WEARING DIFFERENT HATS: HOW ABSORPTIVE CAPACITY DIFFERS IN OPEN INNOVATION

Lance Newey ()
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Lance Newey: UQ Business School, University of Queensland, St. Lucia Queensland Australia 4072, Australia

International Journal of Innovation Management (ijim), 2010, vol. 14, issue 04, 703-731

Abstract: Absorptive capacity is often touted as being important for the success of open innovation. Yet different absorptive capacities may be required for inbound versus outbound open innovation. Using process research of how multiple firms participated in the development of a groundbreaking anti-influenza drug, we found that firms needed to develop both supplier- and customer-types of absorptive capacity. Inbound open innovation involved customer absorptive capacity and outbound innovation required supplier absorptive capacity. In each case absorptive capacity needed to be leveraged differently. We thus extend our knowledge of how absorptive capacity benefits open innovation.

Keywords: Absorptive capacity; open innovation; inbound and outbound; suppliers and customers; process research (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1142/S1363919610002830

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