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  • 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)
    Schleimer, Stephanie C.
    Year published
    2020
    Metadata
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    Abstract
    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 ...
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    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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    Journal Title
    Knowledge Management Research & Practice
    DOI
    https://doi.org/10.1080/14778238.2020.1787801
    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
    Publication URI
    http://hdl.handle.net/10072/406234
    Collection
    • Journal articles

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