Abstract
This paper examines the performance implications of efforts in absorptive capacity (AC) development for new ventures, companies in their eight first years of existence. We distinguish between corporate ventures (CVs) and ventures created by independent entrepreneurs (IVs) and explore the extent to which they vary in (1) the emphasis on building different AC dimensions and (2) their performance gains from AC dimensions. Using data from 140 new ventures, our results show that CVs emphasize potential AC (combining acquisition and assimilation) more than IVs. Conversely, IVs focus more on exploiting external knowledge. We also find that efforts in activating realized AC (combining transformation and exploitation) have a negative effect on the performance of new ventures that is stronger for CVs than IVs. Yet, this negative effect of realized AC on new venture performance is mitigated when combined with efforts in potential AC in the case of CVs. The implications of our study for research into the multidimensional nature of AC and the dynamic capabilities approach are discussed.
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