The role of prevailing individual absorptive capacity versus absorptive capacity development for different innovation outcomes
Author(s)
Knudsen, Mette Praest
Schleimer, Stephanie
Griffith University Author(s)
Year published
2020
Metadata
Show full item recordAbstract
Utilising absorptive capacity theory, this study examines whether organisations should outsource knowledge acquisition of employees, i.e.,, by hiring employees with prevailing relevant knowledge, or whether to invest in the development of employees’ knowledge within the organisation for different types of innovations. Three hundred and thirty-five Danish firms in the European Manufacturing Survey reveal that individual knowledge must be differently organised to achieve different innovative outcomes. For new product development, organisations benefit from investing in employees with the highest possible domain-specific ...
View more >Utilising absorptive capacity theory, this study examines whether organisations should outsource knowledge acquisition of employees, i.e.,, by hiring employees with prevailing relevant knowledge, or whether to invest in the development of employees’ knowledge within the organisation for different types of innovations. Three hundred and thirty-five Danish firms in the European Manufacturing Survey reveal that individual knowledge must be differently organised to achieve different innovative outcomes. For new product development, organisations benefit from investing in employees with the highest possible domain-specific absorptive capacity, whilst for product-related service innovations, employees with more general knowledge should be hired. For the latter, employees’ individual absorptive capacity should be developed internally for best innovation outcomes. Irrespective of the type of innovation, providing flexible work arrangements is beneficial for performance and this effect is further substantiated by firm’s cross-functional capabilities. Important implications emerge for the organisation in terms of outsourcing versus developing individual absorptive capacity for different innovations.
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View more >Utilising absorptive capacity theory, this study examines whether organisations should outsource knowledge acquisition of employees, i.e.,, by hiring employees with prevailing relevant knowledge, or whether to invest in the development of employees’ knowledge within the organisation for different types of innovations. Three hundred and thirty-five Danish firms in the European Manufacturing Survey reveal that individual knowledge must be differently organised to achieve different innovative outcomes. For new product development, organisations benefit from investing in employees with the highest possible domain-specific absorptive capacity, whilst for product-related service innovations, employees with more general knowledge should be hired. For the latter, employees’ individual absorptive capacity should be developed internally for best innovation outcomes. Irrespective of the type of innovation, providing flexible work arrangements is beneficial for performance and this effect is further substantiated by firm’s cross-functional capabilities. Important implications emerge for the organisation in terms of outsourcing versus developing individual absorptive capacity for different innovations.
View less >
Journal Title
Knowledge Management Research & Practice
Note
This publication has been entered in Griffith Research Online as an advanced online version.
Subject
Business systems in context
Human resources and industrial relations
Strategy, management and organisational behaviour
Information and computing sciences
Commerce, management, tourism and services
Psychology