IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v43y2014i2p318-332.html
   My bibliography  Save this article

Connections count: How relational embeddedness and relational empowerment foster absorptive capacity

Author

Listed:
  • Ebers, Mark
  • Maurer, Indre

Abstract

While research has produced ample evidence showing that absorptive capacity affects innovation and organizational performance outcomes, we still know little about why some organizations possess greater absorptive capacity than others. This study extends previous research by showing how absorptive capacity emerges as an unintended consequence from organizational boundary spanners’ external and internal relational embeddedness and their relational empowerment. Drawing upon survey data from 218 inter-organizational projects in the German engineering industry, we propose and find empirically that potential and realized absorptive capacity have partially distinct antecedents. Moreover, we show that the two components of absorptive capacity unfold not only separate but also complementary effects on innovation, implying that the whole of absorptive capacity is greater than its parts. In examining how different components of absorptive capacity emerge and unfold their effects, this study addresses critical limitations of the literature on absorptive capacity.

Suggested Citation

  • Ebers, Mark & Maurer, Indre, 2014. "Connections count: How relational embeddedness and relational empowerment foster absorptive capacity," Research Policy, Elsevier, vol. 43(2), pages 318-332.
    • Handle: RePEc:eee:respol:v:43:y:2014:i:2:p:318-332
    DOI: 10.1016/j.respol.2013.10.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733313001960
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.respol.2013.10.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hobday, Mike, 1998. "Product complexity, innovation and industrial organisation," Research Policy, Elsevier, vol. 26(6), pages 689-710, February.
    2. Dushnitsky, Gary & Lenox, Michael J., 2005. "When do incumbents learn from entrepreneurial ventures?: Corporate venture capital and investing firm innovation rates," Research Policy, Elsevier, vol. 34(5), pages 615-639, June.
    3. Anil K. Gupta & Vijay Govindarajan, 2000. "Knowledge flows within multinational corporations," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 473-496, April.
    4. Gilsing, Victor & Nooteboom, Bart & Vanhaverbeke, Wim & Duysters, Geert & van den Oord, Ad, 2008. "Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density," Research Policy, Elsevier, vol. 37(10), pages 1717-1731, December.
    5. Milgrom, Paul R & Qian, Yingyi & Roberts, John, 1991. "Complementarities, Momentum, and the Evolution of Modern Manufacturing," American Economic Review, American Economic Association, vol. 81(2), pages 84-88, May.
    6. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    7. Stephanie C. Schleimer & Torben Pedersen, 2013. "The Driving Forces of Subsidiary Absorptive Capacity," Journal of Management Studies, Wiley Blackwell, vol. 50(4), pages 646-672, June.
    8. Linda Argote & Bill McEvily & Ray Reagans, 2003. "Managing Knowledge in Organizations: An Integrative Framework and Review of Emerging Themes," Management Science, INFORMS, vol. 49(4), pages 571-582, April.
    9. Jansen, J.J.P. & van den Bosch, F.A.J. & Volberda, H.W., 2005. "Managing Potential and Realized Absorptive Capacity: How do Organizational Antecedents matter?," ERIM Report Series Research in Management ERS-2005-025-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    10. Paul E. Bierly & Fariborz Damanpour & Michael D. Santoro, 2009. "The Application of External Knowledge: Organizational Conditions for Exploration and Exploitation," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 481-509, May.
    11. Mary M. Crossan & Marina Apaydin, 2010. "A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1154-1191, September.
    12. Hüseyin Tanriverdi & N. Venkatraman, 2005. "Knowledge relatedness and the performance of multibusiness firms," Strategic Management Journal, Wiley Blackwell, vol. 26(2), pages 97-119, February.
    13. Steven S. Lui & Hang‐yue Ngo, 2005. "An Action Pattern Model of Inter‐firm Cooperation," Journal of Management Studies, Wiley Blackwell, vol. 42(6), pages 1123-1153, September.
    14. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    15. Kurt T. Dirks & Donald L. Ferrin, 2001. "The Role of Trust in Organizational Settings," Organization Science, INFORMS, vol. 12(4), pages 450-467, August.
    16. Gann, David M. & Salter, Ammon J., 2000. "Innovation in project-based, service-enhanced firms: the construction of complex products and systems," Research Policy, Elsevier, vol. 29(7-8), pages 955-972, August.
    17. Jatinder S. Sidhu & Harry R. Commandeur & Henk W. Volberda, 2007. "The Multifaceted Nature of Exploration and Exploitation: Value of Supply, Demand, and Spatial Search for Innovation," Organization Science, INFORMS, vol. 18(1), pages 20-38, February.
    18. Bill McEvily & Alfred Marcus, 2005. "Embedded ties and the acquisition of competitive capabilities," Strategic Management Journal, Wiley Blackwell, vol. 26(11), pages 1033-1055, November.
    19. Ranjay Gulati, 1999. "Network location and learning: the influence of network resources and firm capabilities on alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 397-420, May.
    20. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    21. Peter Moran, 2005. "Structural vs. relational embeddedness: social capital and managerial performance," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1129-1151, December.
    22. Nicolai J. Foss & Kenneth Husted & Snejina Michailova, 2010. "Governing Knowledge Sharing in Organizations: Levels of Analysis, Governance Mechanisms, and Research Directions," Journal of Management Studies, Wiley Blackwell, vol. 47(3), pages 455-482, May.
    23. Fligstein, Neil, 2001. "Social Skill and the Theory of Fields," Center for Culture, Organizations and Politics, Working Paper Series qt26m187b1, Center for Culture, Organizations and Politics of theInstitute for Research on Labor and Employment, UC Berkeley.
    24. Hillebrand, Bas & Biemans, Wim G., 2003. "The relationship between internal and external cooperation: literature review and propositions," Journal of Business Research, Elsevier, vol. 56(9), pages 735-743, September.
    25. Kim, Chang-Su & Inkpen, Andrew C., 2005. "Cross-border R&D alliances, absorptive capacity and technology learning," Journal of International Management, Elsevier, vol. 11(3), pages 313-329, September.
    26. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    27. Brian Uzzi & Ryon Lancaster, 2003. "Relational Embeddedness and Learning: The Case of Bank Loan Managers and Their Clients," Management Science, INFORMS, vol. 49(4), pages 383-399, April.
    28. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    29. Fosfuri, Andrea & Tribø, Josep A., 2008. "Exploring the antecedents of potential absorptive capacity and its impact on innovation performance," Omega, Elsevier, vol. 36(2), pages 173-187, April.
    30. Helena Yli‐Renko & Erkko Autio & Harry J. Sapienza, 2001. "Social capital, knowledge acquisition, and knowledge exploitation in young technology‐based firms," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 587-613, June.
    31. Africa Ariño & José de la Torre, 1998. "Learning from Failure: Towards an Evolutionary Model of Collaborative Ventures," Organization Science, INFORMS, vol. 9(3), pages 306-325, June.
    32. Wenpin Tsai, 2000. "Social capital, strategic relatedness and the formation of intraorganizational linkages," Strategic Management Journal, Wiley Blackwell, vol. 21(9), pages 925-939, September.
    33. Michael Lenox & Andrew King, 2004. "Prospects for developing absorptive capacity through internal information provision," Strategic Management Journal, Wiley Blackwell, vol. 25(4), pages 331-345, April.
    34. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    35. Frans A. J. Van den Bosch & Henk W. Volberda & Michiel de Boer, 1999. "Coevolution of Firm Absorptive Capacity and Knowledge Environment: Organizational Forms and Combinative Capabilities," Organization Science, INFORMS, vol. 10(5), pages 551-568, October.
    36. Jiang, Xu & Li, Yuan, 2009. "An empirical investigation of knowledge management and innovative performance: The case of alliances," Research Policy, Elsevier, vol. 38(2), pages 358-368, March.
    37. Constance E. Helfat, 1997. "Know‐how and asset complementarity and dynamic capability accumulation: the case of r&d," Strategic Management Journal, Wiley Blackwell, vol. 18(5), pages 339-360, May.
    38. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    39. Wei‐ping Wu, 2008. "Dimensions of Social Capital and Firm Competitiveness Improvement: The Mediating Role of Information Sharing," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 122-146, January.
    40. Peter J. Lane & Jane E. Salk & Marjorie A. Lyles, 2001. "Absorptive capacity, learning, and performance in international joint ventures," Strategic Management Journal, Wiley Blackwell, vol. 22(12), pages 1139-1161, December.
    41. Rost, Katja, 2011. "The strength of strong ties in the creation of innovation," Research Policy, Elsevier, vol. 40(4), pages 588-604, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khan, Zaheer & Lew, Yong Kyu & Marinova, Svetla, 2019. "Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent," International Business Review, Elsevier, vol. 28(3), pages 499-512.
    2. Alberto Marzucchi & Chiara Franco & Sandro Montresor, 2011. "The potential face of absorptive capacity. An empirical investigation for an area of 3 European countries," Working Papers 2011R08, Orkestra - Basque Institute of Competitiveness.
    3. Burcharth, Ana Luiza Lara de Araújo & Lettl, Christopher & Ulhøi, John Parm, 2015. "Extending organizational antecedents of absorptive capacity: Organizational characteristics that encourage experimentation," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 269-284.
    4. Weidner, Nadia & Som, Oliver & Horvat, Djerdj, 2023. "An integrated conceptual framework for analysing heterogeneous configurations of absorptive capacity in manufacturing firms with the DUI innovation mode," Technovation, Elsevier, vol. 121(C).
    5. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    6. Emre Yildiz, H. & Murtic, Adis & Klofsten, Magnus & Zander, Udo & Richtnér, Anders, 2021. "Individual and contextual determinants of innovation performance: A micro-foundations perspective," Technovation, Elsevier, vol. 99(C).
    7. Lívia Lopes Barakat & Torben Pedersen & Marcio Amaral-Baptista & Sherban Leornardo Cretoiu & Paulo Bento, 2022. "Too Much of Two Good Things: Explicating the Limited Complementarity Between Drivers of MNC Headquarters’ Absorptive Capacity," Management International Review, Springer, vol. 62(3), pages 393-426, June.
    8. Ellen Enkel & Annika Groemminger & Sebastian Heil, 2018. "Managing technological distance in internal and external collaborations: absorptive capacity routines and social integration for innovation," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1257-1290, October.
    9. Lewandowska Małgorzata Stefania, 2015. "Capturing Absorptive Capacity: Concepts, Determinants, Measurement Modes and Role in Open Innovation," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 45(1), pages 32-56, March.
    10. Ritter-Hayashi, Daniela & Knoben, Joris & Vermeulen, Patrick A.M., 2021. "Temporary employment: Curse or blessing for a firm's absorptive capacity?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    11. Hsin Hsin Chang & Yao-Chuan Tsai & Chen-Su Fu & Shu-Hui Chen & Yao Peng, 2016. "Exploring the antecedents and consequences of technology and knowledge integration mechanisms in the context of NPD," Information Systems Frontiers, Springer, vol. 18(6), pages 1165-1189, December.
    12. Tepic, M. & Trienekens, Jacques H. & Hoste, R. & Omta, S.W.F. (Onno), 2012. "The Influence of Networking and Absorptive Capacity on the Innovativeness of Farmers in the Dutch Pork Sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(3), pages 1-34, September.
    13. Zhou, Abby Jingzi & Fey, Carl & Yildiz, H. Emre, 2020. "Fostering integration through HRM practices: An empirical examination of absorptive capacity and knowledge transfer in cross-border M&As," Journal of World Business, Elsevier, vol. 55(2).
    14. Chiara Franco & Alberto Marzucchi & Sandro Montresor, 2012. "Absorptive capacity, innovation cooperation and human-capital. Evidence from 3 European countries," JRC Research Reports JRC77090, Joint Research Centre.
    15. Rafael Sancho-Zamora & Isidro Peña-García & Santiago Gutiérrez-Broncano & Felipe Hernández-Perlines, 2021. "Moderating Effect of Proactivity on Firm Absorptive Capacity and Performance: Empirical Evidence from Spanish Firms," Mathematics, MDPI, vol. 9(17), pages 1-15, August.
    16. H. Emre Yildiz & Adis Murtic & Udo Zander & Anders Richtnér, 2019. "What Fosters Individual-Level Absorptive Capacity in MNCs? An Extended Motivation–Ability–Opportunity Framework," Management International Review, Springer, vol. 59(1), pages 93-129, February.
    17. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    18. Arie Y. Lewin & Silvia Massini & Carine Peeters, 2011. "Microfoundations of Internal and External Absorptive Capacity Routines," Organization Science, INFORMS, vol. 22(1), pages 81-98, February.
    19. Martinkenaite, Ieva & Breunig, Karl Joachim, 2016. "The emergence of absorptive capacity through micro–macro level interactions," Journal of Business Research, Elsevier, vol. 69(2), pages 700-708.
    20. Daniel Robert Adams & Tessa Christina Flatten & Helge Brinkmann & Malte Brettel, 2016. "Consequences And Antecedents Of Absorptive Capacity In A Cross-Cultural Context," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-39, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:43:y:2014:i:2:p:318-332. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.