A Capability‐Based Framework for Open Innovation: Complementing Absorptive Capacity

TLDR

The study builds on knowledge‑management, absorptive‑capacity, and dynamic‑capability literature to propose an integrative perspective on knowledge exploration, retention, and exploitation within and beyond firm boundaries. The authors aim to extend absorptive capacity into a capability‑based framework for open innovation. The framework defines six knowledge capacities—inventive, absorptive, transformative, connective, innovative, and desorptive—alongside a dynamic knowledge‑management capacity that reconfigures and realigns these capabilities over time. The framework explains interfirm differences in knowledge and alliance strategies, organizational boundaries, and innovation performance.

Abstract

abstract We merge research into knowledge management, absorptive capacity, and dynamic capabilities to arrive at an integrative perspective, which considers knowledge exploration, retention, and exploitation inside and outside a firm's boundaries. By complementing the concept of absorptive capacity, we advance towards a capability‐based framework for open innovation processes. We identify the following six ‘knowledge capacities’ as a firm's critical capabilities of managing internal and external knowledge in open innovation processes: inventive, absorptive, transformative, connective, innovative, and desorptive capacity. ‘Knowledge management capacity’ is a dynamic capability, which reconfigures and realigns the knowledge capacities. It refers to a firm's ability to successfully manage its knowledge base over time. The concept may be regarded as a framework for open innovation, as a complement to absorptive capacity, and as a move towards understanding dynamic capabilities for managing knowledge. On this basis, it contributes to explaining interfirm heterogeneity in knowledge and alliance strategies, organizational boundaries, and innovation performance.