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

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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)

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.

Suggested Citation

  • Fang Huang & John Rice, 2009. "THE ROLE OF ABSORPTIVE CAPACITY IN FACILITATING "OPEN INNOVATION" OUTCOMES: A STUDY OF AUSTRALIAN SMEsIN THE MANUFACTURING SECTOR," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 201-220.
    • Handle: RePEc:wsi:ijimxx:v:13:y:2009:i:02:n:s1363919609002261
    DOI: 10.1142/S1363919609002261
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    References listed on IDEAS

    as
    1. Veugelers, Reinhilde & Cassiman, Bruno, 2002. "Complementarity in the Innovation Strategy: Internal R&D, External Technology Acquisition and Cooperation," CEPR Discussion Papers 3284, C.E.P.R. Discussion Papers.
    2. Cassiman, Bruno & Veugelers, Reinhilde, 2002. "Complementarity in the innovation strategy: Internal R&D, external technology acquisition, and cooperation in R&D," IESE Research Papers D/457, IESE Business School.
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    Cited by:

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    2. Marieta Olaru & Vasile Dinu & Timo Keppler & Bogdan Mocan, 2015. "Study on the Open Innovation Practices in Romanian Smes," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(S9), pages 1129-1129, November.
    3. Andreas Braun & Laura Bockelmann, 2016. "An Individual Perspective On Open Innovation Capabilities In The Context Of Haute Cuisine," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-24, January.
    4. Beynon, Malcolm J. & Jones, Paul & Pickernell, David, 2023. "Evaluating EU-Region level innovation readiness: A longitudinal analysis using principal component analysis and a constellation graph index approach," Journal of Business Research, Elsevier, vol. 159(C).
    5. Mohammad H. Eslami & Nicolette Lakemond, 2016. "Internal Integration In Complex Collaborative Product Development Projects," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-28, January.
    6. Khorshed Alam & Adewuyi A. Adeyinka, 2021. "Does innovation stimulate performance? The case of small and medium enterprises in regional Australia," Australian Economic Papers, Wiley Blackwell, vol. 60(3), pages 496-519, September.
    7. Morgan, Todd & Obal, Michael & Anokhin, Sergey, 2018. "Customer participation and new product performance: Towards the understanding of the mechanisms and key contingencies," Research Policy, Elsevier, vol. 47(2), pages 498-510.
    8. Lingyan Meng & Md Qamruzzaman & Anass Hamad Elneel Adow, 2021. "Technological Adaption and Open Innovation in SMEs: An Strategic Assessment for Women-Owned SMEs Sustainability in Bangladesh," Sustainability, MDPI, vol. 13(5), pages 1-22, March.
    9. Muhammad Masood Azeem & Syed Fazal‐e‐Hasan & Leopoldo Gutiérrez & Derek Baker, 2022. "Does functional diversity in interfirm collaborations lead to innovation diversity? Firm‐level evidence from the Australian food industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(3), pages 612-637, July.
    10. 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.
    11. Poudeh, Hossein Dehghani & Cheshmberah, Mohsen & Torabi, Hassan & Karimi Gavareshki, Mohammad Hossein & Hosnavi, Reza, 2019. "Determining and prioritizing the factors influencing the outsourcing of Complex Product Systems R&D projects employing ANP and grey-DEMATEL method (case study: Aviation Industries Organization, Iran)," Technology in Society, Elsevier, vol. 56(C), pages 57-68.
    12. Graciela Corral De Zubielqui & Janice Jones & Laurence Lester, 2017. "KNOWLEDGE INFLOWS FROM MARKET- AND SCIENCE-BASED ACTORS, ABSORPTIVE CAPACITY, INNOVATION AND PERFORMANCE: A STUDY OF SMEs," World Scientific Book Chapters, in: Joe Tidd (ed.), Promoting Innovation in New Ventures and Small- and Medium-Sized Enterprises, chapter 15, pages 359-391, World Scientific Publishing Co. Pte. Ltd..
    13. Zahoor, Nadia & Al-Tabbaa, Omar, 2020. "Inter-organizational collaboration and SMEs’ innovation: A systematic review and future research directions," Scandinavian Journal of Management, Elsevier, vol. 36(2).
    14. Chihcheng Lo & Chunhsien Wang & Yi-Chun Chen, 2020. "The Mediating Role of Intellectual Capital in Open Innovation in the Service Industries," Sustainability, MDPI, vol. 12(12), pages 1-12, June.
    15. Achim Hecker & Alois Ganter, 2016. "Organisational And Technological Innovation And The Moderating Effect Of Open Innovation Strategies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-31, February.
    16. Simona Gentile-Lüdecke & Rui Torres de Oliveira & Justin Paul, 2020. "Does organizational structure facilitate inbound and outbound open innovation in SMEs?," Small Business Economics, Springer, vol. 55(4), pages 1091-1112, December.

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