Absorptive capacity and the identification of opportunities in new technology-based firms

Rognvaldur J. Saemundsson, Marina Candi*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

The purpose of this work is to investigate relationships between knowledge and opportunities in new ventures. More specifically, this work proposes and empirically tests how potential absorptive capacity is related with the identification of opportunities in new technology-based firms (NTBFs). To take into account the unique nature of NTBFs we divide potential absorptive capacity into problem absorptive capacity, i.e. the ability to identify and acquire knowledge of the goals, aspirations and needs of current and potential customers, and solution absorptive capacity, i.e. the ability to identify and acquire external knowledge of solutions to fulfill them. We develop three hypotheses, which predict that both problem absorptive capacity and solution absorptive capacity will be positively related with the identification of opportunities in NTBFs and that they will reinforce each other. The findings support the importance of making a distinction between the two proposed dimensions of potential absorptive capacity and shed light on their effectiveness and interaction for the identification of opportunities.

Original languageEnglish
Pages (from-to)43-49
Number of pages7
JournalTechnovation
Volume64-65
Early online date27 Jun 2017
DOIs
Publication statusE-pub ahead of print - 27 Jun 2017

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