An empirical taxonomy of Knowledge-Intensive Business Services buyers: An Absorptive Capacity approach

Abstract

The extant literature on the purchase of Knowledge-Intensive Business Services (KIBS) has dedicated limited attention to how the knowledge of buyers influences the acquisition of these services. This study proposes an empirical taxonomy to classify KIBS buying companies based on their capacity to absorb knowledge. It also assesses how their knowledge absorption profile influences the importance they attribute to KIBS purchases. Six constructs (knowledge base, research and development (R&D) activities, interaction with other organizations, attitude toward knowledge transfer, organizational structure for knowledge absorption, organizational culture for knowledge absorption) were used to collect empirically grounded information through a comprehensive survey conducted with 304 buying companies of KIBS. Our results suggest that KIBS buyers have four different knowledge absorption profiles - Low Absorptive Capacity, R&D-based Absorptive Capacity, Acquisition-based Absorptive Capacity, and Fully Developed Absorptive Capacity - which shape the importance attributed to the KIBS purchased. This study contributes to understanding the profiles of KIBS buyers using an absorptive capacity perspective and the implications for providers' selection decisions. By examining underdeveloped research themes that still require attention, this study assists practitioners, scholars, and policy-makers in addressing the challenges and mechanisms of knowledge transfer and innovation in companies buying KIBS.

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