PERSPECTIVE—Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field

Volberda, Henk; Foss, Nicolai J.; Lyles, Marjorie A.

doi:10.1287/orsc.1090.0503

Cited by 984 publications

(1,231 citation statements)

References 106 publications

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“…Several theoretical studies recognise the importance of absorptive capability as a multidimensional capability (e.g., Camisón and Forés, 2010;Flatten et al, 2011;Jiménez-Barrionuevo et al, 2011;Zahra and George, 2002;Volberda et al, 2010). However, although absorptive capability has received wide recognition, in prior empirical studies it has mainly been applied as a one-dimensional construct (Lim, 2009); that is, "either external knowledge is understood, transferred, and applied, or it is not" (Bierly et al, 2009, p. 482).…”

Section: Absorptive Capabilitymentioning

confidence: 99%

Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?

Forés

Camisón

2016

Journal of Business Research

382

269

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Acknowledgement: The authors gratefully acknowledge financial support from the National Plan for R&D of Spanish Ministry of Economy and Competitiveness (ref. ECO2009-12522). HIGHLIGHTSØ Incremental innovation performance is positively affected by internal knowledge creation capability and absorptive capability.Ø Absorptive capability affects radical innovation performance positively.Ø Size has a direct positive effect on incremental innovation performance.Ø Size has a direct positive effect on internal knowledge creation capability. HOW DOES ORGANIZATIONAL SIZE IMPACT ON KNOWLEDGE ACCUMULATION CAPABILITIES AND INCREMENTAL VERSUS RADICAL INNOVATION PERFORMANCE?ABSTRACT While prior studies recognise the importance of knowledge accumulation capabilities in innovation performance, current research has still failed to empirically identify its role with regard to different types of innovation performance. The objective of this paper is to address this knowledge gap and to explore the relationships between internal knowledge creation and absorptive capabilities, and radical and incremental innovation performance. The study also contributes to analyzing the complex effect that organizational size has in the whole innovation process, influencing its antecedents (internal knowledge creation capability and absorptive capability) as well as its outputs (incremental and radical innovation performance), as the literature has produced inconsistent results and the issue is subject to continuing debate. This study demonstrates that incremental innovation performance is positively affected by both knowledge accumulation capabilities and size. However, results show that only absorptive capability has a positive direct effect on radical innovation performance, whereas size has a negative non-significant effect on it. The effect of size on knowledge accumulation capabilities also turns out to be mixed. It appears to increase internal knowledge creation capability, but it does not affect the absorption of new external knowledge, and thus does not help to develop radical innovations.

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Section: Absorptive Capabilitymentioning

confidence: 99%

Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?

Forés

Camisón

2016

Journal of Business Research

382

269

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“…First, the effect of any knowledge acquired through social capital relationships on business performance may depend on a firm's absorptive capacity. As a process, absorptive capacity helps a firm convert the knowledge acquired through social capital into valuable learning outcomes relevant to its activities and performance (Volberda, Foss, and Lyles, 2010). Autio et al (2000) proposed that owing to a lack of prior knowledge, young entrepreneurial firms possess learning advantages of newness as they have fewer biases and constraints to grasp novel meanings from knowledge, and by extension from the learning encounters presented through social capital behaviors.…”

Section: Introductionmentioning

confidence: 99%

Social Capital and Learning Advantages: A Problem of Absorptive Capacity

Hughes

Morgan

Ireland

et al. 2014

Strategic Entrepreneurship Journal

113

118

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“…As an approach to organisational design, it challenges the traditional and fundamental assumptions regarding the manner in which firms conduct innovation and commercialise innovation outputs. According to Chesbrough and other scholars, this new paradigm demonstrates some essential characteristics, such as the strong and effective interaction between a firm and its environment through permeable firm boundaries (Huizingh, 2011;Laursen and Salter, 2006;Volberda, Foss and Lyles, 2010) and the adoption of open search strategies spanning a wide range of external actors and sources (Leiponen and Helfat, 2010;West and Gallagher, 2006). Open innovation's proponents have asserted that it is a potential source of distinctive technological competence and hence a driver of long-term competitive advantages (Chesbrough, 2006).…”

Section: Introductionmentioning

confidence: 99%

Does open innovation apply to China? Exploring the contingent role of external knowledge sources and internal absorptive capacity in Chinese large firms and SMEs

Huang

Rice

Martin

2015

Journal of Management & Organization

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While 'open innovation' is often considered to be an organisational strategy with universal application, the generalisability of this set of arrangements to organisations operating within emerging economies has yet to be fully explored. This study provides empirical evidence of its importance within a substantial sample of Chinese large firms and SMEs. Using Tobit regression analysis, our findings indicate that external knowledge sources from inter-firm networking are more important in creating the benefits of open innovation for Chinese SMEs than their larger peers. Linkages to university and research institutes generally have few direct effects on the innovation performance of both large and small firms in China. However, the role of universities and research institutes is shown to be important among our large firm sample when combined with evident internal absorptive capacity. This interaction is generally limited to our large firm sample, and is not as evident among small firms. Our study indicates that the barriers to the adoption of open innovation by Chinese firms might be largely related to the comparatively weak domestic research expertise and limited organisational absorptive capabilities, with this most particularly evident for SMEs.These findings suggest that, based on this evidence, there is no need for emerging economies like China to mimic the emergence path from closed to open innovation followed by developed countries. Chinese firms will be more likely to garner the benefits available from openness when they develop the capabilities required to identify, assimilate and commercialise knowledge and technologies obtained from external sources.

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PERSPECTIVE—Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field

Abstract: We are grateful to Linda Argote for her support throughout the process of writing this paper. We also want to thank Bas Warmerhoven for his assistance, Ed Noyons for his support in the bibliometric analysis, and to Kirsten Foss for comments on an earlier version of this paper.

Cited by 984 publications

References 106 publications

Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?

Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?

Social Capital and Learning Advantages: A Problem of Absorptive Capacity

Does open innovation apply to China? Exploring the contingent role of external knowledge sources and internal absorptive capacity in Chinese large firms and SMEs

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