Constituents and outcomes of absorptive capacity – appropriability regime changing the game

Abstract

Purpose

Recent research and practice have put a great deal of effort into finding efficient ways of managing and organizing to promote innovation within organizations. This study aims to continue this trend in addressing issues related to knowledge transfer and protection through examining roles of absorptive capacity and appropriability regimes and the interplay between them. An appropriability regime can play a dual role when external knowledge and the knowledge‐base of the firm form the basis for absorptive capacity, which then contributes to innovation performance.

Design/methodology/approach

The study provides an empirical examination of the direct and moderating roles of appropriability regime regarding the above‐mentioned dual role. Data collected from 335 firms was utilized to perform regression analyses.

Findings

The empirical evidence suggests, first, that the strength of the appropriability regime has a positive effect on absorptive capacity (especially the acquisition of knowledge) together with good connectedness to external knowledge sources and high levels of internal R&D. In addition, support can be found for the idea of absorptive capacity and the appropriability regime being positively related to innovation performance. Both direct and moderating effects can be found, but they are slightly different for knowledge acquisition and application.

Originality/value

This study contributes to prior studies by producing empirical evidence on the relationships described above. An important issue is also that it departs from prior works by viewing an appropriability regime as a factor that can be affected by the firm (i.e. as a strategic tool), and not as a purely environmental or external factor.

Citation

Hurmelinna‐Laukkanen, P. (2012), "Constituents and outcomes of absorptive capacity – appropriability regime changing the game", Management Decision, Vol. 50 No. 7, pp. 1178-1199. https://doi.org/10.1108/00251741211246950