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Wearing Different Hats: How Absorptive Capacity Differs In Open Innovation

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  • LANCE NEWEY

    ()
    (UQ Business School, University of Queensland, St. Lucia Queensland Australia 4072, Australia)

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    Abstract

    Absorptive capacity is often touted as being important for the success of open innovation. Yet different absorptive capacities may be required for inbound versus outbound open innovation. Using process research of how multiple firms participated in the development of a groundbreaking anti-influenza drug, we found that firms needed to develop both supplier- and customer-types of absorptive capacity. Inbound open innovation involved customer absorptive capacity and outbound innovation required supplier absorptive capacity. In each case absorptive capacity needed to be leveraged differently. We thus extend our knowledge of how absorptive capacity benefits open innovation.

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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): 14 (2010)
    Issue (Month): 04 ()
    Pages: 703-731

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    Handle: RePEc:wsi:ijimxx:v:14:y:2010:i:04:p:703-731

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    Related research

    Keywords: Absorptive capacity; open innovation; inbound and outbound; suppliers and customers; process research;

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