collection tool is a standard questionnaire whose validity and reliability were confirmed. Finally, data analysis by structural equation modeling with SmartPLS software indicates that digitalization capabilities have a positive and significant impact on open innovation in small manufacturing companies. It was also found that environmental dynamism moderates the impact of digitalization capabilities on open innovation. But the moderating role of managers' digital awareness in this direction was not confirmed. These results shed light on the role of digitization capabilities to drive open innovation in small businesses and provide solutions for digital transformation and open innovation of manufacturing companies.

Keywords

Main Subjects



Articles in Press, Accepted Manuscript
Available Online from 12 June 2023
  • Receive Date: 15 April 2023
  • Revise Date: 15 May 2023
  • Accept Date: 28 May 2023