Artificial intelligence innovation, innovation niches and entrepreneurial performance: the curvilinear role of open innovation

Purpose This study aims to examine how artificial intelligence (AI) innovation influences open innovation activities in new ventures, with a focus on the mediating role of innovation niches and the alignment between inbound and outbound open innovation in shaping entrepreneurial performance. Despite growing interest in AI-driven strategies, limited research explores these interactions in the context of emerging economies. Design/methodology/approach Using survey data from 329 high-tech venture founders in Vietnam, the study applies polynomial regression with response surface analysis to test the proposed hypotheses on the relationships between AI innovation, innovation niches, open innovation and entrepreneurial performance. Findings The results show that AI innovation enhances both inbound and outbound open innovation and strengthens innovation niches, which serve as key mediators. Additionally, the polynomial regression with response surface analysis reveals that entrepreneurial performance improves when inbound and outbound open innovation are aligned but declines under conditions of imbalance. This highlights the importance of congruence in open innovation strategies. Practical implications The findings offer actionable insights for entrepreneurs on leveraging AI and strategically balancing inbound and outbound open innovation, especially in emerging markets where resources and innovation capabilities are often limited. Originality/value This study contributes to the literature by integrating AI innovation, innovation niches and open innovation strategies into a unified framework. It offers novel empirical insights using PRRSA and responds to recent calls to understand how AI influences entrepreneurial strategies, particularly in resource-constrained and transitional economies like Vietnam.