Technological Capabilities as Enablers for Sustainable Open Innovation Activities: A Case of Small and Medium Enterprises in Uganda

Technological advancements, economic fluctuations, and shifting market demands have compelled organizations to become more innovative and competitive. In this regard, Small and Medium Enterprises (SMEs) have adopted new business models based on sustainable open innovation, enabling them to compete in sustainable market segments. Technological capability is an intangible resource that drives sustainable open innovation. Despite their importance, technological capabilities remain unrecognized in the current stream of research. Little is known about the technological capabilities that enable SMEs to achieve sustainable open innovation. To address this gap, this study adopts the resource‐based view (RBV) theory and collects data using interviews from 24 Ugandan‐based SMEs and four hubs that engage in digital innovations. The data were analyzed qualitatively using a thematic analysis based on the RBV. The study presents nine propositions that relate technological capabilities to sustainable open innovation activities. Moreover, it provides a taxonomy of RBV resources, sustainable open innovation activities, and the technological capabilities that enable them. Our study contributes to research on technological capabilities as an emerging domain for potential contributions to sustainable open innovation, arguing for future work on testing the propositions in the context of SMEs' performance.