Abstract

PurposeThe purpose of this paper is to theoretically develop and empirically explore knowledge absorption, combination and desorption within and between organizations.Design/methodology/approachOn the basis of knowledge-based view and absorptive capacity, the authors have conducted a multiple-case study to develop a theoretically grounded and empirically supported model of intra- and inter-firm knowledge cycles.FindingsFirms identify their knowledge gaps and stocks, both tacit and explicit, undertaking efforts to fill the latter and maximize the value of the former. The paper finds that knowledge exploration, integration and exploitation both within the firm and between firms relies on absorptive, combinative and desorptive capacities. Further, as such capacities are organizationally expensive to maintain, firms will often emphasize one capacity over the other and focus either internally or externally to meet organizational goals.Originality/valueWhile there is extensive research into absorptive capacity and some into combinative capacity, there is little empirical investigation of desorptive capacity and none into the integration of the three concepts; this paper seeks to fill that gap. Moreover, the resulting novel integrative model allows managers and researchers to identify the various capacities in use and their applications within the firm and between firms.

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