OPEN INNOVATION ECOSYSTEMS IN THE INTERNATIONALIZATION PROCESS OF HIGH-TECH BORN GLOBAL FIRMS IN CHINA

Abstract:

Taking part in different open innovation ecosystems (OIEs) can foster firm’s internationalization process. In accelerating the process into foreign markets, product innovation needs to be prioritized in order to adapt to unfamiliar environments, technological advancements, and temporal constraints. Although open innovation ecosystems (OIEs) present a solution to this resource scarcity by providing a platform for efficient resource exchange, cost-effective, and flexible innovation, yet recent literature revealed that empirical research is still scant associated the OIEs, resources and the internationalization of high-tech born global firms (HTBGs). Drawing from the Resourcebased, Open Innovation Ecosystems, and Born Global perspectives, this study utilizes multiple case study methods and semi-structured interviews to explore how OIEs contribute to the internationalization process of HTBGs from China. The findings demonstrate that inevitably OIEs function as the platforms for resource connection and joint innovation throughout the HTBGs internationalization process. The OIEs not only provide technical knowledge, innovative ideas, key materials, and peripheral innovations for HTBGs to overcome resource-constrained challenges encountered during the product innovation, they also expedite the internationalization process by offering vital international resources such as market knowledge, opportunities to access international networks, legitimacy, reputation, etc., contributing to initial international market entry and international expansion. Theoretical, this study makes a novel contribution through the clarification of the essential role of OIEs in advancing rapid internationalization process of high-tech industry. The study provides practical implications for international business managers and practitioners on the internationalization strategy of firms.