IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/4555.html
   My bibliography  Save this paper

Absorptive Capacity: One Size Fits All? Firm-level Analysis of Absorptive Capacity for Different Kinds of Knowledge

Author

Listed:
  • Schmidt, Tobias

Abstract

The paper empirically analyses the effect of R&D activities, human resource and knowledge management, and the organisation of knowledge sharing within a firm on the absorptive capacity of innovative firms for three different types of knowledge, namely absorptive capacity to use knowledge from a firm?s own industry, knowledge from other industries and knowledge from research institutions. Using data from the German innovation survey we investigate how firms are able to exploit knowledge from external partners for successful innovation activities. The estimation results show that the determinants of absorptive capacity differ with respect to the type of knowledge absorbed for innovation activities. In particular we find that the R&D intensity does not significantly influence absorptive capacity for intra- and inter-industry knowledge. Additionally, our results suggest that absorptive capacity is path-dependent and firms can influence their ability to exploit external knowledge by encouraging individuals? involvement in a firm?s innovation projects.

Suggested Citation

  • Schmidt, Tobias, 2005. "Absorptive Capacity: One Size Fits All? Firm-level Analysis of Absorptive Capacity for Different Kinds of Knowledge," ZEW Discussion Papers 05-72, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:4555
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/24168/1/dp0572.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Leahy, Dermot & Neary, J. Peter, 2007. "Absorptive capacity, R&D spillovers, and public policy," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1089-1108, October.
    2. Sofka, Wolfgang & Schmidt, Tobias, 2004. "I Like The Way You Move: An Empirical Investigation into the Mechanisms Behind First Mover and Follower Strategies," ZEW Discussion Papers 04-87, ZEW - Leibniz Centre for European Economic Research.
    3. Grunfeld, Leo A., 2003. "Meet me halfway but don't rush: absorptive capacity and strategic R&D investment revisited," International Journal of Industrial Organization, Elsevier, vol. 21(8), pages 1091-1109, October.
    4. Hajivassiliou, Vassilis & McFadden, Daniel & Ruud, Paul, 1996. "Simulation of multivariate normal rectangle probabilities and their derivatives theoretical and computational results," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 85-134.
    5. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75(2), pages 123-123.
    6. Wesley M. Cohen & Daniel A. Levinthal, 1994. "Fortune Favors the Prepared Firm," Management Science, INFORMS, vol. 40(2), pages 227-251, February.
    7. Cantner, Uwe & Pyka, Andreas, 1998. "Absorbing Technological Spillovers: Simulations in an Evolutionary Framework," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 7(2), pages 369-397, June.
    8. 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.
    9. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
    10. 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.
    11. Belderbos, Rene & Carree, Martin & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2004. "Heterogeneity in R&D cooperation strategies," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1237-1263, November.
    12. Narula, Rajneesh, 2004. "Understanding absorptive capacities in an "innovation systems" context: consequences for economic and employment growth," Research Memorandum 004, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    13. Lionel Nesta & Vincent Mangematin, 1999. "What kind of Knowledge can a firm absorb?," Post-Print hal-03471555, HAL.
    14. Pierre Dussauge & Bernard Garrette & Will Mitchell, 2000. "Learning from competing partners: outcomes and durations of scale and link alliances in Europe, North America and Asia," Strategic Management Journal, Wiley Blackwell, vol. 21(2), pages 99-126, February.
    15. van den Bosch, F.A.J. & van Wijk, R.A.J.L. & Volberda, H.W., 2003. "Absorptive Capacity: Antecedents, Models and Outcomes," ERIM Report Series Research in Management ERS-2003-035-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.
    16. Veugelers, Reinhilde, 1997. "Internal R & D expenditures and external technology sourcing," Research Policy, Elsevier, vol. 26(3), pages 303-315, October.
    17. 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.
    18. 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.
    19. Wolfgang Becker & Juergen Peters, 2000. "Technological Opportunities, Absorptive Capacities, and Innovation," Discussion Paper Series 195, Universitaet Augsburg, Institute for Economics.
    20. Frederico Rocha, 1999. "Inter-Firm Technological Cooperation: Effects Of Absorptive Capacity, Firm-Size And Specialization," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(3), pages 253-271.
    21. Glasgow, Garrett, 2001. "Mixed Logit Models for Multiparty Elections," Political Analysis, Cambridge University Press, vol. 9(2), pages 116-136, January.
    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. Marco Da Rin & María Fabiana Penas, 2017. "Venture capital and innovation strategies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(5), pages 781-800.
    2. 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.
    3. Carmela Elita Schillaci & Marco Romano & Melita Nicotra, 2012. "Science Parks and Entrepreneurship: Enhancing Territorial Absorptive Capacity in a Hostile Region," DSI Essays Series, DSI - Dipartimento di Studi sull'Impresa, vol. 28.
    4. 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.
    5. Mikko Moilanen & Stein Østbye & Kristin Woll, 2014. "Non-R&D SMEs: external knowledge, absorptive capacity and product innovation," Small Business Economics, Springer, vol. 43(2), pages 447-462, August.
    6. 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.
    7. Naijela Janaina Costa Silveira & Diogo Ferraz & Eduardo Polloni‐Silva & Diego Scarpa de Mello & Fernanda Pereira Sartori Falguera & Herick Fernando Moralles, 2022. "Modeling the building blocks of country‐level absorptive capacity: Comparing developed and emergent economies," Bulletin of Economic Research, Wiley Blackwell, vol. 74(3), pages 783-824, July.
    8. Tobias Schmidt & Wolfgang Sofka, 2005. "Lost in Translation - Empirical Evidence for Liability of Foreignness as Barriers to Knowledge Spillovers," Industrial Organization 0512012, University Library of Munich, Germany.
    9. 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.
    10. Schillaci Carmela Elita & Romano Marco & Nicotra Melita, 2013. "Territory’s Absorptive Capacity," Entrepreneurship Research Journal, De Gruyter, vol. 3(1), pages 109-126, January.
    11. Camisón, César & Forés, Beatriz, 2010. "Knowledge absorptive capacity: New insights for its conceptualization and measurement," Journal of Business Research, Elsevier, vol. 63(7), pages 707-715, July.
    12. Han, Sang Yun & Bae, Sung Joo, 2014. "Internalization of R&D outsourcing: An empirical study," International Journal of Production Economics, Elsevier, vol. 150(C), pages 58-73.
    13. Constantina Kottaridi & Marina Papanastassiou & Christos Pitelis & Dimitrios Thomakos, 2007. "The Multinational Corporation and the global sourcing of knowledge: Remodeling absorptive capacity," Working Papers 008, University of Peloponnese, Department of Economics.
    14. 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.
    15. D׳Souza, Derrick E. & Kulkarni, Shailesh S., 2015. "A framework and model for absorptive capacity in a dynamic multi-firm environment," International Journal of Production Economics, Elsevier, vol. 167(C), pages 50-62.
    16. Manuela Gussoni, 2009. "The determinants of inter-firms R&D cooperation and partner selection. A literature overview," Discussion Papers 2009/86, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    17. Sánchez-Sellero, Pedro & Rosell-Martínez, Jorge & García-Vázquez, José Manuel, 2014. "Absorptive capacity from foreign direct investment in Spanish manufacturing firms," International Business Review, Elsevier, vol. 23(2), pages 429-439.
    18. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    19. 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.
    20. Schmidt, Tobias & Sofka, Wolfgang, 2009. "Knowledge sourcing: legitimacy deficits for MNC subsidiaries?," Discussion Paper Series 1: Economic Studies 2009,09, Deutsche Bundesbank.

    More about this item

    Keywords

    absorptive capacity; R&D; innovation management; innovation survey;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    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:zbw:zewdip:4555. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zemande.html .

    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.