Development of absorptive capacity over time and across boundaries: The case of R&D consortia

Abstract

Absorptive capacity (AC) has been identified as the ability of firms to acquire, assimilate, and apply external knowledge, and thus as a precondition for learning from external knowledge. However, extant literature has focused on AC as (1) a static and (2) a firm-centred concept. In particular, there is little conceptual framing and empirical evidence of how AC develops over time and across boundaries. Taking R&D consortia as the unit of analysis and based on insights from three in-depth case studies of collaborative R&D, our contribution is a framework for AC development over time and across inter-organizational, intraorganizational, and practice boundaries at different stages of collaboration in R&D consortia. Using this framework, we identify a set of mechanisms which enable the development of AC and we discuss the preconditions for these mechanisms. For R&D managers, our research implies that in order to enhance effectiveness of knowledge transfer and learning in R&D consortia they need to develop a strategy that (1) supports learning and AC development throughout the whole cycle of the collaboration, not only by focusing on intra-firm capabilities, but in particular by providing flexible interfaces for overcoming a variety of interaction and learning boundaries between heterogeneous R&D partners, and (2) enables the integration of created and acquired knowledge within the organization once the collaboration is over.

The Penetration of Green Innovation on Firm Performance: Effects of Absorptive Capacity and Managerial Environmental Concern

“…It has been noted as a principal driving factor for firms implementing innovative plans [29,30]. The concept improves inter-or intra-firm learning [31], and also offers support to partners on the inter-or intra-firm network channel [32]. Firms' absorptive capacities can be considered as high or low.…”

“…First, absorptive capacity was used to measure the moderating effect on the link between green innovation and firm performance dimensions. We adapted four items from Omidvar, Edler and Malik [31]. Items included "Our organization has a capable or well-equipped staff to adapt newly acquired knowledge for development", "Our organization promotes an integrated approach to knowledge, sharing programs among different sectors", "Our organization has a capacity to understand and fuse assimilated external knowledge or resources for internal application", "Our organization has a capability to frequently change or revise quality control operations based on acquired new knowledge".…”

Developing Absorptive Capacity Theory for Public Service Organizations: Emerging UK Empirical Evidence

“…The third and important new feature in our novel process model highlights the organic development of AC capability in the two public agencies over time. Our term ‘organic’ draws on Omidvar, Edler and Malik's () critique of AC literature, which they view as too static and firm‐centred – it suggests there is a stock of knowledge to be exchanged between two firms. Instead, they find in practice a cumulative and less predictable convergence of prior and new knowledge that can lead to the creation of new products, such as our example of the toolset.…”

“…Having created the toolset, the project managers, as skilled actors, tested and eventually diffused the new knowledge by applying the toolset to solve local and specific needs. Incrementally, curbing routines were challenged and converted to enabling routines (depicted in Figure as concentric circles) (Omidvar, Edler and Malik, ). If the investment does not occur at this point, it will be hard to exploit in the future (Cohen and Levinthal, ; Harvey et al ., , ; Lane, Koka and Pathak, ; Van den Bosch, Volberda and de Boer, ) – so there is path dependency (Butler and Allen, ).…”

Internationalization of Social Enterprise: Scaling Up the Social Innovation in Indonesia

“…The learning organizations concern their selves with the organizational practice to enhance the learning process and develop learning capability [19], whether continuous or major overhaul and involves professional industrial system [14]. At interorganizational context, the learning capability is essential to acquire, assimilate, and apply the external knowledge [13].…”