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September 5, 2026InnovationOpen Access

Relationship between product market strategy and inbound open innovation: evidence from Japanese firms

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Authors

NSNaohiro Sawada

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Overview

Survey-based study reveals external knowledge sourcing boosts innovation under cost leadership but not differentiation, highlighting market strategy as a critical boundary condition.

Key Points

  • To evaluate how generic product market strategies, specifically cost leadership and differentiation, moderate the relationship between inbound open innovation and firm innovation performance.
  • Surveyed 242 chief technology officers and research and development directors across publicly listed industrial firms in Japan, linked with archival financial records.
  • Operationalized inbound open innovation via measures of external search breadth and search depth.
  • Analyzed the moderating effects of market strategies using hierarchical ordinary least squares regressions.
  • Both external search breadth and search depth significantly enhanced innovation performance among firms pursuing a cost leadership strategy.
  • Neither external search breadth nor depth improved innovation performance for firms utilizing a differentiation strategy, despite differentiation maintaining an independent positive link with innovation performance.

Cite This Study

Naohiro Sawada (2026) studied this question.

synapsesocial.com/papers/6a9bd4346b95aff0620ebb6chttps://doi.org/10.1080/14479338.2026.2726760
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