This study explores the role of outbound open innovation (OI) in a firm’s financial and innovation performance among New Zealand (NZ) firms undertaking collaboration. While innovation is fundamental for firms’ survival and growth, today’s dynamic business environment makes it difficult for companies to succeed in both the R&D and commercialisation stages. The OI approach enables firms to disperse the risks of failure by sharing and pooling their capital, resources, knowledge, and networks so that they can continue with innovation projects even in adverse business conditions. However, the influence of OI on the performance of NZ businesses is largely unknown. The uniqueness of NZ businesses, characterised by smaller market size, lower resource availability, and less physical proximity to other leading markets, can be potential barriers to OI performance. Thus, it is essential to investigate how OI contributes to NZ businesses. Further, this thesis identifies the lack of research relating to the outbound dimension of OI strategies (i.e., Selling OI and Revealing OI), as opposed to the more common focus on inbound OI (Sourcing OI and Acquiring OI). This thesis explores the research question: what are the effects of outbound OI and the moderating role of environmental factors on a firm’s performance? Using survey data from 103 NZ firms and undertaking an ordinary least squares (OLS) regression, results show that Selling OI has a direct impact on financial performance, while it does not relate to innovation performance. Conversely, Revealing OI influences a firm’s innovation performance but not its financial performance. However, mediation analysis uncovered that Revealing OI has a strong and positive indirect effect on financial performance through innovation performance. Lastly, moderation analysis indicated that outbound OI is more effective for firms operating in a technologically fast-moving industry, compared to a low technologically turbulent industry. Because of complex business dynamics and uncertainty, many firms, specifically those who are resource constrained, struggle to develop the relevant resources and skills for the successful commercialisation of their R&D projects. Thus, outbound OI and drawing on external partners’ commercialisation resources might be key. The implications for research and business practice are discussed.