Abstract:Based on the performance feedback theory and the theory of corporate behaviour, the OLS benchmark regression model was used to explore the impact of the duration and scope of performance expectation gap on the open innovation of firms under the regulation of market competition with a sample of Chinese A-share listed companies in Shanghai and Shenzhen from 2015 to 2022. The results show that the increase in the duration and scope of performance expectation gap leads to an imbalance between firms' motivation and ability to open innovation, which consistently reduces firms' open innovation performance, and the strong external market competition can effectively inhibit its negative effect. Mechanism analysis reveals that R&D investment plays a significant masking effect in the relationship between the duration and scope of performance expectation gap on firms' open innovation, and the main effect is partially cancelled out. The above conclusions provide lessons for promoting scientific innovation and openness decision-making in performance-struggling enterprises and breaking the trap of "ignorant openness and blind openness".