From Sensing Shape to Shaping Sense: A Dynamic Model of Absorptive Capacity and Selective Revealing

Abstract

Current theories of how organizations harness knowledge for innovative activity cannot convincingly explain emergent practices whereby firms selectively reveal knowledge to their advantage. We conceive selective revealing as a strategic mechanism to re-shape the collaborative behavior of other actors in the innovation ecosystem. We propose that selective revealing may provide a more effective alternative to known collaboration mechanisms in particular under conditions of high partner uncertainty, high coordination costs, and unwilling potential collaborators. We specify conditions when firms are more likely to reveal knowledge and highlight some boundary conditions for competitor reciprocity. We elaborate upon strategies that allow firms to exhibit managerial agency in selective revealing, and discuss its implications for theories of innovation and management practice.