Innovation Ecological Networks and Sustainable Performance: The Mediating Role of Open Innovation

Abstract

This study investigates the impact of innovation ecological networks (EN) on sustainable business model innovation (SBMI) and the three dimensions of sustainability performance (economic, environmental, and social) among small and medium-sized enterprises (SMEs) in Vietnam. It further examines the mediating roles of inbound open innovation (IOI) and outbound open innovation (OOI), as well as the moderating role of absorptive capacity (AC). Employing a mixed-methods approach, the study combines expert interviews to refine and validate the measurement scales with a formal survey of SME managers in Vietnam. Of the 602 questionnaires distributed, 380 valid responses were retained for analysis using partial least squares structural equation modeling (PLS-SEM) with SmartPLS software. The findings reveal that EN has a significant positive effect on SBMI, both directly and indirectly through IOI, whereas the indirect effect through OOI is not statistically significant. The results also indicate that both IOI and OOI positively influence SBMI, although the effect of IOI is substantially stronger. Furthermore, absorptive capacity significantly strengthens the relationship between IOI and SBMI, while its moderating effect on the OOI-SBMI relationship is not statistically significant. These findings suggest that firms derive greater benefits from acquiring and utilizing external knowledge than from exploiting knowledge through outbound innovation activities. Furthermore, SBMI significantly enhances all three dimensions of sustainability performance, with the strongest effect observed on social performance, followed by economic and environmental performance. This study contributes to literature by proposing and validating an integrated framework linking innovation ecological networks, open innovation, absorptive capacity, sustainable business model innovation, and sustainability performance. It also provides valuable managerial insights for SMEs seeking to leverage ecosystem resources, strengthen absorptive capacity, and transform external knowledge into sustainable competitive advantage and long-term sustainability outcomes.