Open Innovations as Drivers of Sustainability‐Oriented Innovation From Complex Adaptive Systems View: A Study of Pharmerging Markets

ABSTRACT Through the lens of complex adaptive systems theory, this study aims to examine the relationships between open innovation practices and sustainability‐oriented innovation, and the effect of sustainability‐oriented innovation on firm competitiveness. Besides, we uncover the moderating effects of regional innovative milieu and export status. A quantitative survey was conducted using data from 262 pharmaceutical firms in Vietnam. We find that both inbound and outbound open innovation are positively associated with sustainability‐oriented innovation. Sustainability‐oriented innovation is found to significantly enhance firm competitiveness. Besides, the inbound open innovation—sustainability‐oriented innovation linkage is strengthened by a more supportive regional innovative milieu. We also observe that the influence of sustainability‐oriented innovation on firm competitiveness is stronger among non‐exporters. This research advances theoretical understanding and delivers actionable insights to managers, policymakers and scholars committed to navigating the intricate interplay of innovation, sustainability and competitive success.