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Balancing absorptive capacity and inbound open innovation for sustained innovative performance: An attention-based view

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  • Kim, Bongsun
  • Kim, Eonsoo
  • Foss, Nicolai J.

Abstract

How can a firm develop new ideas and turn them into profitable innovations on a sustained basis? We address this fundamental issue in a novel way by developing an integrative framework of absorptive capacity (AC) and inbound open innovation that is rooted in the attention-based view of the firm. We specifically address why a balance between open and closed innovation is important from the perspective of absorptive capacity, and show how it may be brought about. Pursuing either open or closed inbound innovation alone may result in an imbalance between potential AC and realized AC as well as inward-looking AC and outward-looking AC, which will hinder innovative performance. We argue that practicing open and closed inbound innovation repeatedly and alternately by switching organizational attentions, and thus developing the associated AC, can facilitate balancing absorptive capacity and lead to innovative performance.

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  • Kim, Bongsun & Kim, Eonsoo & Foss, Nicolai J., 2016. "Balancing absorptive capacity and inbound open innovation for sustained innovative performance: An attention-based view," European Management Journal, Elsevier, vol. 34(1), pages 80-90.
    • Handle: RePEc:eee:eurman:v:34:y:2016:i:1:p:80-90
    DOI: 10.1016/j.emj.2015.10.002
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    3. Yongbo Sun & Hong Sun, 2021. "Executives’ Environmental Awareness and Eco-Innovation: An Attention-Based View," Sustainability, MDPI, vol. 13(8), pages 1-21, April.
    4. Xiaoxiao Shi & Qingpu Zhang, 2020. "Network inertia and inbound open innovation: is there a bidirectional relationship?," Scientometrics, Springer;Akadémiai Kiadó, vol. 122(2), pages 791-815, February.
    5. Limaj, Everist & Bernroider, Edward W.N., 2019. "The roles of absorptive capacity and cultural balance for exploratory and exploitative innovation in SMEs," Journal of Business Research, Elsevier, vol. 94(C), pages 137-153.
    6. Ardito, Lorenzo & Messeni Petruzzelli, Antonio, 2017. "Breadth of external knowledge sourcing and product innovation: The moderating role of strategic human resource practices," European Management Journal, Elsevier, vol. 35(2), pages 261-272.
    7. Flor, M. Luisa & Cooper, Sarah Y. & Oltra, María J., 2018. "External knowledge search, absorptive capacity and radical innovation in high-technology firms," European Management Journal, Elsevier, vol. 36(2), pages 183-194.
    8. Zhu, Xiaoxuan & Xiao, Zhenxin & Dong, Maggie Chuoyan & Gu, Jibao, 2019. "The fit between firms’ open innovation and business model for new product development speed: A contingent perspective," Technovation, Elsevier, vol. 86, pages 75-85.
    9. Stephan Vachon & Sara Hajmohammad, 2016. "Supply chain uncertainty and environmental management," Asian Journal of Sustainability and Social Responsibility, Springer, vol. 1(1), pages 77-89, December.
    10. Hortovanyi, Lilla & Szabo, Roland Zs & Fuzes, Peter, 2021. "Extension of the strategic renewal journey framework: The changing role of middle management," Technology in Society, Elsevier, vol. 65(C).
    11. Lopes, Ana Paula Vilas Boas Viveiros & de Carvalho, Marly Monteiro, 2018. "Evolution of the open innovation paradigm: Towards a contingent conceptual model," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 284-298.
    12. Ardito, Lorenzo & Raby, Simon & Albino, Vito & Bertoldi, Bernardo, 2021. "The duality of digital and environmental orientations in the context of SMEs: Implications for innovation performance," Journal of Business Research, Elsevier, vol. 123(C), pages 44-56.
    13. Ji Yeon Yang & Taewoo Roh, 2019. "Open for Green Innovation: From the Perspective of Green Process and Green Consumer Innovation," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    14. Wang, Nan & Wan, Jiahao & Ma, Zhenzhong & Zhou, Yan & Chen, Jin, 2023. "How digital platform capabilities improve sustainable innovation performance of firms: The mediating role of open innovation," Journal of Business Research, Elsevier, vol. 167(C).
    15. Max M. Weber & Peter Kokott, 2024. "Organizational Resilience and the Attention-Based View of the Firm—Empirical Evidence from German SMEs," Sustainability, MDPI, vol. 16(11), pages 1-24, May.

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