The Impact of External Knowledge, Internal Innovation and R&D on the Performance of Open Innovation in an Organization: Empirical Evidence from Indonesian SMES

The aim of this paper is to investigate the impact of external knowledge and internal innovation on the performance of open innovation in small and medium enterprises (SMEs) in Indonesia. In addition, this paper also examined the impact of R&D as a mediator between variables. The research method used in this study is quantitative research using a 5 point Likert scale measurement. Samples were taken by distributing questionnaires in April-May 2020 to 204 CEOs of SMEs in Indonesia and the data were analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. The results obtained showed that the external knowledge, internal knowledge, and R&D all has a positive and significant impact on the performance of open innovation in an organization.