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Where to search for process innovations?: The mediating role of absorptive capacity and its impact on process innovation
Auckland Univ Technol, Strategy & Entrepreneurship Dept, 55 Wellesley St East, Auckland, New Zealand.
Univ Leeds, Leeds, W Yorkshire, England;Aalto Univ, Espoo, Finland.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies. Univ Eastern Finland Finland, Kuopio, Finland.
2019 (English)In: Industrial Marketing Management, ISSN 0019-8501, E-ISSN 1873-2062, Vol. 82, p. 199-212Article in journal (Refereed) Published
Abstract [en]

While the potential of open innovation to develop product-related improvements through the use of external knowledge sources is undeniable, our understanding of how firms become process innovators remains limited. Distinguishing between product and process innovation is important, as insights gleaned from investigating product innovation may not relate directly to the study of process innovation. This study provides new insight into open innovation and absorptive capacity by proposing the mediating role of absorptive capacity - potential and realized - on the relationship between knowledge search from external sources and process-related innovation activities. We test our model using a sample of 171 auto component suppliers in Iran, and find evidence that the learning effects of external scanning increase when a firm learns how to better manage external searches in terms of external absorptive capacity routines. Our results indicate that, while knowledge search from value chain partners is related to process innovation, knowledge search from universities and other research organizations is not, and that potential absorptive capacity mediates the relationship between external knowledge search and process innovation. These findings shed further light on the relationship between a firm's openness and its process innovation.

Place, publisher, year, edition, pages
2019. Vol. 82, p. 199-212
Keywords [en]
Open innovation, Process innovation, Universities and research organizations, Value chain partners, Potential and realized absorptive capacity
National Category
Business Administration
Identifiers
URN: urn:nbn:se:uu:diva-397956DOI: 10.1016/j.indmarman.2019.01.014ISI: 000495471100016OAI: oai:DiVA.org:uu-397956DiVA, id: diva2:1376045
Available from: 2019-12-06 Created: 2019-12-06 Last updated: 2019-12-06Bibliographically approved

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Chetty, Sylvie

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