THE ROLE OF ABSORPTIVE CAPACITY IN FACILITATING "OPEN INNOVATION" OUTCOMES: A STUDY OF AUSTRALIAN SMEs IN THE MANUFACTURING SECTOR

Fang Huang · John R. Rice

178 citations0/0 files storedInternational Journal of Innovation Management

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Innovation and Knowledge Management Quality and Supply Management Business Strategy and Innovation

Abstract

The open innovation approach emphasizes porous knowledge boundaries between firms and upstream suppliers, but tends to ignore questions of transformative efficiency and effectiveness once the knowledge reaches the focal organization. In this paper, we test for the significance of interaction effects between open innovation strategies and absorptive capacity, finding support for the idea that effective knowledge absorption capabilities are of vital importance in the facilitation of innovation effectiveness.

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1990Absorptive Capacity: A New Perspective on Learning and Innovation 1997Dynamic capabilities and strategic management 2002Absorptive Capacity: A Review, Reconceptualization, and Extension 2003Open Innovation: The New Imperative for Creating and Profiting from Technology 1996Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology 1989Innovation and Learning: The Two Faces of R & D 2005Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms 2001KNOWLEDGE TRANSFER IN INTRAORGANIZATIONAL NETWORKS: EFFECTS OF NETWORK POSITION AND ABSORPTIVE CAPACITY ON BUSINESS UNIT INNOVATION AND PERFORMANCE.

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2012Revisiting corporate reputation and firm performance link 2009Innovation investments, market engagement and financial performance: A study among Australian manufacturing SMEs 2019Does organizational structure facilitate inbound and outbound open innovation in SMEs?2020Inter-organizational collaboration and SMEs’ innovation: A systematic review and future research directions

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