IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i2p700-708.html
   My bibliography  Save this article

The emergence of absorptive capacity through micro–macro level interactions

Author

Listed:
  • Martinkenaite, Ieva
  • Breunig, Karl Joachim

Abstract

A firm's absorptive capacity involves two dimensions: horizontal and vertical. The horizontal dimension refers to a dynamic interplay between internal and external environments of the firm, which is extensively covered in the absorptive capacity research. However, the literature ignores vertical dimension involving individual-organization interactions. Scant knowledge is available about the mechanisms through which absorptive capacity emerges as an organizational learning capability. This study reviews the seminal works of Cohen and Levinthal and finds that the stickiness of knowledge, the multiple antecedents of absorptive capacity and their interactions are explicitly addressed therein, but are insufficiently problematized in subsequent research. Drawing on the knowledge-based view of the firm and the micro-foundations lens of organizational capabilities, the present study re-conceptualizes absorptive capacity as a set of three sequentially linked learning processes where individual and organizational antecedents interact, and explains how value recognition, assimilation and application capabilities emerge as organizational (macro) level phenomena.

Suggested Citation

  • Martinkenaite, Ieva & Breunig, Karl Joachim, 2016. "The emergence of absorptive capacity through micro–macro level interactions," Journal of Business Research, Elsevier, vol. 69(2), pages 700-708.
  • Handle: RePEc:eee:jbrese:v:69:y:2016:i:2:p:700-708
    DOI: 10.1016/j.jbusres.2015.08.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296315003574
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2015.08.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Paul Gooderham & Dana B. Minbaeva & Torben Pedersen, 2011. "Governance Mechanisms for the Promotion of Social Capital for Knowledge Transfer in Multinational Corporations," Journal of Management Studies, Wiley Blackwell, vol. 48(1), pages 123-150, January.
    2. Teppo Felin & Nicolai J. Foss & Koen H. Heimeriks & Tammy L. Madsen, 2012. "Microfoundations of Routines and Capabilities: Individuals, Processes, and Structure," Journal of Management Studies, Wiley Blackwell, vol. 49(8), pages 1351-1374, December.
    3. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    4. Paul R. Carlile, 2004. "Transferring, Translating, and Transforming: An Integrative Framework for Managing Knowledge Across Boundaries," Organization Science, INFORMS, vol. 15(5), pages 555-568, October.
    5. Robert Jensen & Gabriel Szulanski, 2004. "Stickiness and the adaptation of organizational practices in cross-border knowledge transfers," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(6), pages 508-523, November.
    6. Bernard L. Simonin, 1999. "Ambiguity and the process of knowledge transfer in strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 20(7), pages 595-623, July.
    7. John Seely Brown & Paul Duguid, 2001. "Knowledge and Organization: A Social-Practice Perspective," Organization Science, INFORMS, vol. 12(2), pages 198-213, April.
    8. Cockburn, Iain M & Henderson, Rebecca M, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 157-182, June.
    9. Jansen, J.J.P. & van den Bosch, F.A.J. & Volberda, H.W., 2005. "Managing Potential and Realized Absorptive Capacity: How do Organizational Antecedents matter?," ERIM Report Series Research in Management ERS-2005-025-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    10. Paul R. Carlile, 2002. "A Pragmatic View of Knowledge and Boundaries: Boundary Objects in New Product Development," Organization Science, INFORMS, vol. 13(4), pages 442-455, August.
    11. Wesley M. Cohen & Daniel A. Levinthal, 1994. "Fortune Favors the Prepared Firm," Management Science, INFORMS, vol. 40(2), pages 227-251, February.
    12. Robertson, Paul L. & Casali, G.L. & Jacobson, David, 2012. "Managing open incremental process innovation: Absorptive Capacity and distributed learning," Research Policy, Elsevier, vol. 41(5), pages 822-832.
    13. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    14. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    15. Peter J. Lane & Michael Lubatkin, 1998. "Relative absorptive capacity and interorganizational learning," Post-Print hal-02311860, HAL.
    16. S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
    17. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    18. Felin, Teppo & Foss, Nicolai J., 2011. "The endogenous origins of experience, routines, and organizational capabilities: the poverty of stimulus," Journal of Institutional Economics, Cambridge University Press, vol. 7(2), pages 231-256, June.
    19. Nicolai Foss, 2006. "Knowledge and Organization in the Theory of the Multinational Corporation: Some Foundational Issues," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 10(1), pages 3-20, March.
    20. Iain M. Cockburn & Rebecca M. Henderson, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 157-182, June.
    21. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    22. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    23. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    24. Marco Tortoriello, 2015. "The social underpinnings of absorptive capacity: The moderating effects of structural holes on innovation generation based on external knowledge," Strategic Management Journal, Wiley Blackwell, vol. 36(4), pages 586-597, April.
    25. Steven Postrel, 2002. "Islands of Shared Knowledge: Specialization and Mutual Understanding in Problem-Solving Teams," Organization Science, INFORMS, vol. 13(3), pages 303-320, June.
    26. Roberts, Nicholas, 2015. "Absorptive capacity, organizational antecedents, and environmental dynamism," Journal of Business Research, Elsevier, vol. 68(11), pages 2426-2433.
    27. Raymond Van Wijk & Justin J. P. Jansen & Marjorie A. Lyles, 2008. "Inter‐ and Intra‐Organizational Knowledge Transfer: A Meta‐Analytic Review and Assessment of its Antecedents and Consequences," Journal of Management Studies, Wiley Blackwell, vol. 45(4), pages 830-853, June.
    28. Nicolai J. Foss & Keld Laursen & Torben Pedersen, 2011. "Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices," Organization Science, INFORMS, vol. 22(4), pages 980-999, August.
    29. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    30. Peter Abell & Teppo Felin & Nicolai Foss, 2008. "Building micro-foundations for the routines, capabilities, and performance links," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(6), pages 489-502.
    31. Kostopoulos, Konstantinos & Papalexandris, Alexandros & Papachroni, Margarita & Ioannou, George, 2011. "Absorptive capacity, innovation, and financial performance," Journal of Business Research, Elsevier, vol. 64(12), pages 1335-1343.
    32. Herbert A. Simon, 1991. "Bounded Rationality and Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 125-134, February.
    33. Udo Zander & Bruce Kogut, 1995. "Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: An Empirical Test," Organization Science, INFORMS, vol. 6(1), pages 76-92, February.
    34. Michael Lenox & Andrew King, 2004. "Prospects for developing absorptive capacity through internal information provision," Strategic Management Journal, Wiley Blackwell, vol. 25(4), pages 331-345, April.
    35. Frans A. J. Van den Bosch & Henk W. Volberda & Michiel de Boer, 1999. "Coevolution of Firm Absorptive Capacity and Knowledge Environment: Organizational Forms and Combinative Capabilities," Organization Science, INFORMS, vol. 10(5), pages 551-568, October.
    36. Peter J. Lane & Jane E. Salk & Marjorie A. Lyles, 2001. "Absorptive capacity, learning, and performance in international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(12), pages 1139-1161, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ximing Yin & Jin Chen & Chuang Zhao, 2019. "Double Screen Innovation: Building Sustainable Core Competence through Knowledge Management," Sustainability, MDPI, vol. 11(16), pages 1-16, August.
    2. Mariano, Stefania & Al-Arrayed, Suad, 2018. "Combinations of absorptive capacity metaroutines: The role of organizational disruptions and time constraints," European Management Journal, Elsevier, vol. 36(2), pages 171-182.
    3. Ritter-Hayashi, Daniela & Knoben, Joris & Vermeulen, Patrick A.M., 2021. "Temporary employment: Curse or blessing for a firm's absorptive capacity?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    4. Cheng-Hua Tzeng, 2021. "Executing absorptive capacity: a case study of spillover utilization by a domestic firm in China’s hotel industry," Asian Business & Management, Palgrave Macmillan, vol. 20(3), pages 409-434, July.
    5. Alejandro J. Gutiérrez Rodríguez & Nini Johanna Barón & José Manuel Guaita Martínez, 2020. "Validity of Dynamic Capabilities in the Operation Based on New Sustainability Narratives on Nature Tourism SMEs and Clusters," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    6. Tor Helge Aas & Karl Joachim Breunig, 2017. "Conceptualizing innovation capabilities: A contingency perspective," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 13(1), pages 7-24.
    7. Wenbo Jiang & Francesco Rosati & Huaqi Chai & Taiwen Feng, 2020. "Market orientation practices enhancing corporate environmental performance via knowledge creation: Does environmental management system implementation matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1899-1924, July.
    8. Romasanta, Angelo K.S. & van der Sijde, Peter & de Esch, Iwan J.P., 2022. "Absorbing knowledge from an emerging field: The role of interfacing by proponents in big pharma," Technovation, Elsevier, vol. 110(C).
    9. Ponce-Espinosa, Glenda & Segarra-Oña, Marival & Peiró-Signes, Angel, 2020. "From absorption capacity to in-company knowledge generation: key aspects’ identification," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 14(3), pages 34-49.
    10. Nachiket Bhawe & Shaker A. Zahra, 2019. "Inducing heterogeneity in local entrepreneurial ecosystems: the role of MNEs," Small Business Economics, Springer, vol. 52(2), pages 437-454, February.
    11. Marco-Lajara, Bartolomé & Zaragoza-Sáez, Patrocinio del Carmen & Claver-Cortés, Enrique & Úbeda-García, Mercedes, 2016. "Knowledge sources, agglomeration, and hotel performance," Journal of Business Research, Elsevier, vol. 69(11), pages 4856-4861.
    12. Kai Wu & Ghassan Beydoun & Osama Sohaib & Asif Gill, 2022. "The Co-construct/ Co-evolving Process between Organization’s Absorptive Capacity and Enterprise System Practice under Changing Context: The Case of ERP Practice," Information Systems Frontiers, Springer, vol. 24(6), pages 2123-2138, December.
    13. Weidner, Nadia & Som, Oliver & Horvat, Djerdj, 2023. "An integrated conceptual framework for analysing heterogeneous configurations of absorptive capacity in manufacturing firms with the DUI innovation mode," Technovation, Elsevier, vol. 121(C).
    14. Ahokangas, Petri & Haapanen, Lauri & Golgeci, Ismail & Arslan, Ahmad & Khan, Zaheer & Kontkanen, Minnie, 2022. "Knowledge sharing dynamics in international subcontracting arrangements: The case of Finnish high-tech SMEs," Journal of International Management, Elsevier, vol. 28(1).
    15. Liu, Ling & Henley, John & Mousavi, Mohammad Mahdi, 2021. "Foreign interfirm networks and internationalization: Evidence from sub-Saharan Africa," Journal of International Management, Elsevier, vol. 27(1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ritter-Hayashi, Daniela & Knoben, Joris & Vermeulen, Patrick A.M., 2021. "Temporary employment: Curse or blessing for a firm's absorptive capacity?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    2. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    3. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    4. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    5. Lívia Lopes Barakat & Torben Pedersen & Marcio Amaral-Baptista & Sherban Leornardo Cretoiu & Paulo Bento, 2022. "Too Much of Two Good Things: Explicating the Limited Complementarity Between Drivers of MNC Headquarters’ Absorptive Capacity," Management International Review, Springer, vol. 62(3), pages 393-426, June.
    6. Hammady Ahmed DINE RABEH, 2013. "Firm Resources’ Entanglement Determines ITS Absorptive Capacity: A Review Towards A New Reconceptualization," Working Papers 270, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    7. Khan, Zaheer & Lew, Yong Kyu & Marinova, Svetla, 2019. "Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent," International Business Review, Elsevier, vol. 28(3), pages 499-512.
    8. Burcharth, Ana Luiza Lara de Araújo & Lettl, Christopher & Ulhøi, John Parm, 2015. "Extending organizational antecedents of absorptive capacity: Organizational characteristics that encourage experimentation," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 269-284.
    9. H. Emre Yildiz & Adis Murtic & Udo Zander & Anders Richtnér, 2019. "What Fosters Individual-Level Absorptive Capacity in MNCs? An Extended Motivation–Ability–Opportunity Framework," Management International Review, Springer, vol. 59(1), pages 93-129, February.
    10. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    11. Daniel Robert Adams & Tessa Christina Flatten & Helge Brinkmann & Malte Brettel, 2016. "Consequences And Antecedents Of Absorptive Capacity In A Cross-Cultural Context," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-39, January.
    12. Johann Piet Hausberg & Peter S. H. Leeflang, 2019. "Absorbing Integration: Empirical Evidence On The Mediating Role Of Absorptive Capacity Between Functional-/Cross-Functional Integration And Innovation Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(06), pages 1-37, August.
    13. Lewandowska Małgorzata Stefania, 2015. "Capturing Absorptive Capacity: Concepts, Determinants, Measurement Modes and Role in Open Innovation," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 45(1), pages 32-56, March.
    14. Mariano, Stefania & Al-Arrayed, Suad, 2018. "Combinations of absorptive capacity metaroutines: The role of organizational disruptions and time constraints," European Management Journal, Elsevier, vol. 36(2), pages 171-182.
    15. Ferreras-Méndez, José Luis & Fernández-Mesa, Anabel & Alegre, Joaquín, 2016. "The relationship between knowledge search strategies and absorptive capacity: A deeper look," Technovation, Elsevier, vol. 54(C), pages 48-61.
    16. Bárbara Larrañeta & José Luis Galán González & Rocio Aguilar, 2017. "Early efforts to develop absorptive capacity and their performance implications: differences among corporate and independent ventures," The Journal of Technology Transfer, Springer, vol. 42(3), pages 485-509, June.
    17. Guo, Jingjing & Guo, Bin & Zhou, Jianghua & Wu, Xiaobo, 2020. "How does the ambidexterity of technological learning routine affect firm innovation performance within industrial clusters? The moderating effects of knowledge attributes," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    18. Bedford, David & Bisbe, Josep & Sweeney, Breda, 2022. "Enhancing external knowledge search: The influence of performance measurement system design on the absorptive capacity of top management teams," Technovation, Elsevier, vol. 118(C).
    19. Vanhaverbeke, W.P.M. & Beerkens, B.E. & Duysters, G.M., 2003. "Explorative and exploitative learning strategies in technology-based alliance networks," Working Papers 03.22, Eindhoven Center for Innovation Studies.
    20. Avimanyu Datta, 2011. "Combining Networks, Ambidexterity and Absorptive Capacity to Explain Commercialization of Innovations: A Theoretical Model from Review and Extension," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(4), pages 2-25, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:2:p:700-708. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.