The Effects of Social Capital and Open Innovation on R&D Outcomes and Job Satisfaction : A Study of The Indian Deference Sector
Patel, Mitra Kumar
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Social Capital and Open Innovation are important for organisational growth, as both of them influence Innovation, Learning and Job Satisfaction. The literature indicates that informal network measured as social capital and formal network measured as open innovation influences positively to organizational innovation performance, learning and job satisfaction. Most of the studies in this area have been carried out using univariate approaches, and only few dimensions of both Social Capital and Open Innovation have been considered. Current literature outlines the positive influence of Social Capital and Open Innovation on Learning, Innovation and Job Satisfaction. In this study, an attempt has been made to develop a multi-dimensional framework for Social Capital and Open Innovation, in order to better understand the nuances of Learning, Innovation and Job Satisfaction in an R&D setting. Another important factor influencing the R&D outcomes is Absorptive Capacity; it is the capacity of the organisation to identify and use external knowledge. The direct and moderating role of Absorptive Capacity has been examined. Both theoretical and conceptual models have been proposed, and a measurement scale in form of a questionnaire has been developed. Data was collected from 35 organisations across India operating in the field of defence R&D. The sample included Government-run R&D organisations, Public Sector Units (PSUs) and private firms, and total of 331 engineers/scientists responded to the survey. Data was analysed using statistical methods such as Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), Common Method Variance (CMV), and Analysis of Variance (ANOVA). Reliability and validity of the proposed scales for the constructs have been verified using appropriate techniques, and further inferences have been drawn by using regression techniques and Structural Equation Modeling (SEM) to assess the proposed relationships. It has been found that both Social Capital and Open Innovation have positive influence on Learning, Innovation and Job Satisfaction. Further, it was found that Absorptive Capacity had a positive association with both Innovation and Learning. However, Absorptive Capacity did not moderate the relationship of Social Capital with both Innovation and Learning, but was found to moderate the relationship between Open Innovation and Innovation, for both outbound and inbound approaches of Open Innovation. Bonding Social Capital had a relatively stronger positive association with Learning, while Bridging Social Capital was found to have a stronger relationship with Innovation. In summary, networking factors Social Capital and Open Innovation have strong positive association with R&D outcomes measured as innovation performance, learning and job satisfaction.