Open innovation (OI) is becoming a frequent and necessary strategy for maintaining a competitive edge in the face of increasing competition and reliance on external partners. The purpose of this study is to explore the causal association among OI and long-term competitive advantage (CA), as well as the moderating effect of technological capabilities, based on the approach competence-competitive advantage paradigm and the dynamic capability (DC) perspective.
A quantitative approach was used, involving a survey with 680 completed responses from high-tech businesses in India. The structural equation modelling, linear regression and statistical tools such as AMOS and SPSS were used for the analysis.
The results of this study disclose that sensing, reconfiguring and seizing capabilities significantly contribute to CA. However, while technological capabilities moderately enhance the relationship between reconfiguring and seizing capabilities, they do not significantly moderate the connection among CA and sensing capability.
This study’s findings demonstrate the vital importance of OI as well as DC. This study also enables businesses to gain and hold onto a CA, particularly through the interaction of capacities for sensing, reconfiguring and seizing. The findings reveal that sensing, reconfiguring and seizing capabilities are integral to the technological capabilities’ framework, further supporting the argument that DCs form a core foundation for competitive positioning.
