Enriching innovation generation through external technology scouting in an uncertain technological environment

Abstract

Open search, especially external technology scouting, is commonly used by firms to achieve superior innovation outputs. Drawing on a knowledge-based perspective on open innovation, we introduce a new theoretical model, the external technology scouting model of innovation outputs, to explain how technology scouting and absorptive capability predict firms' innovation generation in an uncertain technological environment. Using a sample of 236 high-technology firms, we examine main, two-way and three-way interaction effects for measures of innovation generation. Overall, the results suggest that external technology scouting enhances innovation generation by improving the absorptive capability in an uncertain technological environment; these findings have notable managerial and research implications.