The effect of external search depth on innovation performance: the mediating role of organisational innovation

Abstract

Much research has been done to examine the positive effect of external search depth on innovation performance. However, litter has been known about the process through which external search depth lead to innovation performance. This study examined the mediating effect of organisational innovation, which defined as enactment of newly made process, practice, and structure to reach a firm’s goal, on the relationship between external search depth. We considered three types of organisational innovation such as the change of process, introduction of organisational structure to enhance the cooperation, and the encouragement of the cooperation using 3,442 firms in Korea. The results suggested that external search depth is positively associated with innovation performance. In addition, we found that organisational innovation mediated the main relationship. This study contributes to the current innovation literature by providing the evidence on the mediating effect of organisational innovation. © 2023 Inderscience Enterprises Ltd.. All rights reserved.