The Mediating Role of Absorptive Capability Between the Effect of Organizational Internalization Through Social Media on Open Inbound Innovation

Organizational chain innovation is a crucial issue for large-scale businesses, and firms that have adopted external knowledge can enhance innovation efficiency. However, to gain external knowledge does not mean to simply copy external information; instead, the firm must effectively use the knowledge it obtains for innovation. Social media provides employees with opportunities to communicate with customers, and is thus important for fostering firms’ organizational socialization. The socialization process of an organization comprises individual/employee level and functional department level. However, without the development of absorptive capability during the socialization process, the acquired information may be considered as a superficial feature, rather than an essential nature for an effect on an inbound open innovation. This study proposes an innovative and complete research model based on media system dependency theory to discuss the interrelationship between the social media information of organizations and their inbound open innovation. Empirical analysis shows the important link for these components of inbound open innovation.