Influence of inbound and outbound open innovation practices on performance of firms: an evidence from Indian product SMEs

Purpose: This study aims to analyze the influence of inbound and outbound open innovation practices on firm performance among Indian product small and medium-sized enterprises. Design/methodology/approach: A cross-sectional design with a quantitative approach is adopted. The data is collected from 213 decision-makers of software product firms through an online survey using the criteria-based snowball sampling method. The data is processed in IBM SPSS 23.0 and analyzed using multiple regression. Findings: Collaboration with customers and purchasing intellectual property rights (IPR) are the key inbound practices that positively influence firm performance. Outbound innovation practices such as selling out IPR and spin-off influence firm performance negatively and positively, respectively. Inbound open innovation practice such as trade show participation helps in product development and outbound open innovation practice such as spin-off helps in product development. Originality/value: The study analyses the influences of inbound and outbound open innovation practices on firm performance among software product firms in emerging economies. The research outcomes have vast implications for theory and practitioners.