How open innovation practices drive innovation performance: moderated-mediation in the interplay between overcoming syndromes and capabilities

Purpose This paper aims to investigate whether and under what conditions open innovation (OI) drives innovation performance (IP) in the financial sector. To this end, the paper first analyzes in-depth the indirect effect of overcoming two attitudinal mediators, namely, not-invented-here syndrome (NIHS) and not-sold-here syndrome (NSHS). It then uses dynamic capabilities theory to hypothesize that the indirect effects are moderated by absorptive and desorptive capabilities, respectively. Design/methodology/approach The authors perform an empirical study of major Spanish financial entities. Data are collected from 288 questionnaires from employees at branches of 13 bank entities. Regression analysis tests the mediating role of overcoming syndromes and the moderated-mediating role of dynamic capabilities in the OI–IP relationship. Findings Results confirm the indirect effect of overcoming NIHS on the relationship between outside-in OI and IP, and the indirect effect of overcoming NSHS on the relationship between inside-out OI and IP. Further, absorptive capacity moderates the indirect effect between outside-in OI practices and IP by overcoming NIHS, and desorptive capacity moderates the indirect effect between inside-out OI practices and IP by overcoming NSHS. Originality/value This paper advances knowledge by explaining discrepancies in the sign of the OI–IP relationship. By introducing comprehensive absorptive and desorptive capacity models to explain OI, it advocates an integrative framework to understand OI activities and their outcomes. Managers should develop these capacities using human talent training and cultural values development to mitigate NIHS and NSHS and optimize firms’ OI efforts and the improved IP benefits derived from them.

The Relationship between Patents, Technology Transfer and Desorptive Capacity in Korean Universities

This study sought to examine the relationship between patent rights and technology transfer performances of Korean universities and to analyze the moderating effect of the desorptive capacity of industry-academic cooperation foundations. Through this, we study the impact of universities’ patents on both the number of licenses and the license incomes of the universities. We also examine the meaning of the desorptive capacity between them. Regression analysis and structural equation modeling are performed by using the number of patents registered as an independent variable, the number of licenses and license incomes as dependent variables and the desorptive capacity as a moderating variable. The analysis shows that the patent had a positive relationship with both the number of licenses and license incomes. Desorptive capacity had no significant effect between patents and the number of technology transfers. However, it is seen as having a moderating effect between patents and licensing fees from the technology transfers. This paper meaningfully illustrates the desorptive capacity of the industry-academic cooperation foundation from the perspective of outbound open innovation and analyzes the moderating effect of desorptive capacity in relation to patent rights and technology transfer performances.

Factors Affecting the Outbound Open Innovation Strategies in Pharmaceutical Industry: Focus on Out-Licensing Deal

The pharmaceutical industry is a high-technology industry that requires a combination of in-depth knowledge from various fields. It is characterized by high cost, high risk and a long-term perspective due to the high level of regulation. In addition, it is known that research and development (R&D) productivity is deteriorating in the industry. Under these conditions, the importance of open innovation strategies has been emphasized. Under an open innovation system, it is essential for firms to develop several dynamic capabilities to effectively manage their resources both internally and externally. Using a systematic framework of dynamic capabilities suggested by previous studies, this study focuses on the determinants affecting firms’ desorptive capacities, which are measured as the number of out-licensing deals, as an indicator for the performance of their outbound innovation. For the analysis, negative binomial regression is employed and inventive capacity and connective capacity are selected as the determinants of the licensors’ desorptive capacity. The results of regression analysis reveal that inventive capacity does not have a significant effect on desorptive capacity and that only connective capacity has a significant positive effect on desorptive capacity.

Examining desorptive capacity in supply chains: the role of organizational ambidexterity

Purpose The purpose of this paper is to explain how a buying organization’s desorptive capacity relative to its supply network enhances the organization’s supply chain competence. The research also analyzes the contingent role of the balanced and combined dimensions of ambidexterity in this relationship. Design/methodology/approach Empirical results are obtained through analysis of survey data from a sample of 270 European firms. Hierarchical regression analysis is used to test the hypotheses. Findings The results confirm, first, the positive and significant relationship between the buying organization’s desorptive capacity and supply chain competence; and, second, the key moderating role of organizational ambidexterity, especially in its combined dimension, in this relationship. Practical implications The study suggests that desorptive capacity is key to the organization’s contribution to supply chain competitiveness. The authors also provide practitioners with better understanding of the extent to which they should attempt to balance exploration and exploitation or/and to maximize both simultaneously when seeking greater benefit from desorptive capacity. Originality/value This study extends desorptive capacity research to supply chain management. It responds to calls in the desorptive capacity literature for deeper understanding of the benefits of desorptive capacity and of the role organizational ambidexterity plays in the success of desorptive capacity. By analyzing the independent effects of the combined and balanced dimensions of ambidexterity, the authors advance conceptual and operational understanding of the role of ambidexterity needed in the literature.

Supply network-enabled innovations. An analysis based on dependence and complementarity of capabilities

Purpose This paper aims to seek to explain the influence of power asymmetry and the moderating role of an organization’s absorptive and desorptive capacity on enhancing supply chain competence from its orientation to open innovation with its supply network. Design/methodology/approach To perform this study, the authors use data collected from 262 European firms. They apply regression analysis to test the moderating role of an organization’s absorptive and desorptive capacity on enhancing its supply chain competence from its orientation to open innovation. Findings The results confirm both the influence of power asymmetry and absorptive capacity on obtaining benefits that derive from an organization’s orientation to open innovation. The results do not, however, support the moderating effect of an organization’s desorptive capacity. Subsequent analyses performed in the study show that organizations that achieve complementarity among their own absorptive capacity and the capacities of its supply network manage to obtain greater benefits from its orientation to open innovation. Originality/value This paper responds to the need to study innovation in the context of a supply network and respond to calls in the literature on open innovation and supply chain management for the need to study the moderating role of absorptive and desorptive capacity.

The role of absorptive and desorptive capacity (ACDC) in sustainable supply management

Purpose – Sustainable supply management (SSM) has attracted considerable attention from researchers in recent years concentrating on how firms develop and use SSM capabilities to meet stakeholder demands. Acquiring and sharing sustainability knowledge with suppliers have been identified as critical success factors of SSM. The purpose of this paper is to identify the mechanisms that allow firms to effectively acquire and share sustainability-related knowledge with suppliers and how these knowledge generation and desorption mechanisms support the evolution of firm SSM capabilities. Design/methodology/approach – To address the research purpose, four longitudinal case studies, two industry leaders in SSM and two industry followers, were conducted at multiple consecutive points in time between 2008 and 2013. Findings – The results indicate which mechanisms constitute a sustainability-related absorptive and desorptive capacity and how they support SSM. Thereby, this research explains which mechanisms support firms to acquire sustainability knowledge, assimilate and exploit it and also share it with their suppliers over time. Research limitations/implications – This research sheds light on the development and refinement of SSM capabilities by studying the explorative and exploitative learning cycles within focal buying firms taking place over time. Findings indicate a multiplicity in applying absorptive capacity- and desorptive capacity-related mechanisms yields an ambidextrous ability to simultaneously exploit existing knowledge through incremental SSM improvements and explore new SSM knowledge for more radical refinements of SSM capabilities. Practical implications – The results provide a blueprint for firms, especially for sustainability followers, seeking to develop effective SSM capabilities. Furthermore, the results explain which mechanisms support firms to acquire, assimilate and exploit sustainability knowledge and also to share it with their suppliers. Originality/value – SSM knowledge acquisition, assimilation, exploitation and sharing takes place over time in focal buying firms. This ongoing process helps explain how an SSM capability development and refinement is manifested in both leaders and followers.

AN INDIVIDUAL PERSPECTIVE ON OPEN INNOVATION CAPABILITIES IN THE CONTEXT OF HAUTE CUISINE

Previous research on open innovation (OI) has primarily focused on the organisational level of R&D intensive industries. With this paper, we contribute to research on the individual level of analysis by analysing specific perspectives in the context of creative industries. Our study is based on 36 interviews with Haute cuisine chefs in France, Germany, Great Britain, Italy, Spain, Sweden, and Switzerland listed in the 2012 Michelin Guide. Building on the OI capability concept, our results demonstrate that chefs use absorptive and desorptive capacity (AC, DC) as means to generate and market culinary innovations, respectively. Moreover, we found that chefs almost exclusively rely on their own inventive and innovative capabilities in the early stages of the culinary innovation process. In subsequent phases, however, chefs increasingly integrate other sources such as employees, suppliers, and guests. Our study contributes to the literature in two ways. First, we research the individual level within the OI process, and second, we provide insight into OI practices in the creative industries.