Examining the Role of Open Innovation in Enhancing Sustainability and Reputation of Indonesian SMEs

This study analyzed the role of open innovation in improving sustainability and reputation of small and medium enterprises (SMEs) in Indonesia.In this study, we use Partial Least Square with Structural Equation Modeling (PLS-SEM) to analyze survey data from 360 SME owners in Indonesia chosen using purposive sampling.The samples are chosen through certain characteristics that they have been running the business for at least 3 years to ensure they have experienced the dynamics within the business environment.Results showed technology opportunities and network resources positively influenced sustainability, which in turn enhanced reputation.Additionally, open innovation positively moderated the relationship between technology opportunities and network resources.Despite limitations in sampling and methods, the findings provide useful implications for SMEs to leverage open innovation capabilities and external collaborations to drive their sustainability and build reputation in order to win competition in the industry.Further research incorporating additional individual and organizational factors is warranted.