Abstract:This research focuses on how network embeddedness and knowledge search impact on firm’s open innovation performance. Using survey data of OFDI firms in china, this study finds broad support for the proposed analytical framework of open innovation. The results show: network relational width, relational density and structure intensity have a U-shape effect on open innovation performance. The results also suggest that they have a positive interaction effect on open innovation performance between search breadth and relational density, search breadth and structure intensity, search depth and relational width, while a negative interaction effect on open innovation performance between search breadth and relational width, search depth and relational density, search depth and structure intensity. Overall, these findings provide important implications for OFDI firms open innovation in china.