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The influence of absorptive capacity on market-driving innovation performance

Citation

Thongpravati, O and Reid, M, The influence of absorptive capacity on market-driving innovation performance, Proceedings of the 23rd Innovation & Product Development Management Conference, 12-14 June 2016, Glasgow, Scotland (2016) [Refereed Conference Paper]

Abstract

Market-driving product innovations are argued to be a source of sustainable competitive advantage. A firmís absorptive capacity (ACAP) or the organizational dynamic learning capability to acquire and exploit external knowledge is increasingly being recognized as one of the most influential determinants of market-driving innovations and business performance; yet, there is limited empirical evidence to understand these relationships atthe NPD program level.Drawing on resource-based view and dynamic capability theory this research examines the influence of ACAP, with its subsets, potential absorptive capacity (PACAP)and realized absorptive capacity (RACAP),on specific outcomes of market-driving innovation performance (MDIP). Using partial-least squares structural equation modelling and a sample of 179managers of top innovative companies in Thailand,we find that ACAP significantly influences the before-launch stage and post-launch stage performance outcomes of market-driving innovations at the program level -specifically, the ability to maintain breakthrough integrity of product concepts through the process, to achieve early success with customers and speed-to market, and to open windows of opportunity-and ultimately, financial performance.This study contributes to the advancement of market-driving innovations, not only for Thailand, but also more broadly for other countries and locations; thus, leading to significant theoretical and practical implications.

Item Details

Item Type:Refereed Conference Paper
Keywords:breakthrough, market-driving, product innovation, absorptive capacity, program performance
Research Division:Commerce, Management, Tourism and Services
Research Group:Strategy, management and organisational behaviour
Research Field:Innovation management
Objective Division:Economic Framework
Objective Group:Management and productivity
Objective Field:Technological and organisational innovation
UTAS Author:Thongpravati, O (Dr Onnida Thongpravati)
ID Code:137235
Year Published:2016
Deposited By:TSBE
Deposited On:2020-02-05
Last Modified:2021-06-15
Downloads:0

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