IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v124y2023ics0166497223000469.html
   My bibliography  Save this article

How upstream innovativeness of ecosystems affects firms' innovation: The contingent role of absorptive capacity and upstream dependence

Author

Listed:
  • Dong, Caiting
  • Liu, Xielin
  • Tang, Fangcheng
  • Qiu, Shumin

Abstract

This study attempts to examine how upstream innovativeness affects firm innovation, as well as the contingent role of absorptive capacity and upstream dependence associated with the effects of upstream innovativeness. Specifically, based on an empirical study of a set of panel data of Chinese listed firms in the manufacturing sector of the Growth Enterprise Board from 2012 to 2017, this paper shows that upstream innovativeness has a positive effect on firms' innovation performance and that the effect of upstream innovativeness is positively moderated by firms' absorptive capacity. Moreover, the positive moderating role of absorptive capacity will be strengthened when upstream dependence increases. The findings indicate that higher absorptive capacity enables firms to better understand, assimilate and exploit upstream innovative components, and that higher upstream dependence could increase firms' willingness to invest in ecosystem actor-specific absorptive capacity and utilize such capability, thereby enabling a firm to better recognize, assimilate, and exploit external knowledge from the specific upstream actors. Thus, we build a new framework related to how firms' response to ecosystem upstream innovativeness by increasing their innovation based on their capability and willingness.

Suggested Citation

  • Dong, Caiting & Liu, Xielin & Tang, Fangcheng & Qiu, Shumin, 2023. "How upstream innovativeness of ecosystems affects firms' innovation: The contingent role of absorptive capacity and upstream dependence," Technovation, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:techno:v:124:y:2023:i:c:s0166497223000469
    DOI: 10.1016/j.technovation.2023.102735
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497223000469
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.technovation.2023.102735?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. Yi, Yaqun & Chen, Yu & Li, Dan, 2022. "Stakeholder ties, organizational learning, and business model innovation: A business ecosystem perspective," Technovation, Elsevier, vol. 114(C).
    2. Roy, Subroto & Sivakumar, K., 2010. "Innovation generation in upstream and downstream business relationships," Journal of Business Research, Elsevier, vol. 63(12), pages 1356-1363, December.
    3. Tang, Xinlin & Rai, Arun, 2014. "How should process capabilities be combined to leverage supplier relationships competitively?," European Journal of Operational Research, Elsevier, vol. 239(1), pages 119-129.
    4. Jing Li & Jun Xia & Edward J. Zajac, 2018. "On the duality of political and economic stakeholder influence on firm innovation performance: Theory and evidence from Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 193-216, January.
    5. Gautam Ahuja, 2000. "The duality of collaboration: inducements and opportunities in the formation of interfirm linkages," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 317-343, March.
    6. Ron Adner & Rahul Kapoor, 2016. "Innovation ecosystems and the pace of substitution: Re-examining technology S-curves," Strategic Management Journal, Wiley Blackwell, vol. 37(4), pages 625-648, April.
    7. Yanzhang Gu & Longying Hu & Hongjin Zhang & Chenxuan Hou, 2021. "Innovation Ecosystem Research: Emerging Trends and Future Research," Sustainability, MDPI, vol. 13(20), pages 1-21, October.
    8. Santoro, Gabriele & Bresciani, Stefano & Papa, Armando, 2020. "Collaborative modes with Cultural and Creative Industries and innovation performance: The moderating role of heterogeneous sources of knowledge and absorptive capacity," Technovation, Elsevier, vol. 92.
    9. Shahzad (Shaz) Ansari & Raghu Garud & Arun Kumaraswamy, 2016. "The disruptor's dilemma: TiVo and the U.S. television ecosystem," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1829-1853, September.
    10. Rangus, Kaja & Slavec, Alenka, 2017. "The interplay of decentralization, employee involvement and absorptive capacity on firms' innovation and business performance," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 195-203.
    11. Jianghua Zhou & Rui Wu & Jizhen Li, 2019. "More ties the merrier? Different social ties and firm innovation performance," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 445-471, June.
    12. Escribano, Alvaro & Fosfuri, Andrea & Tribó, Josep A., 2009. "Managing external knowledge flows: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 38(1), pages 96-105, February.
    13. Ron Adner & Rahul Kapoor, 2010. "Value creation in innovation ecosystems: how the structure of technological interdependence affects firm performance in new technology generations," Strategic Management Journal, Wiley Blackwell, vol. 31(3), pages 306-333, March.
    14. Rahul Kapoor, 2018. "Ecosystems: broadening the locus of value creation," Journal of Organization Design, Springer;Organizational Design Community, vol. 7(1), pages 1-16, December.
    15. Mowery, David C & Oxley, Joanne E, 1995. "Inward Technology Transfer and Competitiveness: The Role of National Innovation Systems," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 19(1), pages 67-93, February.
    16. Ulrich Lichtenthaler & Eckhard Lichtenthaler, 2009. "A Capability‐Based Framework for Open Innovation: Complementing Absorptive Capacity," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1315-1338, December.
    17. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    18. Peter J. Lane & Michael Lubatkin, 1998. "Relative absorptive capacity and interorganizational learning," Post-Print hal-02311860, HAL.
    19. Puay Khoon Toh & Cameron D. Miller, 2017. "Pawn to Save a Chariot, or Drawbridge Into the Fort? Firms' Disclosure During Standard Setting and Complementary Technologies Within Ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 38(11), pages 2213-2236, November.
    20. Jeffrey H. Dyer & Harbir Singh & William S. Hesterly, 2018. "The relational view revisited: A dynamic perspective on value creation and value capture," Strategic Management Journal, Wiley Blackwell, vol. 39(12), pages 3140-3162, December.
    21. Szczygielski, Krzysztof & Grabowski, Wojciech & Pamukcu, Mehmet Teoman & Tandogan, Vedat Sinan, 2017. "Does government support for private innovation matter? Firm-level evidence from two catching-up countries," Research Policy, Elsevier, vol. 46(1), pages 219-237.
    22. Granstrand, Ove & Holgersson, Marcus, 2020. "Innovation ecosystems: A conceptual review and a new definition," Technovation, Elsevier, vol. 90.
    23. Stelios Zyglidopoulos, 1999. "Initial Environmental Conditions and Technological Change," Journal of Management Studies, Wiley Blackwell, vol. 36(2), pages 241-262, March.
    24. Nihad Faissal Bassis & Fabiano Armellini, 2018. "Systems of innovation and innovation ecosystems: a literature review in search of complementarities," Journal of Evolutionary Economics, Springer, vol. 28(5), pages 1053-1080, December.
    25. Pinar Ozcan & Douglas Hannah, 2020. "Social Origins of Great Strategies Advertising Suppliers to Realize Disruptive Social Media Technology," Strategy Science, INFORMS, vol. 5(3), pages 193-217, September.
    26. Tsai, Kuen-Hung, 2009. "Collaborative networks and product innovation performance: Toward a contingency perspective," Research Policy, Elsevier, vol. 38(5), pages 765-778, June.
    27. Isaksson, Olov H.D. & Simeth, Markus & Seifert, Ralf W., 2016. "Knowledge spillovers in the supply chain: Evidence from the high tech sectors," Research Policy, Elsevier, vol. 45(3), pages 699-706.
    28. Pushpananthan, Gouthanan & Elmquist, Maria, 2022. "Joining forces to create value: The emergence of an innovation ecosystem," Technovation, Elsevier, vol. 115(C).
    29. Du, Xianjin & Zhan, Huimin & Zhu, Xiaoxuan & He, Xiuli, 2021. "The upstream innovation with an overconfident manufacturer in a supply chain," Omega, Elsevier, vol. 105(C).
    30. Henderson, Rebecca, 1995. "Of life cycles real and imaginary: The unexpectedly long old age of optical lithography," Research Policy, Elsevier, vol. 24(4), pages 631-643, July.
    31. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    32. Long W. Lam & Aichia Chuang & Chi-Sum Wong & Julie N. Y. Zhu, 2019. "A typology of three-way interaction models: Applications and suggestions for Asian management research," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 1-16, March.
    33. Jingqi Wang & Hyoduk Shin, 2015. "The Impact of Contracts and Competition on Upstream Innovation in a Supply Chain," Production and Operations Management, Production and Operations Management Society, vol. 24(1), pages 134-146, January.
    34. Herriott, Scott R & Levinthal, Daniel & March, James G, 1985. "Learning from Experience in Organizations," American Economic Review, American Economic Association, vol. 75(2), pages 298-302, May.
    35. Douglas P. Hannah & Kathleen M. Eisenhardt, 2018. "How firms navigate cooperation and competition in nascent ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 39(12), pages 3163-3192, December.
    36. Michael G. Jacobides & Carmelo Cennamo & Annabelle Gawer, 2018. "Towards a theory of ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2255-2276, August.
    37. Kamalaldin, Anmar & Sjödin, David & Hullova, Dusana & Parida, Vinit, 2021. "Configuring ecosystem strategies for digitally enabled process innovation: A framework for equipment suppliers in the process industries," Technovation, Elsevier, vol. 105(C).
    38. Rahul Kapoor & Nathan R. Furr, 2015. "Complementarities and competition: Unpacking the drivers of entrants' technology choices in the solar photovoltaic industry," Strategic Management Journal, Wiley Blackwell, vol. 36(3), pages 416-436, March.
    39. Qiu, Shumin & Liu, Xielin & Gao, Taishan, 2017. "Do emerging countries prefer local knowledge or distant knowledge? Spillover effect of university collaborations on local firms," Research Policy, Elsevier, vol. 46(7), pages 1299-1311.
    40. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    41. Aija Leiponen & Constance E. Helfat, 2010. "Innovation objectives, knowledge sources, and the benefits of breadth," Strategic Management Journal, Wiley Blackwell, vol. 31(2), pages 224-236, February.
    42. Berchicci, Luca, 2013. "Towards an open R&D system: Internal R&D investment, external knowledge acquisition and innovative performance," Research Policy, Elsevier, vol. 42(1), pages 117-127.
    43. Kevin Zheng Zhou & Caroline Bingxin Li, 2012. "How knowledge affects radical innovation: Knowledge base, market knowledge acquisition, and internal knowledge sharing," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1090-1102, September.
    44. Alon Eizenberg, 2014. "Upstream Innovation and Product Variety in the U.S. Home PC Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(3), pages 1003-1045.
    45. Oh, Deog-Seong & Phillips, Fred & Park, Sehee & Lee, Eunghyun, 2016. "Innovation ecosystems: A critical examination," Technovation, Elsevier, vol. 54(C), pages 1-6.
    46. Lamar Pierce, 2009. "Big losses in ecosystem niches: how core firm decisions drive complementary product shakeouts," Strategic Management Journal, Wiley Blackwell, vol. 30(3), pages 323-347, March.
    47. Duan, Yunlong & Wang, Wannan & Zhou, Wei, 2020. "The multiple mediation effect of absorptive capacity on the organizational slack and innovation performance of high-tech manufacturing firms: Evidence from Chinese firms," International Journal of Production Economics, Elsevier, vol. 229(C).
    48. Frank T. Rothaermel & Maria Tereza Alexandre, 2009. "Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity," Organization Science, INFORMS, vol. 20(4), pages 759-780, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Xielin & Ji, Xiaohui & Ge, Shuang, 2024. "Does the complexity and embeddedness of knowledge recombination contribute to economic development? —— Observations from prefecture cities in China," Research Policy, Elsevier, vol. 53(2).
    2. Liao, Zhongju & Chen, Jie & Chen, Xueli & Song, Malin, 2024. "Digital platform capability, environmental innovation quality, and firms’ competitive advantage: The moderating role of environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 268(C).

    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. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    2. Silva, Lucas Emmanuel Nascimento & Gomes, Leonardo Augusto de Vasconcelos & Faria, Aline Mariane de & Borini, Felipe Mendes, 2024. "Innovation processes in ecosystem settings: An integrative framework and future directions," Technovation, Elsevier, vol. 132(C).
    3. Gomes, Leonardo Augusto de Vasconcelos & Flechas, Ximena Alejandra & Facin, Ana Lucia Figueiredo & Borini, Felipe Mendes, 2021. "Ecosystem management: Past achievements and future promises," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    4. Pushpananthan, Gouthanan & Elmquist, Maria, 2022. "Joining forces to create value: The emergence of an innovation ecosystem," Technovation, Elsevier, vol. 115(C).
    5. Miehé, Lucas & Palmié, Maximilian & Oghazi, Pejvak, 2023. "Connection successfully established: How complementors use connectivity technologies to join existing ecosystems – Four archetype strategies from the mobility sector," Technovation, Elsevier, vol. 122(C).
    6. Baldwin, Carliss Y. & Bogers, Marcel L.A.M. & Kapoor, Rahul & West, Joel, 2024. "Focusing the ecosystem lens on innovation studies," Research Policy, Elsevier, vol. 53(3).
    7. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    8. Cozzolino, Alessio & Geiger, Susi, 2024. "Ecosystem disruption and regulatory positioning: Entry strategies of digital health startup orchestrators and complementors," Research Policy, Elsevier, vol. 53(2).
    9. Reiter, Andreas & Stonig, Joachim & Frankenberger, Karolin, 2024. "Managing multi-tiered innovation ecosystems," Research Policy, Elsevier, vol. 53(1).
    10. Song, Yue & Gnyawali, Devi & Qian, Lihong, 2024. "From early curiosity to space wide web: The emergence of the small satellite innovation ecosystem," Research Policy, Elsevier, vol. 53(2).
    11. He, Yubing & Lin, Ting & Zhang, Si, 2023. "Does complementary technology within an ecosystem affect disruptive innovation? Evidence from Chinese electric vehicle listed firms," Technology in Society, Elsevier, vol. 74(C).
    12. Phillips, Mark A. & Ritala, Paavo, 2019. "A complex adaptive systems agenda for ecosystem research methodology," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    13. Effelsberg, Martin, 2011. "Wissenstransfer in Innovationskooperationen: Ergebnisse einer Literaturstudie zur "Absorptive Capacity"," Arbeitspapiere 107, University of Münster, Institute for Cooperatives.
    14. Jarryd Daymond & Eric Knight & Maria Rumyantseva & Steven Maguire, 2023. "Managing ecosystem emergence and evolution: Strategies for ecosystem architects," Strategic Management Journal, Wiley Blackwell, vol. 44(4), pages 1-27, April.
    15. Gomes, Leonardo Augusto de Vasconcelos & Fleury, André Leme & Oliveira, Maicon Gouvêa de & Facin, Ana Lucia Figueiredo, 2021. "Ecosystem policy roadmapping," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    16. Yanzhang Gu & Longying Hu & Hongjin Zhang & Chenxuan Hou, 2021. "Innovation Ecosystem Research: Emerging Trends and Future Research," Sustainability, MDPI, vol. 13(20), pages 1-21, October.
    17. Van Dyck, Marc & Lüttgens, Dirk & Diener, Kathleen & Piller, Frank & Pollok, Patrick, 2024. "From product to platform: How incumbents' assumptions and choices shape their platform strategy," Research Policy, Elsevier, vol. 53(1).
    18. Bo Liu & Yun-Fei Shao & Guowei Liu & Debing Ni, 2022. "An Evolutionary Analysis of Relational Governance in an Innovation Ecosystem," SAGE Open, , vol. 12(2), pages 21582440221, April.
    19. Dai, Guangsong & Zhang, Lanxia & Zhang, Qingqiang & Mao, Mengyu, 2024. "Navigating tensions between value creation and capture in ecosystems," Journal of Business Research, Elsevier, vol. 170(C).
    20. Mahka Moeen & Will Mitchell, 2020. "How do pre‐entrants to the industry incubation stage choose between alliances and acquisitions for technical capabilities and specialized complementary assets?," Strategic Management Journal, Wiley Blackwell, vol. 41(8), pages 1450-1489, August.

    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:techno:v:124:y:2023:i:c:s0166497223000469. 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.sciencedirect.com/science/journal/01664972 .

    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.