Network embeddedness and inbound open innovation practice: The moderating role of technology cluster

Inbound open innovation has become a prevalent innovation strategy used to strengthen firms' technology competitiveness in the fast-changing industrial and technological environment. The effective governance of firms' ego-centered innovation networks to facilitate and accelerate inbound open innovation practice is the main concern of scholars and firm leaders. In this paper, we elucidate the impact of network embeddedness on inbound open innovation practice by considering technology cluster an important moderator. We conduct a patent citation network analysis and a hierarchical regression analysis to empirically study the patent citation data of four emerging high-tech industries according to the stages of their industrial technology development. Our results show that during the initial and growth stages of industrial technology development, the centrality and network reach of a firm's network embeddedness exert a positive impact on the inbound open innovation practice. This relationship is positively moderated by clustering and the bridging ties of the technology cluster in which the firm is involved. During the stable stage, only the network reach improves firms' inbound open innovation practice, while centrality becomes a hazard. Furthermore, clustering decreases the negative effect of centrality and enhances the positive effect of network reach. Bridging ties show no moderating effect. Our findings deepen the understanding of scholars and practitioners regarding how inbound open innovation practice varies in different innovation network settings at both the firm and cluster levels. •A firm's network embeddedness is a significant antecedent of its inbound open innovation practice.•The effect of network embeddedness varies during different stage of industrial technology development•Technology cluster is an important moderator between firm's network embeddedness and inbound open innovation practice•The moderating effect of technology cluster also varies during different stage of industrial technology development.