Publication Type
Journal Article
Version
Publisher’s Version
Publication Date
2-2018
Abstract
For nearly 30 years, ACAP has been the bedrock of theories of innovation. A meta-analysis is timely to glean insights from the rich empirical evidence to date and guide future work on the topic. Our meta-analysis of 241 studies reveals that ACAP is a strong predictor of innovation and knowledge transfer, and that its effects on financial performance are fully mediated by these two outcomes. As different from most theoretical discourse, we also find that the firm size-ACAP relationship is positive for small firms but negative for larger firms and that the firm age-ACAP relationship is negative for mature firms and not significant for young firms. Our findings present a clearer picture of the performance implications of ACAP and also suggest the need to revisit traditional theoretical arguments on innovation, especially regarding the causal arguments underlying age and size. These results provoke scholars to revisit traditional assumptions of organizations and their patterns of innovation. Finally, we also take this opportunity to investigate factors that have been commonly considered to be relevant for the ACAP-innovation relationship, as we detail in our additional analysis.
Keywords
absorptive capacity, innovation, meta-analysis, firm size, firm age, knowledge transfer
Discipline
Strategic Management Policy | Technology and Innovation
Research Areas
Strategy and Organisation
Publication
Innovation: Management, Policy and Practice
Volume
20
Issue
2
First Page
87
Last Page
121
ISSN
1447-9338
Identifier
10.1080/14479338.2018.1428105
Publisher
Taylor & Francis
Embargo Period
2-12-2018
Citation
ZOU, Tengjian; ERTUG, Gokhan; and GEORGE, Gerard.
The capacity to innovate: A meta analysis of absorptive capacity. (2018). Innovation: Management, Policy and Practice. 20, (2), 87-121. Research Collection Lee Kong Chian School Of Business.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5604
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Additional URL
https://doi.org/10.1080/14479338.2018.1428105