Inbound Open Innovation in Construction Firms: Intellectual Capital Antecedents and Performance Consequences

Research on open innovation in the construction industry is limited, particularly regarding the antecedents facilitating inbound open innovation and its implications for firm performance. This study examined the influence of intellectual capital (IC) on inbound open innovation (Inbound OI) and its subsequent impact on the performance of construction firms. Additionally, it explored the role of inbound OI in translating intellectual capital into firm performance. Data were collected from 130 construction contracting and consulting firms in Ghana through a survey. Structural equation modelling results indicate that human capital and structural capital directly influence inbound OI, while relational capital does not. Inbound OI positively affects firm performance (FP) linearly but shows a curvilinear (inverted U-shaped) relationship with FP at higher levels of inbound OI. Inbound OI partially mediates the effects of human and structural capital on FP but does not mediate the relationship between relational capital and FP. This study contributes to literature on open innovation by showing the influence of intangible knowledge assets on construction firm’s inbound OI activities. It also shows the intermediary role of inbound open innovation in linking three IC dimensions with FP, hence the path dependent processes to enhance performance through intellectual capital to facilitate inbound OI.