Knowledge Transfer in Quadruple Helix Ecosystems: An Absorptive Capacity Perspective

Increased understanding of knowledge transfer (KT) from universities to the wider regional knowledge ecosystem offers opportunities for increased regional innovation and commercialisation. The aim of this article is to improve the understanding of the KT phenomena in an open innovation context where multiple diverse quadruple helix stakeholders are interacting. An absorptive capacity-based conceptual framework is proposed, using a priori constructs which portrays the multidimensional process of KT between universities and its constituent stakeholders in pursuit of open innovation and commercialisation. Given the lack of overarching theory in the field, an exploratory, inductive theory building methodology was adopted using semi-structured interviews, document analysis and longitudinal observation data over a three-year period. The findings identify five factors, namely human centric factors, organisational factors, knowledge characteristics, power relationships and network characteristics, which mediate both the ability of stakeholders to engage in KT and the effectiveness of knowledge acquisition, assimilation, transformation and exploitation. This research has implications for policy makers and practitioners by identifying the need to implement interventions to overcome the barriers to KT effectiveness between regional quadruple helix stakeholders within an open innovation ecosystem.

A novel approach to national technological accumulation and absorptive capacity: aggregating Cohen and Levinthal

The paper develops a more precise specification and understanding of the process of national-level knowledge accumulation and absorptive capabilities by applying the reasoning and evidence from the firm-level analysis pioneered by Cohen and Levinthal (1989, 1990). In doing so, we acknowledge that significant cross-border effects due to the role of both inward and outward FDI exist and that assimilation of foreign knowledge is not only confined to catching-up economies but is also carried out by countries at the frontier-sharing phase. We postulate a non-linear relationship between national absorptive capacity and the technological gap, due to the effects of the cumulative nature of the learning process and the increase in complexity of external knowledge as the country approaches the technological frontier. We argue that national absorptive capacity and the accumulation of knowledge stock are simultaneously determined. This implies that different phases of technological development require different strategies. During the catching-up phase, knowledge accumulation occurs predominately through the absorption of trade and/or inward FDI-related R&D spillovers. At the pre-frontier-sharing phase onwards, increases in the knowledge base occur largely through independent knowledge creation and actively accessing foreign-located technological spillovers, inter alia through outward FDI-related R&D, joint ventures and strategic alliances.

Understanding absorptive capacity in Malaysian small and medium sized (SME) construction companies

Purpose – The construction industry is a very important part of the Malaysian economy. The government's aim is to make the industry more productive, efficient and safe. Small to medium-sized enterprises (SMEs) are at the core of the Malaysian construction industry and account for about 90 per cent of companies undertaking construction work. One of the main challenges faced by the Malaysian construction industry is the ability to absorb new knowledge and technology and to implement it in the construction phase. The purpose of this paper is to consider absorptive capacity in Malaysian construction SMEs in rural areas. Design/methodology/approach – The research was conducted in three stages: first, understanding the Malaysian construction industry; second, a literature review on the issues related to absorptive capacity and discussions with the Construction Industry Development Board (CIDB); and third, multiple case studies in five construction SMEs operating in a rural area to validate the factors influencing absorptive capacity. Findings – Nine key factors were identified influencing absorptive capacity in Malaysian construction SMEs operating in rural areas. These factors involved: cost and affordability; availability and supply; demand; infrastructure; policies and regulations; labour readiness; workforce attitude and motivation; communication and sources of new knowledge and; culture. Originality/value – The key factors influencing absorptive capacity presented in this paper are based on validation from the case studies in five construction SMEs in Malaysia. The research focuses on how they operate in rural areas; however, the research results have wider application than just Malaysia. The key factors identified as influencing absorptive capacity can serve as a basis for considering knowledge absorption in the wider context by SMEs in other developing countries.

Procedural justice, not absorptive capacity, matters in multinational enterprise ICT transfers

This paper empirically tests the effectiveness of information and communications technology (ICT) knowledge transfer and adoption in the multinational enterprise (MNE) as an issue of critical importance to contemporary MNE functioning. In contrast to mainstream thinking on absorptive capacity, but in line with prevailing international business theory, our research supports the proposition that perceptions of procedural justice, rather than absorptive capacity, determine effectiveness, especially in cases of high tacit knowledge transfers. Data was collected from senior ICT representatives in 86 Canadian subsidiaries of foreign owned MNEs. Each of these subsidiaries recently experienced a significant ICT transfer imposed by the parent organization. Support was found for the main propositions: Procedural justice significantly predicted successful ICT transfer and adoption, while absorptive capacity was not significant. These findings are consistent even when knowledge tacitness was high. The perceived success of the ICT transfer as well as its adoption varied widely across these firms. The potential reasons for this divergence in effectiveness are manifold, but our findings suggest that in situations of substantial knowledge tacitness, a higher level of procedural justice, rather than a higher level of absorptive capacity, is critical to effective transfer and adoption.

Pervasive limitations : innovating with ambient intelligence (AmI) technologies and restricted absorptive capacity in Australian SME manufacturers

The last 25 years have seen rapid increases in the number and sophistication of technological and process innovations in large manufacturers, producing dramatic improvements in productivity and efficiency. However, smaller manufacturers’ adoption of such innovations has been uneven. Ambient Intelligence (AmI) technologies are being positioned as the next performance and productivity enhancing purchase for manufacturers. This paper defines and gives examples of AmI technologies in current use, summarises AmI technologies of potential interest to small and medium enterprise (SME) manufacturers, and identifies potential impacts of restricted absorptive capacity in SMEs on the adoption of AmI technologies. Comparing two SME manufacturers, one from Germany and one from Australia illustrates a potential application of generic AmI technology based business solutions to a range of SME manufacturers.

Clarifying the link between social capital and MSME innovation performance : the role of absorptive capacity

A conceptual framework is proposed in this article showing how the social capital of a community shapes the innovation performance of micro, small and medium enterprises (MSMEs) through the exercise of absorptive capacity as the mediating phenomenon between the two. Its significance stems from the unprecedented effort of explaining how community social capital matters in the innovation performance of MSMEs, a departure from previous studies which typically examined market-related or hierarchical social capital in the form of formal networks and directly linking them to firm innovation without due regard to knowledge management within the firm as an antecedent of organizational innovation. The aim is to stimulate further thinking and empirical research on the subject of social capital of a community in an MSME and/or entrepreneurial context.

Linking BI competency and assimilation through absorptive capacity: a conceptual framework

Business intelligence (BI) can help support decision-making processes and so contribute to improved BI assimilation and organisational performance. However, a BI undertaking may be effective and profitable for some organisations but not others. How can these differing outcomes be explained for those firms that have adopted BI systems? Drawing on the literature pertaining to absorptive capacity theory, IT competency, and BI assimilation we develop a conceptual framework to investigate the relationships between BI competency, absorptive capacity, and BI assimilation. This research provides insights for BI stakeholders in understanding the mediating role of organisational absorptive capacity within a complex BI environment, enabling many organisations that have implemented BI to leverage the benefits from their costly investments. The conceptual framework provides a sound basis for further research to shed light on the effects of BI competency and organisational absorptive capacity on BI assimilation. Contributions to research and practice are discussed.