Depth and breadth of external knowledge search and performance: The mediating role of absorptive capacity

2015 ◽  
Vol 47 ◽  
pp. 86-97 ◽  
Author(s):  
José Luis Ferreras-Méndez ◽  
Sue Newell ◽  
Anabel Fernández-Mesa ◽  
Joaquín Alegre
Keyword(s):  
Absorptive Capacity ◽  
External Knowledge ◽  
Mediating Role ◽  
Knowledge Search ◽  
And Performance

External knowledge sourcing and innovation in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manzoor Ul Akram ◽  
Koustab Ghosh ◽  
Rojers P. Joseph
Keyword(s):  
Social Capital ◽  
Absorptive Capacity ◽  
Product Innovation ◽  
Family Firms ◽  
Family Firm ◽  
Content Type ◽  
External Knowledge ◽  
Mediating Role ◽  
Realized Absorptive Capacity

Purpose This study aims to investigate the external knowledge search behaviors in terms of search breadth and search depth in family firms and the resultant product innovation in Indian context. The authors theorize the mediating role of absorptive capacity (potential and realized absorptive capacity) between knowledge sourcing from external sources and product innovation. Further, the authors examine the moderating role of crucial internal social capital of the family firm in enhancing the use of external knowledge for firm innovation activities. Design/methodology/approach The study uses a quantitative research design taking single informant for collection of data from 151 family small and medium enterprises in automotive sector in India. The authors use structural equation modeling to test hypothesized relationships. Findings The findings indicate that both search breadth and search depth of family firms are positively associated with product innovation in family firms. The authors also find evidence for partial mediating role of potential and realized absorptive capacity in the relationship between search breadth and innovation and search depth and innovation. The results show how family firms learning taking place while scanning external knowledge sources in terms of external absorptive capacity routines. Finally, the authors find that family firm internal social capital positively moderate the relationship between search breadth and depth, and product innovation. Practical implications Family firms need to innovate to remain relevant in the long-run and as such development of superior capabilities is of great significance to them. Family firm managers must be open to external knowledge as such knowledge help them improve the firm level of innovation through absorptive capacity. Further, family firms must realize and act upon the importance of their social capital for the integration and utilization of acquired knowledge. Originality/value This paper is amongst a few papers that take dynamic capability views of innovation in family firms wherein the authors theorize how external search breadth and depth lead to the development of potential and realized absorptive capacity in family firms. The importance of family firm internal social capital as a strong integrating and knowledge sharing mechanism that helps family firms transform external knowledge into innovation is also highlighted.

Impact of External Knowledge Inflow on Product and Process Innovation of Korean SMEs: Absorptive Capacity as a Mediator

2019 ◽  
Vol 37 (4) ◽  
pp. 219-234 ◽  
Author(s):  
So Won Jeong ◽  
Jae-Eun Chung ◽  
Jung-Sim Roh
Keyword(s):  
Absorptive Capacity ◽  
Process Innovation ◽  
Government Agencies ◽  
External Knowledge ◽  
Mediating Role ◽  
Sources Of Knowledge ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Relationship

We examine the role of external knowledge inflow in improving the product and process innovation of Korean exporting small- and medium-sized enterprises (SMEs) in the textiles, apparel, and footwear industries. Building on the resource-based view (RBV), we investigate how five sources of knowledge inflow (suppliers, customers, competitors, universities, and government agencies) contribute to product and process innovation through absorptive capacity (AC) as a mechanism to explain the link between external knowledge inflow and innovation. Conducting a path analysis, we found that knowledge inflow from customers and government agencies had a positive effect on AC, subsequently enhancing product and process innovation. Additionally, knowledge inflow from universities and government agencies also affected process innovation and product innovation, respectively. We also demonstrated the mediating role of AC in the relationship between external knowledge inflow and innovation. Korean SMEs should thus invest in developing the knowledge sources of customers, universities, and government agencies to enhance AC and innovation.

Impact of knowledge search on product and process innovation: mediating role of absorptive capacity and moderating role of IT capability

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hui Gao ◽  
Xiu-Hao Ding ◽  
Suming Wu
Keyword(s):  
Absorptive Capacity ◽  
Boundary Spanning ◽  
Process Innovation ◽  
Content Type ◽  
Mediating Role ◽  
It Capability ◽  
Product And Process Innovation ◽  
Knowledge Search ◽  
Product And Process

PurposeMore enterprises adopt open innovation by breaking technological or organizational boundaries to seek internal and external knowledge when they face a fiercely competitive environment, complex market demands, and increasingly rapid technological change. In this context, a knowledge search strategy is regarded as an effective means of obtaining inside and outside resources and an important way to break the innovation bottleneck. Moreover, information technology (IT) is deemed an important asset for sourcing knowledge, whereas absorptive capacity is seen as an indispensable ability for utilizing novel knowledge. Thus, this paper aims to test the role of knowledge search in open innovation and examine the mediating effect of absorptive capacity and the moderating effect of IT capability.Design/methodology/approachUsing a sample of 1,088 Chinese firms’ data collected by the World Bank in 2012, this paper employs logistic regression to test the hypotheses.FindingsThis study finds that local and boundary-spanning search strategies positively influence both product and process innovation, and absorptive capacity has a mediating role in the relationships between knowledge search and product and process innovation. Moreover, IT capability has a positive moderating effect on the relationship between local search and innovation performance; however, IT capability strengthens the relationship between boundary-spanning search and process innovation while weakens that between boundary-spanning search and product innovation.Originality/valueThis study explores the impact of different knowledge search behaviors on different types of innovation and probes the role of absorptive capacity and IT capability in mediating and moderating the above relationships. By drawing on knowledge-based theory and cognitive-developmental theory, this paper provides a novel perspective to explain the mechanism between knowledge search and innovation performance.

scholarly journals Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity

2019 ◽  
Vol 11 (18) ◽  
pp. 5111 ◽  
Author(s):  
Choo Yeon Kim ◽  
Myung Sub Lim ◽  
Jae Wook Yoo
Keyword(s):  
Absorptive Capacity ◽  
Positive Impact ◽  
Search Strategies ◽  
Innovation Performance ◽  
External Knowledge ◽  
Mediating Role ◽  
Modes Of Innovation ◽  
Moderating Role ◽  
External Knowledge Acquisition

The importance of external knowledge acquisition for innovation by firms is well established. In particular, there has been an increasing focus on the two distinct modes of firms’ external search strategies, which have a differential effect on their learning and innovation: search breadth and depth. By applying organizational ambidexterity lens, we hypothesize that pursuing high levels of both external search strategies is beneficial to achieve a balance between exploitative and explorative innovation, which, in turn, has a positive impact on the firm’s innovation performance. We also hypothesize that, even among the firms that maintain high levels of both search strategies, firms with higher absorptive capacity better achieve a balance between both modes of innovation, thereby producing higher performance. The findings on a multi-industry sample of Koran manufacturing firms confirm our hypotheses and imply that it is essential for firms to develop capabilities for different modes of external search activities in conjunction with internal absorptive capacity for superior innovation performance.

DETERMINANTS OF FIRM’S INNOVATION-RELATED EXTERNAL KNOWLEDGE SEARCH STRATEGY: THE ROLE OF POTENTIAL ABSORPTIVE CAPACITY AND APPROPRIABILITY REGIME

2018 ◽  
Vol 22 (06) ◽  
pp. 1850044 ◽  
Author(s):  
CHIGU KIM ◽  
CHUL LEE ◽  
JINA KANG
Keyword(s):  
Absorptive Capacity ◽  
Search Strategy ◽  
Innovation Process ◽  
Curvilinear Relationship ◽  
Moderation Effect ◽  
External Knowledge ◽  
Knowledge Based Economy ◽  
Exogenous Factors ◽  
Knowledge Search

Firms, especially those in the knowledge-based economy, make increasing use of external knowledge in their innovation processes. To tap into external knowledge sources, the firm follows a search strategy, which is known to be affected by both endogenous and exogenous factors. This study examines the influence of potential absorptive capacity on firms’ external knowledge search strategy. We also propose and test a moderation effect of the appropriability regime on this relationship. Based on a panel dataset of 170 international firms from various industries, we find a curvilinear relationship between the level of a firm’s potential absorptive capacity and the external knowledge search breadth. We also confirm the moderating role of the appropriability regime on this relationship. Our results highlight the role of the endogenous and exogenous factors determining the firm’s use of external knowledge in the innovation process.

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