Effects of open innovation on eco-innovation in meta-organizations: evidence from Korean SMEs

In meta-organizations, the collaborative trust relationship for a collective goal is common. In this study, we aim to address the central premise of how knowledge-sharing networks in meta-organizations can serve as important sources for emerging-market small and medium-sized enterprises (ESMEs) to implement open innovation. To achieve this, we have developed a unique research framework that combines theoretical and empirical approaches. Our framework allows us to precisely understand how SMEs in emerging markets can benefit from both the breadth and depth of external knowledge search through these networks. In particular, we examine whether the breadth and depth of an external knowledge search improves the product and process innovation performance. Moreover, we verify how those innovative performances invigorate eco-innovation, which can be an engine for environmental sustainability, within meta-organization. Based on a sample of 185 SMEs in South Korea, our empirical results demonstrate that the breadth and depth of an external knowledge search positively affects product and process innovation, respectively. In addition, we find that ESMEs’ product innovation contributes positively to eco-innovation achievement, whereas ESMEs’ process innovation contributes insignificantly to their eco-innovation in a meta-organization. We make significant contributions to the literature by examining the roles of ESMEs’ open innovation strategies in a meta-organization, as well as their product and process innovation in explaining eco-innovation.