We use detailed longitudinal data on firms, human capital and universities to study the impact of geographical proximity to knowledge sources and local absorptive capacity on the location of knowledge-based start-ups in the Portuguese regions. There are significant differences in new firm formation in knowledge based sectors among Portuguese regions. Using municipalities as the regional unit of...

Cooperation can benefit and hurt firms at the same time. An important question then is: when is it better to cooperate. And how can an appropriate partner be selected? In this paper we present a model of inter-firm cooperation driven by cognitive distance, appropriability conditions and external knowledge. Absorptive capacity of firms develops as an outcome of the interaction between absorptive...

For firms in complex, uncertain, and high-velocity environments a source for competitiveness is their external knowledge-related relationships. Information and communication technologies (ICT) can play an important role in knowledge-intensive processes and flows. Using the dynamic capability and absorptive capability views the paper presents and discusses how ICT can be used to enhance knowledg...

Every firm learns through firm specific methods. This learning process is operationalized by firm’s knowledge management practices. Therefore, knowledge to result in successful learning should be assisted by a combinative framework which can enhance a firms’ absorptive capability. This in turn will play a decisive role for achieving competitive advantage. Current literature in strategic managem...

Absorptive capacity is the principle that assimilating new knowledge requires prior knowledge. The attendant prescription is to invest more in R&D to derive greater benefit from the R&D of others (spillovers). Empirical tests of R&D productivity typically find absorptive capacity (R&D*rival R&D) to be significant. This result poses a puzzle however: What can a firm conducting 50% of industry R&...

The purpose of this paper is to study the firms’ internal knowledge in combination with the external knowledge diversity in their region to examine their joint relation to export diversification. Using a data set of the full population of Swedish manufacturing exporters for the period 2003-2013, allows for identifying when firms introduce new products on the export market. The results indicate ...

Exploring how organizational antecedents affect potential and realized absorptive capacity, this study identifies differing effects for both components of absorptive capacity. Results indicate that organizational mechanisms associated with coordination capabilities (cross-functional interfaces, participation in decision making, and job rotation) primarily enhance a unit’s potential absorptive c...

In this paper we focus on large-scale IS implementation using the lens of absorptive capacity. Our case study concentrates on the double loop learning process that occurs over the implementation phase of ERP which we depict as a series of learning cycles. From this perspective, ERP implementation is best viewed not as a one-time process but rather as a series of implementation and practical use...

This paper aims to gain a better understanding of KMS success. Based on the absorptive capacity theory, we develop a research model to explain how the use of KMS increases organizational performance by increasing the organizational absorptive capacity and the higher order capabilities. The absorptive capacity plays an important role in transforming KMS usage into agility and innovativeness and ...

In this paper we suggest that ES (Enterprise systems) implementation is an absorptive capacity (AC) challenge. However, we acknowledge that the insights provided by the AC lens are limited in that the construct takes into account only the possession perspective of knowledge and the concept of power is very weakly discussed. We argue that ES implementations, especially if seen from a process per...