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THE ROLE OF ABSORPTIVE CAPACITY IN FACILITATING "OPEN INNOVATION" OUTCOMES: A STUDY OF AUSTRALIAN SMEs IN 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)

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    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.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Journal of Innovation Management.

    Volume (Year): 13 (2009)
    Issue (Month): 02 ()
    Pages: 201-220

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    Handle: RePEc:wsi:ijimxx:v:13:y:2009:i:02:p:201-220

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    Related research

    Keywords: Open innovation; absorptive capacity; manufacturing; SMEs; Australia;

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