Open innovation, dynamic competitiveness, and organizational resilience among msmes in baubau city, Indonesia

This study examines how open innovation relates to dynamic competitiveness and organizational resilience among micro, small, and medium enterprises (MSMEs) in Baubau City, Indonesia, drawing on the Dynamic Capabilities View. Survey data from 100 purposively selected MSME actors were analyzed using PLS-SEM. Open innovation was positively associated with dynamic competitiveness (β = 0.611) and organizational resilience (β = 0.306), and dynamic competitiveness with organizational resilience (β = 0.636; indirect effect = 0.388; all p < .001). However, discriminant validity between dynamic competitiveness and organizational resilience was not established (HTMT = 0.977, 95% CI [0.883, 1.068]), so this path and the mediation cannot be interpreted as relationships between distinct constructs. MSME support programs should connect firms to external knowledge and help them apply it, and program evaluations should measure competitiveness and resilience with distinct indicators. The conclusions are limited to this single-city, cross-sectional setting.