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Exercising Opportunities For Cross-Industry Innovation: How To Support Absorptive Capacity In Distant Knowledge Processing

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  • SEBASTIAN HEIL

    (Dr. Manfred Bischoff Institute of Innovation Management of Airbus Group, Zeppelin University, Am Seemoser Horn 20, 88045 Friedrichshafen, Germany)

  • ELLEN ENKEL

    (Dr. Manfred Bischoff Institute of Innovation Management of Airbus Group, Zeppelin University, Am Seemoser Horn 20, 88045 Friedrichshafen, Germany)

Abstract

Organisational-level cognitive distance between the source of knowledge and the applying firm is positively related to radical innovation, but hinders processing of distant knowledge as it is constrained by the firms absorptive capacity. We examine how determinants of absorptive capacity foster processing of distant knowledge from other industries. Using survey data from 125 firms across industrial sectors, structural equation modelling indicates that the relationship between a firms potential absorptive capacity and its cross-industry innovation outcomes and performance is fostered by collaborative learning activities and deliberate integration mechanisms. There is a direct negative effect of potential absorptive capacity on cross-industry innovation outcomes. Our results extend research on absorptive capacity to the context of cross-industry innovation. They reveal that although firms may have high levels of potential absorptive capacity, they may fail to exercise opportunities for cross-industry innovation. We provide means for managers to enhance absorptive capacity when moving beyond industry boundaries.

Suggested Citation

  • Sebastian Heil & Ellen Enkel, 2015. "Exercising Opportunities For Cross-Industry Innovation: How To Support Absorptive Capacity In Distant Knowledge Processing," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 19(05), pages 1-40.
    • Handle: RePEc:wsi:ijimxx:v:19:y:2015:i:05:n:s1363919615500486
    DOI: 10.1142/S1363919615500486
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    Citations

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    Cited by:

    1. Enkel, Ellen & Heil, Sebastian & Hengstler, Monika & Wirth, Henning, 2017. "Exploratory and exploitative innovation: To what extent do the dimensions of individual level absorptive capacity contribute?," Technovation, Elsevier, vol. 60, pages 29-38.
    2. Runbo Zhao & Huiying Zhang & Marina Yue Zhang & Fei Qu & Yunlong Xu, 2023. "Competitor-Weighted Centrality and Small-World Clusters in Competition Networks on Firms’ Innovation Ambidexterity: Evidence from the Wind Energy Industry," IJERPH, MDPI, vol. 20(4), pages 1-18, February.
    3. Patrick Spieth & Svenja Meissner Née Schuchert, 2018. "Business Model Innovation Alliances: How To Open Business Models For Cooperation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-26, May.
    4. Cuervo-Cazurra, Alvaro & Rui, Huaichuan, 2017. "Barriers to absorptive capacity in emerging market firms," Journal of World Business, Elsevier, vol. 52(6), pages 727-742.
    5. Carmona-Lavado, Antonio & Gimenez-Fernandez, Elena M. & Vlaisavljevic, Vesna & Cabello-Medina, Carmen, 2023. "Cross-industry innovation: A systematic literature review," Technovation, Elsevier, vol. 124(C).
    6. Del Sarto, Nicola & Cruz Cazares, Claudio & Di Minin, Alberto, 2022. "Startup accelerators as an open environment: The impact on startups’ innovative performance," Technovation, Elsevier, vol. 113(C).
    7. Hilda Bø Lyng & Eric Christian Brun, 2020. "Innovating with Strangers; Managing Knowledge Barriers Across Distances in Cross-Industry Innovation," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-33, February.
    8. John Bessant & Howard Rush & Anna Trifilova, 2015. "Crisis-Driven Innovation: The Case Of Humanitarian Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 19(06), pages 1-17, December.

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