Managerial ties and open innovation: examining the role of absorptive capacity

Abstract

PurposeThe purpose of this paper is to develop and test an integrated model to examine the relationship between managerial ties and two types of open innovation (OI). It takes into account the mediating role of realized absorptive capacity and explains how a firm’s ability to recognize the value of new information, assimilate it and apply it to commercial ends can facilitate OI.Design/methodology/approachData were collected from 259 middle and top managers working across different sectors in the United Arab Emirates.FindingsResults obtained using structural equation modeling show that managerial ties facilitate both in-bound and out-bound OI. Results also establish the mediating role of realized absorptive capacity in these relationships.Research limitations/implicationsUse of cross-sectional data as was done in this study has been criticized for being inappropriate to test causal models. Besides the findings may not be generalizable to different industries/cultures/regions.Practical implicationsThis study suggests that managerial ties act to support OI in firms thus giving the insight that managers should be appreciated to build ties with managers of other firms, universities and government officials. Doing so can help firms achieve better OI outcomes. Firms should arrange means of interaction of their managers with these external knowledge sources such as events and occasions where managers of different firms can interact with each other to foster strong ties among them.Originality/valueThe above findings contribute theoretically to OI and managerial ties literature while providing insights for practitioners on how to succeed or avoid failure in their OI initiatives. These insights are novel and are new to the OI and managerial ties theory.