Institutional voids and innovation governance: A conceptual exposition of the open versus closed architecture choice

Abstract

Abstract The choice of open versus closed innovation is shaped by the interplay between firms' analytical orientation and the institutional conditions within firms' operating environments. Whereas there is a plethora of research about the antecedents of innovation performance, there is a lack of understanding about the factors affecting and influencing innovation governance. Regulatory, normative, and cognitive institutional voids have differential impacts on the choice of open versus closed innovation. Firms' analytical orientation, political connections, and collaborating partners' home country institutions moderate the effect of institutional voids on innovation governance.