Abstract

ABSTRACT Purpose: The purpose of this paper is to reveal how quantitative empirical studies approach the direct influence of absorptive capacity (AC) on innovation. The AC research field continues to be subject to the phenomenon of reification, since it is still quite scattered. Originality/value: The article contributes to AC’s theoretical approach by compiling a set of forces with AC’s direct influence on innovation. This evaluation has revealed detailed information about this relationship, such as the AC approach used and situations in which it acts as a moderating force in a relationship. Thus, we suggest a structure of influence of AC on innovation. Design/methodology/approach: Systematic literature review based on Tranfield, Denyer, and Smart’s (2003) method was applied. From an initial sample of 231 articles, 37 empirical studies were selected for analysis. We analyzed the AC’s influence on innovation in each paper, as well as the forces that affect that influence. Findings: The results suggest that AC dynamic approach may become dominant within AC and innovation literature, as the number of studies that use this approach grows constantly. However, the validated measurement models proposed by several AC scholars are still underused by most studies. Many empirical studies tend to adapt existing measurement models according to idiosyncratic research needs. In addition, as expected, we identified that intra-firm factors might be as important as environmental factors in transforming firms’ AC into innovation.

Highlights

  • In this paper, we look into the effects of absorptive capacity (AC) on innovation through a systematic literature review

  • The first study containing both the “absorptive capacity” and “innovation” in the title was conducted by Tsai (2001), where he investigated the effects of network position and AC on business unit innovation

  • We found that, overall, AC does have a positive effect on innovation, despite some AC capabilities showing no effect on this relationship (i.e., assimilation capability in Engelman’s et al (2017) and Enkel et al.’s (2017) studies, and transformation capability in Ali et al.’s (2016) study)

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Summary

Introduction

We look into the effects of absorptive capacity (AC) on innovation through a systematic literature review. The expression “absorptive capacity” was established by Cohen and Levinthal (1990) in the paper entitled “Absorptive capacity: a new perspective on learning and innovation”. In this work, Cohen and Levinthal (1990) explained how absorptive capacity could foster innovation and innovative performance within the companies. Twelve years later, Zahra and George (2002) proposed a new model, in which they treated AC as a dynamic capability, and stated that AC helps companies to sustain competitive advantages over competitors, by increasing flexibility, innovation and firms’ performance. AC theory presents theoretical multidimensionality, which promotes its diffusion through integration with other theories, such as network theory, knowledge-based theory, and dynamic capability theory (Apriliyanti & Alon, 2017). The task of translating each element of the theoretical models into empirical constructs is quite challenging

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