Knowledge Development for Pursuing Open Innovation in Service Industry: A Dynamic Capability Perspective

This research analyzes how knowledge developed by companies using dynamic capabilities can support open innovation. Most previous research has analyzed dynamic capabilities and open innovation separately. The interplay between the two has yet to be discussed much; this is the research gap analyzed in this study. An exploratory case study in firms operating in the hospitality industry was selected because most previous research was undertaken in the manufacturing sector. Our analysis of qualitative data collected from various sources identified two main capabilities for supporting open innovation: knowledge sensitivity capability and dynamic knowledge conversion capability. Further, we developed a framework explaining how firms can pursue open innovation using dynamic capabilities. A single case study enabled researchers to conduct depth and detailed analysis, but its generalizability has been criticized. Future research can analyze the framework developed in this research using surveys in large-size samples.