Author(s): Arif Hartono
Although previous studies on innovation barriers have been conducted, in the context of Indonesian firms, the studies that link innovation barriers to open innovation practices that consist of external knowledge search breadth and depth do not exist. Hence, this study intends to narrow this gap by using innovation data derived from Indonesia Innovation Survey. This study sheds the light on how Indonesian firms’ source external knowledge widely and deeply as a response to different innovation barriers. Barriers to innovation can be grouped into market and institution, employee and organization attitudes, financial and risk, and knowledge and cooperation. Of the four innovation barriers groups, only barriers related to employee and organization attitudes are positively and significantly influence both external search breadth and depth. Smaller firms are more likely to use breadth of openness in their innovation than larger firms. Exporters tend to use depth of openness in innovation when they face innovation constraints. Lastly, the implication for both theoretical and practical from this study is discussed.