Business, Management and Accounting
5 years ago

Firms' Innovation Boosted by Absorptive Capacity, Slack, and Competition

1 view
Technology Analysis and Strategic Management
Managing external knowledge search: the multiple and contingent roles of absorptive capacity
Yueqi Wang, Bin Guo

Paper Summary

External knowledge search is crucial for firm innovation. Absorptive capacity, financial slack, and industrial competition influence how firms seek external knowledge. A study with 298 US manufacturing firms shows that absorptive capacity affects external knowledge search, but this effect is weaker in highly competitive industries. This research provides insights for future studies and practical implications for firms.

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