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

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.