The importance of technological innovation in the small and medium-sized enterprises (SMEs) has been significant impacts on the survival and growth of companies. So, each company has been working for more effective technological innovation. Recently to improve such technological innovation, the importance of open innovation, which is focused on the use of external sources, has increased. However, most existing literatures are the studies for general firms, and the studies of characteristics for open innovation and performance of SMEs are relatively insufficient. In particular, the existing empirical studies of open innovation mainly investigate relationships among firm’s internal and external factors, but it is difficult to find that these precedent factors influence open innovation activities and finally effect on the open innovation performance. This paper carried out this empirical study focusing on a structural model – that is, inputs of innovation influence on the process of open innovation activities and finally influence on outputs [open innovation performance] as results of these processes. Results show that technical innovation capabilities among internal factors have positive effects on open innovation activities and open innovation performance, but entrepreneurship does not have a significant effect on open innovation activities, and have a positive effect on open innovation performance. In addition, market competition level and technological change level as external factors show have significant effects on open innovation activities and open innovation performance. Finally, absorptive capacity between open innovation activities and open innovation performance shows positive moderating effects. Through theses results, SMEs has largely been influenced by internal factors as well as by external factors such as market competition level, technological change level, etc. This paper also draws on an implication that SMEs need to construct open organizational culture to enhance their open innovation performance. Furthermore, we can find that firms should enhance basic absorptive capacities to increase firm’s final open innovation performance although technological innovation capabilities of a firm are important.