Inbound open innovation in SMEs: A microfoundations perspective of dynamic capabilities

This study investigates how the technological capabilities of SMEs influence their inbound open innovation (OI) activities. We investigate the heterogeneity of OI strategies by examining SMEs' profiles. Drawing on the dynamic capabilities theory, we focus on the sensing, seizing, and reconfiguring capabilities of firms. We empirically analyze the data using a configurational approach to validate the taxonomy of inbound OI. Based on a sample of 634 SMEs in Canada, the results confirm that the microfoundations perspective is an appropriate framework for capturing SMEs' heterogeneity in terms of characteristics and openness. Overall, we found a positive relationship between the sensing, seizing, and reconfiguring capabilities. Surprisingly, some conventional SMEs capabilities such as internal R&D activities are not associated with openness. We discuss these results along with their theoretical and practical implications.