A Moderated Model of Open Innovation: An Integration of Theories of Constraint and Dynamic Capabilities

Abstract

The development of digital technologies, including big data, analytics, blockchain, cloud, and social media, has resulted in a rise in the creation and deployment of digital transformation (DT) strategies by organizations. An organization's value propositions can be improved with the help of DT, creating a new organizational identity. Although DT can help companies develop open innovation as a new value proposition, the external operating constraints of the company may limit the use of this strategy. However, previous studies have not investigated the processes that limit the effects of DT on open innovation. We create a moderated explanatory model that explores the relationships between DT and open innovation. It is based on the theories of constraint and dynamic capability. The results of our study show that, when using DT for open innovation, knowledge acquisition and environmental turbulence possess distinct potentials. The results of our investigation have theoretical and practical ramifications.