The Impact of Open Innovation on the Performance of Multinational Corporations in Emerging Markets: an Empirical Study

Farouk Umar Kofar Naisa (), Enjun Xia (), Abdul Gaffar Khan (), Muhammad Shaheer Nuhu (), Adams Adeiza () and Mohammed Sani Abdullahi ()
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Farouk Umar Kofar Naisa: Beijing Institute of Technology
Enjun Xia: Beijing Institute of Technology
Abdul Gaffar Khan: Mawlana Bhashani Science and Technology University
Muhammad Shaheer Nuhu: Multimedia University
Adams Adeiza: Universiti Malaysia Kelantan, Malaysian Graduate School of Entrepreneurship and Business (MGSEB)
Mohammed Sani Abdullahi: King Fahd University of Petroleum and Minerals

Journal of the Knowledge Economy, 2025, vol. 16, issue 3, No 27, 11767 pages

Abstract: Abstract This study investigates the direct impact of technological sophistication (TS), international entrepreneurial orientation (IEO), and a culture of innovation (OCI) on organizational performance, as well as the moderating role of open innovation (OI) in influencing the relationship between TS, IEO, OCI, and the performance of Multinational corporations (MNCs) operating in emerging markets in Africa. Specifically, this study seeks to unravel the dynamic interplay between collaborative innovation strategies and corporate success in rapidly evolving economies, providing valuable insights for both academic research and practical business strategies in the global landscape. Data analysis was conducted with data collected from 352 individuals who completed a study questionnaire. A key aspect of this analysis is the utilization of Structural Equation Modelling (SEM to analyse quantitative primary data that was collected via a structured questionnaire from a diverse sample of manufacturing and service-oriented Multinational Corporations (MNCs) serving in emerging African markets, to elucidate the tangible effects of open innovation on corporate achievement indicators. First, a content validity served as a prerequisite estimation strategy and then a confirmatory factor analysis was later conducted for the robustness of results and key findings. As an analytical strategy, first the study conducted a pilot test and then set up a minimum criterion for the questionnaire distribution based on some certain indicators such as the number of operational branches across regions, market presence, advertising capacity, and staff strength were considered in this determination The findings reveal that IEO, TS, and OCI significantly affect performance, and OI moderates the relationships between these factors and performance. Specifically, OI enhances the strength of this process with the presence of high degree. Notably, MNCs with an international entrepreneurial orientation in African markets can influence government market policies, contributing to the understanding of dynamic abilities in international business within emerging economies. These results offer valuable insights for enhancing MNC performance in emerging economies by systematically integrating advanced technologies and a unique international entrepreneurial orientation within their organizational culture of innovation. The study also underscores the originality and value of exploring the impact of technology, culture of innovation, and IEO on business continuity in international emerging markets.

Keywords: Culture of innovation; Open innovation; Performance; International entrepreneurial orientation; Technology sophistication; Multinational corporation (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02311-2

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