Innovation Ecosystem Paradox: How Strong External Support Weakens Project Management—Sustainability Innovation Link

This study examines the impact of structured internal innovation project management (IPM) practices and external innovation ecosystem (IE) characteristics on sustainable and responsible innovation (SRI) in EU widening countries. Using a two-stage Delphi-informed survey of 100 firms across Bosnia and Herzegovina, North Macedonia, Albania, and Serbia, the research applies moderated multiple regression analysis to examine the interplay between internal processes and external ecosystem maturity. Results show that both structured innovation phases and tools have a positive impact on SRI. However, while innovation phases consistently enhance SRI regardless of ecosystem conditions, the effect of innovation tools weakens in stronger ecosystems, suggesting a resource substitution dynamic. These findings challenge the assumption that greater ecosystem support uniformly improves innovation outcomes. The study contributes to the theoretical integration of the Resource-Based View and Innovation Ecosystem Theory, highlighting context-specific conditions in transitional economies. Practical implications are offered for managers and policymakers; firms in weaker ecosystems should prioritize building internal innovation capabilities, while those in mature ecosystems may gain more from leveraging external collaborations. The research advances debates on sustainable innovation strategies by showing how the effectiveness of internal management practices depends on ecosystem maturity, offering insights for both policy interventions and strategic innovation management in developing economies.