Putting the cart (antecedents) before the horse (absorptive capacity): the role of competitive antecedents to the absorptive capacity innovation process

• Published in: Journal of knowledge management 2022-09, Vol.26 (9), p.2306-2332
• Main Authors: Ng, Desmond, Sanchez-Aragon, Leonardo F.
• Format: Article
• Language: English
• Subjects: Absorptive capacity; Absorptivity; Biotechnology; Business competition; Competition; Competitive advantage; Innovations; Knowledge; Knowledge management; Market shares; Mediation
• ISSN: 1367-3270; 1758-7484; 1367-3270
• DOI: 10.1108/JKM-07-2021-0518

Purpose The purpose of this study is to theoretically and empirically advance a concept of competitive antecedents to absorptive capacity (AC) research and to explain their relationship to a firm’s innovative performance. A firm’s competitive antecedents involve a relative advantage in a firm’s ability to access external knowledge – (i.e. relative advantage in external knowledge flows) – and a relative advantage in appropriating these external knowledge flows (i.e. relative advantage in appropriability regime). Design/methodology/approach By drawing on network and market share explanations, hypotheses were developed in which a firm’s AC is argued to mediate the influence of these competitive antecedents on a firm’s innovations. In using linear and negative binomial estimation methods, a mediation analysis of the US biotechnology industry was conducted. Findings A firm’s competitive antecedents have a positive influence on a firm’s AC and that these influences indirectly impact a biotechnology firm’s product innovations. Originality/value While a firm’s innovation is widely attributed to its AC, this study’s concept of competitive antecedents shows that a firm’s competitive advantage lies upstream from its AC.