PROF. DR. MASOOD UL HASSAN Role of Innovative Climate on the Relation between Open Innovation and Innovative Performance: A Knowledge Management Perspective from SME sector of Pakistan Presenter ASGHAR IQBAL Ph.D Scholar Department of Commerce, Bahauddin Zakariya University, Multan Co-Author PROF. DR. MASOOD UL HASSAN Department of Commerce, Bahauddin Zakariya University, Multan

Introduction Developing economies must embrace openness, technology and innovation to remain competitive. Investment in innovation & innovative business practices are now highly essential for an economy besides efficient markets, skills & infrastructure. According to Global Competitiveness Report 2017-18, Pakistan stands at 115th number which is highly distress position. Vision 2025 aims to have knowledge economy by promoting ICTs initiatives due to synergic expansion of academic & industrial resources. Pakistan has an ability to improve its knowledge-based industry by fostering the entrepreneurship & innovation. Vision emphasizes the promotion & nurturing of resources at all level through proper utilization of academia and industrial resources which determine the development of a country i.e. innovation, integrity, teamwork, performance. There is a need to make entrepreneurs aware of the fact that innovation is a process which constitutes the sum of other supporting processes occurring in the enterprise (Malik & Biliczak, 2018).

Introduction Organizations need for environmental variables which address the objectives, policies and restructure to acquire the balance between stability and change at all level of organizational change(Hamdan & Kloub, 2013). Knowledge creation is a key mechanism of firms’ innovative behaviour, proactive performance and risk taking attitudes that further exploits the profitable business opportunities (Hassan & Iqbal, 2016). Entrepreneurial Orientation facilitates in knowledge creation that in turn leading the firm to increase its performance, firm’s innovative behaviour, proactive performance and risk taking attitude makes it more knowledgeable (Hassan & Iqbal, 2016). Knowledge creation process assists the firm to exploit its tacit knowledge into firm functioning to enhance success rate of open innovation (Bogers et al., 2016) ICTs play an important role in the practices of KM and proven to be a most affective tool to enhance and advance the knowledge management (Hamad, 2018)

Theoretical Framework

Methodology Non Probability, Purposive Sampling technique Minimum sample of 207 (Hair et al., 2002), 228 responses were selected for analysis Partial Least Square-Structural Equation Modelling (PLS-SEM) Outer Model (Measurement Model) Inner Model (Structure Model) PLS-SEM is most Popular Technique Management Sciences (Hair et al., 2012) Strategic Management (Hair et al., 2012) Accounting (Lee et al., 2011) Family business (Hair et al., 2014) Operations Management (Peng & Lai, 2012) Organizational Sciences (Sosik, Kahai, & Piovoso, 2009).

Findings

Findings

Recommendations Improve knowledge-based industry by fostering the entrepreneurship & innovation in Pakistan Boost up dynamic capabilities like organizational change, management practices, creation, promotion and sharing of knowledge and R&D. Solve the problems like lack of skilled labour, lack of quality management practices, infrastructure of manufacturing firms in Pakistan SMEs to resolve their problem of high cost, lack of market information and lack of knowledge to use new technologies. Promote and nurture the resources at all level through proper utilization of academia and industrial resources which determine the positive thinking, commitment, pursuit of excellence. Settlement of management systems for the exploitation of technological knowledge through the use of patents and intellectual property rights. Firms to look beyond their boundaries and enrich their own knowledge pool through the use of inbound OI

Recommendations The managers to collaborate networks in their innovation strategy, with optimum combinations between their external and internal knowledge through OI practices taking into account the existence of knowledge spill-overs and their absorptive capacity. Promote the sustainable engagement of the organizations and enables efficient deployment of their resources and skills to achieve the visualized objectives. Promote the economic development within the clusters by improving the competitiveness of designated business sectors Strengthen regional infrastructures that also enhance both types of knowledge flows: intentional (open innovative practices) and unintentional (knowledge spill-over) Effective support mechanisms, including mentoring, and skill-building, to those who want to establish innovative ventures in a community setting