Developing absorptive capacity for recombinant innovation

2017 ◽  
Vol 23 (6) ◽  
pp. 1094-1107 ◽  
Author(s):  
John Bessant ◽  
Anna Trifilova
Keyword(s):  
Literature Review ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Design Methodology ◽  
Significant Part ◽  
Model Framework ◽  
Content Type ◽  
Case Examples ◽  
External Knowledge ◽  
Capability Building

Purpose The purpose of this paper is twofold. First, to understand recombinant innovation (RI) as a potentially significant part of an open innovation (OI) strategy and second, to suggest key routines which would underpin a capability for RI, locating these within the context of enhanced absorptive capacity (AC). Finally, the paper considers how such routines could be developed, drawing on some case examples. Design/methodology/approach The authors start with a literature review on OI and use the lens of AC to explore challenges in finding, assimilating and deploying external knowledge posed by the emerging knowledge-rich context of OI. The authors then explore one OI route – RI – and suggest a model framework for operationalizing it based on routines for search, acquisition, assimilation and deployment. Findings The authors suggest three sets of routines required for RI, around abstract-driven search (ADS), brokerage and cyclic adaptation. As with much of the now widely available toolkit for OI, the challenge is one of moving from potential to realized opportunity and this will require investments in learning and capability building. Originality/value The authors suggest that for organizations to enhance their AC around RI, three core routines are needed: ADS, brokerage and cyclic adaptation.

How firms accumulate knowledge to innovate – an empirical study of Vietnamese firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Duy Quoc Nguyen
Keyword(s):  
Developing Countries ◽  
Knowledge Acquisition ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Content Type ◽  
Innovative Performance ◽  
External Knowledge ◽  
Knowledge Depth ◽  
Exploratory Innovation ◽  
External Knowledge Acquisition

PurposeOrganizational innovations are closely associated with organizational knowledge, and thus a firm builds its knowledge base to enhance its innovative performance. However, insights into this process are still limited, especially in the context of firms in developing countries. Building on the dynamic managerial capabilities literature and open innovation paradigm, this paper attempts to fill this gap by developing and empirically testing a model that investigates how firms in developing countries accumulate knowledge to innovate.Design/methodology/approachA model of a firm's knowledge accumulation and innovation is proposed in which it specifies relationships among absorptive capacity, knowledge breadth, research and development (R&D), knowledge depth, exploratory innovation and exploitative innovation, and then it is empirically tested by using the structural equation modeling (SEM) technique based on the surveyed data of Vietnamese firms.FindingsThe results indicate that absorptive capacity positively influences both knowledge breadth and knowledge depth, knowledge breadth positively influences R&D, R&D positively influences exploratory innovation and knowledge depth, and knowledge depth positively influences exploratory and exploitative innovation.Practical implicationsThe study proposes an “acquire and develop” open innovation model for firms in developing countries in which firms acquire external technologies and then develop R&D (develop and design) capability to adapt acquired technologies to their local conditions to create new organizational-specific capabilities and exploratory innovation.Originality/valueThis study argues that external knowledge acquisition is beneficial to innovative performance of firms in developing countries via renewing their knowledge base. Furthermore, the study provides the unique evidence that novel external knowledge acquisition and internal R&D are fit to each other in the fit-as-mediation form in which novel external knowledge acquisition is mediated by R&D to positively influence exploratory innovation.

scholarly journals Antecedents and effects of individual absorptive capacity: a micro-foundational perspective on open innovation

2017 ◽  
Vol 21 (6) ◽  
pp. 1319-1341 ◽  
Author(s):  
Sandor Lowik ◽  
Jeroen Kraaijenbrink ◽  
Aard J. Groen
Keyword(s):  
Knowledge Management ◽  
Cognitive Style ◽  
Absorptive Capacity ◽  
Open Innovation ◽  
Management Practices ◽  
Content Type ◽  
Individual Level ◽  
External Knowledge ◽  
Absorptive Capacities ◽  
Innovation Practices

Purpose The paper aims to understand how individuals differ in individual absorptive capacity – their ability to recognize, assimilate, transform and exploit external knowledge. These individual absorptive capacities are a key knowledge management building block for an organization’s open innovation practices. The study examines individual antecedents – human capital, social capital and cognition – and innovation outcomes of individual absorptive capacity. Design/methodology/approach This is a quantitative study of 147 employees in a single medium-sized Dutch industrial firm. Based on a survey and structural equation modeling, the antecedents’ prior knowledge diversity, network diversity and cognitive style are examined in relation to individual absorptive capacity. Further, the mediating effects of individual absorptive capacity on its antecedents and innovation outcome are investigated. Findings The main findings are that prior knowledge diversity, external network diversity and a bisociative cognitive style explain differences in individual absorptive capacity. A bisociative cognitive style appears to be the most important factor. Also, this study finds that individual absorptive capacity mediates between its antecedents and individual innovation performance and is therefore a relevant factor to capture value from external knowledge sources. Research limitations/implications The study extends open innovation theory by exploring individual-level factors that explain the ability to capture value from external knowledge. It suggests that differences in open innovation practices are explained by heterogeneity at the individual level. Further, it explains how individuals’ potentials for open innovation are mediated by their absorptive capacities. These insights enable future researchers to further examine individual-level factors in knowledge management practices and to explore cross-level individual-organizational interactions for open innovation. Practical implications This paper highlights that individuals’ engagements in open innovation practices are explained not only by individuals’ motivations but also by their abilities to absorb external knowledge. Further, it helps managers to design knowledge management practices to promote employees’ absorptive capacities, to improve open innovation processes. Originality/value This study investigates the neglected individual-level factors of open innovation practices from a micro-foundational and knowledge management perspective. To our best knowledge, this is the first study to examine individual-level antecedents and outcomes of individual absorptive capacity.

scholarly journals Entrepreneurial approach for open innovation: opening new opportunities, mapping knowledge and highlighting gaps

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Giulia Flamini ◽  
Massimiliano Matteo Pellegrini ◽  
Mohammad Fakhar Manesh ◽  
Andrea Caputo
Keyword(s):  
Literature Review ◽  
Bibliometric Analysis ◽  
Systematic Literature Review ◽  
Open Innovation ◽  
Design Methodology ◽  
Strategic Partnership ◽  
Data Set ◽  
Content Type ◽  
Entrepreneurial Opportunities ◽  
Definition Of

PurposeSince the first definition of open innovation (OI), the indivisible relationship between this concept and entrepreneurship was undeniable. However, the exact mechanisms by which an entrepreneurial approach may benefit OI processes and vice versa are not yet fully understood. The study aims to offer an accurate map of the knowledge evolution of the OI–entrepreneurship relationship and interesting gaps to be filled in the future.Design/methodology/approachThe study adopted a bibliometric analysis, coupled with a systematic literature review performed over a data set of 106 peer-reviewed articles published from 2005 to 2020 to identify thematic clusters.FindingsThe results show five thematic clusters: entrepreneurial opportunities, organisational opportunities, strategic partnership opportunities, institutional opportunities and digital opportunities for OI. Investigating each of them, the authors created a framework that highlights future avenues for further developing the topic.Originality/valueThis study is the first of its kind to systematise, analyse and critically interpret the literature concerned with the topic of the OI–entrepreneurship.

What is “strategic asset seeking FDI”?

2015 ◽  
Vol 23 (1) ◽  
pp. 57-66 ◽  
Author(s):  
Klaus E. Meyer
Keyword(s):  
Direct Investment ◽  
Multinational Enterprises ◽  
Design Methodology ◽  
Distinct Type ◽  
Business Strategies ◽  
Content Type ◽  
Case Examples ◽  
Starting Point ◽  
Capability Building ◽  
Definition Of

Purpose – The purpose of this paper is to shed more light on the concept of “strategic asset-seeking FDI”, which is frequently used in discussion of emerging economy multinational enterprises (MNEs), but it is challenged by some scholars. The author argues that he needs this category because an important type of foreign direct investment (FDI) is not captured by the other motives identified by John Dunning, namely, market-, efficiency- and natural-resource-seeking FDI. Design/methodology/approach – The author illustrates the phenomenon of strategic asset-seeking FDI with case examples that form the starting point for his theoretical arguments. Findings – Some FDI is undertaken explicitly with the aim to use assets acquired abroad to enhance the operations of the investor in other markets, including, notably, the investors’ home market. This contribution to capability-building processes of the MNE, indeed, constitutes an important and distinct type of investment motive. Originality/value – The author concluded that Dunning’s typology remains a powerful tool to analyze contemporary business strategies, but it suggests refining the definition of the categories.

Effects of open innovation strategies on innovation performance of SMEs: evidence from China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chang Lu ◽  
Bo Yu ◽  
Jing Zhang ◽  
Dan Xu
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Design Methodology ◽  
Institutional Support ◽  
Innovation Performance ◽  
Hierarchical Regression ◽  
Content Type ◽  
Proposed Model ◽  
Different Types ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationships between two types of open innovation (OI) strategies (OI breadth and depth) and innovation performance of small- and medium-sized enterprises (SMEs) in China. The study examines how firms’ absorptive capacity and government institutional support affect these relationships. Design/methodology/approach Survey data from 236 manufacturing SMEs in China were used to test the proposed model using hierarchical regression analysis. Findings The results show that both OI breadth and depth are positively related to innovation performance of SMEs. Moreover, this study finds that realized absorptive capacity serves as a mediator in the relationships between OI breadth and depth and innovation performance. The potential absorptive capacity and government institutional support moderate the relationship between OI breadth and innovation performance. Originality/value The effectiveness of OI strategies is significantly different among SMEs. One possible explanation is that SMEs adopt different types of OI strategies. Another is that a firm’s absorptive capacity and government institutional support may influence the effectiveness of OI. This study integrates these two possible reasons by investigating the effect of the interplay between different OI strategies, absorptive capacity and government institutional support on SMEs’ innovation performance. This study enriches the research on the relationships between OI strategies and innovation performance of SMEs in the Chinese context.

Open innovation in SMEs: a systematic literature review

2016 ◽  
Vol 9 (1) ◽  
pp. 58-73 ◽  
Author(s):  
Mokter Hossain ◽  
Ilkka Kauranen
Keyword(s):  
North America ◽  
Literature Review ◽  
Systematic Literature Review ◽  
Thematic Analysis ◽  
Open Innovation ◽  
Design Methodology ◽  
Quantitative Approach ◽  
Content Type ◽  
Extant Literature ◽  
Managerial Implications

Purpose – The purpose of this paper is to synthesize the extant literature on open innovation (OI) in small and medium-sized enterprises (SMEs). Design/methodology/approach – An examination of the literature was undertaken to review the studies on open innovation in SMEs. The selected articles were classified in different themes and analyzed accordingly. Findings – The study finds that adopting OI by SMEs improves their overall innovation performance. The authors found that a larger number of studies are based on a quantitative approach. Surprisingly, unlike in many other disciplines, scholars of North America have had a limited contribution. European scholars, along with some scholars from Korea and China, have been active in developing this field of OI in SMEs. Research limitations/implications – This study provides theoretical and managerial implications. With thematic analysis, along with identifying gaps, conflations, and contradictions in the literature, this study proposes an agenda for future exploration. Originality/value – The value of this study lies in the integration of the limited but scattered studies on OI in SMEs.

The link between mergers and acquisitions and innovation

2018 ◽  
Vol 41 (6) ◽  
pp. 716-752 ◽  
Author(s):  
Luca Dezi ◽  
Enrico Battisti ◽  
Alberto Ferraris ◽  
Armando Papa
Keyword(s):  
Literature Review ◽  
Mergers And Acquisitions ◽  
Corporate Finance ◽  
Open Innovation ◽  
Design Methodology ◽  
Content Type ◽  
Future Studies ◽  
Current Scenario ◽  
Innovation Approach ◽  
The Relationship

Purpose The link between mergers and acquisitions (M&A) and innovation has been analysed in both corporate finance studies and the innovation literature. Despite this attention and the practical evidence that highlights different connections between these two terms, there is a need to investigate the latest trends with regard to these important topics, and to put a particular focus on the emerging paradigm of open innovation. Thus, this paper aims to provide a systematic literature review (SLR) about the relationship between M&As and the concept of innovation in the current scenario. Design/methodology/approach Through an SLR from 2012 to June 2017, 55 papers have been identified and analysed to give a better understanding of the motivations and the methodologies adopted in past studies. Findings This paper identifies various conceptual and research methodological characteristics of studies that have connected, directly or indirectly, M&As and innovation in recent years. In addition, the results highlight a scarcity of studies that explicitly or implicitly refer to the open innovation paradigm, marking only a partial understanding of this emerging phenomenon. Originality/value This paper improves the knowledge on the link between extraordinary corporate transactions and innovation, and it highlights that a clear consensus, particularly regarding the open innovation paradigm, is lacking. Thus the authors propose that future studies should carefully evaluate M&As by following the open innovation approach.

Managing knowledge assets for open innovation: a systematic literature review

2017 ◽  
Vol 21 (6) ◽  
pp. 1362-1383 ◽  
Author(s):  
Angelo Natalicchio ◽  
Lorenzo Ardito ◽  
Tommaso Savino ◽  
Vito Albino
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
Open Innovation ◽  
Design Methodology ◽  
Future Research ◽  
Research Directions ◽  
Content Type ◽  
Final Sample ◽  
Prior Literature ◽  
Future Research Directions

Purpose Knowledge assumes a pivotal role in the open innovation (OI) paradigm. Yet OI has been scantly investigated by adopting a knowledge management (KM) lens. Therefore, the purpose of this paper is to provide a systematic literature review of the KM practices analysed by prior literature to support OI activities. Design/methodology/approach To perform a valuable literature review, the steps for systematic review proposed by previous studies have been adopted. These steps have yielded a final sample of 34 articles. Afterward, the authors have distinguished and analysed the identified articles according to the three main OI processes, i.e. inbound, outbound and coupled OI processes. Findings This research groups and highlights the most relevant KM practices to support OI activities on the basis of the inbound, outbound and coupled OI processes. Originality/value Despite knowledge is the most relevant resource exchanged in OI activities, this is the first attempt to highlight how knowledge should be managed in an OI context by adopting a KM lens. Furthermore, the authors also identify relevant topics that have been so far understudied, which the authors suggest as future research directions.

Absorbing in-bound knowledge within open innovation processes. The case of Fiat Chrysler Automobiles

2019 ◽  
Vol 23 (4) ◽  
pp. 786-807 ◽  
Author(s):  
Diego Matricano ◽  
Elena Candelo ◽  
Mario Sorrentino ◽  
Aurora Martínez-Martínez
Keyword(s):  
Absorptive Capacity ◽  
Open Innovation ◽  
Design Methodology ◽  
Single Case ◽  
Single Case Study ◽  
Longitudinal Case Study ◽  
Content Type ◽  
Top Managers ◽  
Innovation Processes

Purpose The purpose of this paper is to investigate the way companies involved in Open Innovation Processes (OIPs) routinize the procedure through which they can absorb in-bound knowledge, i.e. knowledge that comes from the outside and, in particular, from the crowd. In-bound knowledge passes through the phases of acquisition, assimilation, transformation and exploitation. Thus, companies need to define mechanisms and paths – related to their potential and realized absorptive capacity –to manage and exploit it. Design/methodology/approach The present paper is based on a longitudinal case study, an OIP launched by Fiat Chrysler Automobiles (FCA) that has already been implemented for three times. Multiple direct interviews with FCA top managers have allowed rebuilding the routinized procedure through which the company absorbs in-bound knowledge. Findings To routinize the procedure of absorbing in-bound knowledge, the company has settled specific mechanisms and paths and has established some bottlenecks over the process of acquisition, assimilation, transformation and exploitation of in-bound knowledge. These mechanisms and path, as well as these bottlenecks, are identified and descripted in the paper. Research limitations/implications Beyond the limitations linked to the use of a single case study, another limitation might be the reference to a big company in a specific industry. Anyway, with due caution, achieved findings can be referred to other industries as well. Originality/value This paper contributes to exploring if and how companies managing OIPs routinize the procedure through which they can absorb in-bound knowledge.

scholarly journals The absorptive capacity of family firms

2015 ◽  
Vol 5 (1) ◽  
pp. 73-89 ◽  
Author(s):  
Jim Andersén
Keyword(s):  
Social Capital ◽  
Knowledge Management ◽  
Absorptive Capacity ◽  
Design Methodology ◽  
Family Firms ◽  
Management Practices ◽  
Content Type ◽  
External Knowledge ◽  
Knowledge Management Practices ◽  
The Relationship

Purpose – Absorptive capacity (AC) is a key competitive advantage and is defined as the capacity to absorb knowledge from the environment. Although some studies have examined how various antecedents to AC differ between family firms and non-family firms, no studies have set out to specifically analyze AC in the context of family firms. The purpose of this paper is to discuss the ability of family firms to absorb external knowledge by analyzing the relationship between “familiness” and “AC”. Design/methodology/approach – By reviewing and combining studies on AC and knowledge-management practices of family firms, new insights into the AC of family firms are developed. Findings – It is argued that due to higher levels of social capital, familiness is positively related to the ability to transform and use external knowledge (i.e. realized AC). However, firms with high levels of familiness are likely to be inferior in acquiring and assimilating external knowledge (i.e. potential AC). Originality/value – Although previous studies have analyzed various knowledge-management practices of family firms, no studies have set out to specifically explore how familiness affects various dimensions of AC.

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