HOW FIRMS ABSORB EXTERNAL KNOWLEDGE — MODELLING AND MANAGING THE ABSORPTIVE CAPACITY PROCESS

2021 ◽  
pp. 245-279
Keyword(s):  
Absorptive Capacity ◽  
Knowledge Modelling ◽  
External Knowledge

scholarly journals Responsible innovation among academic spin-offs: how responsible practices help developing absorptive capacity

2015 ◽  
Vol 15 (2) ◽  
pp. 165-179 ◽  
Author(s):  
V.E. Scholten ◽  
P.A. van der Duin
Keyword(s):  
Conceptual Model ◽  
Absorptive Capacity ◽  
Stakeholder Engagement ◽  
Innovation Process ◽  
Responsible Innovation ◽  
Social Responsiveness ◽  
External Knowledge ◽  
Negative Effect ◽  
Sustainability Practices ◽  
Start Ups

Responsible innovation (RI) among technology-based start-ups has received little attention, while these firms are known to operate on the edges of what is socially desirable or ethically acceptable. In this paper we develop a conceptual model that captures the RI practices among 61 academic spin-offs and investigate how it affects the capacity of the firm to absorb external knowledge to better the exploitation of the innovation. The findings indicate that potential absorptive capacity is increased by both stakeholder engagement and social responsiveness, while realized absorptive capacity is moderately increased through social responsiveness. Remarkable is the finding that the extent that sustainability practices resonate in the start-ups operations does have a negative effect on the potential absorptive capacity. These results provide insight in the way in which start-ups adopt a RI philosophy to their innovation process and help to better understand how they learn and acquire external knowledge to increase the acceptance of their innovations. The findings provide clear recommendations for entrepreneurs and policymakers in the field of entrepreneurship and innovation.

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.

Determinants of the Use of Knowledge Sources in the Adoption of Open Source Server Software

2012 ◽  
pp. 287-304
Author(s):  
Kris Ven ◽  
Jan Verelst
Keyword(s):  
Open Source ◽  
Absorptive Capacity ◽  
Exploratory Study ◽  
Knowledge Sources ◽  
External Knowledge ◽  
Capacity Theory ◽  
Knowledge Barriers ◽  
Server Software ◽  
Use Of Knowledge ◽  
Insight Into

Previous research suggests that the adoption of open source server software (OSSS) may be subject to knowledge barriers. In order to overcome these barriers, organizations should engage in a process of organizational learning. This learning process is facilitated by exposure to external knowledge sources. Unfortunately, this leaves open the question of which factors determine which knowledge sources are used by organizations. In this study, the authors have performed an exploratory study on the determinants of the use of knowledge sources in the adoption of OSSS. The conceptual model developed in this study was based on the absorptive capacity theory. Data was gathered from 95 organizations to empirically investigate this model. Results provide a quite consistent view on how external knowledge sources are used by organizations in the adoption of OSSS. Moreover, results provide more insight into the context in which the adoption of OSSS takes place.

Innovation and Driven Knowledge Management

2011 ◽  
pp. 392-427 ◽  
Author(s):  
Eng K. Chew ◽  
Petter Gottschalk
Keyword(s):  
Knowledge Management ◽  
Absorptive Capacity ◽  
Asset Management ◽  
Knowledge Creation ◽  
Explicit Knowledge ◽  
Idea Generation ◽  
External Knowledge ◽  
It Managers ◽  
New Knowledge ◽  
And Performance

As described in Chapter X, fundamental to the company’s innovation capabilities is the level of collaboration and knowledge management capabilities available to support the innovation process. The ability of an organization to identify, acquire, and utilize external knowledge, known as knowledge absorption, can be critical to the firm’s operational success (Adams, Bessant, & Phelps, 2006). A survey by Adams et al. (2006) shows that three areas of knowledge management are critical for innovation management: idea generation, knowledge repository (including the management of tacit and explicit knowledge), and information flows (including information gathering and networking). Further they note that several researchers have found that the firm’s ability to “absorb and put to use new knowledge,” known as knowledge “absorptive capacity,” has direct impact on the firm’s innovation and performance (Chen, 2004; Tsai, 2001). Popadiuk and Choo (2006) have further shown that innovation and knowledge creation are related. Innovation is a result of knowledge creation. Innovation is related to the firm’s ability to combine new knowledge with existing knowledge to create new knowledge that is unique to the firm. It is also related to the firm’s ability to diffuse knowledge throughout the organization so that the organization as a whole increases its absorptive capacity. Knowledge diffusion can be facilitated by IT infrastructure and knowledge management system. Knowledge management is aimed at leveraging internal and external knowledge to create value from the firm’s intangible assets. According to Metaxiotis and Psarras (2006), knowledge management contributes to value creation by enhancing: intellectual asset management, operational efficiency, customer and competitor intelligence, continuous improvement, organizational learning, innovation in products and services, and time to market. They report of findings from American Productivity and Quality Center that greater emphasis should be made by firms on “using knowledge management to become more efficient innovators.” To leverage knowledge management for business innovation, IT managers must first understand the basic principles, theories, and practices of knowledge management. Next, they must understand how knowledge management will contribute to innovation. This chapter aims to address both topics to help make IT managers become the IT innovators.

Developing process and product innovation through internal and external knowledge sources in manufacturing Malaysian firms: the role of absorptive capacity

2020 ◽  
Vol 26 (5) ◽  
pp. 1021-1039 ◽  
Author(s):  
T. Ramayah ◽  
Pedro Soto-Acosta ◽  
Khoo Kah Kheng ◽  
Imran Mahmud
Keyword(s):  
Absorptive Capacity ◽  
Product Innovation ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
Knowledge Sources ◽  
Manufacturing Companies ◽  
Organizational Capability ◽  
Data Set ◽  
Content Type ◽  
External Knowledge

PurposeFirms' knowledge-processing capabilities have a central role in achieving innovation performance and competitive advantage. Absorptive capacity capabilities and innovation are viewed as essential for enterprise success. Absorptive capacity is deemed as a highly important organizational capability to recognize value and assimilate both external and internal knowledge in order to enhance firm innovation. The aim of this study is to determine if innovation performance can be improved through absorptive capacity (knowledge acquisition, dissemination and utilization), when it is supported by internal (firm experience) and external knowledge sources (R&D cooperation and contracted R&D).Design/methodology/approachA quantitative methodology based on employing a structured questionnaire was used for data collection. The proposed research model and its associated hypotheses are tested by using Partial Least Squares (PLS) structural equation modelling (SEM) on a data set of 248 manufacturing companies located in the Northern Region of Malaysia.FindingsResults showed that firms' experience is significantly related to absorptive capacity, while for R&D cooperation and contracted R&D findings were mixed. In addition, absorptive capacity was found as a strong predictor of innovation performance.Originality/valueOne of the defining features of competition in many industries has been the extremely rapid pace of technological change, marked by a continuous stream of innovations. Manufacturing firms, therefore, face the challenge of nurturing existing knowledge and developing novel knowledge in order to create new business opportunities. This study makes valuable contributions with regard to understanding the behavioural of manufacturing firms towards process and product innovation.

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.

Knowledge absorptive capacity: do all its dimensions matter for export performance of SMEs?

2016 ◽  
Vol 12 (2) ◽  
Author(s):  
Godwin Mwesigye Ahimbisibwe ◽  
Stephen Korutaro Nkundabanyanga ◽  
Gideon Nkurunziza ◽  
David Nyamuyonjo
Keyword(s):  
Knowledge Acquisition ◽  
Absorptive Capacity ◽  
Design Methodology ◽  
Sampling Error ◽  
Export Performance ◽  
Hierarchical Regression ◽  
General Effect ◽  
Firm Level ◽  
External Knowledge ◽  
External Knowledge Acquisition

Purpose In this paper we aim to study the relationship between knowledge absorptive capacity (KAC) of exporting SMEs in Uganda and their export performance. Design/methodology/approach This study is correlational and cross-sectional, and adopts firm-level data collected via questionnaires from Ugandan exporting SMEs. As we use the sub-domains of KAC to predict export performance and therefore these sub-mains are expected to be correlated, we apply hierarchical regression as an appropriate tool for analysis when variance on a criterion variable is being explained by predictor variables that are correlated with each other (Pedhazur, 1997). Using this tool we analyze the effect of a given sub-domain after controlling for other indicators (sub-domains) of KAC; a “control” achieved by calculating the change in the adjusted R2 and the significance of this change. Findings We find that only external knowledge acquisition (a dimension of potential absorptive capacity) and external knowledge application (a dimension of realised absorptive capacity) are the only significant predictors of export performance in our model. Contrary to previous thinking, we find that external knowledge assimilation and transformation are not significant predictors of export performance. Taken together, our independent variables explain about 35.4 percent of the variance in export performance of SMEs in Uganda. Research limitations/implications The use of hierarchical regression is susceptible to problems associated with sampling error. However, the likelihood of these problems is reduced by our interaction with the data Practical implications – Our results imply that the initial focus of exporting SMEs should be on external knowledge acquisition and application. Originality/value Unlike most of the export performance literature, which have focused on the general effect of knowledge absorptive capacity as a global variable, this study explores the role played by the four dimensions of KAC and methodologically isolates the contribution played by each individual dimension in the context of exporting SMEs in a developing nation. As such we uncover the reality that not all the sub-domains of KAC are significant for export performance of SMEs in a developing country context.

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