Exploring Organizational Barriers to Embracing External Open Innovation: A Study of Resistance Factors in the Tanzanian SME Landscape

This study examines the impact of communication overload (CO), information overload (IO), and choice overload (CHO) on anticipated regret (ANR), anxiety (ANX), and resistance to external open innovation (ROI) among small and medium-sized enterprises (SMEs) in Tanzania. 313 respondents from Tanzanian SMEs took part in this study through self-guided survey. Utilizing partial least squares structural equation modeling (PLS-SEM), the study tests several hypotheses to understand both direct and moderating effects, with cognitive engagement (CE) as a moderating variable. The results indicate that CO and IO positively influence ANR, while IO also significantly increases ANX. CHO is found to positively affect ANR but not ANX. Both ANR and ANX are shown to positively impact ROI. Moreover, CE moderates the relationship between IO and ROI, reducing the negative effects of IO on ROI. These findings offer theoretical and practical implications for SMEs aiming to manage information and communication effectively to foster innovation. The research emphasizes the significance of cognitive engagement and offers specific recommendations for mitigating the adverse effects of overload, underscoring the necessity of specialized cognitive training and literacy programs. Future investigations should tackle the current study’s limitations, such as its geographical emphasis, and offer a broader comprehension of these dynamics in diverse settings.