Knowledge sharing capability, absorptive capacity, and innovation capability: an empirical study of Indonesia's information and communication technology industry

This research investigates the relationships between knowledge sharing capability, absorptive capacity, and innovation capability. This research proposed and tested three hypotheses. The data was collected by conducting a survey on 114 companies of Indonesia’s information and communication technology industry, including a telecommunication service provider, a support service provider,network vendors, and consumer devices vendors. This study finds that absorptive capacity is the intervening factor between knowledge sharing capability and innovation capability. It also shows that potential absorptive capacity has a positive influence on realized absorptive capacity, and realized absorptive capacity has a positive influence on product and process innovation capability

Realizing Potential: The Impact of Business Incubation upon the Absorptive Capacity of New Technology Based Firms

This article explores the potential of university technology business incubators to enhance the absorptive capacity of new technology-based firms. The research pursues three critical themes: it employs the absorptive capacity construct to analyse and evaluate the potential of incubation to strengthen the business model of new technology firms. It then explores the interaction between founders and incubator directors, mentors and business advisers to assess how this might enhance absorptive capacity. Finally, it indicates how such interactions can facilitate the transition from potential to realised absorptive capacity. The article interrogates the incubation process by using the absorptive capacity framework to evaluate how it might strengthen the business model of new technology firms. The qualitative findings suggest that where founders, advisers, mentors and incubator directors engage collaboratively to create an iterative dialogue which informs the development of a viable business model, the process by which potential absorptive capacity can be fully realised is substantially strengthened

Absorptive Capacity: One Size Fits All? Firm-level Analysis of Absorptive Capacity for Different Kinds of Knowledge

The paper empirically analyses the effect of R&D activities, human resource and knowledge management, and the organisation of knowledge sharing within a firm on the absorptive capacity of innovative firms for three different types of knowledge, namely absorptive capacity to use knowledge from a firm?s own industry, knowledge from other industries and knowledge from research institutions. Using data from the German innovation survey we investigate how firms are able to exploit knowledge from external partners for successful innovation activities. The estimation results show that the determinants of absorptive capacity differ with respect to the type of knowledge absorbed for innovation activities. In particular we find that the R&D intensity does not significantly influence absorptive capacity for intra- and inter-industry knowledge. Additionally, our results suggest that absorptive capacity is path-dependent and firms can influence their ability to exploit external knowledge by encouraging individuals? involvement in a firm?s innovation projects. --absorptive capacity,R&D,innovation management,innovation survey

The development of absorptive capacity-based innovation in a construction SME

Traditionally, construction has been a transaction-oriented industry. However, it is changing from the design-bid-build process into a business based on innovation capability and performance management, in which contracts are awarded on the basis of factors such as knowledge, intellectual capital and skills. This change presents a challenge to construction-sector SMEs with scarce resources, which must find ways to innovate based on those attributes to ensure their future competitiveness. This paper explores how dynamic capability, using an absorptive capacity framework in response to these challenges, has been developed in a construction-based SME. The paper also contributes to the literature on absorptive capacity and innovation by showing how the construct can be operationalized within an organization. The company studied formed a Knowledge Transfer Partnership using action research over a two-year period with a local university. The aim was to increase its absorptive capacity and hence its ability to meet the changing market challenges. The findings show that absorptive capacity can be operationalized into a change management approach for improving capability-based competitiveness. Moreover, it is important for absorptive capacity constructs and language to be contextualized within a given organizational setting (as in the case of the construction-based SME in the present study)

The mediation between participative leadership and employee exploratory innovation: Examining intermediate knowledge mechanisms

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.We examine mediation effects of coworker knowledge sharing and absorptive capacity on the participative leadership–employee exploratory innovation relationship in R&D units of Taiwanese technology firms. Deploying a time-lagged questionnaire method implemented over four business quarters, data is generated from 1600 paired samples (managers and employees) in R&D units of Taiwanese technology firms. The structural equation modeling results reveal that (1) participative leadership is positively related to employee exploratory innovation; (2) coworker knowledge and (3) absorptive capacity partially mediate the relationship between participative leadership and employee exploratory innovation independently; and, (4) coworker knowledge sharing in combination with absorptive capacity partially mediates this relationship. The results extend previous research on participative leadership and innovation by demonstrating that participative leadership is related to employee exploratory innovation (Lee and Meyer-Doyle, 2017; Mom et al., 2009).Results also confirm that participative leadership drives employee exploratory innovation through employee absorptive capacity. This reinforces the need highlighted by Lane et al. (2006) to investigate the role of absorptive capacity at the individual-level. Collectively, while participative leadership is important for employee exploratory innovation it is the knowledge mechanisms existing and interacting at the employee-level that are central to generating increased employee exploratory innovation from this leadership approach

Understanding absorptive capacities in an "innovation systems" context: consequences for economic and employment growth

This paper seeks to broaden our understanding of the concept underlying absorptive capacity at the macro–level, paying particular attention to the growth and development perspectives. We provide definitions of absorptive and technological capacity, external technology flows, productivity growth, employment creation and their interrelations. We then analyse the elements of absorptive capability, focusing on the nature of the relationship within a systems view of an economy, focusing primarily on the role of firm and non-firm actors and the institutions that connect them, both within and across borders. We also undertake to explain how the nature of absorptive capacity changes with stages of economic development, and the importance of the different aspects of absorptive capability at different stages. The relationship is not a linear one: the benefits that accrue from marginal increases in absorptive capability change over time. Finally, we provide a tentative and preliminary conceptual argument of how the different stages of absorptive capacity are related to productivity growth, economic growth and employment creation.economics of technology ;

Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance

This paper aims to explore in depth how internal and external knowledge-based drivers actually affect the firms\u2019 green innovation performance. Subsequently, this study analyzes the relationships between absorptive capacity (internal knowledge-based driver), relationship learning (external knowledge-based driver) and green innovation performance. This study relies on a sample of 112 firms belonging to the Spanish automotive components manufacturing sector (ACMS) and uses partial least squares path modeling to test the hypotheses proposed. The empirical results show that both absorptive capacity and relationship learning exert a significant positive effect on the dependent variable and that relationship learning moderates the link between absorptive capacity and green innovation performance. This paper presents some limitations with respect to the particular sector (i.e. the ACMS) and geographical context (Spain). For this reason, researchers must be thoughtful while generalizing these results to distinct scenarios. Managers should devote more time and resources to reinforce their absorptive capacity as an important strategic tool to generate new knowledge and hence foster green innovation performance in manufacturing industries. The paper shows the importance of encouraging decision-makers to cultivate and rely on relationship learning mechanisms with their main stakeholders and to acquire the necessary information and knowledge that might be valuable in the maturity of green innovations. This study proposes that relationship learning plays a moderating role in the relationship between absorptive capacity and green innovation performance

The dynamics of national innovation systems: a panel cointegration analysis of the coevolution between innovative capability and absorptive capacity

This paper puts forward the idea that the dynamics of national innovation systems is driven by the coevolution of two main dimensions: innovative capability and absorptive capacity. The empirical analysis employs a broad set of indicators measuring national innovative capabilities and absorptive capacity for a panel of 98 countries in the period 1980-2008, and makes use of panel cointegration analysis to investigate long-run relationships and coevolution patterns among these variables. The results indicate that the dynamics of national systems of innovation is driven by the coevolution of three innovative capability variables (technological output, scientific output, innovative input), on the one hand, and three absorptive capacity factors (income per capita, infrastructures and international trade), on the other.national systems of innovation; innovative capability; absorptive capacity; economic growth and development; coevolution; panel cointegration analysis

Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches

In this paper we examine whether absorptive capacity can constitute sufficient justification for rejecting the proposal of a large aid increase to support the ?big push?. We argue that the probability of a poverty trap exists for many countries, in particular the least developed countries (LDCs) and that an increase in aid is relevant for them. Moreover we show that the decrease in marginal aid returns is slower in vulnerable countries, which supports the rationale to include vulnerability as one of the aid allocation criteria. We examine the main obstacles to absorptive capacity, such as disbursement constraints and short-term bottlenecks, macroeconomic problems, including loss in competitiveness and macroeconomic volatility, as well as the weakening of institutions. The general conclusion that we draw for reconciling the two approaches is that absorptive capacity strongly influenced by aid itself or by its modalities. The big push and absorptive capacity approaches cannot be reconciled without aid reform supported by an aid increase. First, what is needed is to balance the utilization of aid between activities that are directly productive and those that are social ...absorptive capacity, big push, aid effectiveness, poverty trap, institutions