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

Fang Huang () and John Rice ()
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Fang Huang: The University of Adelaide Business School, The University of Adelaide, Adelaide, SA, 5005, Australia
John Rice: The University of Adelaide Business School, The University of Adelaide, Adelaide, SA, 5005, Australia

International Journal of Innovation Management (ijim), 2009, vol. 13, issue 02, 201-220

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.

Keywords: Open innovation; absorptive capacity; manufacturing; SMEs; Australia (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1142/S1363919609002261

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