Abstract
Research on board capital has consistently proven its importance for firm performance. However, the impact of board capital and renewing board members on open innovation (OI) practice is little explored. “Board capital” is the total resources that are embedded within, accessible through, and obtained from the network of relationships possessed by Board members. Thus, using the Board Human and Social Capital theory from the perspective of the Board of Directors, this study examines the board's role in a firm’s OI practice and explores how OI practices mediate the effect of the board on a firm's financial performance. Empirical evidence using 2859 firm-years for Indian high-tech firms from 2013 to 2022 shows that board capital and renewal with new members are related to firms’ financial performance. OI practice partially mediates the relationship. This paper illustrates several implications and provides scope for future research on the board's tasks and open innovation paradigm.