From Sensing Shape to Shaping Sense: A Dynamic Model of Absorptive Capacity and Selective Revealing

• Main Authors: ALEXY, Oliver, GEORGE, Gerard, SALTER, Ammon
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Absorptive capacity; Knowledge; Selective revealing; knowledge production; innovation strategy; Strategic Management Policy; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4915; https://proceedings.aom.org/content/2011/1/1.61.short?rss=1
• Institution: Singapore Management University

The concept of absorptive capacity is mainly agnostic to the iterative nature of knowledge production processes. We extend it to a dynamic model, in which firms can influence future spillovers they receive by selectively revealing knowledge today. We derive two strategies, signaling and steering, allowing firms to exhibit managerial agency to increase structural and content compatibility of external knowledge. We explicate potential goals, highlight boundary conditions, and discuss implications for innovation strategy and organization theory.