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Information technology capability, open technological innovation and firm growth
Weizhi Yao1,2,3, Lianshui Li1,3,4
1School of Economics and Management, Southeast University, Nanjing, China.
Plos One
|October 24, 2023
Summary
Information technology (IT) capability boosts firm growth by enabling open technological innovation. This study highlights how IT flexibility and integration drive growth, with open innovation acting as a key mediator in Chinese new ventures.
Area of Science:
- Business and Management
- Information Systems
Background:
- Understanding the drivers of firm growth is crucial for new ventures.
- Information technology (IT) capability is increasingly recognized as a strategic asset.
- Open technological innovation offers new pathways for growth.
Purpose of the Study:
- To examine the impact of IT capability on firm growth.
- To investigate the mediating role of open technological innovation.
- To analyze these relationships within Chinese new ventures.
Main Methods:
- Logical deductive approach for hypothesis development.
- Empirical data collected from 256 Chinese new ventures.
- Regression analysis and structural equation modeling for data analysis.
Main Results:
- IT capability, encompassing flexibility and integration, significantly drives firm growth.
- Open technological innovation partially mediates the IT flexibility-firm growth link.
- Open technological innovation significantly mediates the IT integration-firm growth link.
Conclusions:
- IT capability is a vital determinant of firm growth, enhanced by open innovation.
- Findings offer practical insights for managers in the sharing economy.
- This research pioneers the study of IT capability, open innovation, and firm growth in China.
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