7. Conclusion
This paper focuses on the current links between leadership, open innovation and knowledge management in the international business context. Open innovation (OI) has become a valuable means of gaining competitive advantage and enhancing organizational performance. To the best of our knowledge there is limited study that has explored how knowledge-oriented leadership influences innovation in the OI paradigm. Due to rapid changes in technology and market conditions, it has become necessary for MNEs to abandon their traditional innovation models and adopt the OI model. In order to be innovative in today’s world, MNEs are keen to let go off their traditional innovation models and adopt models that are inward as well as outward-looking. As a result, this paper identifies how specific leadership style (knowledge oriented leadership) influence OI and how KM capability of a MNE can affect the associations between leadership styles and OI. In doing so, firms are required to be competent in managing their knowledge resources which can serve as crucial strategic resources for MNEs.
The data collected from the MNEs based in France fully support four hypotheses, which implies that knowledge-oriented leadership and KM capability matter for open innovation in the MNE environment. The study discusses and analyzes the knowledge-oriented leadership that has an impact on open innovation. Previous research focused on identifying the open innovation that promote innovation in general without adding the role that KM capabilities plays in that process. It was essential to understand the effect of knowledge-oriented leadership on open innovation using KM capabilities as mediators. Our model tested the often assumed direct and positive relationship between knowledgeoriented leadership and open innovation while also attempted to understand the effect of knowledge-oriented leadership on open innovation, using KM capabilities as mediators. By testing four hypotheses, this study finds that knowledge-oriented leadership has a statistically significant effect on KM capabilities, inbound and outbound open innovation. It also shows that KM capability is the mediating factor between knowledge-oriented leadership and open innovation.